For quite a while, California and its coastal cities were a prime spot for tech entrepreneurs to live and thrive, with even a whole region receiving the now famous nickname “the Silicon Valley” due to a high number of manufacturers in the region specializing in silicon-based products, like computer chips.
Nowadays however, it looks increasingly likely that Miami is the next tech hub. But how can a city in the coast of Florida take the place of the mighty Silicon Valley? To answer that, we will have to start in the beginning,
The Origins of Silicon Valley
Before World War 2, the area known today as Silicon Valley was nothing more than a bunch of small countryside towns, with hardly anything noteworthy.
However, amid growing tensions in the 1940’s, the U.S began investing massively in technology, and a number of labs and research centers were created all around the country, especially in San Francisco.
With continued investment in the private sector by the American government during the Cold War, a myriad of companies was founded and young entrepreneurs moved to the valley, creating a prime location for innovation and making Silicon Valley the world’s foremost tech hub.
The Current State of San Francisco
As time passed, however, and as more and more people from around the U.S and the world started moving to San Francisco and its surrounding areas, some unexpected and unwelcome side effects started to manifest.
Rents and the price of homes started to grow exponentially as taxes got higher, decreasing the quality of living for the middle class and making the valley a not so desirable place to live. The region also stated experiencing a growing crime rate, high number of open drug usage and homelessness.
Despite all the bad aspects of it, residents could still appreciate the cultural events and nightlife the city had to offer. That until the pandemic hit, making everything close as the state entered a strict lockdown. With an unfriendly environment, many left the state to look for greener pastures elsewhere.
The Rise of Miami for Tech Entrepreneurs
While Miami is not exactly new for tech entrepreneurs, it has become an increasingly attractive city for many of them during the pandemic, with the mayor, Francis Suarez, playing a bigger part in promoting the idea that “Miami is the next tech hub”
Most of the hype also appears to have started from Suarez. In a response to Delian Asparouhov, co-founder of the company Varda Space, which suggested moving Silicon Valley to Miami on social media, the following response came from the mayor on the same platform: “How can I help?”
The idea appears to have strung a cord with the mayor, which since then not only has contacted various technology giants, but is also trying to promote the city’s business-friendly and livable conditions in counterpart to San Francisco’s high tax rates and unaffordable lifestyle.
However, it is not only Miami that is attracting new business, as the entire state of Florida has seen people move in since the pandemic started. Many see the low taxes of the state as one of the main reasons that have helped Florida grow and foster the idea that Miami is the next tech hub.
The Future of Miami and San Francisco
Considering the current state of California, and more specifically San Francisco and its Silicon Valley, it may appear that it only seems like a matter of time before more companies decide to relocate to other places with different policies.
While it is true that many companies are moving out of the city, it is highly unlikely that the Silicon Valley will completely disappear, as it is already an established tech hub with the presence of major companies, which are not going anywhere.
As for Miami, while it will most probably become a world tech Hub in the future, it is unlikely that it will become the world’s only tech hub as the Silicon Valley was during most of it time, since today, with the world more globalized than ever, there are multiple tech hub around the globe today.
Despite that, it's no secret that Miami is the next tech hub, but there is space to wonder: Will it stay the course that it is in right now, or will the city become a future San Francisco? Only time will tell.
To learn more about what Miami offers for tech entrepreneurs, schedule your free tour of the Iconic Workspaces and see what all the buzz is about yourself.