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by drzaiusapelord 3935 days ago
This a million times. Tech entrepreneurship works in the US and fails in other states because we're in this sweet spot of low taxes and low corruption, with high levels of education and easy access to a large and powerful economy.

Euro states have most of the above, but the high taxation and labor protections strangles little shops and scares investors (would you invest in a French startup? I wouldn't). Corrupt autocracies might have some of the above, but the corruption strangles these companies as well (invest in a startup where the assets could be nationalized instantly? Or having to pay a % of profits to endless bribes?)

2 comments

"Tech entrepreneurship works in the US and fails in other states because we're in this sweet spot of low taxes and low corruption, with high levels of education and easy access to a large and powerful economy."

Corruption in the USA is typical for west Europe or NE Asia and taxes plus health care costs are slightly higher in the USA. Education levels are the same or lower than typical in Europe and NE Asia. None of that is essential in creating whatever advantage the USA has in tech entrepreneurship.

Labor 'protections' can strangle startups and a large economy with unified rules, unified payment systems, a common language, and unified distribution does help. But something about Silicon Valley in particular seems to be at the root of the difference.

CA has relatively high taxes and labor protections vs other US states and it seems to do ok. I'd say that Euro nations have most of your list, but a high level of bureaucracy regarding business licensing and a conservative business climate (hesitancy to do commerce with new businesses).

America loves the new and shiny. In particular, the culture in CA is more than open to new ideas, often actively seeking newness. And I think that is at the root of the difference.