[Nasrudith]

It isn't for a lack of trying. Attempts to go too cheap have ended in failure typically - people don't want to move to the middle of nowhere for a one company job when they have a nice well of employment already. The network effect is very real in a that critical mass of workforce talent can provide concrete advantages. That said moving to the fringe of the network seems to be a good move to get the best of both worlds if possible - Palo Alto was once the cheap option.

It probably is inflated due to ego - Juicero certainly didn't need significant talent (or have it for that matter) but if you are developing something that needs complexity like say self driving cars or their parts it could pay off.