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Ask HN: Why is the US the center of the tech industry?

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31–40 of 94 posts

Re: Ask HN: Why is the US the center of the tech industry?

#31
There are several things that contributed to the rise of the dominance of American tech industry. In no particular order:

* World War II. In WWII, the only country that had the means to meaningfully fund longer-term military research projects was the US; in other countries such as Germany and the UK, these projects were defunded or reduced in scope to let the money and resources be allocated to things that would help prevent the collapse of the country. Furthermore, the US was the only large country to escape significant infrastructure destruction, which would preoccupy most of the rest of the world for another decade or so.

* The development of a strong education and research system. This is in and of itself a more complex topic, but one thing I'd call out is that the American wealthy have had a stronger tradition of philanthropy than their European counterparts, and a lot of that philanthropy was geared towards making sure that the US was well-stocked with universities, libraries, museums, and the like.

* Clustering effects. Companies tend to want to be near other companies that do similar things--it's why there's a lot a tech companies in Silicon Valley, even if they could do their job equally well from Illinois. Early computer research ended up being in the US, so the computer technology clusters have ended up being very US-centric.

* Market size. The US has historically been the largest market for tech, and arguably still is for certain segments of the market. Europe has been (and generally remains) too fragmented to be a single market, China and India historically too poor, and the USSR hampered itself with internal controls. Furthermore, the size of the US market also means that it tends to be harder for foreign entrants to break into the market than it is for US entrants to break into foreign markets.

> Do you think another country will take its place?

Eventually, yes. On what time scale, I can't say.

> Will growing internet adoption lead to growing patterns of geographic decentralization in the industry?

No. The internet has not reversed the trend for businesses to cluster together, and I see no reason to expect that should change.

> Is it possible cryptocurrencies will cause a rise in an internet centered tech industry?

I don't see how they could...

Re: Ask HN: Why is the US the center of the tech industry?

#32

Lots of human capital because A) we have a large population, B) we have the highest level of economic development in the world, and C) we've done a great job of importing talent. We were the main beneficiaries of the Europeans driving out their Jewish population. As a group, European Jews are responsible for something like 25% of our intellectual output over the last century, but only make up 2% of our population. La…

How do you measure 25% of the world's intellectual output? I'm a fan of Judea Pearl and Woody Allen, but I think that's a pretty strong statement to make

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Re: Ask HN: Why is the US the center of the tech industry?

#33
post #28

Earlier quoted context omitted.

How do you measure 25% of the world's intellectual output? I'm a fan of Judea Pearl and Woody Allen, but I think that's a pretty strong statement to make

He/she's talking Albert Einstein, et al: https://news.stanford.edu/news/2014/august/german-jewish-inv...

Also, Sergey Brin (Google co-Founder).

His father's tale of anti-semitism in Russia is now quite famous.

https://www.cnet.com/news/googles-brin-anti-semitism-forced-...

Re: Ask HN: Why is the US the center of the tech industry?

#34

A few things: 1. America's early expansion was designed to gain control over the entirety of the Mississippi river, which has the largest lockless waterway system serving the longest "useful" land area in the world with cheap boat transportation. This cheap transportation is the primary reason for American early development success, and continues to benefit America immensely to this day. 2. Every other developed coun…

On number 2, America also got a lot of cutting edge tech (jet engines, nuclear tech, crypto, radar) handed to them for free by the British because America had the capacity to do something with them. This was a huge boost for American industry post war.

Re: Ask HN: Why is the US the center of the tech industry?

#35
The eco system thing is one, the second is: Geopolitics, which plays a big role in that, I mean with the huge US influence the Silicon Valley companies can be global trendsetters, think of the FCC standing in the global,telecom sector.US allies could not ban UBER although they hate it, but they have to play the American (open market) rules. There were many superior products by non-American companies, Creative Technology got the first portable audio player, years ahead of Apple, yet they underestimated the value of the American market and spearheaded MP3 with total disregard for copyright issues (Napster days), Russian companies produce good stuff-Kaspersky et al- but they do not have the full "Eco system".

Re: Ask HN: Why is the US the center of the tech industry?

#36
post #7

The same reason it's the current largest economy.... a happy accident of history and geography. Every other major economic power was devastated after WW2. Because the US was geographically isolated from the major theatres of war, it was in a good position to capitalise on the investment in technology at the dawn of the transistor age.

I've heard this argument many times but it never rang true to me. Here is why:

Every nation has gone true adversity and many had bounced off in a matter of years.

The US economy has been dominating (measured by % of world GDP) since long before WW2. Ref: https://infogram.com/share-of-world-gdp-throughout-history-1...

Also worth noting is that the US has faced its own headwinds including a civil war just a few decades before its ascent to global domination.

Re: Ask HN: Why is the US the center of the tech industry?

#37
post #29

A few things: 1. America's early expansion was designed to gain control over the entirety of the Mississippi river, which has the largest lockless waterway system serving the longest "useful" land area in the world with cheap boat transportation. This cheap transportation is the primary reason for American early development success, and continues to benefit America immensely to this day. 2. Every other developed coun…

Any reading on 1? I was thinking about how America gained ground in the world, from early colonial, to the industrial revolution, to the internet giants. I haven't read much about the Mississippi in relation to that era of our industry.

Encyclopedia Britannica has a decent introduction [1]. There are a number of books that cover the early development of nations, but the name of the book that dealt with waterways in depth escapes me at the moment. Possibly something by Marvin Harris or Jared Diamond?

[1] https://www.britannica.com/place/Mississippi-River/History-a...

Re: Ask HN: Why is the US the center of the tech industry?

#38

Earlier quoted context omitted.

That's basically what "made the [X] industry" tends to mean.

But someone could read that and think "the one and only". By stating the first shows there's more potential.

By that logic your question should have been " Why is the US the center of this/a tech industry" :)

Re: Ask HN: Why is the US the center of the tech industry?

#39
post #16

First of all, the technology industry itself is not just exclusive to the US. Samsung is south Korean, Nintendo is from Japan, Siemens is from Germany, ASML is from the Netherlands. All of these are highly technological companies, with Nintendo having been at the frontiers of technology since decades. But of course, Silicon Valley is unique with its high concentration of hightech companies. This has multiple reasons:…

I want to make what I hope is not an offensive inquiry. As a native (American) English speaker, both of your uses of the word "since" look wrong to me. In my reading, the first one should be "for" and the second should be "until". This is not the first time I've come across jarring uses of "since" online. What I'm wondering is: What is your background? Are you also a native English speaker from a different region? If so, what region? If not, what is your native language and is the English "since" deceptively similar to a word in it?

To try to make it less likely that this comment makes you feel bad, I will close by making the (true) statement that I found your comment to be interesting and insightful and your usages of "since" didn't hurt my comprehension at all, they just sounded weird.

Re: Ask HN: Why is the US the center of the tech industry?

#40
US companies give much higher pay than Europe and China.

A beyond-average elementary programmer gets $40K/yr in China with 9-9-6 life. But the same person in the United States may get $120K or even more with a 9-6-5 life.

So many Chinese programmers are moving to the US for higher pay.

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