Nowhere did I say that Swiss startups are hopeless, either due to this reason or overall. This was a conclusion driven by nextstep and few others. And I think it was largely due to my mistake. I should have used "latest" where as I used "best". What I really meant was:
>> 2. Behind Silicon Valley on latest technology and product building practices by at least 2 years.
In fact I said that if it weren't for immigration uncertainty, I would move there tomorrow. Last year, I moved to Seattle from SF to experience a change of pace. So it's not that I have blind love for all things SF.
SF has a lot more startups trying out things in a small geography. They are trying a lot more things and failing a lot more and consequently learning a lot more.
There are benefits and drawbacks of not being the first mover. Many a times you do not waste time, effort and money going after dead end ideas (remember HomeJoy). Sometime it leads to missing out on things like AirBnb (especially relevant to as tourist driven economy as Switzerland).
With lesser startups being formed, comparatively lesser capital available - Swiss ecosystem is trying to find it equilibrium. And as I originally mentioned - they are really smart people. They will figure out what is best for them.
This thread was also a good learning for me. Every word matters. Sometimes, you try to sneak a post in between other work and things slip!