Contract to sign States that want to cultivate the technology clusters of tomorrow would do well to follow California’s example and ban noncompete agreements. (Photo: Shutterstock)

Despite sky-high housing prices, Silicon Valley remains the vital center of the U.S. tech industry. Once an industry takes root in a particular place, it’s very hard to pull it away. Which makes it all the more important to understand: Why did Silicon Valley become Silicon Valley in the first place?

One prominent theory is that California’s culture encouraged a free flow of workers and ideas between companies, combining and re-combining in ways that spurred continuous innovation, instead of being jealously hoarded in corporate offices.

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