Silicon Valley Prices Itself Out

The San Francisco Chronicle reports on a new report on high tech competition:

On the domestic front, the report compares Silicon Valley with other U.S. tech clusters according to such indicators as housing affordability, traffic congestion, educational performance, electricity costs and state tax rates. California's planned greenhouse-gas controls were not considered.

Based on these criteria, Silicon Valley comes in last, trailing 11th-ranked San Diego and 10th-place New York. North Carolina's Raleigh-Durham region shows the best business climate, with Seattle and Denver ranked second and third.

Some of these business-climate indicators resonate with the everyday gripes of Bay Area residents. For instance, Silicon Valley is the third-toughest place among the 12 regions for people seeking to buy homes, with only New York and San Diego being less affordable. In terms of traffic woes, it ranks 11th, just behind Chicago and ahead of last place New York.

High costs deter economic activity.