Apple’s recent announcement that it’s building a new $1 billion campus in Austin, Tex. adds momentum to the trend among tech startups and investors to look beyond Silicon Valley to incubate and grow the next generation of innovative companies.
Moreover, in what amounts to doubling down on its satellite strategy, AppleAAPL, -1.06% also said it will establish new sites in Seattle, San Diego, and Culver City, Calif., as well as expand in cities across the U.S., including Pittsburgh, New York, and Boulder, Colo. over the next three years — welcome economic boosts for those areas.
I’m not sounding the death knell for Silicon Valley. To be sure, this remarkable region south of San Francisco is still the brightest star in the global tech universe. Silicon Valley will remain Apple’s home base, as well as that of GoogleGOOGL, -1.23% , Facebook FB, -0.01% , Cisco Systems CSCO, +0.09% , OracleORCL, -0.37% , Intel INTC, -1.35% and many others. Its position of dominance is not in jeopardy — yet.
Nonetheless, many of the tech startups planting their flag in Silicon Valley to be near angel investors, venture capitalists, investment banks, and tech talent are keeping only small teams there. They are increasingly utilizing less-costly satellite offices, remote co-working spaces, or other remote-work options for the majority of their employees.