Sign up for our daily briefing

Make your busy days simpler with the Axios AM and PM newsletters. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to the Axios Closer newsletter for insights into the day’s business news and trends and why they matter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with the Axios Sports newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with the Axios Des Moines newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with the Axios Tampa Bay newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Aïda Amer/Axios

Over the past few years, big-name venture capitalists and flashy PR campaigns have boasted about replicating the Silicon Valley tech boom in second-tier cities around the country. But so far there is no stampede to the hinterland.

The big picture: Existing U.S. tech hubs are not only holding on to their imprimatur as primary magnets of top tech talent, but increasing it, persuading the best candidates to take jobs and stay put. Second-tier cities remain just that.

What's happening: A small number of U.S. cities — Boston, Austin, and of course the soup of cities making up Silicon Valley — still host almost all the Big Tech headquarters, while parceling out mere morsels of satellite offices or data centers elsewhere, away from the action.

New data from Indeed, the jobs site, shows that Silicon Valley's share of the nation's tech jobs has actually increased by 10% between 2017 and 2018. Austin's share grew by 9%.

  • "It's the revenge of geography. Geography really does matter," says Eric Weiner, author of "The Geography of Genius."
  • "The reason that these wannabe Silicon Valleys have not evolved past the wannabe stage is that you can't manufacture a genius cluster or a hub of creativity from scratch."

How they are doing it: "Not only do the Bay Area, Seattle, and Austin have a bigger concentration of tech jobs, but the tech jobs they have tend to be more cutting-edge and pay more," says Jed Kolko, chief economist at Indeed.

  • The most common job postings in tech hubs tend to be in robotics or deep learning, while the bulk of openings in second-tier cities are for roles in quality assurance or hardware engineering, Kolko's research found.

Time moves on: Though he sees Silicon Valley as a weighty and immovable object at the moment, Weiner says that, throughout history, creative hubs like Athens and Florence have led the world — before withering away after about a century.

  • If that is a measuring stick, Silicon Valley has another few decades to go, but may be waning around mid century.
  • "These huge, growing companies like Google and Uber, with their enormous market caps and the salaries they're giving to get people to stay with them, could actually hurt innovation," Mark Kvamme, a venture capitalist at Drive Capital in Columbus, Ohio, tells me. "Why go to a startup when Google is paying you $500,000?"

For now, the Valley is on top.

But venture capitalists and startup CEOs in middle America attempt to paint a glass half-full picture of the data.

  • Despite increasing their share, the tech hotspots still have just 32% of the country's tech jobs. Silicon Valley has just under 10%. The rest are scattered around the other cities and states.
  • "I think satellites matter a lot," says Bryce Roberts, a VC in Salt Lake City. "There’s a synergy between satellite offices and endemic startup creation in second- and third-tier cities that I think is hard to spot sitting inside a first-tier market."
  • "Silicon Valley is going to be important because all the major tech companies are already there, and it's got 50% of the venture capital," says Kvamme. "But you've got fast-growing, innovative companies all across the U.S."

What to watch: Some major companies — like Salesforce in Indianapolis and Netflix in Albuquerque — have built massive offices outside of the tech hubs. But so far it hasn't been easy getting workers to move there.

  • One reason is the lack of critical mass — there is something unsettling about relying on the only game in town.
  • And, highly paid workers are not necessarily sold on the argument that a second-tier city has a cheaper cost of living, Weiner says.

The bottom line: When smaller places like Austin succeed, it's because they've managed to put together some magic themselves. "They're a tech hub because they're cool; they're not cool because they're a tech hub," says Weiner. "The coolness has to come first, and it has to be organic."

Go deeper: The future of innovation outside Silicon Valley

Go deeper

Jan. 6 panel subpoenas 2 far-right "America First" activists

The House panel investigating the Capitol riot, from left; Reps. Bennie Thompson, Liz Cheney, Adam Kinzinger and Jamie Raskin on Capitol Hill in December. Photo: Drew Angerer/Getty Images

The House select committee investigating the Capitol riot issued subpoenas Wednesday for far-right leaders Nick Fuentes and Patrick Casey, who allegedly encouraged followers to go to D.C. and challenge the 2020 election results.

Why it matters: The action underscores the panel's increasing focus on rallies held ahead of the Capitol attack and how extremists were drawn to former President Trump's baseless claims of widespread voter fraud, per the New York Times.

Democrats fail to change Senate rules to pass voting rights bill

Senate Majority Leader during a news conference in Washington, D.C., on Wednesday. Photo: Alex Wong/Getty Images

Democrats failed Wednesday night to change Senate filibuster rules to pass the voting rights bill, with Sens. Joe Manchin (D-W.Va.) and Kyrsten Sinema (D-Ariz.) voting with Republicans.

The big picture: The failed effort came after Senate Republicans blocked the voting rights measure from coming to a final vote earlier Wednesday.

Updated 6 hours ago - Politics & Policy

Supreme Court rejects Trump's attempt to shield documents from Jan. 6 committee

Photo: Melissa Sue Gerrits/Getty Images

The Supreme Court rejected on Wednesday night a bid by former President Trump to block the release of documents and records from his administration to the House committee investigating the Jan. 6 riot at the Capitol.

Why it matters: Trump asked the Supreme Court to step in and block the release of the documents last month after a panel on the U.S. Court of Appeals for the D.C. Circuit unanimously denied his attempt to prevent the committee from obtaining the materials.

You’ve caught up. Now what?

Sign up for Mike Allen’s daily Axios AM and PM newsletters to get smarter, faster on the news that matters.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!