Tim O’Reilly wrote an interesting article in forbes.com titled ‘where real innovation happens’. He is mostly talking about tech innovation.
“It turns out that many of the great waves of creative destruction that have reinvented Silicon Valley didn’t start there. More important, they didn’t even start with the profit motive. “
It is true that many innovations, worldwide web for example, were borne out side of silicon valley. But what silicon valley does best is tech product innovation. It is the place where cutting technologies turn to world changing products.