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The good news is that the only thing SiliconValley hates more than affordable housing is missing out. Investors pour money into companies whose only skill is improving the rate at which they can flush hundred dollar bills down the toilet simply because they don’t want the feeling of having lost an opportunity.

SoftBank. Once word gets out that somewhere, like Israel, is good at producing high-value startups, finding investors became exponentially easier. The more checks are written, the more venture capital firms pay attention. Israel’s government got the ball rolling in the ’90s with big incentives for anyone willing to come invest in the country. 

Today, 4.5% of its total GDP is spent on Research & Development, which is just barely less than first place South Korea. 

Now, producing lots of smart, young graduatesand giving them bundles of cash is cool and all unless they take those skills and that capital to California, giving Americans the jobs and tax dollars. 

The third ingredient is, therefore, a High standard of Living. Israeli's have to want to stay in the country. It’s a fun fact for South Africa that ElonMusk grew up there, but not much use because Tesla and SpaceX are American companies. And this is harder than it sounds. On one hand, entrepreneurs and employees care about healthcare, crime, public transit, and so on.