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If you're saying that initial market size and uniformity is a big factor behind Silicon Valley-esque places (a large gathering of investor money and tech workers), then I agree with that point.

I think that protectionism disallows existing giants from carving up large slices of a market. Having to compete against the tactics of big giants is a capricious barrier to market, and probably not a good nurturer of innovation.

Had many countries severely gimped or barred Google / Microsoft from entering their country, while funding internal alternatives, the world might look very different.



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