I am not sure it is that simple. The bay area just beats the crap of other places hands down when it comes to starting companies.

Let us look at one of the closest competitors: Austin. This is a city that has a great cultural scene, no state taxes, cheap living, and a good C.S. school close by to get candidates. Yet, there are hardly any software startups in the Austin area. Most folks who graduated with me moved to the bay area. There are more latent variables in what makes the San Francisco bay area tick. If this is the case for Austin's competition, I am not sure how easy it would be for one to inorganically make a city, say in the deep South, become an innovation capital?