1) You can't just allocate the startups in arbitrary locations and get the same result -- being in SV changes the outcome. (I've tried to start companies elsewhere.)

2) People benefit from Google, Facebook, Airbnb, etc., even if they're not in SV. The immediate job creation is a tiny fraction of the wealth created by startups. It doesn't matter where Bell Labs was located; it just matters that they did what they did. Similarly, we should just focus on creating more Googles, not on which state's payroll taxes get the immediate boost.