Why is Silicon Valley so dynamic and creative? So many reasons but it could be explained this way: It's a "habitat", an ecosystem where entrepreneurial culture and risk taking, top-notch educational and research institutions (example: Stanford University), and venture capital thrive. Any person person with a good idea could easily kick off "the next big thing" by attracting venture capital. Venture capitalists are those who are willing to gamble on any start-up company for as long the proponents could offer a novel and innovative business model. Google, Yahoo, Sun Microsystems, YouTube are the most successful models of these Silicon Valley spirit.
The Valley of course has a nice weather (not too hot on summer and not too cold on winter) that ensures quality of life for the creative class that came to the valley from all over the world, particularly India, China, Russia and other countries. The urban design of the cities is European style-- walkable and with lots of greens. Yeah, its a nice place to be.