A Technology Boom in the Midst of a Downturn

Although most of the country is mired in the effects of the Great Recession, the entrepreneurs in Silicon Valley seem quite unaffected.  According to a recent article, “In Silicon Valley, the Night is Still Young,” http://www.nytimes.com/2011/08/21/technology/silicon-valley-booms-but-worries-about-a-new-bust.html?_r=1, it appears the outrageous optimism which is aprerequisite for starting a new company, a new venture or developing a new technology is immune to the specter of a slow-growth economy. Real estate in the area has increased by almost 50% during 2011.  One hot new company, Zynga, has even raised the bar on perks for employees.  Their new office space includes a sports bar, a coffee bar, a tea garden, a wellness center including acupuncture rooms and a dog friendly environment.  Check out their digs at:  http://money.cnn.com/galleries/2011/technology/1110/gallery.zynga_offices_new.fortune/index.html.

Why have technology companies in Silicon Valley prospered wildly during a period of time when most companies hunkered down just to survive, slashing costs to preserve cash flow?  Could it be that new technologies, the gadgets, the software, the service, are recession proof?  Perhaps we are all still riding the technology wave?   Perhaps consumers, who have eliminated expensive vacations, lattes and pricey luxury goods, have hung onto the one thing in their life that is fun and relaxing into which they can escape from the realities of their life . . . the latest and coolest technology?