"...I think the talent wars will be good for cities outside of the Valley, as companies look elsewhere to find smart people. It's already possible to stay connected and contribute from almost anywhere in the world."

He mentions my New Zealand-based blog as an example of how people as far away as the other side of the planet can contribute. I'd like to add that I actually earn my living as a consultant/contractor for various Silicon Valley companies - even though I live in New Zealand. I do analysis, research and writing work on Web 2.0, Social Media and RSS topics.

Dan also said that "we'll see an increasing number of important startups based outside of the Valley over the coming few years." Again, I think this is a trend to watch out for. Not only in big countries like China, but in very small countries like my own. I'm certainly keen to create and participate in Web 2.0 opportunities from my part of the world. You only need to look at a company like NZ-based Eurekster, creator of Swikis, to see that it can be done.

On that note, recently Nat Torkington from O'Reilly set up a Google Group for New Zealand Web 2.0 people, called NZ 2.0. Ironically this was instigated after Silicon Valley's Mike Arrington referred a local kiwi company to me, which led me to send a group email to a bunch of kiwis, which led to Nat creating the Google Group. So if there are any kiwis reading this who want to be part of NZ 2.0, shoot me an email (readwriteweb AT gmail DOT com). It's all happening Down Under! :-)