I don't think there is necessarily a contradiction here. The article doesn't say that knowledge is being distributed, rather that the creative entrepreneurial mindset of the Valley is being distributed. I have worked in software startups in the Valley, the UK, France, and Oregon for the past 15 years. I must say I would agree. But I think the author is exaggerating the adverse competitive effect on the Valley the emergence of new tech centers is having. I would like to see him give us some real evidence that the Valey is suffering from it. I doubt it is just yet. There is plenty of growth potential to go around for now...