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A culture of social egalitarianism (as opposed to the material kind) seems important to encouraging and developing new ideas. Here's Tom Wolfe on the culture of the places the founders of Silicon Valley came from:

"Back East, engineers, no matter how gifted, ranked below doctors, lawyers, Army colonels, Navy captains, business executives, and professors of English, history, biology, chemistry, and physics. This piece of European snobbery never reached Grinnell, however, nor did it turn up in many of the thousands of small towns in the Midwest and the Far West. An extremely bright student, the one possessing the quality known as genius, was infinitely more likely to go into engineering in Iowa, Illinois, Michigan, or Wisconsin than anywhere Back East."

That's from this: http://members.forbes.com/asap/1997/0825/102.html . It's great.

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