City JournalI thought I was the only one noticing the reports of Silicon Alley’s demise were greatly exaggerated until I saw this article on Silicon Alley 2.0 in City Journal last week:

“When the Twin Towers fell, New York’s digital economy, dubbed Silicon Alley, was a major economic casualty. True, the collapse of technology stocks the year before had already deflated Gotham’s tech industries. But the 9/11 attack severely damaged Silicon Alley’s geographic heart, lower Manhattan, transformed over the previous decade into a bustling high-tech district. After 9/11, hundreds of New York tech firms closed up shop; others survived by shrinking dramatically or selling themselves for only a small fraction of their sky-high valuations of the late 1990s. As many as half of New York’s new media jobs vanished.

Nevertheless, Silicon Alley survived: and now—unexpectedly, even improbably—it is reemerging as an economic force in New York. Many of the hundreds of entrepreneurs and thousands of tech-savvy workers who flooded the city during the 1990s stuck around after 9/11, it turns out, and as Internet use becomes almost universal, these industry veterans are back with waves of new start-ups, catering to Internet surfers’ demand for more online tools and interactivity or helping New York’s mainstream industries do business better in the digital age. Their talent has grabbed the attention of industry leaders, who have made New York a key part of their worldwide networks.” Story continues here…