Israeli Web 2.0 blog The.Co.ils has reffered me to a very interesting post by Paul Graham - "Why Start-ups Condense in America", has raised again the debate of "What's needed to have a Silicon Valley", and explains in great detail the optimal conditions in the US that helped creating a thriving hi-tech and software entrepreneurship atmosphere.
Graham's analysis diggs deep into cultural, financial and social aspects, and the follow up comments roll hits back with insightful notes and comparisons to other countries, including Israel.
I read the post and recalled a great webcast I saw 2 years ago at AO 2004.
Joe Schoendorf of Accel Partners shared a nice anecdote about Japan's work codes vs. the Silicon Valley (YouTube direct link):
It is taken from a very succesful panel about The Silicon Valley, which was hosted by Israeli VC veteran Jonanthan Medved (now in mobile startup Vringo). I actually truncated Joe's preceding story, which first examplifies the US approach though the Hewllet-Packard foundation.