This is always bizarre to me. California is the biggest economy as a state in the country. As such, for as many people say it's "bad for business," there are a lot of businesses choosing it for a destination.
California is the most populous state in the country; it has about 12 million more people than the next-biggest state (Texas). In general, people aren't really actively choosing it as much as they're either a) already there and using it by default or b) forced to be there to more easily access the market of almost 40 million people that reside there. This is in fact the only reason that California can afford to mistreat business owners -- they have a great deal of leverage.
However, tech hubs are draws in and of themselves, and they could easily be located in friendlier states. People will come out to them.
Again, California is NOT mistreating business owners. Not in the least. They're simply not screwing over workers.
As for those other tech hubs? Most are located in places where workers don't have basic rights, like the right to switch jobs (non-competes aren't enforceable in California) or the right to own the work they do on their own time (Employers in most cases cannot lay claim to work that someone does on their own time without company resources). Hence, they will never be popular as tech hubs or see the ecosystem of startups that Silicon Valley has.
