California has ALWAYS been a leader in innovation? Nope. It's a relative newcomer to that game, and it's going away there too. What you'd call "Silicon Valley" was in New York, New Jersey and Massachusetts from the 1920's to 1970's. MIT was where the origins of the Internet can be traced to with a project for the military called Whirlwind. That was also the beginning of the digital computer revolution. RCA, Bell Labs, and Western Electric were the powerhouses in all things electrical and electronic back then.
Aviation outside of Lockheed wasn't particularly innovating there either. Outside of GALCIT / JPL at Cal Tech the space race was taking place elsewhere too.
Oak Ridge Tennessee was home to one of the leading innovators in things nuclear and still is. Redstone Arsenal in Alabama was a leader in rocketry. The Mercury 7 were sent into space on Redstone missiles.
Detroit and Michigan were the leaders in automotive technology. Steel was Pennsylvania.
The silicon in Silicon Valley is gone entirely. Chip making isn't happening in California today. It moved to Texas, Arizona, S. Carolina, and elsewhere due to California's onerous environmental laws in particular.
California is seeing a mass exodus of their tech companies. It's happening, but like other industries, it won't occur overnight. It will be several decades, at a minimum, before California is denuded of much of its productivity, but it is happening.
Hell, these days you can't even build a house in California. Of the over 22,000 that burned to the ground in LA during those wildfires, only about 4,000 permits have been issued, 34 homes actually finished, and 10 final occupancy certificates issued. If you live in an area where the California Coastal Commission holds power, your ancestors several generations from now are likely to still be waiting for permits.
California is totally and royally fucked today.