Why is more government always the only answer to solving a problem?
Looking at all the other attempts to create a Silicon Valley that have pretty much failed and they were all government sponsored. It seems obvious that government can't solve that problem either.
With all the social networking capability now it should be easier to find other hackers, founders, and angels in any city of sufficient size.
We need a facebook for founders to bring all of this together. Though getting the funders to notice might be an issue.