GLOBAL INNOVATION HUBS
DRIVING INNOVATION AND BUSINESS TRANSFORMATION 2020 REPORT
www.hickeyandassociates.com
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GLOBAL INNOVATION HUBS REPORT 2020
TABLE OF CONTENTS 4 6 8 10 12 20 28 36 44 52 60 68 76 86 87 GLOBAL INNOVATION HUBS REPORT 2020
Executive Summary Methodology Global Top 25 Regional Innovation Leaders Biotechnology Industry ICT Industry Medical Science Industry Nanotechnology Industry Pharmaceutical Industry Fintech Industry Automotive Industry Aerospace Industry Driving Innovation - Key Factors Small but Noteworthy Markets on the Move
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EXECUTIVE SUMMARY WHAT IS INNOVATION? Innovation itself can be defined in a multitude of ways. In developing the model for our Global Innovation Hubs rankings, HICKEY aimed to develop an informative, insightful, and immersive tool to identify global markets with a dynamic approach for tomorrow. For this evaluation, HICKEY sought to recognize markets around the world which are on the forefront of creating new ideas, methods, and products that fuel growth and positively change the economic and socio-political landscape for the future. By assessing thousands of data points across more than 340 markets, HICKEY’s international team has identified not only those top global cities for innovation but has classified the economic ecosystems that are leading the way in several key, driving industries.
WHY DID WE WRITE THE REPORT? As a business with aspirations of regional or global expansion, how do you keep pace with the changes and transformations in a dynamic world? How do you prepare for a more transient and freelance workforce? Where is the best market for your business? What are potential new challenges that your company will face in trying to answer these questions? As the global leader in location strategy, labor analytics, credits and incentives advisory, logistics/supply chain, and workplace solutions, HICKEY was compelled to develop this report to answer these questions for our clients. This report outlines and evaluates the factors currently driving innovation and business transformation. In the effort to identify the optimal locations around the world, we defined the characteristics that support such active business transformation. Within the rankings, we have identified leading and emerging markets. Educating our clients to better understand the global markets that are developing strong learning and collaborative communities, investing heavily in R&D, showing significant growth in millennial population, and drawing the attention of a high number of startups is vital in establishing a sound location strategy. We have always prided ourselves on being a reliable resource in supporting company growth, expansion, and success. In a dynamic business environment, the Global Innovation Hubs Report will provide the necessary data to help identify the market best suited for managing a global portfolio. 4
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METHODOLOGY Creating the Global Innovation Hubs Report began with identifying the most important figures that develop and sustain an innovative market. We found a strong correlation between growth and innovation, setting large focus on changes in variables over time. The statistics gathered were split into seven distinct categories which were then weighted according to their significance towards innovation. Patents, education, research, and investment figures were the most significant. On that basis, these variables led to definition of the factorial clusters that made up the report’s findings and results. Our approach provides a data-based mosaic of innovation that provides a comprehensive definition of what forms and sustains an innovative market and creates an understanding of which markets across the globe are the current leaders, and which are on the cusp of rising through the ranks of real business innovation and transformation.
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GLOBAL TOP 25 The Top 25 Global Innovation Hubs are regions that are the most well-rounded across the data analyzed. These cities not only have strong innovative and educational capacities, but also supporting talent networks, demographic growth rates, capital raising abilities, and investment ecosystems to provide a platform for businesses and institutions to develop the products and knowledge of the future.
12 TORONTO 25 MINNEAPOLIS 7 SEATTLE
BOSTON
1
3 SAN FRANCISCO 5 SAN JOSE 4 LOS ANGELES 14SAN DIEGO 15 AUSTIN 22 CHICAGO 17 WASHINGTON DC
NEW YORK
6
PHILADELPHIA
20
LONDON
2
PARIS
13 VIENNA
16
COPENHAGEN
24
SEOUL GUANGZHOU SINGAPORE DUBAI
18
BERLIN
11
9 MELBOURNE
23
21
8
AUCKLAND
SYDNEY
10
19
REGIONAL LEADERS AMERICAS 1
Boston
8
San Diego
15
2
San Francisco
9
Austin
16
3
Los Angeles
10
Washington
17
4
San Jose
11
Philadelphia
18
5
New York
12
Chicago
19
6
Seattle
13
Minneapolis
20
Phoenix
7
Toronto
14
Dallas
21
Boulder
8
Shanghai
15 16
United States United States United States United States United States United States Canada
United States United States United States United States United States United States United States
Atlanta
22
Houston
23
Gainesville
24
Denver
25
Raleigh
22
Cheonan
United States United States United States United States
Nashville
United States
Charlotte
United States
Vancouver
Canada
United States
Madison
United States United States United States
ASIA PACIFIC 1
Singapore
2
Melbourne
9
Wellington
3
Sydney
10
Taipei
17
4
Auckland
11
Hong Kong
18
5
Guangzhou
12
Tokyo
6
Seoul
13
Nanjing
7
Beijing
Singapore Australia Australia
New Zealand China
South Korea China
14
China
New Zealand Taiwan
Hong Kong Japan China
Brisbane
Australia
19
Bangalore
India
South Korea
Shenzhen
23
Hangzhou
24
Kuala Lumpur
25
Chongqing
22
Helsinki
China China
Malaysia
Xi’an
China
Perth
Australia China
Daejeon
South Korea
20
Adelaide
21
Suzhou
Australia China
EUROPE, MIDDLE EAST & AFRICA 1
London
8
Rhine-Ruhr
2
Berlin
9
Edinburgh
16
3
Paris
10
Stockholm
17
4
Vienna
11
Zurich
18
5
Dubai
12
Stuttgart
19
6
Copenhagen
13
Munich
20
Aarhus
7
Amsterdam
14
Graz
21
Leeds
United Kingdom Germany France Austria UAE
Denmark
Netherlands
Germany
United Kingdom Sweden
Switzerland Germany Germany Austria
15
Oslo
Norway
Sheffield
23
Glasgow
24
Manchester - Liverpool
25
United Kingdom United Kingdom United Kingdom
Oxford
United Kingdom Denmark United Kingdom
Finland
Reykjavik
Iceland
Dublin
Ireland
Birmingham - Coventry United Kingdom
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BIOTECHNOLOGY INDUSTRY
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BIOTECH Technology that focuses on living organisms – has continued to grow exponentially as an industry. Within this sector, there has been a large increase in investment towards companies focusing on innovation. From saving lives to improving the quality and ease of daily life, cities have made it clear that biotech is an important industry, and many are looking to continue to push growth, as well, as innovation in the future.
Baltimore United States
New York United States
Basel Switzerland
Oxford United Kingdom
Boston United States
Philadelphia United States
Brussels Belgium
Phoenix United States
Cambridge United Kingdom
Rotterdam - The Hague Netherlands
Copenhagen Denmark
San Diego United States
Durham United States
San Francisco United States
Indianapolis United States
Singapore Singapore
London United Kingdom
St. Louis United States
Los Angeles United States
Taipei Taiwan
Madison United States
Toronto Canada
Melbourne Australia
Washington, DC United States
New Haven United States
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MARKET SPOTLIGHT
BOSTON Boston has been developing its biotech industry into a powerhouse for the past fifty years. Boston not only has a globally renowned educational system, but one of the strongest healthcare networks in the United States, as well as a strong startup culture. Boston’s innovative environment is most prominent in the Kendall Square area, but also throughout the region in the downtown area, near the educational institutions in Cambridge, and throughout the suburbs. Boston additionally has one of the leading venture capital ecosystems across the world, supporting new products and ideas.
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TAIPEI
A strong biotech Industry has been developing In Taipei for many decades, starting in the 1980s. Taipei is now home to over 100 listed biotech firms that work in tandem with the government to support research and development activities. As one of the leaders In Asia, not only has there been major International ties, but a booming domestic sector as well. Additionally, the Industry has helped to cultivate an educational system that supports the needs for a more adapted workforce.
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CAMBRIDGE
Home to the university of the same name, Cambridge is one of the most significant biotech hubs In Europe. Over 400 biotech firms call the city home. Cambridge’s biotech Industry has generated significant value that is continually reinvested to build the sector. Cambridge has an ambition to grow the biotech sector to the size of Its key American rivals, Boston and San Francisco. To pursue these dreams, Cambridge has taken steps to increase public investments in the sector, opening employment opportunities to those beyond the traditional profiles, and attract a more robust capital network.
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ICT INDUSTRY
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ICT Our daily lives are impacted in every shape and form by innovations in the Information and Communication Technologies (ICT) industry. As a central hub in the world of innovation, we can simply consider the advancements of just the last twenty years in the ICT space that have changed our lives forever, like the internet, smartphones, and other forms of communication mediums. The impact of these modernizations on the social, economic, and even political landscape across the world has been significant and continues to be a major focal point for all major markets and cities.
Bangalore India
San Diego United States
Beijing China
San Francisco United States
Boston United States
San Jose United States
Dallas United States
Seattle United States
Eindhoven Netherlands
Seoul South Korea
Guangzhou China
Shanghai China
Hangzhou China
Shenzhen China
Houston United States
Singapore Singapore
London United Kingdom
Stockholm Sweden
Los Angeles United States
Tel Aviv Israel
Munich Germany
Tokyo Japan
New York United States
Washington, DC United States
Portland United States
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MARKET SPOTLIGHT
TOKYO
As the most populous metropolis in the world, Tokyo has long been a leader in ICT. ICT industry innovations have ranged across all domains, including cellular technology, hardware, software, robotics, and maintenance services. ICT has had a long period of consistent growth in Tokyo, becoming more important to the local economy and more integral to the global economy. Tokyo is home to many of the largest Japanese corporations as well as regional headquarters of multinationals, who work hand-in-hand with the educational ecosystem and the government to establish a leading research and development environment.
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SAN JOSE Also known as Silicon Valley, San Jose and its environs have long held the title of the technology capital of the world. Starting in the 1960s and 1970s in hardware and increasing focus on web technologies and software in the 1990s and 2000s, San Jose has increasingly integrated the technology economy with a number of other industry clusters also located in the Bay Area, like health sciences and finance. Rapid overall growth along with the proven track of monetization of innovation have led San Jose and neighboring San Francisco to be the global leader in venture capital funding availability.
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MUNICH
Munich has transformed over time to become a major center of ICT in Europe. Not only attractive to multinationals for regional headquarters and research functions, an important startup culture has also developed. ICT works alongside the automotive and pharmaceutical industries for industrial integration and growth prospects. The Bavarian government has supported the industry with millions of euros on an annual basis and frequently collaborates with its neighbors within Germany as well as in Austria and Switzerland.
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MEDICAL SCIENCE INDUSTRY
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MEDICAL SCIENCE Dealing with the science of health maintenance and the prevention and treatment of disease, the medical science industry is a major sector for advanced efforts of innovation. The medical science industry has consistently proven to be one of the most important fields when it comes to financial growth in a city. As the race for a vaccine for the Coronavirus-19 disease heats up, many of these markets are also on the forefront of halting the global pandemic.
Atlanta United States
Minneapolis United States
Baltimore United States
New York United States
Boston United States
Philadelphia United States
Cambridge United Kingdom
Phoenix United States
Cincinnati United States
Salt Lake City United States
Cleveland United States
San Francisco United States
Copenhagen Denmark
Santa Rosa United States
Eindhoven Netherlands
Sydney Australia
Frankfurt Germany
Takamatsu Japan
Haifa Israel
Tel Aviv Israel
London United Kingdom
Toronto Canada
Los Angeles United States
Utsunomiya Japan
Miami United States
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MARKET SPOTLIGHT
EINDHOVEN
Eindhoven is home one of the largest medical sciences clusters in Europe, largely driven by its prestigious university network as well as being home to significant research functions of some of the largest Dutch companies. As the Benelux is one of the most important manufacturing regions in the world, products can go from conception to market rapidly. Additionally, as a region with one of the highest English-proficiency rates in the world, Eindhoven serves as a bridge between the Anglosphere and the rest of Europe.
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CINCINNATI
Medical science prowess in Cincinnati has grown from the city’s large education and hospital network. Spurring development of new technologies, investments in the sector have grown exponentially in the past few years. The medical research industry is supported by a larger ecosystem that includes the Ohio cities of Columbus and Cleveland. Cincinnati is home to some of the largest of Ohio’s medical sciences firms and is supported by educational institutions in nearby cities and by significant local investments.
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TEL AVIV Doubling the number of firms in the medical sciences industry in the past 10 years, Tel Aviv has positioned itself as an outpost of research and development activities. The majority of medical sciences firms in Tel Aviv are Israeli companies, and innovation itself has become one of the country’s most important exports. With direction from the government and support from the educational system, Tel Aviv has excelled in medical device technology and healthcare IT.
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NANOTECHNOLOGY INDUSTRY
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NANOTECHNOLOGY Dealing with the ability to control and manipulate atoms and molecules on a nanoscale level, nanotechnology has shown that it has an immense impact on multiple other industries. Nanotech has helped transform the way the world operates, spanning from medical breakthroughs to reinventing the way we use technology. It is clear to see why cities are continuing to focus on nanotech innovation and why it is attracting significant capital.
Albuquerque United States
Malmo Sweden
Atlanta United States
Melbourne Australia
Boston United States
Mito Japan
Boulder United States
Montreal Canada
Brisbane Australia
Moscow Russia
Busan South Korea
Rochester United States
Cambridge United Kingdom
Rotterdam - The Hague Netherlands
Chicago United States
Santiago Chile
Copenhagen Denmark
Singapore Singapore
Daejeon South Korea
Sydney Australia
Dallas United States
Tel Aviv Israel
Grenoble France
Washington, DC United States
Madrid Spain
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MARKET SPOTLIGHT
DAEJEON
In terms of population Daejeon may be smaller than Seoul, but its innovation abilities are very competitive. Home to the research and development functions of the largest of Korea’s chebols, Daejeon has also set itself apart as a global leader in nanotechnology. With heavy involvement by the eighteen-university strong educational ecosystem, nanotechnology developments have helped support manufacturing everything from computer equipment to medical devices to infrastructure. Venture capitalists have also integrated themselves in the ecosystem, bringing startups to fruition. GLOBAL INNOVATION HUBS REPORT 2020
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MADRID
Development of the nanotechnology industry in Spain took off in the 1990s, and Madrid has since risen to prominence by developing the largest cluster of both involved universities and companies. The nanotechnology industry has focused on how it can be integrated into materials, pharmaceuticals, biotech products, and electronics. Though Madrid is the leader in Spain, the government has sought a larger ecosystem and has made investments throughout the country.
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CHICAGO With participation from major universities, national laboratories, and the private sector, nanotechnology is heavily engrained in Chicago’s research and development community. Given Chicago’s strengths in manufacturing, pharmaceuticals, and engineering, many of the uses and developments of nanotechnology are complementary. Traditionally, much of the Chicago innovative economy is located throughout the suburbs, but recently new lab space and startup incubators have located in the downtown areas.
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PHARMACEUTICAL INDUSTRY
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PHARMACEUTICAL Pharmaceutical innovation can be traced back throughout history. From 3D printing to artificial intelligence, firms are working around the clock to find the next life-changing discovery. The collaboration between top research hospitals, private firms, and universities paired with the large amount of capital being funneled into the industry make this innovation possible.
Baltimore United States
Nanjing China
Barcelona Spain
New Haven United States
Basel Switzerland
New York United States
Berlin Germany
Philadelphia United States
Boston United States
San Diego United States
Cambridge United Kingdom
San Francisco United States
Chengdu China
Shanghai China
Copenhagen Denmark
Singapore Singapore
Durham United States
Taipei Taiwan
Hyderabad India
Tel Aviv Israel
Indianapolis United States
Vancouver Canada
London United Kingdom
Washington, DC United States
Los Angeles United States
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MARKET SPOTLIGHT
SAN FRANCISCO The pharmaceutical industry in California is most clustered in the San Francisco area. The venture capital ecosystem and the research capabilities of universities in the Bay Area allow the pharma industry to flourish. Many multinationals have established major research and development functions, and a multitude of life sciences parks have sprung up to provide much-needed lab space. Additionally, San Francisco leads the nation in the number of new patents for pharmaceuticals in the United States.
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HYDERABAD Hyderabad leads India in pharmaceuticals despite being the sixth-largest metropolitan area in the country. The city is home to both multinational giants and home-grown domestic corporations. Not only strong in research, Hyderabad manufactures more drugs than any other city in the country, and exports are growing at 20% annually. In recent years, the pharma industry has been expanding significantly in clinical trials, as the market matures into a global center.
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BASEL
Basel is the center of the Swiss pharmaceutical industry. Established over a century ago, the industry has grown exponentially, and Swiss firms have found success by transforming into multinationals and making acquisitions abroad. In addition to the many research functions established in the region in partnership with the university system, significant manufacturing activity occurs in the area. Nearly 11% of the global medicine supply is exported from Switzerland.
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FINTECH INDUSTRY
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FINTECH Fintech is the use of technology applied to finance to both automate tasks and to use artificial intelligence to predict future trends and identify opportunities that may not be immediately apparent. Not only have large financial institutions made large investments in tech, but startups have also made their role in being on the forefront of new innovations.
Atlanta United States
San Francisco United States
Bangalore India
San Jose United States
Bridgeport United States
Seoul South Korea
Chicago United States
Shenzhen China
Delhi India
Singapore Singapore
Hangzhou China
St. Louis United States
Istanbul Turkey
Stockholm Sweden
Johannesburg South Africa
Sydney Australia
London United Kingdom
Tel Aviv Israel
Manila Philippines
Toronto Canada
Melbourne Australia
Washington, DC United States
New York United States
Zurich Switzerland
Salt Lake City United States
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MARKET SPOTLIGHT
SHENZHEN
Shenzhen’s ambition to become a fintech hub has been intertwined in its success as a technology hub. As the poster-child of modern economic development in China, Shenzhen is evolving from a export-orientated manufacturing center to a center of innovation and research for both domestic and foreign markets. Home to some of the most major financial institutions in China as well as numerous research facilities for the government and the private-sector, Shenzhen is only at the beginning of its timeline as a fintech innovation hub.
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NEW YORK As the global financial hub for the past century, the use of technology to boost the financial sector already has a long history. Fintech firms are able to raise capital with ease in New York as the return-on-investment can be very significant. Large Wall Street institutions now have significant budgets for technology to attract top talent and invest in innovation. The fintech industry in New York has significantly outpaced that of any other part of the United States as well as the rest of the world. Fintech will continue to evolve and grow to support New York’s economy.
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As one of the world’s oldest and most well-established finance hubs, London has been acutely aware of the ability of technology to keep the finance sector at the forefront. Growth in fintech in London has been burgeoning in recent years, and the city is expected to quickly catch-up to its American counterparts. Fintech in London routinely competes with other industries for talent, and wages have increased for finance to have an edge. The demand for fintech innovation is so high, that major institutions are acquiring startups at an astounding rate.
LONDON
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AUTOMOTIVE INDUSTRY
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Birmingham United Kingdom
Mito Japan
Clermont-Ferrand France
Munich Germany
Detroit United States
Nagoya Japan
Frankfurt Germany
Nuremberg Germany
Friedrichshafen Germany
Paris France
Gothenburg Sweden
Regensburg Germany
Grand Rapids United States
Rhine-Ruhr Germany
Greenville United States
Shizuoka Japan
Hanover Germany
Stockholm Sweden
Hiroshima Japan
Stuttgart Germany
Karlsruhe Germany
Germany Japan
Lyon France
Utsunomiya Japan
Maebashi Japan
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MARKET SPOTLIGHT
NAGOYA
The automotive industry is dominant in Nagoya, with many Japanese automakers and suppliers located in the region with both manufacturing plants and research and development facilities. As the Japanese auto industry has grown to a global scale over the past five decades, innovation has taken off to meet increasing market demands.
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STUTTGART
Germany is home to the fourth-largest automotive industry in the world, and Stuttgart is at the center. Behind signifcant annual investments in research and development by automotive titans, Stuttgart’s automotive industry drives a monumental contribution to the German economy and represents a major share of the country’s exports.
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DETROIT
The Motor City and the Big Three have been constant innovators since the early 20th century. As the capital of the American automotive industry, the automotive sector has adapted to market trends throughout the decade. Integration of new technologies, new materials, and new energy sources will provide a path for Detroit to continue to be a leader of the automotive industry in the United States for many years to come.
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AEROSPACE INDUSTRY
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AEROSPACE The dynamic aerospace industry is amidst a true era of innovation as new demands for government and commercial developments. These following markets are among the global leaders in high-value, game-changing innovation in the sector, which includes human space flight, commercial aircraft, satellites, and defense technologies.
Atlanta United States
Montreal Canada
Bridgeport United States
New Haven United States
Bristol United Kingdom
Paris France
Dallas United States
Rotterdam Netherlands
Fayetteville United States
Rouen France
Guangzhou China
Seattle United States
Hamburg Germany
Shenzhen China
Hartford United States
Tel Aviv Israel
London United Kingdom
Toronto Canada
Los Angeles United States
Toulouse France
Madrid Spain
Tucson United States
Miami United States
Washington, DC United States
Milan Italy
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MARKET SPOTLIGHT
PARIS
The aerospace industry in Paris is supported by both large commercial builders and the defense industry. Additionally, the region is home to many engine and component suppliers. In recent years, investment in research and development has shifted from commercial purposes to space exploration. Government support and a strong network of engaged firms will ensure that Paris remains a leader of aerospace in Europe.
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Home to manufacturing facilities for the largest aerospace firm in the world, Seattle produced 90% of all the aircraft produced in the United States. In partnership with the university system, the aerospace firms have marked Seattle as one of the leading global clusters. In the long-term, commercial aviation will only come back stronger from the challenges presented by the global pandemic of 2020, which will further elevate Seattle’s role as an aerospace hub.
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SEOUL
The aerospace industry is largely driven by several major players in South Korea, who supply both Boeing and Airbus. In recent years, research and development have been focused on developing Korean-made military and private aircraft. Korea is now developing a next-generation fighter jet, called the KF-X program.
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DRIVING INNOVATION 4 Key Factors
1. INNOVATION & TRANSFORMATION
Powering What’s Next Innovation and transformation are the main drivers behind growth for both cities and businesses. To evaluate this section, there was a focus on the number of patents and startups in markets around the world. The frequency, as well as the concentration of these two elements are a clear indicator of a city focused on becoming an innovation hub. The ability to transform and adapt as a market to match consumer interests is a telling factor when considering an innovation hub, as well. Growth in patents and startups were also a main attractor when evaluating different markets.
BOULDER Nested between Denver and the Rocky Mountains, Boulder has matured into one of the most innovative economies in the United States. With numerous startups boosted by its proximity to the University of Colorado, the city is competitive with much larger cities like San Francisco, Boston, and New York. Innovation is highly concentrated in the area, with one of the highest rates of patent applications per capita in the world.
STOCKHOLM Not only the capital of Sweden, but also the largest city in Scandinavia, Stockholm is an important business center in Europe. Stockholm’s commitment to innovation can be seen in its build-out of the largest fiber-optic network in the world, a vision it committed to over 25 years ago. Innovation is heavily represented in the city from its high rate of patent applications per capita, its startup activity, and the strong presence of venture capital funds to bring new ideas to market.
2. TALENT MAGNET
Attracting the Future Innovation hubs cannot thrive without a constant influx of talent. For this subset of the rankings, we placed a strong emphasis on growth in millennial population in each market. Millennials entering the market signal a focus on the future and show where younger professionals are migrating for work. Additionally, a review of both the concentration and the growth of the workforce involved in research and development activities is an indicator to how adapted the workforce is to the needs of the innovative economy.
CAPE TOWN Located at the southern tip of South Africa, Cape Town is cementing its status as an innovation leader in the country. Research and Development employment has increased by nearly 12% per year over the past five years, catching up to peers in Europe and the Americas. Additionally, the city has a fastgrowing education sector, and is home to three major research universities. In recent years, a significant cluster of spaceexploration related startups have called Cape Town home.
WINNIPEG Squarely located between east and west, Winnipeg is at the crossroads of Canada. The city is home to one of the most diversified economic bases of any city in the country, providing a high level of stability. Winnipeg has the highest growth rate of the age 20-39 population cohort of any city in Canada. It also has strong growth in university enrollments and research and development employment. Given the city’s low cost of living and strong economic base, Winnipeg is likely to continue to attract talent into the future.
Powering What’s Next Innovation and transformation are the main drivers behind growth for both cities and businesses. To evaluate this section, there was a focus on the number of patents and startups in markets around the world. The frequency, as well as the concentration of these two elements are a clear indicator of a city focused on becoming an innovation hub. The ability to transform and adapt as a market to match consumer interests is a telling factor when considering an innovation hub, as well. Growth in patents and startups were also a main attractor when evaluating different markets.
BERLIN For years, Berlin has adapted and transformed into one of the leading hubs for business innovation. Ranked 6th for venture capital funding per capita globally, Berlin has shown why it is continuously mentioned as a top innovation hub. Additionally, Berlin’s millennial growth rate, which ranked 4th in EMEA, shows it has a focus on the future. When looking at all the factors that set the city apart, it is easy to see why Berlin is becoming EMEA’s new mecca of innovation and transformation.
AUSTIN As the capital city of Texas, Austin is emerging as a market continuing to make its name known in the world of business and innovation. Coined “Silicon Hills,” Austin is a growing hightech market that encourages innovation. Austin continues to attract top talent in the workforce, as is evident by its 3rd place ranking in the U.S. for tech job creation. Ranked 15th in the world for patents per capita, Austin is also a market where small startups to large corporations like Amazon, can thrive. As Austin’s market continues to grow and gain recognition, it has shown the city’s willingness to build an ecosystem where startups can thrive.
3. LEARNING & COLLABORATION
Co-Evolving & Co-Operating Education is the key to developing new talent and attracting talent from regions close and far. By being “mind factories” the university system prepares its students to be innovators and researchers. The strongest university systems regularly collaborate with the private sector and form innovation ecosystems. The presence of a strong educational environment sets the top-tier of global innovation hubs apart.
VIENNA Vienna, the capital of Austria, is one of the largest “college towns” in Europe, with just over 11% of the city’s residents enrolled in university. The city is home to six highly rated universities, with enrollment growth nearing 5% per year. Vienna also has one of the highest concentrations of research and development employment in the workforce. Vienna has been making its name for itself as a startup incubator in life sciences and IT.
WELLINGTON Nearly 18% of the population of Wellington, New Zealand’s second-largest city, is enrolled in university. Research and development workers comprise nearly 5% of the workforce of the city and is growing at over 8% per year. Wellington serves as the capital of New Zealand and has a burgeoning innovation economy centered on IT. Investments in both research and development as well as venture capital have experienced exponential growth in the past few years.
4. RD & VC INVESTMENT
Show Me the Money Venture capital plays a very important role in defining a global innovation hub, as its existence allows ideas to go from research stages to monetization and market availability. Strong venture capital ecosystems are indicators of where the products of tomorrow will come from. Research and development investments are performed by both the private and the public sector. These investments are extremely crucial to allowing ideas and concepts to be tested and proven. Research and development funding through the private sector is often provided by large corporations seeking to refine products and compete, while public sector funding is often channeled through national research laboratories and universities. These two sources of money are the key to building strong innovation environments, and are attractive to innovative talent.
HANGZHOU Hangzhou is one of the largest metropolis’ in China, and is quickly moving to the forefront of the technology sector in the country. The city is the third-largest venture capital market in the country, only trailing Beijing and Shanghai. It also has the second-largest volume of research and development investments in the country, after Guangzhou. Research and development will likely increase as one of the most important employment sectors in the city.
LOS ANGELES As California’s largest-city, Los Angeles is no slouch when it comes to research and development funding and venture capital availability. Venture capital funding ranked seventh globally in 2019, at over $6 billion and up 8% from the previous year. Los Angeles’ innovation sector is heavily concentrated in aerospace, but increasingly also in technology, partially due to Hollywood. As both those sectors grow, Los Angeles’ innovation economy will grow and likely diversify more.
SMALL BUT
NOTEWORTHY
Small cities that are standout innovators are often known as college towns, having strong innovation abilities and funding availability that rivals even the largest of cities. Due to the demographics and presence of skillsets from the university systems, these cities are great places to capture talent. Additionally, due to the smaller population and the presence of funding networks, these cities have very strong performance in per capita measures for patents, startups, research and development investments, and venture capital funding. Three cities of particular note are:
MADISON
EDINBURGH
GRAZ
Madison is best known as the capital of the U.S. state of Wisconsin, as well as the home to the main campus to the University of Wisconsin. With the university at the heart of the region’s economy, innovation is a primary output. Innovation is also a major attractor of talent. Over 10% of the region’s population in enrolled in university, and Madison has one of the highest concentrations of research and development funding in the United States. Many technology and engineering startups call the city home.
Edinburgh is the capital of Scotland and is home to the university of the same name, founded in 1583. The city has the second-largest concentration of professionals in the United Kingdom, second only to London. Edinburgh has strong performance in the ICT, pharmaceutical, and medical science fields. It also has the strongest growth rate of population age 20-39 in the United Kingdom. Edinburgh is continuing to transform its economy to be innovation focused and will continue to attract the necessary talent.
Graz is Austria;s second-largest city ,and is home to eight major educational institutions. Patent activity, especially in ICT, is high in the region at twice the concentration compared to the European average. Over 5% of the regional workforce is focused in research and development, which is growing at a robust 2% per year. Investment volumes in research and development have recently topped $1 billion regionally and expected to continue to grow - earning their status as an education hub.
MARKETS ON THE
RISE
Cities around the globe are constantly working to gain recognition as a global innovation hub and attract the accompanying economic benefits. With these markets devoting resources towards R&D, the creation of learning and collaborative environments, and attracting talent, we are seeing new names included in the discussion of innovation. The top 25 global innovation hubs that are growth leaders have venture capital funding of over $14 billion in 2019 and over $120 billion in research and development investments. These cities are also future magnets of talent, with high growth in population, education, and workforce. Markets on the rise will only continue to rise and may be major innovation contenders in the future.
Chengdu
Guangzhou
Nanjing
Chongqing
Hangzhou
Suzhou
Dubai
Hefei
Fayetteville
Lima
China China
United Arab Emirates United States
China China China Peru
China China
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