Hickey 2020 Global Innovation Hubs (GIH) Report

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.

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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.

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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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