All over the globe, centers for tech development have been popping up in major cities due to an effusion of venture capital and other types of investments. Key tech players have also set up offices in these cities which strengthens their credibility in the startup game. As emerging hubs, they have created their own ecosystem to support the bustling tech economy.
After the Silicon Valley boom, industry experts had predicted that Austin would become the next big thing in tech development. Google and Facebook have set up their own headquarters in the city, and it has produced a number of promising startups. In fact, the Kauffman Growth Entrepreneurship Index, said Austin-based startups have grown by 81.2 percent in 2016.
Singapore has cemented its reputation as a tech center. This year, the Lion City was recognized as a center for highly-skilled startup talent. The city also ranked high in terms of global connectivity, which is an important factor in tech development. The more than 2,000 startups who have emerged from this Asian economy enjoy considerable support and subsidies from the local government.
While Toronto, Canada has been a laid-back player in the tech game, it has a considerable history of tech innovation. While they stopped making phones years ago, telecom innovator BlackBerry started out in Toronto. Today, the Canadian city has bolstered its tax incentive program and established several tech incubators across the city.
Several innovative centers have sprouted in Europe. Among all of these cities, Berlin received one of the biggest capital tech investments across the continent. Tech startups such as SoundCloud find themselves taking root in Berlin because of the thriving creative environment. Plus, office space rentals are reasonable, and the cost of living is relatively cheap compared to other European locations.
Seoul, South Korea
While Asia has several emerging tech cities, Seoul, by far, has been leading the pack. The national government infused around $3 billion into the economy to develop the capital’s infrastructure so it could become a tech city. As a result of these investments, Seoul has one of the fastest internet connection speeds in the world. Major tech firms such as Google and Facebook have established offices in the city. It is also home to smart electronics giant Samsung.
Stockholm, Sweden is the headquarters of music and video streaming innovator Spotify. Skype also started out in the Scandinavian city before it was acquired by Microsoft. Stockholm was also ranked as one of the most innovative tech hubs in the world.
While San Francisco’s Silicon Valley has been credited for starting it all, these cities made their own mark in the startup scene. Aside from the infusion of capital and innovative ideas, several factors shape the tech industry in a specific location. Most of these cities offer a facilitative environment for tech entrepreneurs to grow by enforcing low tax rates and investing in tech skills development. Many of the companies also created supportive eco-systems within their communities.