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Savills Research Tech Cities in Motion
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Tech Cities in Motion
1 New York
2 San Francisco
3 London
4 Amsterdam
5 Boston
6 Singapore
7 Los Angeles
8 Austin
9 Stockholm
10 Copenhagen
11 Toronto
12 Seattle
13 Tokyo
14 Paris
15 Shanghai
16 Berlin
17 Beijing
18 Tel Aviv
19 Dublin
20 Hong Kong
21 Barcelona
22 Melbourne
23 Seoul
24 Shenzhen
25 Hangzhou
26 Chengdu
27 Santiago
28 Buenos Aires
29 Bengaluru
30
Cape Town
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Tech Cities in Motion
What is a
Savills Tech City? the six index categories
Business Environment
■ An important centre of tech within its region ■ Investment
■ Major recipient of VC investment ■ Size of finance & business services sector
■ On the shopping list for expanding global tech companies ■ Ease of starting a business
■ A vibrant city in which to live and work ■ R&D / innovation
■ A generator of, and magnet for, talent ■ Physical linkages
■ Cost of doing business
The Savills Tech Cities index measures (regulations, taxes, pay)
what makes a successful Tech City. Our
assessment for each city comprises of over
100 individual metrics, ranging from the Tech Environment
number of days needed to start a business ■ Venture capital
through to the cost of a flat white coffee. ■ Size / value of tech sector
These metrics are grouped into six ■ Tech infrastructure
categories: business environment, tech ■ Tech engagement
environment, city buzz & wellness, talent
pool, real estate costs, and mobility.
Each category is weighted to reflect its
importance to the tech sector.
City Buzz & Wellness
■ City wellness
■ City buzz
■ Cost of living
Talent Pool
■ Higher Education
■ Immigration & talent attractiveness
■ City youthfulness
Mobility
■ Shared mobility services
■ Metro system
■ Quality of urban infrastructure
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Tech Cities in Motion
3. LONDON
Big city buzz
1. NEW YORK
2. SAN FRANCISCO Global centre of commerce
Tech environment
Shenzhen
A centre of commerce Hangzhou
with a deep talent pool Chengdu
and global links means that Santiago
New York is an attractive Buenos Aires
base for both start-ups and Bengaluru
multinationals alike Cape Town
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Tech Cities in Motion
Our Tech Cities are among the fastest growing Figure 2 The mobility sub rankings
developed cities in the world. Across the 30
■ Chinese Cities ■ European Cities ■ US Cities ■ Other Asia Pacific cities
tech cities, GDP is forecast to rise by 36% in the
next decade, against a rate of 19% across other SHARED MOBILITY QUALITY OF URBAN
METRO SYSTEM
developed centres. Measured by metro area, these SERVICES INFRASTRUCTURE
30 cities are home to 291 million people between
them, and will add another 18 million inhabitants 1 Beijing 1 Shanghai 1 Amsterdam
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Tech Cities in Motion
2012 2018
$37bn $208bn
The rise of
Chinese Tech Cities
Chinese Tech Cities have risen Already established as a centre Figure 4 VC investment volumes by city
rapidly on the global stage, and of tech manufacturing, home-grown ■ Autonomous Cars ■ Ridesharing ■ Other
now account for a higher share hardware firms are now making Average annual VC investment, billions (2016-2018)
of VC investment than their US global moves. $0 $5 $10 $15 $20 $25 $30 $35
counterparts. Beijing sees by far the greatest Beijing
VC investment volumes across VC investment, an average of $34 New York
the 30 Tech Cities rose from $37 billion per annum in the last three London
billion in 2012 to $207.8 billion in years, with volumes higher even San Francisco
2018. While the scale of overall than New York and San Francisco. Shanghai
Tokyo
investment has risen, the US-city Close to regulators some of China’s
Hangzhou
share of these volumes has dropped largest tech firms are headquartered
Paris
from 40% to 28% (see chart). in Beijing. Singapore
Chinese cities, by contrast, have Our ranking puts Shanghai ahead Shenzhen
seen their share rise from 11% to 36% as a more ‘global’ tech city, however, Los Angeles
over the same period. thanks to an international business Austin
Melbourne
For every US tech giant there environment and better of quality of
Boston
is a Chinese equivalent. The US life for residents (Beijing’s air quality
Dublin
has ‘FAANG’ (Facebook, Amazon, is the worst of any of our Tech Cities).
Hong Kong
Apple, Netflix, and Google). China Elsewhere, Shenzhen, an Seoul
has ‘BAT’ (Baidu, Alibaba and exceptionally youthful tech city, Toronto
Tencent), and more recently the benefits from strengthening links Amsterdam
mobile-driven ‘TMD’ (news app with Hong Kong (just 15 minutes Stockholm
Toutiao, group-buying service away via high-speed rail) and a new Berlin
Meituan-Dianping, and ride-sharing tech-stock exchange, ChiNext. Seattle
■ Other Cities ■ Other Asian Cities ■ Chinese Cities ■ European Cities ■ US Cities
100%
Share of total VC investment
90%
80%
70%
(30 cities)
60%
50%
40%
30%
20%
10%
0%
2012 2013 2014 2015 2016 2017 2018
*Across our 30-city sample Source Savills World Research using Pitchbook
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Tech Cities in Motion
15 Shanghai
17 Beijing
20 Hong Kong
24 Shenzhen
25 Hangzhou
26 Chengdu
Shanghai Shenzhen
Rank: 15 Rank: 24
Population: 24.2m Population: 12.5m
VC investment*: $12bn VC investment*: $4.5bn
Notable Tech Companies: Ele.me Notable Tech Companies: Tencent
Global city appealing to expats and good High-tech manufacturing centre,
for scaling larger tech companies now a start-up hub in its own right
Beijing Hangzhou
Rank: 17 Rank: 25
Population: 21.7m Population: 9.5m
VC investment*: $34bn VC investment*: $7.6bn
Notable Tech Companies: Didi, Baidu Notable Tech Companies: Alibaba
Major VC recipient. China’s capital, An hour away from Shanghai. Quality of life and
close to regulators famous for West Lake UNESCO world heritage site
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Tech Cities in Motion
Highest Highest
San Francisco $720 San Francisco $1,050
Average Average
$350 $590
Lowest Lowest
Chengdu $140 Buenos Aires $110
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