Dive Brief:
- A report from real estate brokerage firm Savills found New York City ranks first in a global index of top tech cities, ahead of San Francisco and London. Amsterdam and Boston rounded out the top 5.
- The company said New York took the top spot among 30 cities based on the large amount of venture capital available to invest in technology companies, a large pool of workers and the myriad of opportunities available. The report factored in 100 metrics.
- The report also found Chinese cities are rising fast in the rankings, thanks in large part to the massive amounts of venture capital being made available and the mobility services offered. Savills found Beijing recorded an average of $34 billion in venture capital per year in the last three years — more than New York and San Francisco.
Dive Insight:
The ability to attract talent is a key part of New York City's elevation to the top spot in the rankings, and comes just months after it was awarded one of Amazon's next headquarter locations (HQ2), alongside Arlington County in Northern Virginia.
At the time, Amazon said access to an educated workforce was key in its decision, and Savills said it was "no coincidence" Amazon made the choice it did.
Traditionally, Silicon Valley cities such as San Francisco were regarded as powerhouses for attracting and retaining tech talent, but have seen their supremacy slip recently as other new tech hubs climb the ranks. Apple recently chose Austin, Texas for its new campus, and the company added that it wants to expand into Pittsburgh, New York and Boulder, Colorado.
The U.S. Army announced last summer it would build a technology development center in Austin, which is seen as a major challenger to West Coast dominance.
Lower costs of living and more competitive salaries outside of traditional tech centers have contributed to this shift. Other cities on the rise include Atlanta, Baltimore, Boulder and Denver, Colo., Phoenix and Chicago.
Leaders will likely continue to bolster their reputations as tech-friendly cities, albeit some warn against chasing big companies' new campuses and getting involved in major bidding wars.
New York City has been grappling with grassroots resistance to the new Amazon headquarters, resistance that culminated in the appointment of a staunch critic and opponent of the plan to the city's state board that will handle the $3 billion deal. Governor Andrew Cuomo still has to approve Senator Michael Gianaris' appointment, but the latter could throw a large wrench into Amazon's plans in the city.
