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The Transformation of Start-up Geography around the World

The Transformation of Start-up Geography around the World
Wednesday, 16 January 2019

Traditionally the U.S. is the place where we expect to find the strongest start-up ecosystems and high-tech innovation companies. However, with the globalisation of so many different factors, over the past decade these start-up hubs have expanded to other large cities world-wide. The recent report Rise of the Global Startup City has analysed the current state of where to find start-ups and venture capital around the world. [1]

The information, when analysed, shows four major changes in what Richard Florida and Ian Hathaway call:

“A Great Expansion” or an increase in the volume of overall capital investment;
“Globalisation” or the growth of start-up ecosystems and venture capital around the world;
“Urbanisation” or the conglomeration of the ecosystems in cities;
“A Winner-Take-All Pattern” or the idea that the cities with the strongest start-up ecosystems continue to grow [1].

These authors identify three main driving factors behind these trends: advancing technology, poverty reduction (and consequently increased demand of new products), and political changes [1]. By interacting with the different maps and data provided here, we can begin to understand the changes in the start-up ecosystem at both an overall and at a regional level. 

To understand this question of how the start-up ecosystem is changing, check out this comprehensive article published on the Harvard Business Review website.