_The Knight Frank Tech City Index
The rapid onset of next wave technology will advance two key trends within global real estate markets.
First, it will create new expansionary demand from both established and emergent tech companies, as they seek to grow market share within these new niches. Tech sector demand will continue to dominate leasing activity within global markets.
Second, it will extend the innovation imperative felt by companies from across a broad spectrum of industry sectors who are seeking to secure competitive advantage through the application of next wave technology. Our long held belief that technological disruption creates market demand is as relevant to next wave technologies as it was to the digital revolution.
Given this, there will be a strong push from tech companies and those disrupted by tech, to secure the tech talent capable of driving growth, implementing technological transformation and future-proofing organisations.
Companies must identify those global centres where innovative tech and creative talent clusters. They will increasingly aim to locate in proximity to it, in order to derive competitive advantage.
The Knight Frank Tech City Index supports this identification process. Through six distinct analytical categories, we have determined the world’s top 15 tech cities, as shown in the chart opposite.
These cities will be high on the list of potential locations for those seeking to access the talent that advances and implements next wave technology.
These cities are most likely to show strong profiles of demand from the tech sector over the next five years. These cities have the human capital best able to support business transformation. These cities will have great appeal to property occupiers and owners alike.
The Knight Frank Tech City Index ranks cities around the world on six key elements of a supportive tech sector infrastructure:
Educational infrastructure: The concentration of world-renowned academic institutions, within 60 miles of the CBD, that have an international outlook, first class research and strong ties with business.
Tech and creative talent: The presence of technologically savvy talent, notably that with a strong R&D focus.
Next wave technologies & start-up culture: The capacity of the city to continually advance and nurture new businesses, particularly within emerging new wave technologies.
Tech based growth: The influence of tech on future city level economic growth.
Capacity to innovate: The ability of a city to accommodate and advance innovation as part of its economic development.
Smart City infrastructure: The extent to which a city embraces and utilises technology to aid city management and effectiveness.
Scores and rankings are calculated for each element and then are aggregated to create our overall Global Tech City ranking.
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