B2B financial services platform FINOM.de published a study showing the world’s best cities for business innovation. And Phoenix has proven to be one of the most innovative cities in the world, ranking 51st in the world.
As a company that uses new technologies to improve the business and the lives of entrepreneurs and professionals in Europe, FINOM has decided to create the first FINOM index of business innovation to see if certain cities are hubs. business innovation. The study divides the innovation landscape into different areas, including research and development, start-up activity and the availability of funding, in addition to examining innovation at the individual industry level, for example example in artificial intelligence, biotechnology and fintech. The resulting index provides a snapshot of global cities leading the way in having fertile ecosystems for business innovation, and reveals which cities are global leaders for innovation in each industry.
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âAs a B2B financial platform, we are fully aware that business innovation rarely happens in isolation,â comments Yakov Novikov, CEO and co-founder of FINOM. âThroughout history, successful innovative companies have initiated the development of a supportive ecosystem in their city or hometown, for example Ferrari, which brought employment and manufacturing expertise to Modena in Italy almost a century ago. Other automakers then moved to the city, including Lamborghini and Maserati, attracted by its in-depth knowledge of the industry and skilled workforce. This process ultimately led to the creation of the âMotor Valleyâ in this part of Italy. The same trend continues to be seen today, with different cities leading the innovation landscape in different industries. The study shows that Boston is the leading city for biotechnology innovation, while San Francisco is at the top of the list for green technology innovation. These cities have significant industrial know-how and a multitude of suppliers who feed the supply chain. “
The 100 most innovative cities in the world
How the study was conducted
FINOM started by creating a shortlist of 200 cities based on their size and importance in the business world, which they narrowed down to the top 100 scores. The cities were then analyzed according to two broad categories. The first category, areas of innovation, was made up of a number of sub-factors related to the different stages of the innovation process of companies. The second category, Industries, examines which cities are at the forefront of business innovation in an industry by industry level.
For the first category, the research and development expenditures of businesses, government organizations and universities in each city were assessed in recognition of the central role that R&D plays in business innovation.
Then, the industrial ecosystem of each city was assessed to measure the industry’s contribution to the region. In particular, he examined the employment that manufacturing and engineering companies bring to each city and whether companies in these sectors are headquartered in cities. The technological ecosystem was then analyzed to measure the diversity and maturity of this sector in each city.
Next, the number of startups founded since 2010 that have received funding since 2015 in each city was counted to recognize how innovation in business often comes from more agile and disruptive companies. The total venture capital funding received by businesses in each city since 2010 was also included as a measure of the local support available to innovative businesses.
For the second category, the study analyzed the size of the local business ecosystem devoted to different innovative sectors, including artificial intelligence, biotechnology and green technologies, in order to understand how different cities dominate growth. and the development of certain industries.
The resulting index provides an overview of the world’s best cities for business innovation, ranked by scores and divided by country.