London has topped a new ranking for Europe’s leading technology clusters, with Madrid, Dublin, Budapest and Paris occupying the next four places in the report compiled by real estate advisor CBRE.
CBRE analysed the scale, growth potential and concentration of companies in each of the top cities in the Europe, Middle East and Africa region (EMEA).
CBRE’s head of research, Kevin McCauley, said: “It is no surprise that London has topped the EMEA tech ranking. London’s tech credentials enable it to out-shine its peers, with both large and small tech occupiers expanding and looking to secure space in the city.”
Laura Citron, CEO London & Partners, commented: “London has always been a hotbed for innovation and new ideas and we welcome international businesses and talent from all over the globe. We are home to an exciting mix of companies such as Deepmind, Improbable and TransferWise that are considered world leaders in developing the latest cutting-edge technologies in fields such as Artificial Intelligence and Fintech.”
While London headed the ranking for capital cities and business centres with more than 70,000 people in tech employment, in the medium-size cluster category Thames Valley headed the way, with Derby-Nottingham scoring in thetop places for smaller growth clusters.
The CBRE report, EMEA Tech Cities: Opportunities in Technology Hotspotsidentified four separate categories of technology cluster in the EMEA region, based on a city’s level, concentration and growth of tech sector employment.
Analysts explained London’s top position in its category as partly due to its ability to attract young millennial talent. London’s overall employment in the Information and Communications Technology (ICT) sector has grown by 20% since 2008, with its proportion of ICT employment at almost two and a half times the EU average.
Dublin’s high ranking has been supported by strong government investment promotion, particularly toward US companies.
Budapest, meanwhile, has the advantage of labour cost arbitrage over Western European cities, although this has started to erode in the tech sector as people work remotely and those in the gig economy align their fees to their Western European counterparts.
Capital cities and business centres with high-tech employment > 70,000
- = Lyon/Grenoble