While it has long been the beating heart of world innovation, the gap is narrowing between Silicon Valley and other startup ecosystems. Entrepreneurship is booming all around the globe, and with it, dynamic and competitive ecosystems.
Silicon Valley has always been the most dynamic innovation ecosystem, and “startups have historically emerged from no more than 3-4 startup ecosystems” Startup Genome explains in its Startup Ecosystem Report 2012. However, the trend seems to be coming to an end: the past few years have witnessed an “explosion” of entrepreneurship and with it, “the rise of new startup ecosystems around the world, and a new found maturity in others." Based on data collected among over 50,000 startups around the world, the report features a global startup ecosystem index, that rank the top 20 ecosystems worldwide. The global index is based on other indicators: Startup Output (quantifies entrepreneurship activity), Funding, Company Performance (measures performance and potential re: revenue, job growth, etc.), Mindset, Trendsetter, Support, Talent, and Differentiation (how different the ecosystem is from Silicon Valley).
Promising or already mature ecosystems have flourished around the world
Out of the 6 top startup ecosystems of Startup Genome’s global index, 5 of them are North American cities: Silicon Valley is first, Tel Aviv Second, follow by Los Angeles, Seattle, New York City and Boston. Toronto and Vancouver respectively come in 8th and 9th position. In Europe, the first startup ecosystem is London – 7th position on the global index – before Paris (11th) Moscow (14th) and Berlin (15th). Sao Paulo is the top South American startup ecosystem (13th on global index) with Santiago (20th). Waterloo, Singapore, Melbourne and Bangalore hold the 16th to 19th position on the global startup index. While those ecosystems are all booming or already mature, there are a lot of differences from one to the other.
Important disparities remain, which is for the best
According to the report, the cities that differentiate the most from Silicon Valley are also the most likely to perform better than others, with their own set of strengths and assets. Boston, Tel Aviv and Vancouver are the closest to Silicon Valley. Generally speaking, their strengths lie in startup output, funding and talent. By contrast, Moscow, Sao Paulo and Sydney are the most opposite to Silicon Valley, and tend to have poor performance, startup output and funding metrics. Toronto, Chicago and Paris all have fairly high support and performance, medium startup output and talent, but aren’t trendsetters or cutting edge. Sydney, Melbourne and Los Angeles make the top 3 trendsetting ecosystems. Vancouver, London, Santiago, Sao Paulo have the best mindset metrics.