New York provides a better environment than London to foster innovation

 
Charlotte Henry
Follow Charlotte
London is ranked as one of the best cities for innovative firms (Source: Getty)

New York is the city that best fosters innovation and entrepreneurship, closely followed by London, according to a report that has just been launched.

The city initiatives for technology, innovation, and entrepreneurship (CITE) report analysed 40 world cities to see where policy has created the best environment for entrepreneurship and disruption.

The cities were tested against various criteria which answered the questions:

  • How open is the city to new ideas and new businesses?
  • How does the city optimise its infrastructure for high-growth businesses.
  • How does the city build innovation into its own activities.

The top five cities were.

  1. New York City
  2. London
  3. Helsinki
  4. Barcelona
  5. Amsterdam

One of the key issues the report looks at is regulation, and how regulators accommodate new firms. Uber has been a perfect case study for the tension between regulators and startups.

The report says that London has done well on this score:

The approach taken by London to Uber makes a good compromise.

London was seen as as positive advocate for tech and innovative business. Measures taken by New York, such as online hub for the city's startups, were also highlighted.

The report notes that the London government is a good customer to its new businesses, as well as providing strong infrastructure for startups.

Incubators, an environment in which startups are guided and helped to grow, are a popular tool backed by cities. For example Paris has invested 1m square metres in space for innovative companies.

London's backing for apprenticeships to help young people also helped its strong performance.

It is all positive news for London's startups scene, as Silicon Roundabout companies look to make there mark on the world.

Related articles