High property prices and the need for more space is putting London's future growth at risk, according to a report from think tank Centre for London.
A growing demand for space is pushing startups and universities out of central London where they lack the support needed to compete on the global stage.
These areas could become "powerful engines of inclusive economic growth", according to the research, but more needs to be done to foster their development.
Croydon is one such area and is attempting to style itself as the Silicon Valley of South London. The suburb is now home to over a thousand early stage digital startups, according to the Office of National Statistics.
A number of universities and research institutions, such as Imperial College London and Kingston University, have recently opened campuses further from the city centre.
"As a leading global city, London has the skills base, the financial environment, and much of the physical infrastructure to support and sustain its success as a knowledge economy hub," Kat Hanna, research manager at the Centre for London, said.
"Yet increasing pressure for land and an uneven distribution of economic growth and employment is threatening London’s potential.
"If London is to continue to attract and retain global talent and investment it needs to get the spatial balance right – creating places for innovation, collaboration and wealth creation."