In a new report from the Center for an Urban Future, the New York-based public policy organization found that in the last four years growth in venture capital deals in New York have far outpaced other popular tech regions. New York has grown 32 percent during that time, while Silicon Valley VC deals decreased by 10 percent, and the U.S., as a whole, fell 11 percent.
The report lays out the benefits the city is seeing from the tech boom:
This burst of tech company formation has created thousands of good paying jobs in the five boroughs, attracted large amounts of capital from outside the city, pumped new life in the city’s entrepreneurial economy, and lured some of the world’s smartest and most innovative people to New York at a time when the most competitive cities are the ones with the best human capital and greatest capacity for innovation.
The infographic below provides more statistics on the New York's tech rise.
Not only does a growing tech base help diversify the jobs sector and bring in investments from all over the world, but because these startups are located in dense areas, where they are interacting with different sectors, innovation can happen in many different fields. You just don't get that in suburban office parks.
But New York's tech scene is still in its infancy compared to Silicon Valley. To continue to grow and thrive, the report has a number of recommendations -- some of which could apply to any city looking to build their tech sector -- they include:
- Setting a goal of making New York the most wired city in the world
- Continuing to open up government data to the public
- Creating a pipeline of tech talent from New York’s Public schools
- Clearing hurdles for tech startups to work with city government
- Making the new applied sciences campuses catalysts for local startups
- Establishing new incentives to preserve and upgrade Class B office buildings
- Creating more affordable housing
- Pushing immigration reform (to attract the best talent)
Read the full report.