Technology firms are shaming other sectors of the global economy
in terms of growth, largely thanks to small and medium-sized
enterprises (SMEs) that are innovative and keen to expand. In
Britain, research by Barclays shows internet companies are growing
at a rate more than 50 times faster than the average GDP growth of
0.3%, with firms that sell their products or services mostly online
seeing average revenues grow by 11.4% over the last three
In order to foster this rapidly growing sector, international
business hubs are creating tech cities that build on the success of
California's Silicon Valley. Home to multinational firms such
as Google, Yahoo and Facebook, there has been a plethora of
successful businesses which have all grown thanks to a relatively
enterprise-friendly tax system and the space for companies to
Deborah Perry Piscione, author of Secrets of Silicon Valley,
talked to CityAM about the possibility of replicating this business
region elsewhere in the world. Dispelling myths that the
Valley's success was a natural occurrence, she credited local
authorities for decades of forward-thinking and investment
decisions, as well as pointing to the entrepreneurial spirit that
has come from leading tech visionaries.
"Silicon Valley is not just a geographic location, but a
mindset. And while the place cannot be exactly replicated, the
mindset can," she said, pointing to the value placed on every
person in the company, as well as the value placed on ideas and the
ability to innovate as key to the growth of new tech cities.
London is notoriously good at thinking ahead. Canary Wharf, for
example, was at the forefront of a financial services boom that
propelled the city as the financial capital of the world. It is no
surprise, therefore, that the British capital is looking to do the
same thing in the tech sector.
Its Tech City, colloquially referred to as Silicon Roundabout,
has seen hundreds of new startups emerge. Figures from Google,
which opened its campus hub for fostering new technology firms just
over a year ago, revealed that one in four companies located in the
tech hub are already moving on to bigger facilities, underlining
the rapid growth being seen in the area.
CNBC recently revealed many surprise locations that are
fervently increasing their business activity in the tech realm.
Zurich in Switzerland is now home to more than 60 technology parks
and several venture funds and is attracting entrepreneurs from
around Europe at an astonishing rate. Stockholm in Sweden has also
acted quick to attract growing firms, with Oulu in Finland making
similar moves. Amsterdam in the Netherlands and Copenhagen in
Denmark have also seen huge rises in technology-related
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