London ranks third in global list of tech hubs, says KPMG

London's skyline
London's skyline Credit: PA

London has been ranked in joint third place in a list of global technology hubs produced by KPMG.

The accountancy firm’s latest Technology Innovation Hubs report found that London is seen as being one of the top cities in the world for innovation.

London was ranked behind only New York and Beijing on KPMG’s list of innovations hubs outside of Silicon Valley. It was jointly listed in third place alongside Tokyo.

For the first time in the annual report, a majority of respondents interviewed by KPMG said that they expect that Silicon Valley will lose its status as the top centre of innovation in the next four years.

The firm interviewed 740 executives and technology investors to compile the report. About 58pc of respondents said they expect Silicon Valley to lose its dominance, with New York listed as the most likely city to exceed it as the world’s top centre of innovation.

Ian West, UK head of technology at KPMG said: “It is great that the UK’s technology sector is appreciated as the most promising market for technology breakthroughs in Europe, and that London is seen as a major hub for big data, fintech and a variety of digital technologies. Despite the uncertainties presented by political hesitations and other economic factors, the UK and London has not lost its shine when it comes to its technology pedigree.”

A report released in December by Tech Nation and Dealroom found that the UK technology sector outperformed the rest of Europe in 2018 by attracting $7.9bn in venture capital investment.

Technology start-ups in the UK accounted for more than a third of sales, initial public offerings and mergers across Europe, with $40bn worth of exits being made in 2018 alone.

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