Having a skilled, young entrepreneurial population is necessary for any city looking to foster a dynamic start-up scene. But, initially at least, these start-ups need local populaces ready to embrace and consume their new services and products, which is why having a high millennial to baby boomer ratio is also important. The cities that balance both are likely to see strong tech growth.
The latest Savills Tech Cities research programme has found that Melbourne, alongside Santiago and Buenos Aires, could be future tech capitals due to a strong ratio of young people to old, alongside high proportions of skilled university students.
In fact, these three cities are the only ones to appear within the top seven Tech Cities on two key talent pool metrics: having large student populations at universities or technical institutions, and having a high ratio of ‘millennials’ (those born between 1980 and 2000) to ‘baby boomers’ (born 1946 – 1964).
Having access to a strong talent pool is a key measure of a good tech city. The challenge for these cities will be to capitalise on this potential and ensure start-ups have access to angel investors and higher quality broadband infrastructure to help them expand. This will help propel them up the overall Savills Tech Cities rankings.
In addition to the above factors, Savills Tech Cities also looks at factors such as tech environment, business environment, talent pool, city buzz and wellness, and real estate costs.
Overall, Melbourne is the top ranked ‘tech city’ in Australia and 14th in the world offering the infrastructure, business environment, talent pool and lifestyle to make it a strong base for tech companies. Melbourne’s cost of office accommodation is not only 15% below the Tech Cities average but also offers a substantial discount when compared to Sydney rents.
Melbourne also scores particularly well on the wellness metric, coming third of all the global cities. Its reputation as one of the world’s most liveable cities has placed it above more established global tech rivals and will see it continue to move forward.
In fact the strategy of the Victorian government has been to take “brand Victoria to the world,” attracting more and more leading global companies to invest in the state’s booming tech sector.
Therefore we won’t be at all surprised to see Melbourne continue scoring high in future Tech Cities reports and moving forward as a future tech capital.
Savills Tech Cities 2017 programme aims to understand the diverse factors that make places a good location choice for the tech sector; examining 22 global centres which have thriving and growing tech industries, home grown start-ups and incubators, and are at the top of global shopping lists for tech companies looking for space in which to locate. Explore the globe.