The Global Tech Ecosystem Index for this year has identified Paris as the premier tech hub in Europe, reflecting its robust tech talent, innovation, and investment landscape. The comprehensive analysis surveyed 288 cities across 69 countries and placed Paris not only at the top of the European rankings, but also fourth globally. Following closely, London secured the sixth position in the global ranking, demonstrating the UK’s enduring influence in the tech sector. Other notable European cities that made it to the global top 20 include Cambridge, Munich, Stockholm, and Grenoble, all contributing to the continent’s diverse technological ecosystem.
Cambridge emerges as a particularly strong player, boasting the highest concentration of tech talent in Europe. The city’s impressive enterprise value exceeds €162 billion, supported by a relatively small population of approximately 150,000. This showcases Cambridge as a density leader, where the tech ecosystem’s performance significantly outpaces its population size. Such cities are characterized by vigorous startup activity, high research intensity, and integral university connections. The report emphasizes that exceptional ecosystems are not restricted to large cities but can emerge from any location with the right conditions for innovation.
In a contrasting narrative, the UK’s tech scene has witnessed a decline in funding in recent years. In 2024, UK startups raised just over €19 billion, marking the lowest figure since 2020. Despite this downturn, the UK continues to play a pivotal role in Europe’s tech narrative. Significant funding challenges have not diminished its status, but have raised questions about the sustainability and growth potential of its tech companies. This duality illustrates a broader trend in which traditional tech powerhouses face new challenges while also striving to maintain their competitive edge.
Additionally, the report highlights the emerging tech ecosystems across Europe, notably identifying Kyiv as the continent’s top rising star. The assessment measures growth in enterprise value and the number of unicorns, or privately-owned startups valued at over $1 billion, thereby adjusting for local GDP and cost of living. Kyiv’s tech ecosystem has seen remarkable development, with the number of tech professionals increasing from 75,000 in 2014 to over 300,000 in 2023. The Ukrainian capital has become home to more than 1,000 tech firms, including prominent names like Ajax Systems and Grammarly.
Globally, Lagos leads as the top rising star in tech, having spawned five unicorns and expanding its ecosystem value more than 11 times since 2017, despite operating within a smaller economic framework. This contrasts sharply with other regions but highlights the dynamism and growth potential present in emerging markets. In the European context, Kyiv tops the list of rising stars, followed by cities such as Vilnius, Zagreb, Prague, Warsaw, and Athens, each showcasing their distinct narratives of growth and innovation.
Lastly, the recognition of Kyiv also serves to underline the broader trend in which unconventional locations are positioning themselves on the global tech map. A few months prior, the World Economic Forum selected Kyiv to inaugurate a new GovTech center aimed at exchanging innovative approaches in governance technology. This move signifies a growing acknowledgment of Ukraine’s capabilities and the potential of its tech ecosystem. The unfolding dynamics in both established and emerging tech hubs illustrate the evolving landscape of global technology, emphasizing the need for adaptability and resilience in a rapidly changing environment.
