Some 23% of investors think London offers the best chance of producing the next tech giant.
According to EY UK’s Attractiveness Survey 2016, which surveyed 1469 people, London ranked alongside San Francisco in terms of its perceived capacity for tech innovation.
San Francisco came slightly on top of London with 29% of the vote and was closely followed by Shanghai, New York, Beijing and Berlin, which scored 21%, 16%, 14% and 10% respectively.
Attracting investment
According to the survey, some 57% of respondents think London is the top city for attracting foreign direct investment (FDI), making it the most attractive city for securing external funds in Europe.
London was closely followed by Paris (43%), Berlin (29%), Amsterdam (15%), Barcelona (11%) and Munich (11%).
The survey also found that the UK had benefited from increased FDI across a wide range of sectors, particularly in software and FinTech.
Taking into account the 10 most important sectors for FDI in Europe, the survey highlighted the UK as the leading recipient in three of the top four: software, business services and automotive assembly as well as in the sixth biggest sector, financial intermediation.
‘Worrying signs’
Despite London’s prospects, investors seemed less optimistic about the UK’s future attractiveness than they were a year ago.
When asked about how likely they were to invest in the UK next year, 23% of investors responded positively, whereas 27% had done so last year.
Only 36% of respondents said they would expect the UK’s FDI attractiveness to improve in the next three years. In comparison, 54% said they expected this to happen last year.
Additionally, the survey found that the UK’s ranking as Europe’s most attractive location for FDI had declined relative to Germany, with the country now lagging 2% behind.
Sophie Adelman, general manager UK & Ireland at Hired, said: “London is a growing hub for talent, capital and technology company growth; the news that London is now the second highest ranked tech city in the world is great news for both companies and candidates alike.”
“As an increasing number of technology companies open London offices, we will continue to see unprecedented demand for qualified technical candidates. The war for talent is only just beginning, so technology companies need to ensure they are hiring the right people, with the right skills, for the right roles if they are to survive in what is only going to become an even more competitive landscape,” she added.