London Retains its Place as the Tech Capital of the World

London has once again been named the tech capital of the world, with Oxford and Cambridge closing in on New York, which is in third place in the latest rankings.

The Z/Yen Smart Centres Index – which ranks 79 global commercial hubs on their ability to create, develop, and deploy tech – kept London in first place, a title it has held in the biannual ranking since leapfrogging New York in the last edition.

Meanwhile, Oxford and Cambridge, which house enviable research facilities, climbed one and four spots, to fourth and fifth place, respectively.

Cambridge’s tech ecosystem now has a combined value of $191bn (£150bn), which is worth more than that of Spain and Italy combined, according to Dealroom.

This boost for the UK's tech ecosystem comes after Prime Minister Rishi Sunak laid out his plans to make the nation a “science and technology superpower” by 2030. Last year saw a record-breaking 51,017 new tech companies incorporated in the UK.

Looking at trends across the industry, a quarter of survey respondents identified AI, digital, and computing as the areas expected to have the most impact over the next five years.

Wayne Johnson, CEO and co-founder of Encompass Corporation, said: "Despite the global economic challenges that continue to be faced, the UK's progress towards its goal of becoming a science and technology superpower by 2030 is underscored by London's growing reputation as a world-leading tech force.

"Continuing to showcase a thriving technology sector is vital to many facets of the UK's economy, including when it comes to attracting investment. Taking automation technology that facilitates enhanced Know Your Customer (KYC) processes to fight financial crime and charge business growth as an example, all parties, from Government to investors, backing solution development is key to unlocking the benefits of the game-changing innovation that will drive the country forward.

"With artificial intelligence expected to greatly influence the industry over the next five years, London's talent pool and infrastructure must be channeled across this and a multitude of other areas. Considering the FinTech and RegTech industries particularly, there is unparalleled opportunity for businesses to take advantage of cutting-edge technologies for huge gains.

"The UK's strategic focus on science and technology puts it in a prime place to set the standard globally, and that mantle must be taken. As we witness rapid advancements in the solutions on offer, and the need for them, London's continued standing evidences that the country is well-placed to navigate and shape the future landscape. It is time to drive forward the vision of an evolving, resilient economy that is supported by best-of-breed innovation."

Lord Mayor of the City of London and Z/Yen chair Michael Mainelli commented: “Commercial centres across the world continue to promote innovation in technology and science.

“Our community’s focus on artificial intelligence, electronics, and energy technology as the developments likely to have the most impact on industry over the next five years shows the likely continued direction of travel.”

The index was compiled using insights provided by third parties, including the World Bank, OECD, and the United Nations, as well as assessments via an online questionnaire.