Beijing unseats Silicon Valley to become world's top tech hub

Beijing's Zhongguancun has unseated San Francisco's Silicon Valley as the world's top technology hub, according to a report by Expert Market, a US-based business resource company.

The Zhongguancun tech community has become the top destination for the brightest tech talents around the world, due to its favorable climate for early-stage funding, good performance in startup output and the city's affordable cost of living, according to the report.

Beijing unseats Silicon Valley to become the world's top tech hub.

About 10 data points were used to determine the rankings, including the average salaries for software engineers, how long it takes to get a business up and running, cost of living and monthly rent prices, growth index and startup output, said Forbes, citing the methodology of the report.

San Francisco, where Silicon Valley is located, took the third spot after Berlin. Shanghai grabbed sixth place as a new entrant on this year's list, with high growth index, relatively low monthly rent and good startup experience.

The report shows how fast-moving and internationally competitive the tech industry is. Although Silicon Valley still excels in a number of key areas, international competitors have overtaken the original tech hub city, especially when it comes to attracting the brightest new tech talents, said Jared Kelher, editor of Export Market.

Beijing's massive market, fast consumer adoption rate, rapid business development timelines and appetite for innovation contributed to the city's unique advantages.

Photo via Reuters

The government's injection of 1.5 billion US dollars in 2016 to renovate Zhongguancun, home to world's leading tech companies such as Xiaomi, Google and Intel, also added scores for the city, according to Recode.

The Chinese government's efforts in tech innovation and the achievements of Chinese companies such as Alibaba and Tencent are the reasons for the country's capital to top the list, according to Sophia Patsikas, lead researcher at Expert Market.

Zhongguancun Science Park's administrative committee released an industrial incubation plan to improve its innovation ability in artificial intelligence (AI) industry early this month and it indicated that Zhongguancun is expected to form an AI supergroup that will encourage international competitiveness by 2020.

(CHINA DAILY)