KPMG: Beijing may replace Silicon Valley in the future
Over two-thirds of respondents believe that the World Innovation Center will be transferred from Silicon Valley in the next four years, according to a survey recently conducted by the international accounting firm KPMG among global technology leaders.
The results of the survey are not surprising, given that the innovations of central cities in many countries and regions have reached the standard of Silicon Valley, but where is the next center?
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Silicon Valley serves as a global center for high technology, innovation and social media. [Photo provided to chinadaily.com.cn] |
The survey found that New York will be the number one city to challenge Silicon Valley in the next four years, second in the list comes Beijing, followed by Tokyo in Japan.
It seems to come as no surprise that Beijing ranks second in the annual survey, ahead of fourth-ranked Shanghai. Beijing has occupied a central position of the country’s science and technologies, since the rise of entrepreneurship and venture capital in the Chinese market about 20 years ago.
Shanghai's development is focused more on entertainment, marketing and financial technology, while Beijing focuses on deep technology.
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About one third of all China's Venture Capital investment is made in Beijing and the majority of those investments are in the Technology, Media and Telecommunications (TMT) sector. [Photo provided to chinadaily.com.cn] |
Silicon Valley is losing its allure since the living cost there is high and its infrastructure cannot keep up with the economic growth.
China has become a major challenger to the US in terms of global innovation leadership. But this year's results show that investors' preference for the Chinese market has weakened.
When asked about the top potential market for technological innovation and breakthroughs, 17 percent of respondents chose China, compared to 26 percent a year ago. This result reflects the continued trade tensions between China and the United States.
The survey also showed that the ranking of the US also declined compared to the previous year on the same issue: 23 percent of respondents believe that the United States is in a leading position, compared to 34 percent in last year’s survey.
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Continued trade tensions between China and America affect both countries. [Photo provided to chinadaily.com.cn] |
KPMG has conducted a seven-year technical innovation survey and interviewed over 740 technology executives around the world.
