Jakarta, the capital city of Indonesia, has come out in the list of global cities that are set to challenge the domination of global startup ecosystems such as Silicon Valley and Beijing, according to the latest Global Startup Ecosystem Report by Startup Genome.
Launched at The Next Web Conference, the report included the list of 12 global cities (“Challenger”) that are currently not included in the main top 30 global startup ecosystem list, but is believed to have the potential to make it to the main list in the next five years.
Topping the list is Greater Helsinki, followed by Hangzhou and Jakarta.
As a region, Asia Pacific dominated the list with seven cities, followed by Europe with two cities.
According to the report, key characteristics shared by the Challenger cities are: Regional leadership and sub-sector leadership.
In the general global startup ecosystem list, the only Southeast Asian city to make it to the top 15 list was Singapore at 14, which was down two positions from last year.
While the city state ranked first in terms of aspect such as connectedness, it ranked fourth in terms of funding, market reach, and knowledge.
The rise of deeptech
In addition to ecosystem rankings, the report also revealed the fastest growing category in the startup industry: Deep tech, or sub-sectors that “require tangible IP to success.” For example: Life sciences, robotics, or AI.
“Nearly half (45 per cent) of startups being created globally now are in deep tech-related sub-sectors -twice the share they made up in 2010-20115. Moreover, the four fastest growing startup sub-sectors are all deep tech-related,” the report stated.
It also stressed that the rise of deep tech provides a “real opportunity” for growth based on each startup ecosystem’s existing strengths.
“Places that would not be anywhere close to the top ecosystems in software have the potential to build a thriving startup economy leveraging their universities, research capacity, and traditional economy strengths. For instance, while Lausanne-Bern-Geneva, San Diego, and Munich are not among the best software startup producers, they all made it into the top 30 global startup ecosystems thanks to their performance in deep tech and life sciences factors,” the report further explained.
“Other ecosystems like Seoul and Tokyo — both massive patent creators — are Challenger ecosystems with a real chance of being part of the top 30 ecosystems of the future,” it continued.