Report: San Jose earns #1 spot on list of nation's top tech cities
Cushman & Wakefield looked at six market drivers in an effort to distinguish tech cities across the U.S. Institutions of Higher Learning: leading universities that provide creative impetus, research, and that lead to the creation of new companies. Venture Capital: The capital needed to take those ideas and turn them into companies. Tech Workers: An ample supply of workers within a market’s tech industry, and leaders within the tech industry who understand the sector’s requirements. Knowledge Workers: An available workforce with the skills to work in a tech-focused company. These workers are in occupations that support tech, such as legal and accounting. Educated Workers: Educated workers are essential to supporting the growth of tech companies. Growth Entrepreneurship: There are many kinds of entrepreneurs and startups. Growth entrepreneurs stand out as companies that have the potential to become important contributors to local economies and to become mainstays of the local commercial real estate environment. These are the six ingredients that make up the “tech stew” needed to support, nurture and promote a strong tech ecosystem, according to Cushman & Wakefield. The San Jose metro area is home to six prominent institutions of higher learning, including Stanford and Santa Clara University.
- In 2016, San Jose ranked third in the nation for venture capital funding, with $6.7bn in deals reported last year alone. Although this number is impressive, it is two-thirds of the venture capital that flowed to NYC () during that same time, and less than one-fourth of the venture capital that companies in San Francisco received ().
- San Jose has the highest concentration of tech workers in the nation. Tech workers account for 27.4% of San Jose’s total nonfarm employment. This is by far one of San Jose’s greatest strengths, and represents almost double the concentration of the next best-performing city () based upon this metric.
- San Jose also ranks #1 for its share of knowledge workers. More than 35% of San Jose’s workforce is employed in knowledge-based industries, such as computers and math; architecture and engineering; life, physical and social science; management; education; and healthcare.
- San Jose ranks 5th in the nation as it pertains to share of workforce with a bachelor's’ degree or higher. This ranking looks worse than it is, but the ranking is somewhat deceiving. San Jose property managers, landlords and investors should know that the race to the top was a close one, with all top five cities coming in between 47% and 50%.
- Among the top 25 tech cities in the nation, the average score on the Growth Entrepreneurship Index is 4.75. San Jose scores 8.0 on this index, third best in the nation behind only Washington D.C. and Austin, TX.