CityLab co-founder and editor-at-large Richard Florida breaks down how different high-tech industries are clustered in different parts of the country.
Florida and his colleague Karen King and the Martin Prosperity Institute used detailed data from Thomson Reuters to identify the areas with the largest clusters of venture capital investment and startup activity across five leading industries—software, IT services, biotechnology, medical devices and equipment, and media and entertainment.
When it came to venture capital investment in software startups, the San Francisco Bay Area dominated with $5.7 billion, or nearly half (47.9%), of this investment. $3.3 billion (or 27.6% of the total) comes from San Francisco, followed by San Jose (Silicon Valley), with $2.4 billion (or 20.2%). New York is third, with $978 million (8.2%), just ahead of Boston, with $907 million (7.6%), reports Florida.
He and his team found the geography of biotech to be somewhat different.
The Bay Area still dominates, but not to the extent that it did with software or information technology. Most of this investment comes from San Francisco, which accounts for roughly 30% of biotech investment, or $1.8 billion. Boston is now second, with $1 billion (18.1%), followed by San Diego ($477 million or 8.3%), New York ($407 million or 7.1%), and Washington, D.C. ($310 million or 5.4%), according to the research.
Researchers also found the geography pattern to be different for other high-tech sectors.
Read Florida's article to learn more.