From 1 million inhabitants – in which city is it better to launch a startup

The scientific journal Science Advances has published a study on the best city to launch a startup. The Fast Company edition drew attention to it. AIN.UA gives a short retelling of the material.

• According to the study, startups and innovation-driven companies should locate offices in the largest city they can afford.
• Cities with a population of 1 million or more are most suitable.
• In big cities, there is a trade-off between high rents and labor costs. At the same time, the high cost of labor is offset by significant innovation.
• The larger the city, the more likely it is that different human resources are concentrated there. This means that everyone has different experiences, thinking styles and perspectives.
• Large cities also have cultural institutions and universities where research is conducted. In addition, the business is divided into sectors and many industries are represented. In such an environment, people can regularly come across creative ideas.
• Policymakers need to understand how to make cities more attractive to startups. To drive “scaling”, you need to consider which companies and workers can drive growth.
• The study found that cities attracting “cognitive labor” scaled faster than those that rely on manual labor.

Source: ain.ua