While other global technology centers are catching up, San Jose and the Silicon Valley continue to be the gold standard in attracting successful startups, according to a recent report by Startup Genome.
"You get this feeling that you need to be out here," Jessica Livingston, partner at startup funder, Y Combinator, said of Silicon Valley.
Based on data collected during 2012 from more than 50 thousand startups globally, skewed toward early-stage startups, the study focused on such data as startup output, funding, performance, talent, support, mindset and trendsetter indices, the report said.
Silicon Valley ranked No. 1 in each category, claiming the top spot in each index which are defined in the report as the following:
- Startup Output Index: The total activity of entrepreneurship in the region, considering population size and regional startup maturity.
- Funding Index: How active and comprehensive the risk venture capital is.
- Company Performance Index: The total performance and potential of startups, looking at revenue, job growth, and potential growth.
- Mindset Index: How well founders show visionary, resilient, appetite for risk and strong work ethic traits.
- Trendsetter Index: How quickly a region adopts new technologies, management processes, and business models.
- Support Index: The quality of the startup ecosystem’s support network, prevalence of mentorship, service providers and funding sources.
- Talent Index: Founder age, education, experience, ability to mitigate risk and previous startup success rate.
To best compete with San Jose, other startup cities "will perform better is they differentiate themselves from Silicon Valley and establish their own strengths," the report said.
