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  • Four ways start-ups can transform a city

    June 5, 2017 Editor 0

    From Berlin to Cairo, from Medellín to New York City, new start-ups are flourishing in the heart of the city instead of occupying suburban areas or remote technology parks. This is the new model of start-up innovation ecosystems propelled by the so-called “fourth industrial revolution.”

    Are these city-based start-up ecosystems generating new economic opportunities and jobs? If so, how are they doing it? To better understand this new model and its potential economic impact, we studied the evolution of the start-up ecosystem in New York City.

    An aerial view of DUMBO, a neighborhood in Brooklyn that has become a tech hub. © Albert Vecerka/Esto Photographics under CC

    The city’s vibrant start-up scene is a recent phenomenon. With more than 14,500 start-ups and nearly $6 billion in venture capital investments, New York City today has one of the largest and most vibrant start-up ecosystems in the world. Just 10 years ago, the start-up community in the city was small, scattered, and disorganized.

    The incredible transformation of the city’s start-up scene provides a few key insights on the characteristics and potential impact of the urban ecosystem model:

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