Can cities with less than 200.000 people become startup hub? - A case study of Wellington, Newzealand
18/11/2020
Can cities with less than 200.000 people become startup hub? - A case study of Wellington, NewzealandDespite being a small city of around 200,000 inhabitants, Wellington remains one of the most remarkable ecosystems in the world. This city is known as the highest average income in New Zealand with the presence of both large corporations, government agencies and two universities. In particular, immigrants make up about 25% of the population and many of the city's startups are founded by immigrants.The history of New Zealand’s development based on agriculture and food exports. In the 2008-2010 period, when the world financial crisis exploded, the Minister of Science and Innovation, Steven Joyce, said that New Zealand could not fall behind and drastically transformed its economy into a technology-focused one. It helped the information and communications technology (ICT) sector contribute to the national GDP an additional $1.28 billion (to $8.3 billion) between 2008 and 2013. He said that ICT sector exports would outpace alcohol exports, so the people have paid more attention to this industry, which was demonstrated by the number of trained engineering students increasing by 25% between 2008 and 2014.
“New Zealand startups are increasingly targeting overseas markets and nailing unique, but significant, global niches. Critical focus points for our ecosystem are building more active and diverse partnerships and boosting deep tech commercialisation.” - Vic Crone, Chief Executive at Callaghan Innovation.
New Zealand has the highest per capita ratio of angel investors in the world, 1,000 angels in a nation of 5 million. The Scale Up NZ platform allows businesses to form connections with investors, incubators, regional advisors, multinationals and other collaborators. A refundable 15% R&D tax credit offers support to pre-profit startups. The government of New Zealand has launched a $300 million matching fund for investment in early-stage startups. This fund will be managed by NZ Growth Capital Partners. New Zealand’s Tech Incubator program offers support for deep tech startups.
Attracting talents from all around the world
This place is the legacy of a series of earthquakes surrounding the Asia Pacific region. Nestling among steep hills and deep valleys and possessing nearly 500 kilometres of stunning rugged coastline, Wellington is also one of the windiest cities in the world, ensuring the air is always fresh. Some scholars believe that this is the reason why the best entrepreneurs are attracted to settle here.
The city is also home to the world's leading game development companies that have been attracting talent from afar, meaning like-minded individuals are in the same space, start a business or work at big technology companies. However, recruiting talent in a small city is challenging. It is why businesses here have to hire and entice Australians to work for them regularly.
Wellington City Council also stated its need to attract immigrants to Wellington. Based on the data, it can be seen that this strategy is showing effectiveness. Since April 2015, for the first time in 24 years, long-term migration from Australia to New Zealand has overcome the opposite trend.
In the next part of this article, we are looking into other factors that contribute to the development of Wellington Startup Ecosystem including Nurturing business culture and Government’s initiatives.
For the 2nd part of this article, please visit:
http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=316
Despite being a small city of around 200,000 inhabitants, Wellington remains one of the most remarkable ecosystems in the world. This city is known as the highest average income in New Zealand with the presence of both large corporations, government agencies and two universities. In particular, immigrants make up about 25% of the population and many of the city's startups are founded by immigrants.
The history of New Zealand’s development based on agriculture and food exports. In the 2008-2010 period, when the world financial crisis exploded, the Minister of Science and Innovation, Steven Joyce, said that New Zealand could not fall behind and drastically transformed its economy into a technology-focused one. It helped the information and communications technology (ICT) sector contribute to the national GDP an additional $1.28 billion (to $8.3 billion) between 2008 and 2013. He said that ICT sector exports would outpace alcohol exports, so the people have paid more attention to this industry, which was demonstrated by the number of trained engineering students increasing by 25% between 2008 and 2014.
“New Zealand startups are increasingly targeting overseas markets and nailing unique, but significant, global niches. Critical focus points for our ecosystem are building more active and diverse partnerships and boosting deep tech commercialisation.” - Vic Crone, Chief Executive at Callaghan Innovation.
New Zealand has the highest per capita ratio of angel investors in the world, 1,000 angels in a nation of 5 million. The Scale Up NZ platform allows businesses to form connections with investors, incubators, regional advisors, multinationals and other collaborators. A refundable 15% R&D tax credit offers support to pre-profit startups. The government of New Zealand has launched a $300 million matching fund for investment in early-stage startups. This fund will be managed by NZ Growth Capital Partners. New Zealand’s Tech Incubator program offers support for deep tech startups.
Attracting talents from all around the world
This place is the legacy of a series of earthquakes surrounding the Asia Pacific region. Nestling among steep hills and deep valleys and possessing nearly 500 kilometres of stunning rugged coastline, Wellington is also one of the windiest cities in the world, ensuring the air is always fresh. Some scholars believe that this is the reason why the best entrepreneurs are attracted to settle here.
The city is also home to the world's leading game development companies that have been attracting talent from afar, meaning like-minded individuals are in the same space, start a business or work at big technology companies. However, recruiting talent in a small city is challenging. It is why businesses here have to hire and entice Australians to work for them regularly.
Wellington City Council also stated its need to attract immigrants to Wellington. Based on the data, it can be seen that this strategy is showing effectiveness. Since April 2015, for the first time in 24 years, long-term migration from Australia to New Zealand has overcome the opposite trend.
In the next part of this article, we are looking into other factors that contribute to the development of Wellington Startup Ecosystem including Nurturing business culture and Government’s initiatives.
For the 2nd part of this article, please visit:
http://startup.gov.vn/Pages/chi-tiet-tin-tuc.aspx?l=Tintucsukien&ItemID=316