The nation’s big tech magnets are getting weaker.
That’s according to Information Technology and Innovation Foundation President Robert Atkinson, who told Orlando Business Journal the powerful tech magnets such Boston, New York, Seattle and Silicon Valley have lost some of their pull amid the rising cost of living and more remote work. That means tech workers, who Atkinson refers to as iron filings, will be drawn to other magnets, which are the nation’s emerging tech cities.
This may be a chance for Central Florida to pull skilled tech talent and high-growth businesses to the region, a course of action aggressively pursued in Miami. The region may be able to lure high-wage jobs, needed workers and sought-after venture capital as a result.
“It’s an opportunity, no doubt,” Rob Panepinto, director of innovation districts strategy and partnerships for the University of Central Florida as well as president of Rally business accelerator, told OBJ.
However, Orlando’s reputation as a low-cost place to do business is not enough, added Atkinson. “It's not just ‘We're a super low-cost place and we're going to attract companies.’ Tech companies are not indifferent to costs, but it's not the major driver.”
Instead, a mixture of academic, infrastructure and cultural attributes are among the most common factors in successful tech cities, Atkinson said. Here, he shares what they are, and OBJ takes a look at how Central Florida performs in those categories:
Research universities: “One thing [successful tech hubs] do is work closely with their research university," said Atkinson. "A lot of what places do is they try to create ecosystems or networks so the players already in a region, they are able to know who's doing what and then build off of those opportunities.”
How we compare: UCF, the region’s flagship research university, is one of the biggest in the nation, with a U.S.-leading 59,000 enrolled undergraduate students, according to U.S. News & World Report. The Orlando university shows commitment to research and innovation through $204.5 million of research funding in fiscal 2020, 44 patents produced in 2019 and seven small business incubators throughout the region. However, UCF ranked 98th among U.S. universities in research and development expenditures, according to the most recent ranking from the National Science Foundation.
Airports: “You can run an operation with people who are remote, but you need a decent airport," said Atkinson. "There may be times when they need to hop on a plane once every two months and go back to the mothership.”
How we compare: Orlando International Airport is one of the busiest and best-regarded airports in the country. The airport is the eighth-busiest in the U.S., according to 2020 Airports Council International data. Plus, Orlando International Airport in 2019 was ranked the fifth-best large airport in the nation by Wall Street Journal. WSJ gave the airport high marks for its value and reliability.
Urban living: “They want a little bit of a Europeanization of their town," said Atkinson. "They want a place where there are some bike paths they can go on. If it's a place on water, have they designed a waterfront area where there are restaurants and parks?”
How we compare: Central Florida is hardly known for its walkability. Orlando was ranked the most dangerous city for pedestrians by a 2021 report from neighborhood development advocacy group Smart Growth America. Likewise, the city ranks 106th out of 141 cities for walkability, according to walkable neighborhoods data site WalkScore.com. However, WalkScore highlights areas around Lake Eola, downtown Orlando and Colonialtown South as highly walkable and bike-friendly.
Schools: “Most of these tech workers, they have a college degree, and to the extent that they ever have kids, they want their kids to have college degrees and make sure that the school system is going to prepare them well enough for that," said Atkinson.
How we compare: Metro Orlando performs well for its concentration of high-ranked high schools. In metro Orlando, 43.8% of public high schools rank in the top 25% nationally, the 13th-best proportion among U.S. cities, according to U.S. News & World Report. The public school systems in Lake, Orange, Osceola and Seminole counties all receive at least a B- rating from ranking/review site Niche.com, with Seminole County Public Schools ranked the No. 4 school district in the Sunshine State.
Arts and culture: “Is there a nightlife with good music?" said Atkinson. "Nashville has been able to attract a lot of people who really want to be in Nashville because of the art and music scene.”
How we compare: Orlando is left off virtually every ranking of the best U.S. art and music cities in favor of towns like Austin, Nashville and New Orleans. However, the city of Orlando’s nightlife is given an A+ ranking by Niche, with the site commending the city’s number of bars and restaurants.
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