The Phoenix metro landed almost smack in the middle in a new global ranking of the 100 Best Cities for the Future of Business, where it showed signs of strength as a center of innovation, particularly in research and development.
Phoenix found itself at No. 51 in the world, according to an analysis by European financial services technology company Finom, which said it selected its final 100 cities from an initial list of 200 that are already renowned for their startup activity, research capabilities and strong industrial presence.
Phoenix was one of only 23 U.S. cities on the list, which was led by San Francisco, with Beijing, New York, London and Boston rounding out the top five. Among U.S. cities, however, only Portland and Sacramento — at Nos. 55 and 61, respectively — ranked lower than Phoenix.
The report evaluated cities on a set of 19 criteria looking at the robustness of their innovation areas and their strength in key industries.
The Valley’s highest mark of 68.59 out of 100 was in the venture capital innovation area, which presented as a score the total amount of funding raised by companies in the city since 2010.
The next highest innovation area for the Phoenix metro was for the presence of internationally recognized governmental research institutes and the research and development spending at those institutions. The Valley scored 64.49 — or 31st on the list — in that category.
R&D a key factor
Phoenix was also 31st in company R&D spending by businesses headquartered in the city. That category also provided a higher score for research output, the report said.
The Valley’s second-highest innovation area score was 58.35 for R&D done by universities, putting the metro at No. 51 in that category.
The report’s authors described R&D as a key factor in its analysis, saying it “sits at the centre of all innovation.”
The highest-scoring industry in Phoenix was health care, with the Valley scoring 52.06.
Other innovation areas considered in the report were industrial ecosystem, startups, and tech ecosystem. Besides health care, industries considered included banking and financial services; biotechnology innovation; education; fintech innovation; green technologies innovation; IT and software development; hospitality, recreation and accommodation; mobility; retail; and travel.
None of the cities on the list scored below 50 in any of the categories. The lowest score for Phoenix was 50.07 for its artificial intelligence and machine learning industry.
Check out the full report and its methodology here.
