London retains crown as Europe’s technology hub

London has beat its rivals on the Continent to retain its crown as Europe’s most technologically advanced city, research shared with City PM reveals.

The capital’s infrastructure, deep highly-skilled talent pool and widespread adoption of new technology led to it keeping its top spot, according to Z/Yen Group’s fifth edition of the Smart Cities Index.

Zurich, which climbed three places to fourth, was its closest competitor in Europe, followed by Copenhagen, which finished fifth.

Despite topping the European rankings, London came second in the overall table, missing out on the top stop to New York. 

The fresh research underscores the capital has defied gloomy forecasts predicting Brexit would knock its competitiveness.

Z/Yen last month also said London’s deep green finance market and its high use of renewable energy to power the Square Mile led it to top the ninth edition of the firm’s Global Green Finance Index.

Embedding technology in London’s infrastructure and the operations of firms based in capital means it is well placed to improve on existing success, analysts said.

Professor Michael Mainelli, executive chairman of Z/Yen Group, said: “Innovation in technology and science arises from calculated serendipity, bringing together talented people to find new ways to look at and interact with the world.”

“Global centres that create spaces and places for people to gather and extend the reach of our technological development will be the commercial success stories of the future,” he added. 

The capital’s vibrant fintech scene has boosted its technological credentials. 

Challenger banks Monzo and Revolut are headquartered in London and the capital has driven greater use of AI tools in financial services through steering initiatives such as open banking.

A welcoming business environment and its reputation as a global business hub also helped London retain its top spot in Europe. 

Its flexible labour market has meant it is still an attractive place to do business as firms can quickly hire highly-skilled workers.

“Combin[ing] a high performing university sector across STEM subjects, with well-developed regulatory, commercial, and financial services” helped London clinch top spot, Z/Yen Group said.