Asia has for the first time overtaken Europe in its number of innovation centers built and operated, with the region now host to nearly a third (29%) of all such centers globally. In our latest analysis, Asia added more innovation centers than any other region. So strong is Asia’s growth that it could soon overtake the US as the biggest hub of innovation centers, if it continues to grow at the same rate. The availability of talent is a key driver for growth. Of the 14 new Fintech innovation centers established globally between March and October 2016, 5 of these were in Asia as organizations look to tap into the region’s talent pool to meet changing customer needs. Four out of the nine new artificial intelligence (AI) focused innovation centers in the March-October 2016 period were opened in Asia. Asia’s increasing influence is also due to a culture of technology-driven innovation and Government support. This has led to heavy investment not only from Asian companies, but from Europe and US-based giants too. Five key innovation hubs – Singapore, Bangalore, Shanghai, Tokyo and Tel Aviv – are driving Asia’s rise; these five cities in our global top 10 rankings together account for 36% of all Asian innovation centers.

1. The
SPREAD OFINNOVATION
An Ever Increasing Appetite for Innovation Centers
Note: 88 innovation centers opened or announced to be opened between March 2016 and October 2016
Silicon Valley’s Leadership is Contested…
…As Asia Becomes the New Innovation Magnet
321 4No. of Centers 5 6 7
Legend
*Maps not to scale
Asia
Bangalore (3)
Abu Dhabi (1)
Dubai (1)
Hyderabad (2)
Nanjing (1)
Busan (1)
Shanghai (2)
Tokyo (2)
Hung Hom (1)
Makati (1)
Singapore (4)
Tel Aviv (2)
Pune (2)
Jaipur (2)
North America
Toronto (2)
Waterloo (1) Philadelphia (2)
Cinnaminson (1)
Baltimore (1)
New Jersey (1)
Pittsburgh (1)
Atlanta (3)
Melbourne, Florida(1)
Orlando(1)
Silicon Valley (7)
Ione (1)
Salt Lake City, Utah (1)
Australia
Melbourne (1)
Johannesburg (2)
Cape Town (1)
Lagos (1)
AfricaWestern Europe
Paris (2)
Kemptthal (1)
Wetzlar (1)
London (2)
Kettering (1)
Surrey (1)
Telford (1)
Manchester (1)
Spread across Trondheim,
Ålesund and Gjøvik (1)
Greenfield (1)
15% 13%
13%
30%
29%
26%
30% 31% 32%
25%
27%
29%
Jul-15 Feb-16 Oct-16
Rest of the World
Europe
US
Asia
Asia Overtakes Europe and Becomes the Second Biggest Innovation Destination....
4 out of top ten
countries are from
Asia
Half of top ten cities
are based in Asia
56% of world’s total
patent grants
India is the Number 1 Innovation Destination
in Asia and Number 2 in the World for New
Innovation Centers
July 2015 February 2016 October 2016
Silicon Valley’s Share of Innovation Centers
18%
16% 14%
301
368
456
2
3
3
3
3
4
5
7
9
33US
India
UK
China
Singapore
Canada
Indonesia
Israel
South Africa
France
Newly Opened Innovation Centers (March – October 2016) - Top 10 Countries
Europe is Losing Ground Barring UK
How Asia Now Rivals Silicon Valley as New Home
to Global Innovation Centers
Europe - % of Total Innovation Centers
RoW Europe
Major European Countries - % of European
Innovation Centers
Europe continues to fall as a % of total innovation
centers even as the number of centers rise
Despite Brexit, UK is growing as a fraction of
the European centers
Rest of Europe UK France Germany
Innovation Center Heatmap
Total Innovation Centers and Growth - Major Sectors
Growth rate for the period March 2016 – October 2016 (Total)
180
88
64
31 28 28
Manufacturing Telecom Financial
Services
Automotive Electronics
and IT
Consumer
Products and
Retail
11%
5%
31%
15%
100% 17%
Manufacturing Firms Lead
Innovation centers should be a part of the
innovation strategy and not the sole source
of innovation
What innovation centers should be...
Built in a way that they are scalable
...And what they should avoid being
A node in the organizational
innovation stratergy
Ecosystems builders Bottomless pit for investment
Just another silo
Looking inwards into their sector
July 2015 February 2016 October 2016
Total Innovation Centers
301
368
456
Tokyo, Shanghai and Atlanta Share the same rank | Tel Aviv and Toronto Share the same rank
around the World:
https://www.capgemini-consulting.com/resources/rise-in-asia-innovation-centers
http://www.slideshare.net/capgemini/rise-in-asia-innovation-centers
R
R
02
03
04
05
06
07
08
09
01
10
Top 10 Locations
In June 2015
Silicon Valley
London
Singapore
Tokyo
Shanghai
Berlin
Munich
Tel Aviv
Chicago
Paris
Silicon Valley
London
Paris
Singapore
Bangalore
Tokyo
Shanghai
Berlin
Munich
Boston
Silicon Valley
London
Singapore
Tokyo
Atlanta
Tel Aviv
Toronto
Bangalore
Shanghai
Paris
Top 10 Locations
in February 2016
Top 10 Locations
In October 2016
July 2015
February 2016
October 2016
211 15 20 1990
260 22 22 21106
337 29 24 22
17% 22% 21%
21% 21% 20%
24% 20% 18%
26%
29%
30%
119
36
41
44