Tech Cities Ranking 2012 Buck Consultants International Postbus BL Nijmegen Telnr : Mobiel : Fax: Josefien Glaudemans Managing Partner Cannes, March 8 th, 2012

 Buck Consultants International, Introduction 1Technology & know-how 2Talent 3Market size 4Connectivity 5International business climate 6Conclusions Agenda

 Buck Consultants International, Objective Insight and understanding of the competitive strenghts of Europe’s tech cities Methodology 1Technology and know-how 2Talent 3Market size 4Connectivity 5International Business Climate 0Introduction

 Buck Consultants International, cities Data on  City level  Regional level  Country level

 Buck Consultants International, Factor Weight %Indicators Weight % 1Technology & know-how201.1R&D spendings 1.2Number of patent applications 1.3Ranking of universities 1.4Innovation index Talent352.1Number of high skilled people 2.2Workers in R&D/tech industries 2.3Flexibility labour market 2.4Labour costs (for lab technicians, engineers and R&D supervisors) Market size103.1Size regional market 3.2Size national market Connectivity204.1Position in trans-European road network/ centrality index 4.2International accessibility by air International business climate 155.1Availability of venture capital 5.2Fiscal climate 5.3Risk forecast Factors and indicators

 Buck Consultants International, R&D spendings 1.2 Number of patent applications 1.3 Ranking of universities 1.4 Innovation index 1Technology & know-how

 Buck Consultants International, Top 10 R&D spendings Source: Eurostat 2012

 Buck Consultants International, RankCityUniversity 1CambridgeUniversity of Cambridge 2OxfordUniversity of Oxford 3LondonUniversity College London 4ZurichSwiss Federal Institute of Technology Zurich 5LondonImperial College London 6ManchesterUniversity of Manchester 7ParisUniversity Paris Sud 8ParisUniversity Pierre Marie Curie 9CopenhagenUniversity of Copenhagen 10Stockholm Karolinska Institute RankCityUniversity 1OxfordUniversity of Oxford 2CambridgeUniversity of Cambridge 3LondonImperial College London 4ZurichSwiss Federal Institute of Technology Zurich 5LondonUniversity College London 6StockholmKarolinska Institute 7EdinburghUniversity of Edinburgh 8MunichLudwig Maximilians universität 9LausanneÉcole Polytechnique Fédéral de Lausanne 10LondonLondon School of Economics & Political Science Ranking of universities Source: Times Higher Education, , Shanghai Academic Ranking of World Universities, 2012 Shanghai Jiao Tong Top 500 universities 2011 Times World’s Top 400 universities

 Buck Consultants International, Ranking of cities for Technology & knowhow RankCityScore 1 Munich Stuttgart Zurich Stockholm Cambridge Copenhagen Karlsruhe Paris Oxford Berlin3.39

 Buck Consultants International, Number of high skilled people 2.2 Workers in R&D / Tech industries 2.3 Flexibility of labour market 2.4 Labour costs 2Talent

 Buck Consultants International, Top 10 Employed in technology and knowledge intensive sectors Source: Eurostat 2012 RankCity Total number employed (x 1,000) 1 Paris London Madrid Milan Rome Barcelona Munich Oxford Berlin Aachen/Cologne109.4

 Buck Consultants International, Flexibility of the labour market Source: IMD, 2011; WEF, Top Labour relations: productive- hostile Cooperation in labour relations: cooperative - confrontational Labour regulations: hinder business or not Hiring & Firing regulations: regulated- flexible 1Switzerland Denmark 2AustriaDenmarkSwitzerland 3DenmarkSweden/NetherlandsAustriaUnited Kingdom 4SwedenAustriaIrelandHungary Bottom 13Spain BelgiumFrance 14Italy Spain 15France Sweden

 Buck Consultants International, Ranking of Cities for Talent RankCityScore 1 Madrid Prague London Paris Budapest Barcelona Oxford Edinburgh/Glasgow Dublin Milan3.50

 Buck Consultants International, Size regional market 3.2 Size national market 3Market size

 Buck Consultants International, Ranking of cities for Market size ( ) Source: Eurostat 2012 RankCityScore 1 Paris5.00 Barcelona5.00 Madrid5.00 London Milan4.65 Rome Berlin4.30 Munich4.30 Manchester4.30 RankCityScore 4 Nice3.95 Cologne3.95 Stuttgart3.95 Cambridge3.95 Edinburgh/Glasgow3.95 Oxford3.95 5Lyon/Grenoble3.65

 Buck Consultants International, Centrality index 4.2 International accessibility by air 4Connectivity

 Buck Consultants International, Very favourable Favourable Less favourable Ranking Connectivity ( ) Stockholm Helsinki Edinburgh London Glasgow Malmö Copenhagen Oxford Madrid Berlin Vienna A’dam Delft Aachen/Cologne Karlsruhe Leuven Dublin Lyon/Grenoble Paris Nice Barcelona Milan Rome Budapest Prague Manchester Cambridge Eindhoven Munich Zurich Stuttgart

 Buck Consultants International, Availability of venture capital 5.2 Fiscal climate 5.3 Risk 5International Business Climate

 Buck Consultants International, Source: IMD, 2011; WEF, TopExamples of special R&D Tax incentives programs 1 FranceTax credits, cash grants & accelerated depreciation such as Research tax credit of 30% for the first €100M of qualified R&D expenditures incurred during the tax year; plus an additional 5% of any amount in excess of the €100M Threshold Cash grants for R&D and acceleration of depreciation deductions for fixed assets used in qualified research 2 United Kingdom Super deduction & tax credit such as % volume based super deduction for resp. large and small/medium sized companies (SMEs) 3 NetherlandsTax rate reduction and tax credits such as WBSO - Wage Tax Credit of 50% (can be as high as 60% for start-up companies) of the first €220K in R&D wage costs and 18% for the remaining wage costs (with a max. reduction of Euro 14 mln per taxpayer Innovation Box: reduced tax rate for revenue attributable to patents & innovation 4 BelgiumSpecial deduction such as Tax deduction of 13.5% (2011) of the value of qualifying R&D expenditures for investments in scientific research and development of new products or a current deduction of 20.5% of depreciation related to R&D assets Patent Income Exclusion Top 4 countries – Special corporate R&D tax regimes

 Buck Consultants International, Ranking International Business Climate RankCountryScore 1 Sweden Switzerland United Kingdom Denmark Belgium3.68

 Buck Consultants International, Overview ranking total weighted scores tech cities 6Conclusions RankCityScore 31Malmö Budapest Vienna Eindhoven Dublin /25Karlsruhe /25Milan Cologne Helsinki Prague2.94 RankCityScore 21Aachen /19/18Rome /19/18Stockholm /19/18Leuven Nice Zurich Manchester Lyon/Grenoble Stuttgart Edinburgh/Glasgow3.17

 Buck Consultants International, Madrid Munich Copenhagen Delft /10 Amsterdam /10 Barcelona3.21 5Cambridge3.60 4Berlin3.61 3Oxford London Paris3.89 RankCityScore Overview ranking top 10 Tech Cities