DIGITAL ENTREPENEURSHIP INDEX FOR THE EUROPEAN ......30 40 50 60 70 80 90 100 3 IN THE SEARCH OF AN...

DIGITAL

ENTREPENEURSHIP

INDEX FOR THE

EUROPEAN CITIES

CITIES & ECONOMY FORUM

Bilbao, 2016

Jorge Sicilia and Tomasa Rodrigo

2 Source: BBVA Research, UN and WB

EVOLUTION OF THE URBAN LANDSCAPE

Why are cities important in Europe?

DIGITAL ENTREPENEURSHIP INDEX FOR EUROPEAN CITIES │ NOVEMBER 2016

1 to 5

mill

10 mill

or more

5 to 10

mill

500000 to

1 mill City population:

2030

1990

INCREASING ROLE OF CITIES IT STILL MATTERS IN

EUROPE!

LEVEL OF URBANIZATION AND GDP

PER CAPITA IN EUROPE IN 2015

Advanced Europe Developing Europe

Urban population (% of total) G

DP

pe

r ca

pita

(U

SD

PP

P)

Why? What next?

2030

1990

Bosnia and Herzegovina

AlbaniaMoldova

Slovenia

Romania

Portugal

Croatia

Ireland

Armenia

Latvia

Estonia

Germany

Norway

Spain

United Kingdom

Denmark

Belgium

0

5000

10000

15000

20000

25000

30000

35000

40000

30 40 50 60 70 80 90 100

3

IN THE SEARCH OF AN INDEX

Entrepreneurship & capital


More focused on countries

Lack of data driven analysis

Qualitative indexes

Small role of digital

WHAT IS IT ALREADY AVAILABLE?

At city level

Alternative sources

(including Big Data)

Quantitative index

Strong digital block

WHAT DO WE THINK WE NEED?

Data driven analysis

Focused on surveys

The evolution of digital technologies has transformed the business landscape.

There are new key drivers to promote economic growth and development

4

BBVA Research Digital Entrepreneurship

Index for European cities


Digitalization

Life quality and

infraestructures

Skills and business

environment

Entrepreneurial

culture and attitudes

Financing Dublin

Paris

Amsterdam

Lisbon Madrid

Barcelona

Bilbao

Roma

Helsinki Stockholm

Copenhagen

Rotterdam

Berlin

Brussels London

Cambridge

Oxford

Hamburg

Stuttgart Luxembourg

Munich Cologne

Vienna

Milan

Prague

Nicosia

Riga

Budapest

Warsaw

Tallinn

Vilnius

Bucharest

Sofia

Ljubljana

Zagreb

Bratislava

Valletta

Athens

COMPONENTS OF THE INDEX INCLUDED CITIES IN THE ANALYSIS

5


Index for European cities: Results


ENTREPRENEURSHIP DIGITAL INDEX RANKING AND GDP PER CAPITA IN EUROPEAN CITIES, 2015

Source: BBVA Research and WB

London

Oxford

Brussels

Sofia

StuttgartMunich

Berlin Dublin

Athens

Madrid

Barcelona

Paris

Zagreb

MilanRome

Vilnius

Luxembourg

Budapest

Valletta

Amsterdam

Warsaw

Lisbon

Bucharest

Stockholm

Cambridge

Riga Prague

Bratislava

Helsinki

Cologne

Copenhagen

Vienna

Rotterdam

Hamburg

Bilbao

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

20000 30000 40000 50000 60000 70000 80000

6


Digital Financing Skills and business

environment

Life quality and infraestructures

Entrepeneurial culture and

attitudes

Digital Entrepeneurship

Index

1 London

2 Paris

3 Amsterdam

4 Helsinki

5 Stockholm

6 Copenhagen

7 Rotterdam

8 Berlin

9 Dublin

10 Brussels

11 Hamburg

12 Cambridge

13 Munich

14 Oxford

15 Madrid

16 Stuttgart

17 Barcelona

18 Bilbao

19 Luxembourg

20 Cologne

21 Vienna

22 Milan

23 Prague

24 Lisbon

25 Nicosia

26 Riga

27 Budapest

28 Warsaw

29 Tallinn

30 Vilnius

31 Rome

32 Bucharest

33 Sofia

34 Ljubljana

35 Bratislava

36 Zagreb

37 Valletta

38 Athens

1 London

2 Paris

3 Copenhagen

4 Amsterdam

5 Helsinki

6 Stockholm

7 Berlin

8 Oxford

9 Brussels

10 Dublin

11 Madrid

12 Cambridge

13 Barcelona

14 Bilbao

15 Luxembourg

16 Rotterdam

17 Munich

18 Hamburg

19 Stuttgart

20 Nicosia

21 Prague

22 Cologne

23 Milan

24 Vienna

25 Riga

26 Tallinn

27 Budapest

28 Sofia

29 Rome

30 Warsaw

31 Lisbon

32 Bucharest

33 Vilnius

34 Zagreb

35 Bratislava

36 Ljubljana

37 Athens

38 Valletta

1 London

2 Helsinki

3 Amsterdam

4 Paris

5 Stockholm

6 Copenhagen

7 Rotterdam

8 Brussels

9 Oxford

10 Cambridge

11 Munich

12 Berlin

13 Dublin

14 Cologne

15 Hamburg

16 Luxembourg

17 Vienna

18 Madrid

19 Barcelona

20 Bilbao

21 Stuttgart

22 Nicosia

23 Milan

24 Riga

25 Tallinn

26 Prague

27 Bratislava

28 Ljubljana

29 Vilnius

30 Lisbon

31 Budapest

32 Zagreb

33 Warsaw

34 Valletta

35 Bucharest

36 Sofia

37 Rome

38 Athens

1 London

2 Paris

3 Copenhagen

4 Berlin

5 Hamburg

6 Munich

7 Stockholm

8 Helsinki

9 Amsterdam

10 Dublin

11 Rotterdam

12 Brussels

13 Oxford

14 Cambridge

15 Madrid

16 Luxembourg

17 Barcelona

18 Cologne

19 Stuttgart

20 Bilbao

21 Vienna

22 Lisbon

23 Warsaw

24 Budapest

25 Milan

26 Prague

27 Nicosia

28 Bratislava

29 Rome

30 Valletta

31 Ljubljana

32 Vilnius

33 Tallinn

34 Athens

35 Riga

36 Bucharest

37 Zagreb

38 Sofia

1 London

2 Copenhagen

3 Stockholm

4 Helsinki

5 Amsterdam

6 Paris

7 Luxembourg

8 Stuttgart

9 Cambridge

10 Berlin

11 Munich

12 Dublin

13 Rotterdam

14 Brussels

15 Hamburg

16 Madrid

17 Oxford

18 Barcelona

19 Milan

20 Bilbao

21 Cologne

22 Prague

23 Vienna

24 Nicosia

25 Warsaw

26 Bucharest

27 Tallinn

28 Budapest

29 Ljubljana

30 Vilnius

31 Lisbon

32 Rome

33 Valletta

34 Bratislava

35 Athens

36 Riga

37 Sofia

38 Zagreb

1 London

2 Amsterdam

3 Stockholm

4 Helsinki

5 Paris

6 Berlin

7 Copenhagen

8 Dublin

9 Rotterdam

10 Hamburg

11 Luxembourg

12 Cambridge

13 Stuttgart

14 Oxford

15 Munich

16 Brussels

17 Cologne

18 Vienna

19 Lisbon

20 Madrid

21 Nicosia

22 Barcelona

23 Bilbao

24 Rome

25 Warsaw

26 Prague

27 Riga

28 Milan

29 Tallinn

30 Budapest

31 Zagreb

32 Sofia

33 Bucharest

34 Vilnius

35 Bratislava

36 Ljubljana

37 Athens

38 Valletta


Index for European cities: Components

25.21 25.19 24.63 17.78 7.19 Weights in the index

7


Index for European cities: Policy making


DIGITAL ENTREPRENEURSHIP INDEX AND POLICY INITIATIVES TO

FOSTER ENTREPRENEURSHIP IN THE EUROPEAN CITIES IN 2015

Source: BBVA Resarch, Citie project and European Digital Forum

London

Paris

Amsterdam

Helsinki

Stockholm Copenhagen

RotterdamBerlin

Dublin

BrusselsOxfordCambridge

Hamburg

Stuttgart MadridLuxembourg

BarcelonaBilbao

MunichCologne

ViennaMilanPrague

Lisbon

NicosiaRigaBudapest Warsaw

TallinnVilnius

Rome

BucharestSofia

Ljubljana

Bratislava ZagrebValletta

Athens0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1Policy initiatives for technology, innovation and entrepreneurship

Dig

ita

l E

ntr

ep

en

eu

rsh

ip In

de

x

Front

runnersChallenges

BuildersOn the

tail

• There has been an increasing

awareness by policymakers of

the importance of innovation and

entrepreneurship over the last

years

• Already leading cities continue

pushing forward

• Barcelona, Rotterdam and

Brussels are doing more than

others to catch up

9

ANNEX

Composition: indicators and weights


24.63

Financing

• Early-stage funding as %

GDP

• Later-stage funding as %

GDP

• Average funding

• Funding innovation media

tone

• Availability of

crowdfunding

25.21

Entrepreneurial

culture and

attitudes

• Risk acceptance

• New-business density

• Perception of

entrepreneurship

• Engagement with digital

startup ecosystem

• Networking and

mentoring events

• Trust score

17.78

Skills and

business

environment

• Tertiary Education

• % ICT employees

• % Finance/Insurance

employees

• English language skills

• Ease of doing business

• Number of shared

working spaces

• Public sector information

score

7.19

Life quality and

infraestructures

• Quality of life index score

• Cost of living score

• Quality of public transport

• Infrastructure

Satisfaction

25.19

Digitalization

• Cost of broadband

• Number of fibre-to-the-

home/building Internet

subscriptions

• e-commerce use

• Internet frequency access

• Social networks

• Internet banking

• e-Government

• Digital index tone

10

ANNEX

Data description: Entrepreneurial culture and attitudes


Variable Description Source Coverage Year

Risk acceptance Percentage of people who tend to disagree or totally

disagree with the following statement: One should not

start a business if there is a risk it might fail.

Eurobarometer

Entrepreneurship in the EU

and beyond

NUTS2 level 2014

New-business density New firms registrations per 1,000 people ages 15-64 World Bank National level 2014

Perception of

entrepreneurship

Media perception of entrepreneurship themes included

in the World Bank taxonomy

GDELT City level 2015

Engagement with digital

startup ecosystem

Media coverage of entrepreneurship themes included in

the World Bank taxonomy/ Number of tweets with

hashtag entrepreneurship

GDELT/ FollowtheHashtag City level

2015

Networking and mentoring

events

Media coverage of mentoring included in the World

Bank taxonomy/Number of networking events per month

GDELT/ meetup City level

2015

Trust score Median response to the question: Generally speaking,

would you say that most people can be trusted, or that

you could not be too careful in dealing with people?

Eurobarometer NUTS2 level

2014

11

ANNEX

Data description: Digitalization



Cost of broadband Fixed broadband subscription cost ITU National level 2015

Number of fibre to the

home/building Internet

subscriptions

Availability of fibre with respect to the total building

internet subscriptions

ITU National level 2015

e-Commerce use Percentage of individuals who ordered goods or

services over the Internet

Eurostat NUTS2 level 2015

Internet daily frequency

access

Percentage of individuals who use internet every day Eurostat NUTS2 level

2015

Social networks use Percentage of individuals participating in social networks

(creating user profile, posting messages or other

contributions to facebook, twitter, etc.)

Eurostat NUTS2 level

2015

Internet banking use Percentage of individuals who used the internet banking Eurostat NUTS2 level 2015

e-Government Percentage of individuals who used the internet for

interaction with public authorities

Eurostat NUTS2 level

2015

Digital index tone Media perception of themes related with digital

economy, fintech and digital regulation

GDELT City level 2015

12

ANNEX

Data description: Financing



Early-stage funding Amount of seed and startup funding raised as % GDP European Private Equity

and Venture Capital

Association

City level 2013

Later-stage funding Amount of later-stage funding raised as % GDP European Private Equity

and Venture Capital

Association

City level 2012

Average funding Average funding raised as % GDP European Private Equity

and Venture Capital

Association

City level 2015

Funding innovation media

tone

Media coverage of funding innovation included in the

World Bank taxonomy

GDELT City level

2015

Availability of

crowdfunding

Financed projects by Kickstarter Kickstarter City level

2015

13

ANNEX

Data description: Skills and business environment



Tertiary Education Percentage of population with tertiary education Eurostat NUTS2 level 2015

% ICT employees Percentage of employees in ICT sector Eurostat NUTS2 level 2015

% Finance/Insurance

employees

Percentage of employees in Finance/Insurance sector Eurostat NUTS2 level 2015

English language skills Percentage of population who can speak English Eurostat NUTS2 level

2014

Ease of doing business Ease of doing business ranking World Bank National level

2015

Number of shared working

spaces

Number of co-working spaces in the city GoodCoworking City level

2015

Public sector information

score

Public Sector Information scoreboard and the status of

Open Data

European Comission National level 2014

14

ANNEX

Data description: Life quality and infraestructures



Quality of life score Overall quality of life Eurostat City level 2015

Cost of living score Indicator of consumer goods price including groceries,

restaurants, transportation and utilities

Numbeo City level 2012

Quality of public transport 'Percentage of people who answered "very satified" or

"rather satisfied" to the question: "Generally speaking,

please tell me if you are very satisfied, rather satisfied,

rather unsatisfied or not at all satisfied Public transport,

for example the bus, tram or metro"

Eurostat City level 2014

Infrastructure Satisfaction Overall satisfaction with infrastructure in cities Eurostat City level

2015

DIGITAL

ENTREPENEURSHIP

INDEX FOR THE

EUROPEAN CITIES

CITIES & ECONOMY FORUM

Bilbao, 2016

Jorge Sicilia and Tomasa Rodrigo

DIGITAL ENTREPENEURSHIP INDEX FOR THE EUROPEAN ......30 40 50 60 70 80 90 100 3 IN THE SEARCH OF AN...

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