Israel’s tech ecosystem has ranked third globally and Tel Aviv came in eighth among cities in the new Global Startup Ecosystem Index 2021 published this month by StartupBlink, an Israeli-founded startup ecosystem research center.
The index is compiled from a variety of data sources processed by an algorithm and is integrated with the interactive and crowdsourced StartupBlink Global Startup Ecosystem Map. Data from StartupBlink’s global data partners, such as Crunchbase, Semrush, and Meetup, are also incorporated to supplement the analyses.
The report provides two sets of rankings: the first is for countries, and the second for individual ecosystems within cities. Each location has a total score, which is a sum of three scores measuring Quantity, Quality, and Business Environment. The scores have comparative importance, providing unique insights into the differences between different ecosystems in absolute terms.
Building upon past years’ algorithms, this year’s report gave more weight to B2B startups, added more parameters related to technological services in the datasets, and increased data gathering of the R&D centers of international corporations.
The US maintained its lead in the country ranking, demonstrating a prominent innovation scene across 267 US cities. The UK came second, with a significantly narrowed lead over third-ranked Israel compared to last year. This dramatic change could be attributed to the relative Quality score of the startup ecosystems, according to the report.
Israel ranks second globally in Hardware and IoT, Health Technology, and the Software and Data industries, and it ranks in the world’s top 5 in Energy and Environment Technology, Marketing and Sales Technology, and Social and Leisure Technology.