Kansas City near last place among startup hubs for digital economy readiness
May 11, 2016 | Bobby Burch
Kansas City’s poor performance in attracting talent and its limited access to investment capital puts it at a disadvantage for the forthcoming digital economy, a recent study found.
The national “Innovation That Matters” study analyzed 25 large startup hubs’ readiness for the digital economy, noting that Kansas City has room for significant improvement with its second-to-last, No. 24 ranking. The study defined the “digital economy” as the inevitable, large-scale changes that will result from industries’ evolving dependence on technology and software.
Conducted by business incubator 1776 and the U.S. Chamber of Commerce Foundation, the study analyzed cities’ ability to attract talent, increase investments, develop specializations, create density, connect the community and build a culture of innovation.
Researchers maintain that Kansas City’s largest room for improvement is its human capital. The city must focus on attracting new residents in general, as well as enticing millennial-aged talent.
The study also found that Kansas City’s financial capital landscape — as analyzed between 2011 and 2015 — needs an upgrade. Kansas City ranked second-to-last in total dollars invested in startups, its total exits and investment dollars as a percentage of GDP. Kansas City earned a No. 23 ranking in its value of exits.
The study offered Kansas City a handful of other suggestions to become better situated for the digital economy. In particular, the area can build on “its strength in construction, transportation and logistics; but first it needs to build out its startup community,” the study reads. The city’s established companies in these sectors offer a potential competitive advantage, but that hasn’t “translated yet into a vibrant smart city startup scene.”
While Kansas City needs to improve its inflow of talent and availability of investment capital, the city received high marks for its well-connected startup ecosystem.
“The city came in 24th overall in the Index, but it performed well in the ecosystem connectivity survey (9th), suggesting that entrepreneurs perceive strong support from other actors in the community,” the study reads. “Involvement from corporate (3rd) and institutional partners (7th), engaged citizens (4th), and loud local cheerleaders trumpeting the region’s successes (7th) are key building blocks for the city’s transformation.”
The study claims that the cities most prepared for the digital economy are: Boston; the Bay Area; Denver; Raleigh-Durham; and San Diego, respectively. Those cities with the largest room for improvement were: Atlanta; Miami; Phoenix; Kansas City and New Orleans, respectively.
2016 Startups to Watch
stats here
Related Posts on Startland News
Help from above: Why protecting satellites from cyber attacks could hold key to adapting to climate change
Humans must responsibly rise to the occasion as Earth’s climate changes, Charles Beames said, detailing the role well-protected satellites and space systems can play in putting life-preserving solutions into orbit. “Space systems are one of the keys to the future, our future, of dealing with the changing climate and our adaptation,” said Beames, aerospace expert and…
In the field: Industry-specific, hands-free voice tech helps ‘hero up’ data collecting workers
After years of research, Bruce Rasa and his team identified a consistent pain point for field workers: capturing data on-the-go and looping it back to their headquarters. They need a co-pilot, he said, noting the role played by KC-based Dexer (formerly AgVoice), agriculture’s first handsfree data capture service to help cross-industry specialists create records —…
New city flag designed for KC’s now (and tomorrow): Here’s where you’ll see it flying first
Kansas City is ushering in an era of growth and development, Jared Horman said, and the unveiling of a new municipal flag is just the way to recognize this new chapter. “The timing feels particularly exciting with the Chiefs headed to the Super Bowl, the opening of the new terminal at the airport and the…
Pushing without force: Founder credits accelerator’s collaborative ‘in the trenches’ guidance for overseas scaling success
Editor’s note: This article is sponsored by the NMotion startup accelerator, but was independently produced by Startland News. The powerhouse mix of global and localized support David Biga received from the NMotion Growth Accelerator was well worth the program’s required exchange of equity, the proptech startup founder detailed. Particle Space — one of Startland News’…