New York Tops Bay Area for Tech Market Supremacy

Regarding the attributes that most attract top talent to a tech business, Silicon Valley beats New York only in weather and cost of living.

it management and silicon alley

An overwhelming majority (86 percent) of executives believe the New York tech scene is booming, according to a survey of 318 executives throughout the United States.

The study, which was commissioned by 1010data and fielded by Instantly, found 44 percent believe that is because more venture capitalists and other investors are supporting New York-based technology companies, while 43 percent said it is because more New York tech companies are being acquired.

City and state governments supporting the New York tech scene was cited by 42 percent of respondents as a reason for the boom, while the same percentage of respondents said New York tech companies are pulling from a better talent pool with Wall Street and nearby Fortune 500 companies, and 41 percent said it is because more New York tech companies are going public.

"There is a tremendous concentration of companies in New York City, and they all consume technology and have for many years," Sandy Steier, CEO and co-founder of 1010data, told eWEEK. "Arguably, Wall Street firms are the largest and most sophisticated tech customers, and they need technologists to support that. So, it isn't surprising that NYC is so well-regarded as a center of technological excellence."

When asked to list which traits are more likely to be found in tech professionals in New York versus San Francisco and Silicon Valley, executives thought New Yorkers were more likely to show intensity, ambition, tenacity, practicality and analytical prowess.

Tech workers in the Bay Area were considered more creative, humorous and prone to group think. When asked which attributes were best at attracting top talent to a tech business, the San Francisco and Silicon Valley area only beat New York in weather and cost of living.

New York, meanwhile, beat its West Coast rival in public transportation, nightlife, access to arts and culture, energy level and food.

"NYC's tech scene is only getting larger and broader," Steier said. "In the past decade, Mayor Bloomberg fostered an environment of technology innovation and pushed the city to be friendlier to nascent technology companies. The results in the last few years have shown that it's possible to incubate and grow enterprise-class companies."

Executives polled believe the most successful data analysis companies are likely to come from New York because of the financial talent pool from Wall Street (60 percent), the Big Apple's high energy environment (59 percent), the talent pool from New York Fortune 500 companies (56 percent) and proximity to Ivy League universities (49 percent).

When it came to determining which place provided a better business climate, New York was the clear winner, with more than three-quarters (76 percent) selecting Gotham and only 24 percent choosing the Bay Area.

"We always believed that New York City was a great place to be for both companies and employees. We were actually surprised that people across the country felt as strongly about this as we do," Steier said. "There's no doubt that there are great technologists in the Bay Area, and they will continue to wear the tech capital crown for some time. But nothing is forever."