For years, Silicon Valley in the US has dominated the global tech scene, while giving rise to influential technological brands such as Oracle, Facebook, Google, and Apple.
Of course, there have been numerous attempts to replicate this unique success, with the East End of London home to its own burgeoning ‘tech city’ in the form of the so-called ‘Silicon Roundabout’. Singapore has also emerged recently as the next hotbed of tech innovation, with 80 of the world’s top 100 tech firms now boasting a presence in the Asian nation.
We’ll explore this further below while asking how Singapore (and Asia as a whole) has emerged as the ideal environment for innovation and tech growth.
Why is Asia Such a Hotbed for Tech Innovation?
Interestingly, Asia’s tech startup scene is also becoming increasingly vigorous, with a report by the McKinsey Global Institute suggesting that the region is home to more than one-third (119) of the world’s 331 unicorns (which are tech startups that are valued at more than $1 billion).
But what are the reasons for this? Firstly, there’s the sheer size of the Asian population and the growth of consumer demand, while this is also helping to create a wider pool of talent from which companies can draw from.
This trend is expected to increase exponentially in the future, and by 2040, it’s estimated that Asia will account for more than 50% of global GDP and drive an incredible 40% of the world’s total consumption.
This is also helping to drive a desire to digitize the economy and support tech growth at the state level, which has definitely been observed in China where the government has played a central role in establishing a comprehensive tech startup ecosystem. The Singapore government has also followed suit, while Hong Kong recently approved its first cryptocurrency fund.
Managed by Venture Smart Asia, this fund has set a first-year investment target of $100 million, while it will also blaze a trail for other, more ambitious funds to follow over time.
This will have a dramatic impact on disciplines such as forex trading and investment in the Asian region, while it’s also typical of the type of digitized and futuristic IT structure that’s becoming increasingly prevalent in Eastern countries.
The Last Word – What Does This Mean for the Rest of the World?
This is great news from the perspective of consumers and the global technology market, primarily because it drives greater competition in terms of pricing and the development (and exchange) of viable ideas.
The emergence of Asia as a major technology hub certainly helps to include a growing number of people in the global tech evolution, which in turn aids the rate of successful innovation and drives higher levels of consumer demand.
On a final note, this will also create a more accessible and convenient technology market across the globe, as nations such as the US no longer enjoy a monopoly in terms of control and patent development.