BDO LLP | INTERNATIONAL TECH HUBS SECOND EDITION
06
05 INTERNATIONAL TECH HUBS SECOND EDITION | BDO LLP
BOSTON (US)
there are plenty of others that offer the opportunity for talent: Boston University, the Boston College, Northeastern, Worcester Polytech, the University of Massachusetts, College of the Holy Cross, Babson College, Bentley University and Tufts Medical, to name a few. There is a strong focus on science, technology and engineering in Boston’s education system, helping create a fertile ground for innovation to thrive . However, as the renown of the educational institutions close to Boston continues to grow, there is always threat of a ‘brain drain’, as competition from other cities and countries that can offer tech talent different lifestyles and opportunities. However, Boston’s continually-evolving start-up scene and high quality of life continues to draw educated talent into the tech sector.
renowned colleges and universities, as well as offering a solid infrastructure that makes it a suitable location for tech businesses looking to establish themselves in the US. THE TECH BUSINESS ECOSYSTEM Boston’s well-established, vibrant tech ecosystem has it all: BioTech, medical device, robotics, CleanTech, software/SaaS businesses, media, security firms, hardware companies, digital health start-ups and more. Though it is a good location for larger, more established businesses, subsidiaries and those companies in the early stages of their development can find success in the area. With the well-established venture capital opportunities available in Boston – most notably beginning with the first successful VC, American Research and Development, established in 1946 in nearby Maynard - earlier-stage businesses have ample opportunity to thrive. The support for local, earlier-stage companies, combined with fresh talent from local educational institutions, has led robotics to new heights. Boston’s robotics-based start-ups and scale- ups employ over 4,700 people, and the ripple effect of this type of tech can be seen in the introduction of newer technologies in classrooms. There are 1,100 life science-focused companies, bolstered by the MLSC Life Sciences Initiative, which offers $1 billion in research grants, acceleration loads and tax incentives. This has led powerhouses such as Moderna Therapeutics to be valued in the billions, helped launch BioTech IPOs, and of course encouraged more specialist companies to move to the area. THE TALENT POOL The world-recognised colleges and universities in Boston and the surrounding area offer homegrown talent for the tech scene. Of these institutions, the most famous are likely the Massachusetts Institute of Technology (MIT) and Harvard, but
With expert input from Todd Berry, Assurance Partner and Life Sciences National Co-Leader, CPA, BDO Boston. Todd has over 35 years of experience auditing and advising middle-market, privately held, venture-backed and multinational public life sciences and technology companies.
OVERVIEW: A WELL-ESTABLISHED HUB FOR TECH COMPANIES OF ALL SIZES Boston’s unrivalled technological education and thriving ecosystem provides start-ups and scale ups with the talent and support they need to get off the ground. Second only in reputation to Silicon Valley, Boston’s robotics and CleanTech successes have helped maintain high levels of investor engagement.
THERE IS A STRONG FOCUS ON SCIENCE, TECHNOLOGY AND ENGINEERING IN BOSTON’S EDUCATION SYSTEM, HELPING CREATE A FERTILE GROUND FOR INNOVATION TO THRIVE
BOSTON’S WELL-ESTABLISHED, VIBRANT TECH ECOSYSTEM HAS IT ALL: BIOTECH, MEDICAL DEVICE, ROBOTICS, CLEANTECH, SOFTWARE/SAAS BUSINESSES, MEDIA, SECURITY FIRMS...
THE GOVERNMENT SUPPORT There is some complexity in the taxation laws for digital businesses entering the US, but this is the price of entry into a thriving market. Local government has tried in recent years to create a start-up-friendly environment to encourage tech innovation, launching grants and tax rebates for early-stage companies, particularly in the life sciences and CleanTech sectors. By offering additional tax reductions for larger tech businesses, Boston leaders hope to boost employment for tech talent home-grown in its local universities.
THE TECH LANDSCAPE Once nicknamed ‘The Hub of the Solar System’ by Oliver Wendell Holmes, famed Supreme Court Justice, Boston has evolved from its roots as one of the oldest municipalities in the United States into a thriving tech hub. This proud multicultural city enjoys unrivalled tech and science-focused education from
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