**Download the full report here: http://blog.digital.telefonica.com/tag/startupecosystem/
New research into 50,000 startups from the Startup Genome and Telefónica Digital provides tangible evidence and insight for investors, entrepreneurs and policy makers.
Research by Telefónica Digital (@tefdigital) and the Startup Genome (@startupgenome) reveals that while Silicon Valley is still the world’s largest and most-influential start-up ecosystem, it no longer wields the power and influence it once did. Flourishing communities in Latin America, Europe, the Middle East and Asia have grown considerably over recent years and are now beginning to challenge Silicon Valley’s domination in technology innovation.
The Startup Ecosystem Report 2012 argues that this trend suggests that countries are shifting from service-based economies to become increasingly driven by a new generation of fast-moving software and technology organisations.
The report finds that Tel Aviv, a highly advanced ecosystem, is the leading alternative to Silicon Valley, while on Silicon Valley’s doorstep, flourishing communities in New York and Los Angeles mean the USA is home to three of the largest ecosystems in the world.
Across the Atlantic, London is by far the largest startup ecosystem in Europe, although its output is still just a third of that of Silicon Valley. Outside of the more traditional markets, the startup ecosystem in Sao Paulo is growing rapidly and creates more jobs for the local community than Silicon Valley does for its own.