Innovation serves to future-proof dynamic European cities

Innovation is future-proofing dynamic cities in Europe, by attracting talent and driving wealth and spending power. Together, these qualities fuel cities’ long-term investment potential, according to Andreas Trumpp, head of research, Europe, and Judith Fischer, a research analyst at Savills Investment Management.

As part of the analysis behind the Savills Investment Management Dynamic Cities index, innovation is defined as the creation of new ideas and methods and is measured quantitatively according to three main criteria — resources, activity and patents. The strength of resources can be measured by successful funding, or universities that promote innovation, while the number of start-up businesses indicates the level of innovation that is taking place within a city, as does a composite measure of absolute and relative density of patent generation.

Innovation is a major contributor to the investment potential of a city because it enhances productivity