Darsel Keane is the director of the Centre for Innovation and Entrepreneurship at the University of Auckland.
THE FACTS
Auckland has moved to the fourth decile for innovation, knowledge and skills in the State of the City report.
The city’s start-up ecosystem is growing, with improved access to capital and a skilled workforce.
Auckland must address challenges in building the enterprise pipeline, enabling firms to scale and strengthening innovation infrastructure.
Tāmaki Makaurau, Auckland has edged upward in this year’s State of the City report, moving from the third to the fourth decile among peer cities for innovation, knowledge and skills.
It’s a modest but meaningful improvement, a sign that we are beginning to lay the foundations of amore capable, connected and resilient innovation economy.
There are real signs of progress. Auckland’s start-up ecosystem is growing faster than many of its peers, although from a lower baseline. There is improved access to later-stage capital and an uptick in the number of growth-ready ventures.
Investors are finding better value here than in most comparable cities, suggesting that the fundamentals are starting to align. While the overall scale remains modest, the pace of development is encouraging.
Our workforce is another strength. Nearly half of Aucklanders aged 15 and over hold a tertiary qualification, higher than San Diego and just behind Vancouver. While cities such as Singapore and Austin have grown their skills base significantly over the past decade, Auckland starts from a solid foundation. Combined with our diversity and international outlook, this gives us a strong platform to support innovation across science, technology, health and creative industries.
Innovation boost: Auckland advances in State of the City report. Photo / Fieldays
These gains point to early momentum but also highlight how far we have to go. If Auckland wants to compete in the top tier globally, we need to be deliberate. Cities that outperform us have built innovation systems with co-ordination, continuity and purpose. Auckland’s next step requires investment in the parts of our ecosystem that remain underdeveloped and a more connected approach to turning potential into performance.
The decile shift is progress, but it also reminds us that others are moving faster. This is a ranking out of 10 – Auckland still sits in the lower half.
The State of the City report highlights several areas where Auckland must improve. If we want to build on what’s working, we must address all of these challenges. Here are some thoughts for three of them:
1. Building the enterprise pipeline
Auckland performs well in business creation relative to population size, but our total start-up rate remains low. We rank No 92 out of 200 cities and eighth among peers. Too few ideas are becoming ventures and too few people see entrepreneurship as a viable or visible career.
Auckland's start-up ecosystem is growing faster than many of its peers.
This is not only structural. It is also cultural. Global research shows just 8% of University of Auckland students intend to start a business, compared with 21% internationally.
Some cities have made building the pipeline a central policy priority. New Delhi has launched a strategy to foster 15,000 new ventures by 2030, with a focus on student entrepreneurship, mentorship and reducing start-up costs. The emphasis is on creating opportunity early and making entrepreneurship more accessible.
Auckland could take similar steps. Invest earlier in entrepreneurial learning across education. Improve co-ordination across start-up programmes. Support the founder’s visibility and community. And reduce the real and perceived barriers so that starting a business feels viable across a broader population.
2. Enabling firms to scale
We rank No 124 globally for venture capital-backed firms and have the lowest number of mid- and high-revenue companies among our peers. Innovation economies depend on firms that grow, attract capital and anchor sectors.
Singapore’s SGInnovate addresses this challenge head-on. It co-invests in deep-tech start-ups post-seed, matches them with experienced executive talent and helps connect them to international markets. Crucially, it is integrated into a broader national strategy that treats scaling as central to innovation-led growth.
Backed by the Singapore government, SGInnovate acts as a deep-tech ecosystem builder and investor, connecting individuals, founders and companies with resources and opportunities in emerging technologies. Photo / Getty Images
Auckland should act on this missing middle and support ventures transitioning from start-up to growth with dedicated capital and leadership development. Focus not just on formation, but on resilience and global competitiveness.
Auckland ranks 138th globally for innovation infrastructure.
Singapore’s One-North precinct and Helsinki’s Maria 01 and Otaniemi districts show the power of place-based investment. These are not just real estate developments. They are platforms for partnerships. They bring start-ups, corporates, researchers and investors into a shared space where collisions happen and ideas move faster.
Auckland’s assets are dispersed. We need a flagship precinct with critical mass, ideally near transit, research and enterprise anchors. And we need to treat innovation infrastructure as part of city-shaping, not an add-on.
Let’s commit to a system that supports innovation from early idea to global scale. One where students, scientists and founders can see a clear path forward. Let’s invest in the infrastructure that allows ideas, capital, and talent to move more easily.
And let’s treat innovation as central to Auckland’s economic development.
We have made progress. Now we need the discipline and ambition to build on it.
