Innovation is on the rise but can Auckland build on it?

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 is a modest but meaningful improvement, a sign that we are beginning to lay the foundations of a more 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 like 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.

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 coordination, 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 ten, and Auckland still sits in the lower half. The question is whether we can take the next step. Not just creating activity but building outcomes at scale.

From activity to depth: Three challenges Auckland must tackle

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 92nd 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.

This is not only structural. It is also cultural. Global research shows just 8 percent of University of Auckland students intend to start a business, compared with 21 percent 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 coordination 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 124th globally for VC-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.

Auckland should act on this missing middle. 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.

3. Strengthening innovation infrastructure

Auckland ranks 138th globally for innovation infrastructure. We lack the precincts, science parks, and shared spaces that catalyse collaboration and commercialisation.

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.

What comes next

If Auckland is serious about becoming a leading innovation city, we need to make the next phase less fragmented and more focused.

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.