1. Tech Cities Ranking 2012 Buck Consultants International Postbus 1456 6501 BL Nijmegen Telnr : +31 24 379 02 22 Mobiel : +31 6 22 42 32 07 Fax: +31 24 379 01 20 E-mail: josefien.glaudemans@bciglobal.com Josefien Glaudemans Managing Partner Cannes, March 8 th, 2012

2.  Buck Consultants International, 2012 1 0Introduction 1Technology & know-how 2Talent 3Market size 4Connectivity 5International business climate 6Conclusions Agenda

3.  Buck Consultants International, 2012 2 Objective Insight and understanding of the competitive strenghts of Europe’s tech cities Methodology 1Technology and know-how 2Talent 3Market size 4Connectivity 5International Business Climate 0Introduction

4.  Buck Consultants International, 2012 3 31 cities Data on  City level  Regional level  Country level

5.  Buck Consultants International, 2012 4 Factor Weight %Indicators Weight % 1Technology & know-how201.1R&D spendings 1.2Number of patent applications 1.3Ranking of universities 1.4Innovation index 30 25 20 25 2Talent352.1Number of high skilled people 2.2Workers in R&D/tech industries 2.3Flexibility labour market 2.4Labour costs (for lab technicians, engineers and R&D supervisors) 25 20 10 45 3Market size103.1Size regional market 3.2Size national market 35 65 4Connectivity204.1Position in trans-European road network/ centrality index 4.2International accessibility by air 35 65 5International business climate 155.1Availability of venture capital 5.2Fiscal climate 5.3Risk forecast 50 30 20 100 Factors and indicators

6.  Buck Consultants International, 2012 5 1.1 R&D spendings 1.2 Number of patent applications 1.3 Ranking of universities 1.4 Innovation index 1Technology & know-how

7.  Buck Consultants International, 2012 6 Top 10 R&D spendings Source: Eurostat 2012

8.  Buck Consultants International, 2012 7 RankCityUniversity 1CambridgeUniversity of Cambridge 2OxfordUniversity of Oxford 3LondonUniversity College London 4ZurichSwiss Federal Institute of Technology Zurich 5LondonImperial College London 6ManchesterUniversity of Manchester 7ParisUniversity Paris Sud 8ParisUniversity Pierre Marie Curie 9CopenhagenUniversity of Copenhagen 10Stockholm Karolinska Institute RankCityUniversity 1OxfordUniversity of Oxford 2CambridgeUniversity of Cambridge 3LondonImperial College London 4ZurichSwiss Federal Institute of Technology Zurich 5LondonUniversity College London 6StockholmKarolinska Institute 7EdinburghUniversity of Edinburgh 8MunichLudwig Maximilians universität 9LausanneÉcole Polytechnique Fédéral de Lausanne 10LondonLondon School of Economics & Political Science Ranking of universities Source: Times Higher Education, 2011-2012, Shanghai Academic Ranking of World Universities, 2012 Shanghai Jiao Tong Top 500 universities 2011 Times World’s Top 400 universities 2011-2012

9.  Buck Consultants International, 2012 8 Ranking of cities for Technology & knowhow RankCityScore 1 Munich4.11 2 Stuttgart4.09 3 Zurich3.88 4 Stockholm3.78 5 Cambridge3.76 6 Copenhagen3.64 7 Karlsruhe3.48 8 Paris3.45 9 Oxford3.41 10 Berlin3.39

10.  Buck Consultants International, 2012 9 2.1 Number of high skilled people 2.2 Workers in R&D / Tech industries 2.3 Flexibility of labour market 2.4 Labour costs 2Talent

11.  Buck Consultants International, 2012 10 Top 10 Employed in technology and knowledge intensive sectors Source: Eurostat 2012 RankCity Total number employed (x 1,000) 1 Paris407.5 2 London218.1 3 Madrid213.9 4 Milan199.7 5 Rome149.2 6 Barcelona145.5 7 Munich135.8 8 Oxford110.8 9 Berlin110.4 10 Aachen/Cologne109.4

12.  Buck Consultants International, 2012 11 Flexibility of the labour market Source: IMD, 2011; WEF, 2011-2012 Top Labour relations: productive- hostile Cooperation in labour relations: cooperative - confrontational Labour regulations: hinder business or not Hiring & Firing regulations: regulated- flexible 1Switzerland Denmark 2AustriaDenmarkSwitzerland 3DenmarkSweden/NetherlandsAustriaUnited Kingdom 4SwedenAustriaIrelandHungary Bottom 13Spain BelgiumFrance 14Italy Spain 15France Sweden

13.  Buck Consultants International, 2012 12 Ranking of Cities for Talent RankCityScore 1 Madrid4.15 2 Prague3.96 3 London3.91 4 Paris3.89 5 Budapest3.87 6 Barcelona3.73 7 Oxford3.72 8 Edinburgh/Glasgow3.60 9 Dublin3.59 10 Milan3.50

14.  Buck Consultants International, 2012 13 3.1 Size regional market 3.2 Size national market 3Market size

15.  Buck Consultants International, 2012 14 Ranking of cities for Market size (3.1 + 3.2) Source: Eurostat 2012 RankCityScore 1 Paris5.00 Barcelona5.00 Madrid5.00 London5.00 2 Milan4.65 Rome4.65 3 Berlin4.30 Munich4.30 Manchester4.30 RankCityScore 4 Nice3.95 Cologne3.95 Stuttgart3.95 Cambridge3.95 Edinburgh/Glasgow3.95 Oxford3.95 5Lyon/Grenoble3.65

16.  Buck Consultants International, 2012 15 4.1 Centrality index 4.2 International accessibility by air 4Connectivity

17.  Buck Consultants International, 2012 16 Very favourable Favourable Less favourable Ranking Connectivity (4.1 + 4.2) Stockholm Helsinki Edinburgh London Glasgow Malmö Copenhagen Oxford Madrid Berlin Vienna A’dam Delft Aachen/Cologne Karlsruhe Leuven Dublin Lyon/Grenoble Paris Nice Barcelona Milan Rome Budapest Prague Manchester Cambridge Eindhoven Munich Zurich Stuttgart

18.  Buck Consultants International, 2012 17 5.1 Availability of venture capital 5.2 Fiscal climate 5.3 Risk 5International Business Climate

19.  Buck Consultants International, 2012 18 Source: IMD, 2011; WEF, 2011-2012 TopExamples of special R&D Tax incentives programs 1 FranceTax credits, cash grants & accelerated depreciation such as Research tax credit of 30% for the first €100M of qualified R&D expenditures incurred during the tax year; plus an additional 5% of any amount in excess of the €100M Threshold Cash grants for R&D and acceleration of depreciation deductions for fixed assets used in qualified research 2 United Kingdom Super deduction & tax credit such as 130-175% volume based super deduction for resp. large and small/medium sized companies (SMEs) 3 NetherlandsTax rate reduction and tax credits such as WBSO - Wage Tax Credit of 50% (can be as high as 60% for start-up companies) of the first €220K in R&D wage costs and 18% for the remaining wage costs (with a max. reduction of Euro 14 mln per taxpayer Innovation Box: reduced tax rate for revenue attributable to patents & innovation 4 BelgiumSpecial deduction such as Tax deduction of 13.5% (2011) of the value of qualifying R&D expenditures for investments in scientific research and development of new products or a current deduction of 20.5% of depreciation related to R&D assets Patent Income Exclusion Top 4 countries – Special corporate R&D tax regimes

20.  Buck Consultants International, 2012 19 Ranking International Business Climate RankCountryScore 1 Sweden3.90 2 Switzerland3.90 3 United Kingdom3.83 4 Denmark3.68 5 Belgium3.68

21.  Buck Consultants International, 2012 20 Overview ranking total weighted scores tech cities 6Conclusions RankCityScore 31Malmö2.56 30Budapest2.63 29Vienna2.69 28Eindhoven2.73 27Dublin2.82 26/25Karlsruhe2.85 26/25Milan2.85 24Cologne2.86 23Helsinki2.89 22 Prague2.94 RankCityScore 21Aachen2.95 20/19/18Rome3.06 20/19/18Stockholm3.06 20/19/18Leuven3.06 17Nice3.07 16Zurich3.08 15Manchester3.09 14Lyon/Grenoble3.11 13Stuttgart3.16 12Edinburgh/Glasgow3.17

22.  Buck Consultants International, 2012 21 6Madrid3.57 7 Munich3.36 8 Copenhagen3.29 9 Delft3.23 11/10 Amsterdam3.21 11/10 Barcelona3.21 5Cambridge3.60 4Berlin3.61 3Oxford3.69 2 London3.73 1 Paris3.89 RankCityScore Overview ranking top 10 Tech Cities