Why do some places become tech powerhouses while others, just as smart and connected, stall out? 

In the latest episode of The Business of Tech, global innovation expert Mehran Gul, a former policy expert at the World Economic Forum, and the United Nations, dispels the myths about where breakthrough technology happens – and gives his take on what New Zealand should do to improve its innovation game.

Gul’s new book, The New Geography of Innovation: The Global Contest for Breakthrough Technologies, comes to a simple conclusion - there’s no fixed map of innovation. 

Silicon Valley, with its concentration of startups, tech talent and venture capital, remains an innovation powerhouse. But China went from being dismissed as a copycat to a genuine tech superpower in five to seven years. 

Canada, via one small lab at the University of Toronto, helped trigger the entire modern AI boom with AlexNet and a handful of researchers who went on to shape OpenAI and the wider industry. If they can bend the curve that fast, so can so-called “middle powers” and smaller countries like New Zealand – if they stop telling themselves they’re too small, too distant, or too late.

Tech makers, not tech takers

Gul explains how the ingredients of innovation look radically different from place to place. Silicon Valley has anchor universities, thick venture capital markets and a constant deal engine of big firms buying smaller ones. 

In China, the giant tech platforms came first, then research labs and world‑leading developments like ResNet, a neural network architecture. Singapore doesn’t have household‑name tech brands, yet it dominates venture capital in Southeast Asia.

Gul’s assessment of New Zealand is that the likes of Rocket Lab have demonstrated our ability to produce successful, innovative companies. It’s that we keep losing them, talent and listings included, to the United States and other major markets. He argues the real test is whether a country can hang on to its winners, build a startup “factory” around breakout successes, and use policy to push founders towards IPOs and broad employee ownership instead of early exits to US tech giants.