Today, four of the world’s five most valuable companies build their success on software. Despite the global reach of digital products and the rise of remote work, thriving software ecosystems remain concentrated in a handful of hotspots such as Silicon Valley and Bangalore. Why do these regions continue to attract and produce successful software startups? And what role do local talent pools play in shaping their growth?

Our project “Skills and the Geography of Software Startups” takes a fresh look at these questions.

What challenges do we tackle?

• The key resources of startups—especially talent—are notoriously hard to measure.

• Existing indicators fail to capture the specialized, fast-evolving skills that truly drive innovation.

Our innovative approach
We develop a dynamic skill taxonomy using digital trace data from thousands of software developers worldwide. By linking these rich skill profiles to startup firms, we uncover how talent, expertise, and regional dynamics interact.

What will we deliver?

• Deep insights into how software startups build their teams and which skills matter most at each stage of growth.

• A new understanding of how local labor markets shape startup success, offering valuable knowledge for founders, policymakers, and innovation hubs.

Funding: The project is funded by the Internet Foundation and the FWF under their joint programme “netidee SCIENCE.”