As global competition in advanced technologies accelerates, a select group of cities are emerging as deep tech leaders, poised to shape the future of innovation-driven economies.
According to this year’s Deep Tech Index, Lagos stands out as the top deep tech hub in West Africa, driven by its strengths in clean tech and photonic & electronic innovation. Abuja also earns a place as a key regional center.
The Deep Tech Index, produced annually by the European Centre for Entrepreneurship and Policy Reform (ECEPR) in collaboration with Nordic Capital, evaluates the world’s most advanced tech ecosystems. While North America, Europe, and Asia dominate global deep tech, the Index also reveals Africa’s rising significance, with Lagos at the forefront.
“Primarily Lagos, and secondly Abuja, stand out as the deep tech centres of West Africa,” says Nima Sanandaji, CEO of ECEPR.
Located in southwestern Nigeria, Lagos is the most populous city in Africa and a thriving hub of technological development. Its expanding deep tech ecosystem reflects a broader trend across the continent: African cities are no longer just participating in tech innovation, they are shaping it.
Both Lagos and Abuja are making bold strides in clean technology, a vital field in the face of rapid urban population growth and environmental pressures. Meanwhile, Lagos’s emergence as a global player in photonic & electronic deep tech highlights the city’s ability to compete at the highest levels of technological advancement.
The Deep Tech Index further shows that countries leading in deep tech tend to share several key traits: robust property rights, low capital gains taxes, strong educational outcomes in international assessments, and prestigious STEM universities.
“High-quality education that develops technical skills is vital for future competitiveness. Leading countries boast top-tier schools in these fields. Through targeted educational investments and favourable tax policies, nations can enhance their standing in this sector and attract both domestic and international talent,” says Klas Tikkanen, COO of Nordic Capital Advisors.
The report also draws a compelling connection between deep tech development and economic impact. For every leading deep tech firm per million adults, the unemployment rate drops by an average of 0.46 percentage points, and youth unemployment by 0.78 percentage points. These companies not only generate high-value jobs but also contribute significantly to export revenues and economic resilience.
As part of its global mapping, the Index identifies the 500 leading deep tech firms worldwide. Its findings underscore a critical message: fostering deep tech innovation can drive real change: in jobs, prosperity, and national competitiveness.
The report is produced by the European Centre for Entrepreneurship and Policy Reform (ECEPR), an organization dedicated to advancing entrepreneurship and policy insights, with the support of Nordic Capital, a leading private equity investor.
To read the full report, visit: www.ecepr.org
Media inquiries: Andreea Sutac andreea@sanandaji.se
Research-related questions: Nima Sanandaji nima@sanandaji.se
