London has cemented its status as a global technology powerhouse, securing the position of the world's second-best tech hub in a major international study. The UK capital climbed one place in the latest Z/Yen Smart Centres Index, published on Wednesday 3 December 2025, placing it just behind the new leader, Zurich.
Zurich Tops Rankings as San Francisco Slips
The biannual index, which assesses cities on their ability to create, develop, and deploy cutting-edge technology, saw a significant reshuffle at the top. Zurich, Switzerland's financial capital, claimed first place for the first time in the survey's history, praised for its vibrant robotics and 'deep tech' scene encompassing artificial intelligence and quantum computing.
This leapfrogged the previous leader, San Francisco, which suffered a dramatic fall. The home of Silicon Valley, which spawned giants like Google and Tesla, slipped three places to fourth. This collapse allowed both London and Singapore, which climbed to third, to advance. London's overall rating surged by 19 points from the previous study in May, missing the top spot by a mere three points.
Oxford and Cambridge Shine in Global Top Ten
The strength of the UK's tech ecosystem was further highlighted by the strong performance of two other British cities. Both Oxford and Cambridge, powered by their world-leading universities and a thriving culture of spin-off companies, featured prominently in the index's top ten.
Cambridge is the headquarters for major firms like Arm and Darktrace, while Oxford boasts companies such as Oxford Ionics. These cities are celebrated for their highly-skilled workforces, which continue to attract advanced technology companies from around the globe.
The Rise of 'Boring' AI and Foundational Work
Commenting on the findings, Professor Michael Mainelli, Chairman of Z/Yen and former Lord Mayor of London, noted a shifting focus within the sector. He stated that while AI continues to generate excitement and investment, the leading centres are those building robust foundations.
"Centres appear to be emerging that focus on 'boring' AI work and research into statistical probity, IP rights, information chain-of-custody, regulation standards, data provenance and ethics," Mainelli explained. This suggests that long-term success in tech may depend as much on governance and infrastructure as on pure innovation.
The study underscores London's resilient and growing appeal as a destination for technology talent and investment, even as competition from European and Asian hubs intensifies.
