Despite new global workforce trends, physical hubs are here to stay

Innovation hubs and physical workplaces remain key components of technology companies' strategy.

The technology sector has outpaced most other industries during COVID-19, and many companies have grown significantly since the start of the pandemic. This has advanced the perception that creativity and innovation can now happen literally anywhere as collaboration has gone more virtual and global.

However, a company still needs to be able to innovate, and physical workplaces and innovation hubs remain key components of technology companies' strategy, according to KPMG research. This report, the annual Technology Innovation Hubs publication, provides valuable insight for technology industry CEOs, COOs, CFOs, CHROs, and VPs of tax, strategy, and corporate development on the future of physical innovation hubs.

Engineering talent and intellectual property are the lifeblood of the tech industry, and retaining top talent is a strategic imperative. Employers know this and are striving toward flexible work arrangements, permanent hybrid workforce models (work 2-3 days in the office and the rest remote), or even all-remote models. As the workforce disperses geographically, new hotbeds of technically skilled workers will emerge. In-person collaboration will still occur, just in more locations.

Meeting the needs of a more dispersed workforce and homing in on the cities that tech leaders consider leading innovation hubs should be considered when seeking to acquire a company, entering a joint venture, expanding operations, building a new office or innovation center, or developing a new workforce model.

For more information, download the full report below.