Economic Case

The data in this report strengthens the economic case for LGBTQ+ inclusion through robust, updated datasets revealing strong connections between inclusive practices and urban economic competitiveness.

Inclusion and economic competitiveness are mutually reinforcing.

While our analysis demonstrates clear correlations between LGBTQ+ inclusion and economic success, we recognise these relationships are multifaceted. The evidence points to a mutually reinforcing dynamic: inclusive cities attract diverse talent and foster environments where innovation flourishes, which enhances economic performance. This improved economic standing often enables further investments in inclusive policies and culture, creating a positive feedback loop. This virtuous cycle suggests that inclusion isn’t merely a social objective but a strategic economic driver that forward-thinking cities increasingly recognize as essential to their long-term prosperity.

Based on our 2025 dataset, we took the 38 cities scoring AAA/AA and compared them against the 50 cities scoring DDD/DD/D/E, and observed that:

  • Inclusive cities score 2.0x higher on innovation

  • Entrepreneurship rates are 2.5x higher in inclusive cities

  • Human capital scores are 4.0x stronger in inclusive cities

Economic resilience is linked to LGBTQ+ inclusion 

  • Cities ranking in the top quartile for LGBTQ+ inclusion demonstrate human capital performance 4.0 times stronger than the bottom quartile across key metrics including quality of living, inflow of university students, years of schooling, and number of top universities per capita. This pattern holds consistent across North America, Europe, and Asia-Pacific markets, with particularly strong effects in knowledge economy hubs.

    This competitive advantage becomes increasingly critical as technological disruption reshapes the global workforce. The World Economic Forum estimates that, by 2027, almost half (44%) of workers’ core skills will be disrupted, as “technology is moving faster than companies can design and scale up their training programmes”. Cities that create inclusive environments are better positioned to address this challenge.

  • The Open for Business City Ratings 2025 demonstrate that LGBTQ+ inclusion can be a driver of innovation and entrepreneurship in urban hubs. Our data reveals a striking pattern: cities ranking in the top quartile for LGBTQ+ inclusion demonstrate innovation scores that are 2.0 as high as their less inclusive counterparts, while their entrepreneurship scores soar even higher at 2.5 times the baseline.

    This remarkable correlation between inclusion and innovation is not merely coincidental. Cities that foster an open, accepting environment naturally attract diverse talent and perspectives, creating the perfect conditions for creative thinking and breakthrough innovations.19 Our data shows top-performing inclusive cities average innovation scores almost twice as high as those in less inclusive urban areas. The entrepreneurship gap is even more pronounced, with inclusive cities scoring more than twice as high than less inclusive locations. This suggests that environments that welcome diversity don’t just attract talent – they actively encourage risk-taking, business formation, and economic dynamism.