Global Urban Competitiveness Report （ 2011-2012 ）

1. Global Urban Competitiveness Report （2011-2012） Pengfei Ni Global Urban Competitiveness Project （GUCP） Center for City and Competitiveness (CCC,CASS） China Beijing, 27June, 2012

2. 《Global Urban Competitiveness Report 2011-2012》Brief of Research With nearly 100 experts, GUCP project team implemented 2 years' tasks of data collection, organization, verification and comparison, improved the index system and evaluation method, quantities analysis and empirical test. The project team members conducted considerable number of research and discussion, communicated with many experts from countries around the world, and contacted several city governments for field researches in different countries. The team members fully explored and ultimately finished the annual report on the basis of sorting out expert opinions and the completion of the global urban competitiveness assessment.

3. Part 1 • Introduction of Analysis Method

4. Ⅰ Global Urban Competitiveness: Background of Research • Structure ofglobal production, trade and financial are changing • Developed countries such as The United States, Europe,s promote the “Re-industrialization” strategy; Resurgence of Developed countries,trade protectionism; Developed countries to increase the savings rate, while Developing countries are improving the rate of consumption • Urbans facing re-positioning in The global industrial chain。 • The world's new technological revolution is bred。 The new technological revolution will strengthen the sustainable urban competitiveness，affect the competitiveness of various cities Significantly 。 • The Urbans ofemerging economyrise strongly in the crisis

5. Ⅱ Global Urban Competitiveness: • research situation

6. Ⅲ Global Urban Competitiveness: • Conceptual Framework • Global Urban Competitiveness: • The urban competitiveness refers to a city’s ability in relation to other cities in the world to attract and translate resources, control and occupy markets, to create wealth as fast as possible and offer well-being for its residents , which is determined by the combination of its enterprise operating factors and industrial systems

7. A Value B C Industry Environ- ment • Concept framework • Urban Competitiveness Mechanism

8. Urban Competitiveness' Outcome:Value • Profit situation is the ultimate demonstration of the city capacity and a dimensional and comprehensive concept。 • In this context, the model is ： UCI= ƒ (ES, EG, EE, ED, EQ, IE) UCI：Urban Competitiveness' index ES：Economy scale EG: Economic Growth EE：Economic levels EQ: Economy quality • IE: Exterior Facts ED: Economic density

9. industrial chains R&D production marketing circulate industry manufacture computers and the software industry manufacture building trade building trade transmission, computers and the software industry industry • Urban Competitiveness Process: Industry • City’s value is created through enterprises. The level of industry system constituted by enterprises determines the level of entire value system. Inside industry system within a city and its connection

10. Urban Competitiveness Input:Environment Urban competitiveness model including six potential variables: UC= ƒ（EQ、LE、LD、LC、GC、PI、LI） UC: the urban competitiveness input; EQ: is the enterprises quality; LE : local environment (factors demand and supply) LD :local demands ; LC：interior structure, reflecting interior connection and aggregation GC： global connection ;( the connection to the exterior, utilize the exterior factors and market and address the chance and challenge); PI：public system; LI：the local infrastructure.

11. Ⅳ Global Urban Competitiveness: Indicator system and Research design Indicator system 2011-2012 Global Competitiveness Indicator System includes: Global Competitiveness Production Indicator System, Global Competitiveness Factor Indicator System Global Competitiveness Industry Indicator System.

12. Production Indicator System is comprised of 6 indicators, namely, Green GDP, GDP per capita, GDP per Sq Km, GDP growth, patent applications and transnational enterprises index.

13. Industry Competitiveness Indicator System is formed through nonlinear weighted synthesis after the innovation on 2009-2010 Industry Competitiveness Indicator System, industry hierarchy and the global position of 22 industries. Process：Industry Competitiveness Indicator System

15. Industry Competitiveness indicator system is formed through nonlinear weighted synthesis after the innovation on 2009-2010 Industry Competitiveness Indicator System, industry hierarchy and the global position of 22 industries.Investment： Factor Environment Indicator System

17. City samples Definition: The report called on city refers to an administrative management center, which contains under the governance suburban urbanization area and may contain rural residents The 500 cities in this report are selected in the following procedures. First and foremost, a loose study was carried out on all countries and regional cities, which was labeled as the preliminary screening. Second, a research referred to the population and income per capita of the country or the region was preceded in the 500 cities in order to identify the number of sample cities in those areas. . Afterwards, the research took country as a unit; roughly identify sample cities in a principle, from big to small, from good to bad, from high to low. Finally, considering the accessibility, accuracy and standard of the data, we adjusted the sample cites to make sure the sample cities’ data were available, standardized and accurate.

18. Assessment method Synthesis method In the calculations, we used a uniform calculation method to calculate the 2007-2008, 2009-2010 and 2011-2012 global urban comprehensive competitiveness and ensured the continuity and comparable of the global urban comprehensive competitiveness index in space and time. Global Urban Competitiveness Factor Environment Indicators synthesis Synthesizing Global Urban Competitiveness Factor Environment Indicators at all levels, we used the simple linear and nonlinear weighted average method synthesis. Global Urban Competitiveness Factor industry Indicators synthesis Industry takes nonlinear weighted synthesis and the level of industry and the industrial structure is calculated by nonlinear weighted (or "multiplication" synthesis)

19. Part 2 Findings of comparativeanalysis

20. City, who can overcome the financial tsunami Competitive advantagesof “world cities”decease absolutely and New York's decreasing amplitude is the first, while Asian metropolises continue rising. Internal environment and public institution are the most two important factors in a city’s competitive- ability; high-tech industry, finance, public utilities are the key support of urban competitiveness

21. Ⅰ Analysis on the Most Competitive Cities in the World New Yorkrank No.1 and index decreasing amplitude is the first, while Hong Kong’s index upgrades rapidly Index Movement of the 2007-2012 Top 10 Most Competitive Cities Worldwide Compared with the result in 2009-2010, the absolute competitive index in New York, London, San Francisco, Chicago and Los Angles has decreased in 2010-2012.However, emerging economies show activity in this year and Asian metropolises like Hong Kong , Singapore and Seoul have made themselves into the top 10. The gap of which with the following cities are narrowing, “Four World Cities” will be overtaken by other cities in near future if existing trends continue.

22. Internal environment and public institution :The two important factors in a city’s competitive- ability As the potential competitiveness, competition elements represent the city’s development potential. By comparing and analyzing the environmental factors of the most competitive cities, we can find: Environmental Factors of the Most Competitive Cities

23. Internal environment, public institutions, global rela-tions and enterprise quality are very important factors of a city’s competitive ability, among which internal environment and public institution are most prominent Internal Environment includes economic environment, social environment, ecological environment and cultural environment. Public Institutions consist of life convenience, economic freedom and the administration of the government.

24. High-tech industry, finance, public utilities are the key support of urban competitiveness Industrial Environment of the most competitive cities As an important support to a city, industrial environment is the driving force to the urban economic development. The study found that the most competitive cities also enjoy high industrial competitiveness. the high-tech industries like telecommunication, semiconductor, software and service, financial industries like insurance agencies, banks, and diversified financial institutions together with public utilities are the key support of urban competitiveness.For new “world cities” like Beijing and Shanghai, these industries are the most important focus in continuing rising and catching up with the top “world cities”.

25. Ⅱ Overall Comparative Analysis on Global Cities The Global urban competitiveness fell in 2010-2012 as a whole with the steepest drop expected for Europe and US and the gap between the cities has been reducing. Average Competitiveness Variation of the Cities in Different Regions Compared with 2009-2010, the overall competitiveness of global cities are decreased in 2011-2012. The average competitive index of 500 cities worldwide decreased from 0.328 in 2009-2010 to 0.323 in 2011-2012.Competitiveness index average score of developed countries cities have respectively decreased absolutely,while Emerging economies show actively and average score drop Slightly, even some cities arise continuously. On the whole, the gap of global urban competitiveness index is assuming narrower and narrower .

26. American and European cities enjoy a high degree of economic freedom while emerging economies present a strong demand. Environmental Factors of Different Regions in 2011-2012 On the whole, the American and European cities still have great advantage, which maintain superiority on overall element competitiveness, especially in the area of public institutions, internal environment and local factors. But the local demand are relative weak that they have to high depend on foreign trade. On the contrary, Asian cities, especially in some emerging economies like China and India, have such great local demand that establish great development potential and their GUCI ranking is going straight up.

27. American and European major cities are facing over finan-cialization, while emerging economies have entered the period of the industrial structure transformation American and European cities show strong overall industrial competitiveness with high index scores in both industrial structure and industrial sectors, among which the high-tech industry is an important support. However, the overexposed proportion of financial centers shows that their economy depends too much on finance. The Asian cities get lowest scores in the industrial sectors and the industrial structure is just on an average level and the industrial development of them is still at the bottom of industrial chain,so that industrial upgrading should be promoted and the adjusting paces of the industrial structure should be accelerated. At present, since the emerging economies like Beijing and Shanghai have entered the period of the industrial structure transformation.

28. Cities of emerging economies rise quickly, technology centers perform particularly well. Distribution of the Top 50 Cities with the Fastest Competitiveness Improvement in 2011-2012 （Show in next page） The cities that improve the fastest are, in order, San Jose, Hong Kong, Suzhou, Changsha, Lagos, Georgetown, Kingston, Xi’an and Mannheim. According to the analysis of these 50 cities we can see that half of them come from China and India, among which 23 Chinese cities are ranking in the list. Technology centers perform particularly well, 11 technology centers are included in the f top 50 despite the relatively small economic aggregate. San Jose, central city of American Silicon Valley enjoys a fastest rising speed in its competitiveness. In 2009, its per capita GDP reached $ 77401.91, occupying the first place in the world and leading the development of global cities.

29. Distribution of the Top 50 Cities with the Fastest Competitiveness Improvement in 2011-2012

30. competitiveness indexes and economic aggregate of developed cities dropped together, but mainstream of BRICS countries cities are ascension The Changes of Overall Competitiveness in the Five Developed Cities and the Five BRICS Cities In 2007-2009, the overall competitiveness indexes and economic aggregate of developed cities are dropped obviously, but economic aggregate of BRICS countries cities arise absolutely and competitiveness indexes arise relatively. In the near future, it is probably very difficult for developed cities to maintain their dominations in competitiveness.

31. Ⅲ American and European cities decline obviously, while Asian cities increase Average Competitiveness Variation of the Cities in Different Regions North American cities continue leading the Global Urban Competitiveness Ranking though the composite index decrease. The European competitive index ranking changed little; the dark clouds of European debt crisis remain. The competitiveness of core Asian cities increases with the slight shakes of overall index. In other regions, the cities at the bottom of the competitive ranking reduced, and the ranking of middle cities differentiated

32. Ⅵ Financial centers decease while Technology centers rise The Drop of Competitiveness in Major Functional Centers. (%)

33. Ⅴ High Income Cities Drop & Middle Incomes Rise The income level of Global Urban overall Showed a narrowing of trend.. All sorts of comprehensive competitiveness index average score declined widespread. Compared with 2009-2010, Figure 2-4 shows, the city of the low-and middle-income levels in emerging economies enhanced faster, especially Chinese cities kept a rapid momentum. European and North American cities with a relatively high GDP per capita demonstrated an absolute amount of decline. European cities mean index decreased from 0.32 in 2009-2010 to 0.31 in 2011-2012 Comprehensive competitiveness index average score and change of different income level

34. Ⅵ Competitiveness input factors: high output efficiency in North America and Asia to enhance the potential of large, European investment needs to be strengthened Regional Distribution of rank Comprehensive Competitive-ness Index and Factors input

35. Part 3 Global Urban Competitiveness Research Topics

36. Introduction of team writing research Topics report This year, a long-lasting wish has been fulfilled by inviting the research team from International Organization and City and other world renowned expert teams, together with experts from GUCP to co-compose this report. Research team, led by Banji oyelaran Oyeyinka, director of Global Urban Evaluation and Research Department of UN Human Settlement Programme Research team, The Doing Business Project of the World Bank Group； Research team, led by Lamia Kamal-Chaoui, director of OECD Secretary-General Office Saskia Sassen, World well-known sociologist＆ economist,professor of Columbia University the GAWC team led by Peter Taylor, world renowned urban researcher and a academician of UK Royal Academy of Social Science GUCP team, led by Peter Karl Kresl and Pengfei Ni

37. Pattern of the global city: Current and FutureWhat is current pattern of global city? What are opportunities and challenges of the global city? etc. Since early 2012, Global Urban Competitiveness Project group sent e-mail to experts and researchers nearly 100 colleges and universities in the world, as well as some city government officials and to conducted a survey study. On the basis of Collecting their answers to these questions and feedback, the team members list systematically some profound and important insights points on the pattern of the global city:

38. New phenomenon, challenges and hot topics of global cities mainly include global financial crisis, natural resources, city development and people’s livelihood etc. The important or key questions of cities in the worldinclude natural resources, racial problems, and population movement There are many aspects that are worthy of researching. For example, improving city’s sustaining development, city comprehensive management, preserving local culture and upgrading environment. Economic growth and population movements are the key elements. Globalization are creating more chances for global city development and exerting different influence on it. Today, some cities in developing countries have the tendency of dropping, while cities in developing countries are rising. These cities development are getting closer. The economic change on pattern will lead to the change in the world city pattern, in which case, the world is shifting to emerging economies cities.

39. A country should empower more authority on managing local affairs. The cities should strengthen their governance accordingly. Technological change and green economy are both playing a role in strengthening the sustaining competitiveness in technology and energy and resources, which will significantly affect competitiveness. It exerts a significant influence on the future development of a city. In the process of planning and development, the force the city has is very crucial, but still needs more joint efforts. Apart from the big incidence concerning politics, military, security and natural disasters, the current threat the world is facing is much agglomeration and lack of reform. All governments of cities are dealing with different problems. The rise of emerging cities may bring a change to the structure of global cities. The infrastructures are particularly important.

40. Experts or research team dissertate some of these issues Professor Saskia Sassen believed that the Specialized Differences were one key vector in urban competitiveness. Banji Oyelaran-Oyeyinka paid special attention to social and technological innovations in the Competitiveness of Cities. The team led by Lamia Kamal-Chaoui explored the development of green cities and opportunities through the governance cases study of the green growth in OECD countries

41. Team of the Doing Business Project of the World Bank Group shows the relationship between the system and urban competitiveness from the perspective of the business environment. Peter·J·Taylor put forward the challenge facing world city network analysis GUCP team, led by Peter Karl Kresl and Pengfei Ni, recommended that the city's decision-makers should enhance the urban competitiveness of the focus on the driving factors of the modern cities prosperity on the basis of the analysis in the global cities experience.

42. Pattern of The Global Urban CompetitivenessGlobal Urban Competitiveness statistical reports (2011-2012)

43. Thank you!