Global Urban Competitiveness Report(2007-2008) City’s Future: Everything is possible

1. Global Urban Competitiveness Report(2007-2008)City’s Future: Everything is possible Global Urban Competitiveness Project (GUCP) Institute of Finance and Trade Economics, Chinese Academy of Social Sciences (CASS) Yangzhou, China, 27 July 2008

2. Part Ⅰ Global Urban Competitiveness: Method of Analysis

3. Global Urban Competitiveness: Background of Research • Today, half of the population are living in cities, the human being are stepping into the era of urbanization, and the cities are becoming the main living land for working and living. • Since 1990s, technological informatization and economic globalization have thoroughly altered the temporal and spatial concepts, decisions and arrangements concerning the global economy, technology and social activities. • Global cities become more and more important, and the international competition of the cities becomes stronger. • Improving the environment of cities, attracting more talents, industry, technology and investment to benefit the people, and promoting the global urban competitiveness become the focus of the mayors of all the cities in the world, the enterprise and all people.

4. Spatial Distribution of Global Urban Values The global urban system in uneven in different regions. Not only do values differ in different cities, the value within a city declines from center down to the suburban areas.

5. The global urban distribution of GDP per Square Kilometer

6. C B D A E Global Urban Industry System The urban industry system under global integration: Industry system and industries are hierarchical. There are changes and re-location.

7. Global Urban Factor Environment Under the background of global integration, the operating factors system differ from each other. They change continuously.

8. Urban value system Urban function system Urban industry system Urban element system Global Urban Competitiveness: the marketplace Cities compete against each other and cooperate through the interaction among factor environment system, industry system, and value system. A city foster its functional structure system and derivative function system by attracting external factors and maintaining local factors. These determine its position in global urban value system.

9. Global Urban Competitiveness: Conceptual Framework • The urban sustainable competitiveness implies a city’s ability in relation to other cities in the world to attract and translate resources, control and occupy markets, accumulate wealth as fast as possible and offer urban residents material benefits, which is determined by the combination of its enterprise operating factors and industrial systems. • UC1= F（the size of GDP, number of international patent applications, the distribution of multinational corporations, price advantages, economic growth rate, GDP per capita, GDP per square kilometer, employment rate, and labor productivity） • UC2= F（E、T、I、L、H、S、G）. UC2 means the input or structure of the city’s competitiveness, E means the quality of enterprise, T means human resource, I means industry structure, L means the living environment, H means the business soft environment, S means the business hard environment, G means the global connectivity. • UC1= UC2

10. Global Urban Competitiveness: Index System

11. Explanatory components of urban competitiveness

12. Global Urban Competitiveness: City Samples • 500 Cities for General Urban Competitiveness Measurement Universality: cities from 5 continents, 130 countries and regions, representing different areas and levels of development Selection criterion: the numbers is determined according to national population and income per capita; and then filtered by the scale, status and the accessibility, accuracy and standardization of the statistical data. • 150 Cities for Detailed Analyses Representativeness: from 5 continents, 47 countries and regions. Focus on key cities of North America, Europe, Asia and Oceania，and some pivotal cities located in South America and Africa. Selection criterion: global influence, the social and economic position in its area, the typicalness of its kind, special research value and accessibility of the data, also some consideration of previous research. • 10 Cities for competitiveness case study Selection criterion: Successful, creative, sustainable and usable urban experience.

13. Global Urban Competitiveness: Data sources and statistical methods • Data for statistical index • Global Urban Competitiveness Index system has 114 indexes. The acquirement of the data is complicated. Every sample city has the original statistics related to the indexes, such as urban population and area, but the statistic scopes are different nationally Majority of the sample cities has related original statistics, and some are living indexes published by consultancy services. There is no related international or national statistical agency yet, even no subjective survey data, such as industrial index, city function index or enterprise quality

14. Global Urban Competitiveness: Data Sources and Statistical Methods • Data collection channel International organizations and official statistical publications, then processed for consistency (mainly use statistics in 2005, time series data only from 2001 to 2005). Internet provide index-related statistics, quantified according to certain criteria (mainly use statistics in 2007, time series data from 2004 to 2007).

15. Global Urban Competitiveness: Data Sources and Statistical Methods • Processing of collected index-related data  Data integration: In order to solve the difference between statistic scopes and criterions, a study has been done about statistical items and criterions of international organizations, such as statistical distribution from United Nation Statistics Division, World Development Indicators from World Bank, database of Organization for Economic Co-operation and Development etc. Then data transformation relations are established among statistical items from different countries. Therefore, using this most reasonable, comparable and complete statistical standard set to process the collected data, we generated a unified data base covering 500 cities around the globe. Missing Data: if a city has the deficiency of certain indexes, estimation is made according to the given national statistics, its domestic position and corresponding performance.

16. Global Urban Competitiveness: Data Sources and Statistical Methods • Solution for index-related data which can not be collected Grading method to replace Index. In the light of unified standard, such index will be replaced by another related index which is most identical and typical, grading by indirect factors. For example, use distribution of transnational financial company to indicate the urban financing development status. Typical sample comparative method. According to the standard, typical samples will be selected and compared within a sample city, to represent, indicate, and standardize certain aspect of this city. For example, enterprises are represented by an example of a typical industry. Grading method using related information. According to the aspect of the index, find the key point and class standard, then collect related data which can be used to indicate such index.

17. Global Urban Competitiveness : Method of Quantitative Analysis • Global urban competitiveness index (GUCI) of 500 cities in world.  Choosing non-linear weighted integration method to deal with data .  Choosing clustering analysis method for comparative research. • Global Urban component competitiveness index (GUCSI) of 500 cities in world. The explanatory component competitiveness sub-indices are divided into three levels, where the tertiary level indices can be integrated into secondary level indices and then integrate the secondary-level indices into primary level indices using equal weighting. • Cause and effect analysis of competitiveness in 150 cities from world  Employ the non-linear fuzzy curve analysis and the linear regression analysis methods • The case study of top 10 cities in world

18. Part Ⅱ Global Urban Competitiveness: Research Results

19. Global Cities: Which city is the most competitive? • This report measures competitiveness of 500 cities in the world with 9 indexes, namely GDP, GDP per capita, GDP per square kilometer, labor productivity number of multinational corporation headquarters, number of international patent applications, price advantage, economic growth rate, and employment rate. • The top 20 competitive cities are New York, London, Tokyo, Paris, Washington, Los Angeles, Stockholm, Singapore, San Francisco, Chicago, Toronto, Seoul, Boston, San Diego, Oakland, Helsinki, Madrid, Vienna, Philadelphia, and Houston. • The top 20 cities are the strongest ones in terms of economy size, development level, technical innovation, and economic control. Among the top 20 cities, 10 located in North America, 7 in Europe, and 3 in Asia. In conclusion, the regions with the strongest urban competitiveness are North America, Europe and Asia.

20. Global Urban Cities: The Future of Cities is Uncertain • According to the clustering analysis method with 9 index data of 500 cities, we find that: • Some top cities located in the world economic core areas are getting stronger and stronger. The gap between them and other cities in the world becomes wider and wider. • Some developed cities located in economic core-areas of the world slowed-down and even declined. • Some cities located in the edge zones of the economic core-areas are rising rapidly and even exceeding their competitors. • Some less developed cities in periphery areas are declining further. • Some less developed cities in the periphery areas rising rapidly. • Some less developed cities in the periphery rose rapidly and then declined again.

21. Spatial Layout of Global Urban Competitiveness: Unbalanced Distribution and Differential Growth • Urban population: unbalanced distribution/growth and metropolitan-styled concentration • Income per capita: the differences among global cities are smaller than that among world countries, but greater differences exist within a country • Economic growth: Great global differences and remarkable country-specific characteristics. • The technology innovation: Main cities in developed countries enjoy high monopoly of innovation while cities in developing countries are rising.

22. The Distribution of Urban Population

23. Economic Growth of Cities

24. Technical Innovationof Cities

25. Size layout of global urban competitiveness: urban competitiveness structure featuring oligarch monopolization Urban GDP size: Great differences exist. The total GDP of the largest 10 cities accounts for 27% of that of all 500 cities. • Urban GDP size and income per capita: S-shaped correlation. • City scale and economic growth: negatively related as a whole and abnormal under most circumstances. • City scale and technology innovation: not all positive relationship.

26. Scale of Economy and GDP per Capital

27. City Economic Scale and Economic Growth

28. City Economic Scale and Technical Innovation

29. Income Pattern of Global Urban CompetitivenessSpace Distribution is Bumpy • Global pattern of per capita income: The global distribution of urban GDP per capita is alike a bumpy landscape, the higher parts are mainly distributed in Europe, North America and Asia, the lowest part is in Africa; the GDP per capita is high in the coastal areas and low in the inland areas. In sum, the cities with medium per capita income or less usually have high economic growth rate, the cities with high per capita income and low per capita income usually have slow economic growth. • Per capita income and technology innovation: present reversed U-Shaped Curve. Though, the population of the cities with high per capita income usually have good technology innovation capability, the subsection indicates that the degree of such correlation is different in structure.

30. Per capita income distribution

31. Per Capita Income and Economic Growth

32. Per Capital Income and Technical Innovation

33. Global Urban Economic Control Center: Evolution in Progress • Relationship between global space and economic decision-making: the US,UK and Australia are the forerunners in the ranking, and some Asian cities like Shanghai, Beijing and Seoul are also in high rankings, which indicate that the global economic decision-making center is changing. • Relationship between Urban Scale and Economic Decision: New York , London and Tokyo, are the world top cities and are still the economic-decision making centers, however, the headquarters of many multinationals are located in small cities, like Geneva and Brussels, these cities are high-level international cities and have good economic decision-making abilities.

34. Global Urban Multinational Corporations Distribution Index

35. City Scale and Multinational Corporations Distribution

36. Per Capita Income and Multinational Corporations Distribution

37. Enterprise Essence

38. Industrial Structure

39. Human Resources

40. Hardware Environment

41. Software Environment

42. Living Environment

43. Global Connection

44. Global Urban Competitiveness: What are the Key Factors? • Enterprise Essence: Enterprises Management is the key

45. Global Urban Competitiveness: What are the Key Factors of Urban Competitiveness • Industry Structure: Industry Cluster is the key The urban industry cluster is one of the key factors affecting the urban overall competiveness. The formation of industry cluster, concentration effect of industry cluster and category of the industries directly affect composition of the urban industry structure, thus affecting the improvement of urban overall competitiveness. In the world today, industry cluster is the distinctive feature of many cities, countries and some regional economies. In the future, the industry cluster and multinational corporations will jointly lead the global economic development. They will become the leader of world economic growth and development of their industries.

46. Global Urban Competitiveness: What are the key factors • Human Resources：Educational Level is the Most Outstanding

47. Global Urban Competitiveness: What are the Key factors of Urban • Hardware Environment：Technology Innovation is the fundamental

48. Global Urban Competitiveness: What are the key factors • Software Environment ：Strategic Orientation is Most Important

49. Global Urban Competitiveness: What are the key factors of Urban • Living Environment ：Environment Quality is the Top Priority

50. Global Urban Competitiveness: What are the key factors • Global Connection：Enterprise link is most impact