Available online at ScienceDirect. Procedia Engineering 198 (2017 )

Size: px

Start display at page:

Download "Available online at ScienceDirect. Procedia Engineering 198 (2017 )"

Gervais Glenn
5 years ago
Views:

1 Available online at ScienceDirect Procedia Engineering 198 (2017 ) Urban Transitions Conference, Shanghai, September 2016 Competitiveness of global cities from the perspective of the global power city index Hiroo Ichikawa, Ph.D. a,b, Norio Yamato b *, and Peter Dustan b a Meiji University, 1-1 Kandasurugadai, Chiyoda-ku, Tokyo, Japan b The Mori Memorial Foundation, Toranomon, Minato-ku, Tokyo, Japan Abstract With the intense and complex competition among major cities throughout the world today, we have developed the Global Power City Index (GPCI) to evaluate and rank these urban centres according to their comprehensive attractive power which draws creative individuals and business enterprises from every continent. The GPCI evaluates its target cities in six urban functions: Economy, Research and Development, Cultural Interaction, Liveability, Environment, and Accessibility. Each of the functions comprises multiple indicator groups, which in turn consist of several indicators, with a total of 70 indicators being used in the GPCI. The average indicator scores of the indicator groups are combined to create the function-specific rankings. The comprehensive ranking is then created by totalling the scores of the function-specific rankings. London, New York, Paris and Tokyo retain their hold on the top four places, respectively. Since hosting the 2012 Olympic and Paralympic Games, London in particular has been steadily increasing its score, further widening its lead on #2 New York. In Asia, a widening gap is prominent between mid- and top-rank cities. Singapore (#5) and Hong Kong (#7) make significant gains, while Shanghai (#17) and Beijing (#18) slip in the rankings after exhibiting promising vitality in previous years. There is a surge by North American cities as Los Angeles jumps from #20 to #14, San Francisco from #32 to #21 and Boston from #30 to #23. This is due to the broader economic recovery pushing up their scores in Economy and Liveability. The research results of the GPCI could potentially serve as valuable data to improve our understanding of the challenges faced by cities around the world as well as assist in the formulation of urban policies and corporate strategies Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license 2017 The Authors. Published by Elsevier Ltd. ( Peer-review under responsibility of the organizing committee of the Urban Transitions Conference. Peer-review under responsibility of the organizing committee of the Urban Transitions Conference Keywords: cities; urban competition; city rankings; global city; 1. Introduction Urban regions around the world are increasingly facing direct competition for a variety of resources due in part to growing interconnectivity through advances in transportation and technology. Economically, this competition is reaching a high degree of * Corresponding author. Tel.: ; fax: address: nyamato@mori-m-foundation.or.jp Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license ( Peer-review under responsibility of the organizing committee of the Urban Transitions Conference doi: /j.proeng

2 Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) intensity, as products and services are able to cross global boundaries more quickly and efficiently, regardless of origin or destination. One essential factor contributing to these circumstances among cities is an increasingly mobile workforce, with people willing to relocate in an effort to capture career opportunities or a better quality of life. While financial incentives are often considered integral to the relocation decision, other benefits can be equally attractive including environmental concerns like air quality, the availability of parks, or personal safety. Accordingly, it is no longer sufficient for businesses, alone, to act as attractive agents. Cities, too, must sell themselves by promoting advantages to prospective residents or businesses and by identifying disadvantages that require further improvements. This global competition for attractiveness, or magnetism is essential in determining a city s future economic and overall developmental success. It is under this lens of global competition and magnetism that the Global Power City Index was formulated in an effort to better organize and understand the complex system of attraction that exists for certain cities. By measuring and tracking a comprehensive list of specific indicators, the GPCI provides valuable data that can be utilized by policy makers, researchers, businesses, or even potential residents. Defining attractiveness can be difficult, however, as what constitutes an attractive destination is dependent on a multitude of perspectives from different actors. It is for this reason that in addition to measuring functions for economy, research & development, cultural interaction, accessibility, livability, and environment, the GPCI also includes an actor-specific ranking, which evaluates cities based on the interests of specific individuals. Cities that are able to identify and stimulate their advantages across all functions will not only benefit their current residents, but will act as beacons for incoming businesses and people attracting talent and investment. 2. The global power city index The GPCI was first introduced by the Mori Memorial Foundation s Institute for Urban Strategies in 2008, and its rankings have been updated yearly since. The index measures and evaluates the comprehensive power of 40 of the world s leading cities according to six primary functions economy, research and development, cultural interaction, livability, environment, and accessibility. These functions use 70 unique indicators, organized into specific indicator groups. In addition, as mentioned previously, these same cities are examined from the perspective of four global actors manager, researcher, artist, and visitor as well as one local actor (resident), which act as representative citizens with a diverse set of needs and preferences. Within the resulting rankings, the strengths and weaknesses of each city are highlighted and analyzed to uncover specific problems to be addressed. Data collection methods and indicator information are regularly checked and updated to ensure accuracy. Moreover, the entire process, as well as the results, are peer-reviewed by a research organization including committee members, expert partners, academics and a working group. The GPCI has become a valuable tool and is referenced by academic institutions and administrative organizations worldwide including the Japanese and Tokyo Metropolitan governments. 3. Current GPCI ranking results [1] The currently published set of results (Fig. 1), based on the GPCI 2015 Yearbook, indicate that there has been little change among the top 7 comprehensively ranked cities from last year, with London leading the first position for the 4 th consecutive year increasing its lead over #2 ranked New York City. This increasing momentum occurred due in part to London s improvements in the economic function, as well as in livability. Paris and Tokyo maintain their positions at #3 and #4, respectively, with Singapore remaining in the #5 position. Among cities ranked #7 or lower, there exists considerably more movement. Hong Kong (#7) rises two places as a result of significant improvements in the livability function. Beijing (#18) and Shanghai (#17) both decline in the comprehensive ranking due to a slowing economy, while Bangkok, at #33, suffers from a weakening in cultural interaction and accessibility, falling four places. This trend of decline is present among European cities as well with Amsterdam (#9), Madrid (#22), Milan (#29), and Istanbul (#31) all falling several places down in the ranking. North American cities demonstrate marked increases across several functions with Los Angeles moving 6 places to #14, San Francisco moving 11 places to #21, and Boston moving 7 places to #23. North American cities rank highly in research and development, livability, and environment, while benefiting from a recovering economy. While there has been little movement between the top ranked cities of London, New York, Paris and Tokyo, there have been important changes to their individual function and indicator rankings. These four major cities may enjoy a sense of stability, but a more detailed look at the composition of their rankings reveals useful patterns of increasing competition.

3 738 Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) Fig. 1, GPCI 2015 Comprehensive Ranking

Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) 736 742 739 3.

4 Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) London The city of London represents a comprehensively attractive urban area, with notable gains in several important functions. Economy increases two places to #2, passing New York and Beijing, while Livability typically weak due to a high cost of living increases two places to #19. Research & Development, at the #3 position, rises significantly, moving closer to Tokyo (#2). Most impressive is London s Cultural Interaction function, which ranks first among all cities and continues to dominate at the indicator group level, with all groups aside from Trendsetting Potential (#2) ranking first. The city s strengths, then, are situated firmly within the Cultural Interaction function, particularly sustained by strong results in the Number of International Students and Number of Foreign Residents indicators. Moreover, London s position as a multicultural and dynamic destination is supported by the relative ease of international access evident from high scores in the Accessibility function s Number of Arriving/Departing Passengers on International Flights and Number of Cities with Direct International Flights indicators. Despite its top position in the ranking, London still has weaknesses which can be improved to benefit its comprehensive attractive power. While the city shows slight increases in the Environment function, the Percentage of Renewable Energy Used indicator suffers lower scores. London s noted high costs also negatively affect the Livability and Accessibility functions, with Average House Rent and Taxi Fare reducing the score. Fig. 2, London s strength and weakness by indicator group (deviation score) 3.2 New York Along with London, New York (#2) also maintains its position in the comprehensive ranking for the fourth consecutive year. New York leads all cities in Research & Development (#1), with a significant lead over Tokyo (#2) and London (#3); however, several specific indicators within the function reveal that competition from other cities is intensifying. New York s Number of Researchers (#2) fell as Tokyo takes the lead, and its Readiness for Accepting Foreign Researchers (#3) drops from the first position as London reaches the top. New York also surrenders its #1 position in Number of Winners of Highly Reputed Prizes (Science and Technology-related Fields) (#2), as San Francisco moves ahead. For the Environment (#27) function, New York is ranked considerably lower when compared with major cities such as London (#8), Tokyo (#13), and Paris (#18). Additional weak areas include the high costs associated with Price Level and Average House Rent, as well as the Corporate Tax Rate all indicators with lower scores. New York does offer notable strengths in Cultural Interaction, with Environment of Creative Activities, Attractiveness of Dining Options, and Number of Large World-Class Cultural Events Held indicating a robust and dynamic city. New York s economy is also strengthened by the indicator for Total Market Value of Listed Shares on Stock Exchanges.

740 Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) 736 742 Fig. 3, New York City s strength and weakness by indicator group (deviation score) 3.

overtaking London in that specific function.

5 740 Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) Fig. 3, New York City s strength and weakness by indicator group (deviation score) 3.3 Paris Mirroring the stability of other top cities, Paris is once again ranked at the #3 position overall, and manages to attain #1 in Accessibility due in part a high Density of Railway Stations overtaking London in that specific function. The city further maintains its top ranking in Livability (#1) as it benefits from high scores in Working Environment (#2), Living Environment (#3), and Living Facilities (#2). Within the Cultural Interaction (#3) function, Paris demonstrates several key strengths in Number of Hotels, Number of Large World-Class Cultural Events Held, Opportunities for Cultural, Historical and Traditional Interaction, as well as Number of Museums. This denotes an urban area providing ample opportunities for both visitors and residents to participate in numerous cultural activities. Despite Paris position as a top-ranked city, it does face negative pressure from a comparatively weak Economy (#13), with particularly lower values for the indicators Corporate Tax Rate, Level of Economic Freedom and Level of Political, Economic and Business Risk. Likewise, the city is also influenced by a weakness in Environment (#18), where Density of Suspended Particulate Matter (SPM) and Density of Sulfur Dioxide (SO2), Density of Nitrogen Dioxide (NO2) are ranked comparatively low for European cities. Fig. 3, Paris strength and weakness by indicator group (deviation score)

Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) 736 742 741 3.

6 Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) Tokyo Tokyo continues an 8-year trend by filling the #4 position in the comprehensive city ranking, while achieving the highest overall score in Economy (#1). The Japanese capital performs remarkably well in several indicator groups, including Market Size (#1), Economic Vitality (#3), and Human Capital (#3). Furthermore, the city s Nominal GDP and number of World Top 300 Companies provide economic strength. Tokyo also presents itself as an ideal research destination, with strong scores in the Research and Development (#2) function. In the Cultural Interaction category, Tokyo gains upward momentum, reaching the #5 position, with high levels attained for Number of Visitors from Abroad (#9) and Number of International Students (#3). Areas for improvement include Livability (#15), Environment (#13), and Accessibility (#11), with the Cost of Living in the city negatively affecting Livability. Also, Taxi Fare and Travel Time between Inner-city Areas and International Airports are examples of specific indicators that reflect weaknesses for Tokyo. Despite competition in Asia from cities like Singapore (#5), Tokyo may draw significant benefits from the preparations being made for the 2020 Olympic Games, and see its weaker functions improve. Fig. 4, Tokyo s strength and weakness by indicator group (deviation score) 4. Conclusions Based not only on the overall ranking, but also on the comprehensive ranking of functions and indicator groups, it is clear that a city s magnetism can be defined as multi-faceted and complex. For example, although London ranks #1 overall, Tokyo achieves the #1 rank for Economy, while New York represents the top location for Research and Development. The decision, then, to invest in a city through opening business operations, or to relocate a family based on career opportunities, is multilayered and thus, ranking systems, too, must be equally extensive. With regards to top-ranked cities, it must also be noted that complacency, itself, has the potential to be a devastating weakness for building attractive qualities across functions. The stability of the top 5 cities is commendable, however, cities must continuously seek improvement and change in order to remain competitive, or risk losing advantages to other urban centers as demonstrated by the declines in New York s Research and Development Function. By identifying strengths, weaknesses, as well as indicators where global competition is intensifying, city administrations can focus their efforts more effectively to ensure a globally competitive position.

7 742 Hiroo Ichikawa et al. / Procedia Engineering 198 ( 2017 ) Lastly, the global economy is powered through urban centers acting as focal points worldwide. It is especially through economic indicators that competitiveness is often measured statistics that draw investment and companies towards major cities. While these are effective, the potential for other function-areas to affect a city s attractiveness, and thus entice not only investment, but human capital as well, cannot be understated. With an in-depth analysis of a city s magnetism through a lens of Economy, Research and Development, Cultural Interaction, Livability, Environment, and Accessibility, overall competitiveness can not only be maintained, but further improved. References [1] Institute for Urban Strategies, The Mori Memorial Foundation, Global Power City Index Yearbook 2015, Nikkei Printing Inc., Tokyo, 2015.

Selected Papers from the 2 nd World Forum on China Studies (Abstracts) Panel 12 Shanghai's Development in Multi-scaled Perspectives

Shanghai Academy of Social Sciences World Forum on China Studies Selected Papers from the 2 nd World Forum on China Studies (Abstracts) Panel 12 Shanghai's Development in Multi-scaled Perspectives Contents: