A new Economist Intelligence Unit (EIU) research report, commissioned by Citi, reveals that New York ranks first in competitiveness, out of 120 of the world’s major cities. Released today, the report, entitled Hot Spots, ranks the most competitive cities in the world for their demonstrated ability to attract capital, business, talent and tourists.
“New York has been home to Citi since our founding 200 years ago. Our commitment to this city, and its continued competitiveness, are as strong as ever,” said Citi CEO Vikram Pandit. “As cities vie for investment, talent and business, we recognize that competitiveness is about more than growth. We are committed to being a valuable partner to New York, and to clients and urban centers in cities across the U.S. and around the world to enable economic progress.”
“Today the Economist Intelligence Unit has confirmed what New Yorkers have long known: that if you want to start a business, create a new product, or have a big idea, New York City is the place to be,” said Mayor Michael R. Bloomberg. “New York City’s position at the very top of this list is no accident: it’s due to the investments our Administration has made and the world-famous ingenuity and creativity of New Yorkers. The global economy has made the competition between cities more important than ever, and it’s vital that we continue to live up to the reputation we’ve earned as the greatest city in the world.”
“Economic dynamism is definitely rising elsewhere, especially in Asian cities, but U.S. and European cities have legacy advantages that give them a strong competitive edge,” said Leo Abruzzese, the EIU’s global forecasting director. “In particular, these developed cities are better at attracting top talent from across the world.”With a combined population of about 750 million, the 120 cities ranked in Hot Spots represent approximately 29 percent of the global economy and generated a combined GDP of US$20.24 trillion in 2011. According to the report, the ten most competitive cities in the U.S. are: New York (1 st), Washington, DC (8 th), Chicago (9 th), Boston (10 th), San Francisco (joint 13 th), Los Angeles (19 th), Houston (joint 23 rd), Dallas (joint 25 th), Seattle (29 th) and Philadelphia (30 th). The Global City Competitiveness Index For Hot Spots, the EIU developed a “Global City Competitiveness Index” that measures cities across eight distinct categories of competitiveness and 31 individual indicators. Categories include economic strength, human capital, institutional effectiveness, financial maturity, global appeal, physical capital, social and cultural character and environment and natural hazards. A city’s overall ranking in the benchmark Index is a weighted score of the underlying categories. New York’s talent as a competitive edge New York’s economy is driven by a range of sources, from the media, arts and fashion, to technology and finance. In 2010, the city was second only to Silicon Valley as a source of venture capital funding in the U.S. Though supplying the demands of a talent-driven market continues to be a challenge (New York had one of the lowest rankings for human capital – at joint 18 th), the city has a range of initiatives underway to help maintain its competitiveness. This includes the new applied science and engineering campus it is creating in partnership with Cornell University and The Technion-Israel Institute of Technology, which is expected to generate US$6bn in economic activity. Additional key findings include: