COMPETITIVE EUROPEAN CITIES: WHAT ARE THEY, WHERE ARE THEY,

SO WHAT FOR POLICY AND DENMARK?

Professor Michael ParkinsonEuropean Institute for Urban Affairs

Copenhagen, January 2006

2

This talk will ask 4 questions:

1. What’s happening to European cities?

2. What is a competitive city?

3. Where are the competitive European cities?

4. So what for policy and Denmark?

3

1. WHAT’S HAPPENING TO EUROPEAN CITIES?

Cities up the political agenda• International not national hierarchies• Growing networks• Growing competition• Growing economic opportunities and

potential• Growing social exclusion

4

• Globalisation – power away from nation state

• Economic and technological restructuring – Porsche-hamburger economy

• Increasing competition between places – winners and losers

• Institutional and welfare state restructuring – increased vulnerability

5

• Cities matter more not less

• European governments – targeting and empowering cities

• Europe – new spaces, opportunities, internationalism, entrepreneurialism

• New hierarchies

• Increased concern urban competitiveness

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2. WHAT IS A COMPETITIVE CITY?

Measured competitiveness Cities in Europe

Concerns UK cities:

• Not punching their weight national economy

• Falling behind London

• Lack powers, responsibilities and resources

• Lagging behind European cities

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• Literature on urban development in Europe• Literature on urban competitiveness

• Quantitative data on 50+ European cities

• Interviews with senior policy makers

• Questionnaire to 50+ cities

• Detailed work in 15 – fieldwork in 9 continental cities

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• Ability to attract and maintain firms with stable or rising market shares in an activity, while maintaining stable or increasing standards of living for those who participate in it

• Competitiveness and competition

• Competitiveness and urban renaissance

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Characteristics of competitive city-regions

• Innovation

• Diversity

• Skills

• Connectivity

• Strategic capacity

• Quality of life

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Measures

• GDP per capita• EU Innovation score card• Percentage population higher skill levels• Demographic change• Unemployment• Dependency levels• Airport passengers• Internet connections• Private sector assessment

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3. WHERE ARE THE COMPETITIVE EUROPEAN CITIES?

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Health warning:• Europe big and complex

• Policy transfer tricky

• Exceptions to all rules

• Measuring competitiveness is hard

• Data and boundaries tricky

• Snapshot sample – not movie universe

13

14

GDP per Capita (Euros)2001

0

10000

20000

30000

40000

50000

60000

70000

80000

15

European Innovation Scoreboard 2002: EU Regions

0

50

100

150

200

250

16

% working age population (25-64) with NVQ level 3 education 2000

05

1015202530354045

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Total Population 2001

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

Barce

lona

Mun

ich

Stock

holm

Mila

n

Birming

ham

Turin

Amste

rdam

Leed

s

Frank

furt

Rotte

rdam

Dortm

und

Stuttg

art

Sheffie

ld

Copen

hagen

Live

rpoo

l

Lyon

Man

ches

ter

Bristo

l

Toulo

use

Helsin

ki

Nottin

gham

Newca

stle

Lille

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% Change in Total Population 1996 - 2001/2

5.5 5.2 5.04.5 4.0

2.3 2.1 1.81.0

-2.4

-4.7-5.3

-6.0

-8.1 -8.1

-4.8

-3.3-2.4

-2.0

-1.7-0.3 -0.4

-10

-5

0

5

10S

tock

holm

Hel

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Cop

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Toul

ouse

Stu

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Am

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Rot

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Bar

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na

Fra

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Turin

Lyon

Mun

ich

She

ffiel

d

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tol

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am

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Not

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am

New

cast

le

Man

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19

% Population aged under 16 or over retirement age 1996

27.4 28.7 29.7 29.7 29.8 30.3 31.0 31.2 31.7 32.2 32.5 33.7 34.2 34.9 35.9 36.0 36.5 36.5 37.0 37.1 37.1 38.0

0

20

40

60M

unic

h*

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Toul

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20

ILO Unemployment Rate (2001)

3.3 3.3 3.5

5.0 5.2 5.76.3 6.3 6.5

7.2 7.58.3 8.3 8.4 8.4 8.5 9.0 9.0

10.210.9

14.5

0

2

4

6

8

10

12

14

16S

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holm

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Mun

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ity

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*

Lyon

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Man

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Tou

lous

e*

Live

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l

Dor

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in

* Unemployment rates for Dèpartment

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Total Air Passengers 2001

05,000,000

10,000,00015,000,000

20,000,00025,000,00030,000,000

35,000,00040,000,000

45,000,00050,000,000

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Top Internet Hub Cities for Europe

2002 (TeleGeography

Inc)

City Internet Bandwidth

(Mbps)

Rank

2002

Rank 2001

London 319,475 1 1

Paris 277,803 2 2

Frankfurt 194,902 3 5

New York 174,180 4 3

Amsterdam 163,942 5 4

Copenhagen 109,204 6 8

Stockholm 94,741 7 7

Brussels 81,536 8 6

Milan 65,424 9 9

Zurich 51,488 10 -

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Best Cities to Locate a Business

Healey & Baker 2002

City Rank 2002

Rank 1990

London 1 1

Paris 2 2

Frankfurt 3 3

Brussels 4 4

Amsterdam 5 5

Barcelona 6 11

Madrid 7 17

Milan 8 9

Berlin 9 15

Zurich 10 7

Munich 11 12

Stockholm 14 19

Manchester 19 13

Lyon 20 18

Copenhagen 24 -

Helsinki 27 -

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Best Cities in Terms

of . . . .

City . . . Qualified

staff

. . . Easy access to markets

. . . External transport links

London 1 1 1

Paris 2 2 2

Fankfurt 3 3 3

Munich 4 9 6

Brussels 5 4 5

Milan 6 6 8

Berlin 7 10 9

Amsterdam 8 5 4

Dusselforf 9 7 11

Madrid 10 8 9

Manchester 11 11 13

Stockholm 11 23 20

Barcelona 14 13 11

Lyon 17 16 18

Helsinki 19 28 29

Copenhagen 22 20 14

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4. SO WHAT FOR POLICY AND DENMARK?

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CITIES CAN DRAG COUNTRIES UP OR DOWN

GDP Per Capita (Euros) 2001

0

10000

20000

30000

40000

50000

60000

70000

80000

Fran

kfur

t

Mun

ich

Stuttg

art

Dortm

und

Copen

hage

n

Amst

erda

m

Rotte

rdam

Stock

holm

Helsink

i

Mila

nTu

rinLy

on

Toulo

use

Lille

Barce

lona

Bristo

l

Leed

s

Birming

ham

Man

ches

ter

Newca

stle

Liver

pool

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• Hierarchy is stable but cities can improve

• Cities matter to national performance

• Competitiveness and cohesion not mutually exclusive

• National and regional government matters

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• Priorities for urban policy

• Mechanisms for successful urban policy

• Engaging stakeholders

• Achieving the right spatial balance

• Encouraging policy learning

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• Urban system PLC

• Grown-up government

• Economy, territory and government

• Cities and regions – bridges not barriers

• Cities can help themselves