Presentation for Committee for Sydney10 December 2013, Sydney
Global Sydney’s Competitiveness
Dr Richard [email protected]
Globalisation and Cities Research ProgramANZSOG Institute for Governance at the University of Canberra
Patrick Geddes: places where a disproportionate amount of the world’s business is conducted (Cities in Evolution, 1915).
Peter Hall: centres of political power, both national and international, and of the organisations related to government; centres of national and international trade, acting as entrepots for their countries and sometimes for neighbouring countries also; centres of banking, insurance, and related financial services; centres of advanced professional activity of all kinds; centres of information gathering and diffusion; centres of conspicuous consumption; and centres of arts, cultures, and entertainment, and of the ancillary activities that catered for them (The World Cities, 1966, 1984).
John Friedmann: ‘articulators’ of larger regional, national and international economies as centres through which money, workers, information, commodities, and other economically relevant variables flow apart from being headquarters and financial centres; these centres are defined by the scale of ‘spatial articulation’ rather than by political administrative boundaries and extend their influence into a surrounding field or region to articulate into the global economy as centres of representation, social interaction, and innovation; It is the scale of spatial articulation that orders cities in a world urban hierarchy (The World City Hypothesis, 1986).
Global City
Saskia Sassen: a recent phenomenon of globalization process to particularly capture both dispersion and centralisation of economic activities in an integrated global economy: the increasingly integrated global economy has been generating simultaneous processes of dispersion and concentration – the dispersion of production and retailing activities across the world and the concentration of specialised services and command within a few global cities (The Global City, 1991, 2001) .
Peter Taylor: world city network emphasising the relationships between cities, rather than city attributes, built upon Saskia Sassen’s ‘global city’ and Manuel Castells’ global ‘spaces of flows’ (The World City Network, 2004).
New York London Shanghai
Mexico City Johannesburg Berlin
Urban Competitiveness
Urban competitiveness takes its conceptual roots in competitiveness for industries and firms (Krugman, 1993, 1996a; Porter, 1985).
The proposition of territorial competitiveness was first applied to nations (Porter, 1990), and then extended to incorporate cities (Kresl, 1995; Kresl & Singh, 1994; Porter, 1995).
Cities do not compete with one another: they are the locus for firms and enterprises which compete (Krugman, 1996a, 1996b).
Cities and regions do compete, but not in the same way as commercial enterprises which compete for profit maximisation; cities and regions compete in more complex ways for more complex goals, such as investment, population, talents, funding for public infrastructure, and events like the Olympic Games (Porter, 1995, 1996).
Though cities do not compete as firms do, some cities provide better environments than other cities for firms to do business (Boddy & Parkinson, 2004).
A city’s competitiveness is related to its mix of attributes for business operation (Begg, 1999).
Urban or regional competitiveness is essentially about economic competitiveness, and is measured by economic success (Boddy & Parkinson, 2004; Budd & Hirmis, 2004; Kresl, 1995; Kresl & Singh, 1994, 1999, 2012; Rogerson, 1999; Turok, 2004).
An explanatory approach: ‘outcomes’ and ‘inputs’ of urban competitiveness, in which the outcomes are the ‘indicators’ of urban competitiveness (e.g. GDP, employment, income, etc.) while the input factors are identified as the ‘determinants’ of urban competitiveness (e.g. productivity, innovation and infrastructure) (Begg, 1999; Greene, et al., 2007; Jiang & Shen, 2010).
Importance of incorporating non‐economic dimensions into the conceptualisation and methodological approach of urban competitiveness, such as quality of life (Begg, 1999; Rogerson, 1999) or liveability (Ling & Yuen, 2010), urban governance (Shen, 2004), urban amenities (Florida, 2002), social cohesion (Ranci, 2011), and environmental sustainability (Bulkeley & Betsill, 2005; Petrella, 2000).
An integrative approach to urban competitiveness to include economic, social and environmental dimensions (Jiang & Shen, 2010; Ng & Hills, 2003; Shen, 2004).
Sydney Melbourne London New York
Hong Kong Singapore Frankfurt Shanghai
Los Angeles San Francisco Toronto
Financial and Insurance ServicesInformation Media and Telecommunications
Professional, Scientific and Technical Services
Rental, Hiring and Real Estate Services
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
‐10.0% ‐5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
LQ 201
1
LQ Change 2006‐11
Sydney
Financial and Insurance ServicesInformation Media and Telecommunications
Professional, Scientific and Technical Services
Rental, Hiring and Real Estate Services
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
‐10.0% ‐5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
LQ 201
1
LQ 2006‐11
Melbourne
Financial and Insurance Services, 1.0
Information Media and Telecommunications
Professional, Scientific and Technical ServicesRental, Hiring and Real Estate
Services
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
‐10.0% ‐5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
LQ 201
1
LQ Change 2006‐11
Brisbane
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Destination:Brisbane
Destination:Melbourne
Destination:Sydney
Knowledge Workers:Destinations
Origin: Sydney
Origin: Melbourne
Origin: Brisbane
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Origin:Brisbane
Origin:Melbourne
Origin:Sydney
Knowledge Workers: Origins
Destination: Sydney
Destination: Melbourne
Destination: Brisbane
‐
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Win Loss Win Loss Win Loss Win Loss
Financial and Insurance Services Information Media andTelecommunications
Professional, Scientific andTechnical Services
Rental, Hiring and Real EstateServices
Brisbane
Melbourne
Sydney
‐1,500 ‐1,000 ‐500 ‐ 500 1,000
Financial and Insurance Services
Information Media andTelecommunications
Professional, Scientific andTechnical Services
Rental, Hiring and Real EstateServices
Net migration from other cities 2006‐2011
Sydney
Melbourne
Brisbane
‐
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
International Visitor Trips
Sydney
Melbourne
Brisbane
Questions for global Sydney
• Global Sydney is defined by its global capacity of providing advanced producer services, in particular financial and professional services
• Sydney’s global competitiveness and national competitiveness lies in its ability to attract and retain knowledge workers for its global services
• Sydney is a gateway city for inward and outward migrant knowledge workers
• Sydney is a first stop for overseas skilled migrants before they move to elsewhere in Australia
• Sydney is a “launching point” or “escalator region” for young skilled Australians moving to overseas destinations, or higher‐order global cities
• Increasingly circular or transient migrants who move between Sydney and other global cities
www.globalisationandcities.com
