Liveanomics Urban liveability and economic growth A report from the Economist Intelligence Unit Commissioned by Philips Liveanomics Urban liveability and economic growth Preface L iveanomics: Urban liveability and economic growth is the second of two Economist Intelligence Unit reports, commissioned by Philips, which examine the issue of liveability in cities The first report in the series addressed what city residents want from their cities, and how city leaders can deliver on citizens’ requirements This second report examines the role of business within cities The Economist Intelligence Unit bears sole responsibility for the content of this report The findings and views expressed within not necessarily reflect the views of Philips Our research drew on two main initiatives: l In September 2010, we conducted a survey of urban professionals around the world In total, 575 respondents took part, representing cities in Asia (30%), North America (30%), Western Europe (30%) and the rest of the world (10%) See Who took the survey? for more details l To supplement the survey results, we conducted in-depth interviews with business and civic leaders and other experts in urban affairs See Interviewees for more details Sarah Murray was the author of the report, and David Gow contributed Iain Scott and Chris Webber were the editors We would like to thank everyone who participated in the survey, and all the interviewees, for their time and insight January 2011 Who took the survey? Respondents range in age, from 19-80, with most aged between 26 and 60 More than one-third have lived in their city for more than 20 years, one-fifth for 10-20 years, and another one-fifth for 5-10 years Three-quarters of respondents are married (of those, 58% have children) They are professionals who work for a range of industries, with the majority from the financial and professional services, IT and technology, energy and natural resources, manufacturing, education and healthcare, publishing and media, and retail Please note that not all figures quoted correlate precisely with the charts provided, typically because of rounding © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Interviewees l Sam Adams, mayor of Portland, Oregon (USA) l Andrew Carter, head of research, Centre for Cities (UK) l Greg Clark, city expert (UK) l Warrick Cleine, managing partner, KPMG (Vietnam) l Carol Coletta, president and chief executive of CEOs for Cities (USA) l Karl-Heinz Daehre, minister for regional development and transport, Sachsen-Anhalt (Germany) l Ryan Gravel, urban designer and senior associate, Perkins+Will (USA) l Frank Jensen, president, Eurocities and mayor, Copenhagen (Denmark) l John Kasarda, co-author of Aerotropolis: The Way We’ll Live Next and a professor at University of North Carolina’s Kenan-Flagler Business School (USA) l Stanley Litow, head of corporate citizenship and corporate affairs, IBM; and president, IBM Foundation (USA) l Teresa Lynch, senior vice-president for research, Initiative for a Competitive Inner City (USA) l Josh McManus, co-founder and creative strategist, CreateHere (USA) l Harold Miller, president, Future Strategies (USA) l T.V Mohandas Pai, head of human resources, education and research, and board member, Infosys, Bangalore (India) l Wally Olins, chairman of Saffron Brand Consultants, London (UK) l Deanna Oppenheimer, chief executive of UK retail banking, and vice-chair of global retail banking, Barclays, London (UK) l Professor Philipp Oswalt, head of the IBA and the Bauhaus Foundation, Dessau (Germany) l Paul Romer, economist and senior fellow, Stanford Center for International Development and the Stanford Institute for Economic Policy Research, and Henry Kaufman visiting professor at the Stern School of Business, New York University (USA) l Terry Schwarz, director, Cleveland Urban Design Collaborative, Kent State University (USA) l Todd Sinai, associate professor of real estate and business and public policy at the University of Pennsylvania’s Wharton School of Business, (USA) l Fred Smith, chairman, president and chief executive officer, FedEx (USA) l Regina Sonnabend, an urban planner at the Bauhaus Foundation (Germany) l Colin Tweedy, chief executive, Arts & Business, London (UK) © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Executive summary T here is no doubt that the lives of cities and of the businesses located in them are inextricably intertwined But how closely linked are cities’ economic growth and their liveability? A survey of urban professionals conducted by the Economist Intelligence Unit shows that the idea of liveability has a number of different components Jobs and cost of living, public transport and roads, safety and security and culture and nightlife all rank highly among our respondents’ list of factors contributing to a city’s attractiveness as a place to live and work In the first report in this series, we spelled out the strategies policymakers need to adopt in order to maintain and improve liveability for citizens Some of the key steps include providing a good public transport system, getting a bigger say in planning policy, taking a more sensitive approach to urban design and handing over more control of public services to citizens This second report explores the relationship between business performance and liveability in cities, and highlights some of the ways in which business and policymakers are working together to make cities more liveable Whatever the type of challenge being faced by an individual city, improving liveability can only help to strengthen its attractiveness for residents, workers and potential investors But coming up with a realistic and effective strategy for boosting economic growth is a hugely difficult challenge, particularly when wider economic forces are working in the opposite direction History has shown that long-term shifts in patterns of trade across the globe and the introduction of new technologies or production methods can undermine the industries upon which some cities were built Declining cities in the former manufacturing heartlands of the north of England and in the “rust belt” of the United States provide powerful evidence of this And, try as they might, policymakers have frequently found it agonisingly difficult to hold back the tide of change Even in those cities where economic growth is occurring, the challenge of enabling this can be enormously complex Often the problem is that those people already living in high growth areas resent the changes associated with it and try to block the developments and investments—in housing and transport, for example—that are needed to facilitate growth Rather than blocking growth altogether, however, these kinds of obstructions frequently lead to congestion and affordability problems as more and more people and businesses try to cram into houses, offices and trains that were simply not designed to meet such high levels of demand © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth It is important to look at liveability—a misunderstood and often misused term—but equally important to understand that for citizens and companies, there is a clear hierarchy of needs What is clear from our research is that what business primarily wants from city leadership is policy that helps to stimulate job creation, followed by basic liveability factors such as good infrastructure, schools and so on Mayors and civic leaders can occasionally be beguiled by the “softer” aspects of liveability Opera houses, parks and other assets associated with liveability are all important components of great cities’ brands, but getting the basics right first helps cities to compete globally on a more equal footing Among the key findings of our research are: Jobs take precedence over liveability when people are choosing where to locate Our survey shows that the main reason for urban professionals to move to a city is its jobs market and cost of living Moreover, respondents say that their organisation’s main benefit in being located in their city is its access to talent and labour But with workforces increasingly prepared to relocate for the best opportunities, there is a question mark over policymakers’ ability to develop local skill levels and encourage skilled workers to remain in their city Deliver the housing needed to meet demand As we spelled out in our first report, rising house prices are often seen as a sign of a city’s economic success One important challenge for policymakers who are looking for ways to help maintain their city’s economic growth is to make sure that there is enough housing to meet demand in economically dynamic areas Failure to so can result in housing affordability problems, dissuading talent from moving from low-performing to high-performing areas This is not simply an issue for policymakers As Todd Sinai of the University of Pennsylvania’s Wharton School of Business points out, “in a city that’s more expensive, the first thing that has to happen is that workers need to get paid more” Open the door to foreign investment In difficult economic times, policymakers are often pressured into favouring support for local businesses over foreign companies But such strategies are not necessarily the right way forward, according to our survey—only 15% of respondents see that as a priority for their civic leaders, as opposed to almost one-third who would prefer it if multinationals were encouraged to set up shop in their city, in order to make it more competitive for business The presence of multinational companies in a city can raise its image elsewhere, and branding can play a big role in the business life of a city More than one-half of respondents regard their city’s international profile and good reputation as important benefits to their organisation’s decision to locate there, and nearly three-quarters believe their city’s image helps it to attract important industries Enlist the help of the commercial sector Respondents to our survey consider that it is the public sector that should shoulder most responsibility for services such as public transport and the maintenance of parks and schools But the business sector already plays a key role in developing cities’ liveability, supporting culture, sporting events, healthcare © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth facilities, transport infrastructure and environmental initiatives As civic leaders face tighter budgets they should be prepared to take the initiative in asking business for more help The cost to the city of London’s ambitious cycle hire scheme, for example, would have been far greater without a substantial investment from Barclays, a bank Of course, in engaging in philanthropic endeavours an organisation’s ambition may largely be to generate brand awareness But Londoners, for their part, have shown that they are prepared to become two-wheeled advertisements for Barclays in exchange for a more convenient journey around town Focus on the basics of urban life – transport, roads, houses, schools and safety When a city secures a major sporting event such as the Olympic Games, is it a boon for business? Urban professionals don’t think so They think it is far more important to get the basics right by improving public transport and roads, providing better schools and improving safety CEOs such as FedEx’s Fred Smith agree “Ultimately, you have to have both good economics and good quality of life—they feed each other,” he says © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Introduction F rom the earliest times of human commerce, when trade crossroads became sites for settlements, the world’s greatest cities have arisen and flourished around commerce Florence had its Medici bankers; Flanders its wool merchants; Manchester its cotton mills; and Detroit its carmakers Wherever you look around the world, business has often played a pivotal role in the story of urban growth and change Business continues to play a central part in the development of the world’s cities, but the economic role played by different cities has evolved over time as the forces of globalisation and technological change have reshaped patterns of trade and shifted the focus of business growth Some cities, including Manchester and Detroit, have declined as the industries on which they were built have shed jobs Others, such as Bangalore in India and Beijing in China, have grown rapidly as economic growth in developing countries has surged Against the backdrop of intense competition and long-term change, urban policymakers must find ways to maximise their city’s economic growth In attempting to so, many have become interested in the relationship between economic growth and liveability The thinking is that businesses and highly-skilled workers, particularly those in mature industrialised economies, are increasingly basing their location decisions on the quality of life on offer in a city as well as the strength of its economy The basic idea, therefore, is that if city leaders can improve the liveability of their city, they can attract the businesses and skilled workers needed to grow their economies This argument seems straightforward enough, but how strong is the relationship between liveability and economic growth in cities? Can a modern city thrive without having a high quality of life? Which other factors influence economic performance in cities? And, after looking at the evidence, what should be the priorities for city leaders trying to stimulate economic growth in their areas? © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Key points n What businesses want from cities varies enormously n However, some requirements are common to all: talent, transport, affordable housing and good governance n Experts differ on the importance of quality of life as a driver of economic growth Part I: What businesses need from cities W hat businesses want from cities varies enormously As Greg Clark, an adviser to city agencies around the world, says: “If you’re in film, fashion and TV you want London or New York—big and dirty, with lots of different people and real edge that creates a buzz If you’re doing bioscience or pharmaceuticals, you want precision labs and so you might prefer Boston, Zurich or Singapore.” But despite the diverse range of needs that businesses have, there are some requirements that are important to all We discuss these below and explain the role that liveability plays in fostering their development A talented workforce In mature, industrialised economies where knowledge-based services businesses are an increasingly important driver of growth, having access to a skilled workforce is becoming more of a necessity than a luxury Cities often play a crucial role here, providing a rich source of talent upon which knowledge intensive businesses can draw What were your main motivations in coming to your city? Select up to three (% respondents) To seek better work opportunities 39 I was born here/it has always been my home 29 I was posted here by my employer 24 To be closer to family/friends 21 To go to school or university, or to be near to better schools or universities 15 For culture/nightlife 14 For greater personal freedom 11 For existing relationship/To find new relationship For safety/security considerations For healthcare considerations Other © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth “What forms part of being an employer of choice is having a high-quality office building and shops and restaurants around it that staff can go to.” Warrick Cleine, KPMG In our survey, access to talent and labour were cited by 63% of respondents as being what makes their city a good place in which to locate their organisation, while 58% said that their organisation had chosen its location because it could access a happy, healthy workforce One-third of urban professionals say improving schooling and education would make their city more competitive for business, making it their second-highest priority Businesses are looking for a deep talent pool in the fields in which they need to be successful,” says Carol Coletta, president and chief executive of CEOs for Cities, a US network of urban leaders “Talent pools in places where there are other talented people That speaks highly to the need for quality of place and quality of opportunity.” Cities’ power to attract talent is why KPMG sited its Ho Chi Minh City offices in the downtown area, rather than where its clients are, in industrial zones outside the city “The number one reason for being located where we are is the people,” says Warrick Cleine, managing partner of KPMG Vietnam “What forms part of being an employer of choice is having a high-quality office building and shops and restaurants around it that staff can go to.” There is a question mark over just how much city leaders and other policymakers can to retain skilled workers, however “A lot of places are successful in developing talent because they have the right higher education institutions, but they can’t necessarily hang on to that talent,” says Ms Coletta Andrew Carter, head of research at Centre for Cities, a London-based think-tank, explains that this is because workers are increasingly mobile “When a city is creating jobs, its population tends to increase and when it’s losing them its population falls,” he says “That’s just a normal part of the adjustment process in all economies Skilled people find it easier to access jobs elsewhere so they’re often among the first to leave when the jobs begin to dry up It’s very difficult to see how city leaders in places like Liverpool [UK] can prevent that from happening.” What you think should be the main priorities for your city's mayor/leadership in order to make your city more competitive for business? Select up to three (% respondents) Improving public transport/roads 61 Improving schooling/education 33 Encouraging multinational companies to set up business 32 Improving safety and security 29 Raising the city's profile and improving its reputation 27 Reducing corruption 25 Reducing environmental impact 22 Supporting local businesses ahead of multinationals 15 Improving healthcare facilities and access to care 12 Attracting major sporting/cultural events 11 Other © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth The aerotropolis As transport and logistics companies gather around the world’s biggest airports and their related transport corridors, a new urban form is emerging: the airport city Professor John Kasarda of the University of North Carolina’s Kenan-Flagler Business School argues that airports are set to shape urban development in the decades to come “Show me the busiest airports today and I’ll show you the great urban centres of tomorrow,” he says Professor Kasarda, who has co-authored a book on the concept (Aerotropolis: The Way We’ll Live Next), points to a shift in many places where airports no longer simply serve the city but have themselves become airport cities “They’re taking on all the functions of a modern metropolitan centre,” he says “Upscale restaurants, casinos, hotels, trade and exhibition complexes and financial units are all locating around the airport, and this is creating a second downtown.” “The aerotropolis should bring together urban and regional planning, and business strategy and site planning,” Professor Kasarda continues, “so airports function more efficiently and the region itself is more economically efficient, aesthetically appealing and environmentally sustainable.” Transport and connectivity Transport connections have always been a key driver of economic growth in cities and towns In the past, a city might have grown up around a river crossing Today a city’s growth is more likely to be linked to its proximity to an airport (see box), port or motorway hubs In our survey of urban professionals, 37% of respondents regard transport links to other key cities and markets as being a primary benefit of being located in their city And 61% of respondents say city leaders should address transport, far ahead of factors such as better education (33%), encouraging multinationals to set up business (32%), and improving safety and security (29%) Getting people to work on time is one function of a good transport system But our respondents’ emphasis on transport links reflects another evolving trend—the fact that the line between people’s professional and private lives is becoming increasingly blurred “Time is becoming ever more valuable,” says Ms Coletta “Technology is becoming richer and more diverting and as a result people are living 24-7, so if you don’t provide good public transport or alternatives to the automobile that’s a real problem.” Deanna Oppenheimer, the chief executive of UK retail banking at Barclays, argues that good transport systems are essential to the economic health of cities such as London, where the company sponsors a city-wide cycle hire scheme “Investment and improvements to London’s transport infrastructure will assist economic prosperity in the city,” she says Transport systems are clearly important both in maintaining quality of life and business performance, but policymakers should not see investment in transport as a magic solution that will always spark growth irrespective of underlying circumstances According to Mr Carter, “areas that have experienced decline often have transport systems that are easily able to cope with the demands now being placed on them because they were designed for much higher usage The fact that some areas have really great public transport systems doesn’t necessarily mean that they will be attractive to businesses and workers There are plenty of other factors at play.” © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Key points n As budgets shrink, civic leaders are looking for new ways to partner with the private sector to maintain and improve liveability n The private sector is also playing a larger role in helping cities become greener n Business plays an increasingly important role in raising cities’ profile Part III: Business helps build city liveability A s well as generating wealth and employment, businesses play a central part in developing a city’s quality of life—by investing in the built environment, by funding cultural venues and events and by engaging in other forms of corporate philanthropy As city governments struggle with tightening budgets, civic leaders are looking for ways to leverage private sector investment so that they can deliver the infrastructure and amenities that their cities need In the UK, for example, city leaders are looking at the idea of schemes called local assetbacked vehicles, by which local government combines its land assets with private sector investment in order to help fund regeneration projects In this way, they hope to continue to be able to invest in the built environment, despite a sharp contraction in public capital investment “City leaders are looking for new ways of getting infrastructure projects funded in partnership with the private sector,” says Andrew Carter “Without that, they’re going to suffer from a period of very low investment in their built environments” For companies, philanthropy is only partly altruistic “There’s self-interest in a larger context, which is that as a business you are more successful if the community is successful,” says Stanley Litow, head of corporate citizenship and corporate affairs at IBM, and president of the IBM International Foundation “A city that’s absorbed with a transportation crisis or public safety crisis is unstable, and that has an impact on all the operations in that city including business.” In Atlanta, the Atlanta BeltLine—a US$2.8bn redevelopment project that will create a network of public parks, trails and transit systems along a historic railway corridor—has received financial support from companies such as Cox Enterprises, an Atlanta media group, and Kaiser Permanente, a healthcare group “Those corporations are looking at the Atlanta BeltLine as a way of keeping Atlanta competitive,” says an urban designer and senior associate at Perkins+Will, Ryan Gravel, who developed the idea for the BeltLine project But delivering city liveability is not only about delivering infrastructure For example, companies have long played a role in supporting the recreational side of their cities And there are business benefits—corporate sponsorship of the arts, recreational amenities, sports and entertainment can provide attractive branding opportunities Moreover, corporate leaders know that the presence of these amenities can help make their cities 18 © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth “We cannot reach this goal alone We need public and private partners interested in developing green city solutions.” Copenhagen’s mayor Frank Jensen on the city’s aim to become carbon neutral 19 more attractive to the workforces they need to employ Respondents to our survey make the same connection—85% agree that the cultural and social attributes of cities are as important to business as good infrastructure Many companies make the link between availability of cultural amenities and availability of talented workers; Deutsche Bank, for example, is a major sponsor of the arts in London, even though it is headquartered in Frankfurt “[The bank] could have focused on Frankfurt,” says Colin Tweedy, chief executive of Arts & Business, a UK-based organisation that connects companies to cultural organisations “But their employees love being in London because it’s hip and stylish and that’s why they sponsor major exhibitions there.” Big corporate sponsorship deals can help civic authorities to provide more of what makes a city appealing, underwriting programmes that municipal governments would find hard to fund In the past, this has brought cities everything from libraries and art galleries to concert halls and sports stadiums, as dominant companies have sought to boost their prestige in the city in which they are headquartered However, the relationship between businesses and the cities in which they operate is changing No longer is there necessarily a strong correlation between corporate philanthropy and company headquarters, as the Deutsche Bank sponsorship approach demonstrates As companies become more global, their philanthropic efforts are becoming less closely associated with individual cities Waves of corporate consolidation have seen smaller businesses with strong local allegiances snapped up by multinationals with a global agenda Companies still tend to have close relationship with their local educational institutions Even here, however initiatives can take a broader, more regional approach In Latin America and the Caribbean, for example, companies such as Nokia, Alcatel-Lucent and Microsoft support Entra 21, a regional program providing disadvantaged young people with employment training While residents in metropolitan areas across the region benefit, the programme makes no explicit links with specific cities In some cases, corporate largesse is distributed far beyond a company’s home base “New business leaders in sectors such as IT have a different ethos in terms of their philanthropic responsibilities,” says ICIC’s Ms Lynch “There’s still a great sense of responsibility but [Microsoft founder Bill] Gates, for example is looking at global disease rather than putting up cultural monuments in cities.” Of course, the role of business in the success of cities goes beyond philanthropy or sponsorship Through their profit-making activities, companies deliver services such as electricity supplies and communications technologies In our survey, 65% of respondents see the private sector as best placed to deliver energy while 93% look to business for the most efficient telecommunications delivery and 54% see waste management as best handled by companies Increasingly, however, companies are also playing a role in fostering another element of an appealing city—its greenness While in our survey, 22% of respondents believe that their city’s leaders should make reducing environmental impact a priority, local governments realise they need the technical know-how of the private sector to help them so In Copenhagen, the mayor is working to involve the private sector in the city’s mission to become carbon neutral “We cannot reach this goal alone,” says the city’s mayor, Mr Jensen “We need public and private partners that are interested in developing green city solutions.” © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Meanwhile, businesses and industry associations can act as ambassadors for their city, helping bring in new enterprises Almost one-third of respondents to our survey feel that this should be a priority for civic leaders, but Greg Clark believes that the message is more effective when it comes from the private sector “Businesses can talk to the rest of the world about why it’s good to business in their city,” he says “That’s much more powerful than the city government talking about it.” Banking on bikes Since July 2010, certain corners of London have become home to a new form of public transport— bicycles for hire Along with the Transport for London roundel logo in the bikes’ livery is the bright blue logo of Barclays, the bank that has sponsored the scheme So while the scheme is getting more Londoners to use a new form of public transport, it is also an example of how corporate philanthropy is penetrating further into the services that contribute to city liveability Users sign up for membership, pay a membership fee and can then pick up and deposit the bikes at docking stations around the city; journeys of less than 30 minutes are free of charge Visitors can also buy casual access Since the scheme was launched, more than 2m journeys have been made on the bikes, while some 100,000 or more members have signed up to use the service Barclays made a successful bid to sponsor the scheme via an open tender process that was run by Transport for London As part of its five-year sponsorship, the bank is investing up to £25m 20 (US$39m) in Barclays Cycle Hire and Barclays Cycle Superhighways, new cycle lanes into central London from outer London For Barclays, the branding rewards from funding these schemes are clear—the distinctively-coloured machines catch the eye as they make their way through London or sit in ranks on street corners However, the investment will bring the company other benefits too, including bolstering the bank’s environmental credentials “Branding is one benefit of our sponsorship,” says Deanna Oppenheimer, chief executive of UK retail banking and Western Europe, and vice-chair of global retail banking at Barclays “But it is also about making a positive contribution to society in London The schemes have clear benefits of partnering Barclays with a sustainable and environmentally friendly mode of transport.” Ms Oppenheimer also points to another, longerterm benefit for the bank of being involved in this kind of scheme “More cyclists on London’s roads will help to create a friendly, attractive city with more pleasant shared spaces,” she says “This is vital if London is to continue to attract bright, talented people to live and work in the city.” © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Conclusion O ur survey of urban professionals shows that a city’s liveability plays an important role in making it a more attractive place for workers and businesses But when they are exploring ways to boost economic growth in their cities, policymakers’ first priority must be to find ways in which to stimulate job growth, primarily by making sure that the basics of infrastructure are in the right place Of course, liveability has a role in attracting skilled workers to a city But this should not be overplayed, especially in the face of longer-term forces of change across economies Ultimately, policymakers have limited power to counteract these trends, whether it is by improving liveability, business support or skills The point this makes is that above all, urban policymakers need to be flexible and realistic in the strategies they adopt to promote business growth in different areas After all, the route to growth remains far from clear, particularly in times of economic volatility Improving a city’s liveability is an important goal regardless of its impact on economic growth, but its value as an economic development strategy seems likely to vary from place to place, and depends greatly on the circumstances prevailing in each location Policymakers should pay heed to this reality when formulating their plans And they should question the wisdom of advice that offers them a quick fix to deep-rooted problems 21 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth Appendix: Survey results Where are you personally located? (Top 20 locations; % respondents) United States of America 25 United Kingdom 10 India 10 Canada Australia Singapore Hong Kong Germany China Brazil Mexico Switzerland Italy Spain Malaysia Sweden Japan Belgium Denmark Netherlands 22 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth What were your main motivations in coming to your city? Select up to three (% respondents) To seek better work opportunities 39 I was born here/it has always been my home 29 I was posted here by my employer 24 To be closer to family/friends 21 To go to school or university, or to be near to better schools or universities 15 For culture/nightlife 14 For greater personal freedom 11 For existing relationship/To find new relationship For safety/security considerations For healthcare considerations Other How long have you lived in this city, and for how much longer you believe you will live there? (% respondents) Have lived Plan to live Less than one year 4 1-2 years 6 2-5 years 15 15 5-10 years 21 14 10-20 years 20 15 More than 20 years 34 27 Don’t know 19 Based on recent trends, how you expect your city will perform in the following categories? Select one in each row (% respondents) Well Moderately Poorly Don't know/not applicable Economic (business/employment opportunities) 51 39 91 Social (safety, culture, housing, community relations) 37 49 14 Infrastructure (roads/transport, utilities) 26 47 26 26 47 26 Environmental (air/water quality) 23 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth How would you rate the overall relative quality of life in your city, thinking broadly about factors such as the local standard of living, natural environment and work opportunities? (% respondents) As a place to live As a place to work Excellent 34 30 Above average 36 43 Average 19 20 Below average Poor 1 If you had a choice, in which environment would you prefer to live at the following stages of your life? Select one in each row (% respondents) Inner city urban Suburban/city outskirts Rural Smaller town/village Student 70 20 10 First job 81 16 24 Career development 73 Family/raising children 18 53 24 Retirement 19 24 42 15 In your view, which factors are most important to you in making a city an attractive place in which to live and work? Select up to three (% respondents) Jobs market and cost of living 58 Public transport, road links and parking 47 Safety and security 44 Culture, nightlife and sporting facilities/events 34 Access to decent childcare and education 28 Parks and access to green/open spaces 23 General environment and cleanliness 20 Layout of the city, quality of its buildings and housing 17 Access to quality healthcare 17 Range of shops and stores 24 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth What would be the primary things you would improve/change in your city to make life less stressful and/or improve the quality of life there? (% respondents) Public transport, road links and parking 59 General environment and cleanliness 35 Jobs market and cost of living 30 Safety and security 27 Parks and access to green/open spaces 23 Layout of the city, quality of its buildings and housing 20 Culture, nightlife and sporting facilities/events 16 Access to decent childcare and education 15 Access to quality healthcare 15 Range of shops and stores 10 Other What you think will be the most critical pressures on your city in the next to years? Select up to three (% respondents) Pressure on public services, eg healthcare, schools 57 Migration into the city 38 Economic uncertainty 37 Pollution levels 31 Crime and safety 30 Shortage of jobs 25 Migration away from the city 10 Availability of clean water 10 Labour/social unrest Political instability Availability of clean energy 25 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth What you feel are the primary benefits for your company or organisation in being located in your city? Select up to three (% respondents) Access to talent/labour 63 City has a high profile nationally/internationally, and a good reputation 54 Transport links to other key cities/markets 37 Cost of talent/labour 21 Affordability/cost of living 21 Good local governance/political stability 20 Safe and secure environment 18 Beneficial tax/regulatory regime 12 Good healthcare Access to raw materials Other 10 What you think should be the main priorities for your city's mayor/leadership in order to make your city more competitive for business? Select up to three (% respondents) Improving public transport/roads 61 Improving schooling/education 33 Encouraging multinational companies to set up business 32 Improving safety and security 29 Raising the city's profile and improving its reputation 27 Reducing corruption 25 Reducing environmental impact 22 Supporting local businesses ahead of multinationals 15 Improving healthcare facilities and access to care 12 Attracting major sporting/cultural events 11 Other 26 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth In which of the following industry sectors would you say your city is most competitive? (% respondents) Financial services 44 Professional services 34 Education 34 IT and technology 32 Entertainment, media and publishing 26 Construction and real estate 23 Healthcare, pharmaceuticals and biotechnology 23 Logistics and distribution 23 Retailing 22 Transportation, travel and tourism 20 Energy and natural resources 18 Government/Public sector:Local authority (city, community, municipality) 17 Telecommunications 17 Government/Public sector:National or Federal authority 17 Consumer goods 14 Government/Public sector:Regional authority (state, province) 13 Automotive 13 Manufacturing 12 Chemicals 10 Aerospace/Defence Agriculture and agribusiness How open is your city to the following? (% respondents) Very open Somewhat open Not especially open Opposed Don't know/not applicable Immigrant workers 42 43 11 31 Foreign direct investment 61 28 61 Tourists 75 20 41 Global retail brands 67 25 711 International sporting/cultural events 58 28 12 1 Trading links 57 32 91 Imported ideas and culture 42 27 40 15 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth Which of the following amenities in your city would you be prepared to pay more for, either directly or in the form of higher taxes, to improve their quality? Select all that apply (% respondents) Public transport/roads 56 Schools/educational facilities 40 Reduced pollution/better air quality 37 Parks/natural environment 36 Police/security 34 Recreational facilities 27 Healthcare facilities 26 Waste management 23 Basic services (eg, water, electricity, internet) 22 Childcare facilities 19 Social housing 12 Who you think would be most effective in providing the following services in your city? (% respondents) Public sector Private sector Local community/volunteer sector Don't know/not applicable Public transport 63 33 Energy provision 32 65 Telecommunications 93 Parks/natural environment 73 11 15 School/education 50 42 61 Healthcare 44 53 Crime 85 Waste management 39 54 61 Social housing 53 25 18 To what degree you agree or disagree with the following? (% respondents) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Don’t know My city’s image helps it to attract important industries 30 43 15 The cultural and social attributes of cities are as important to business as good infrastructure 37 48 10 51 My organisation is located here because it can access a happy, healthy workforce 15 28 43 32 21 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth To what extent you agree or disagree with the following? (% respondents) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree Don’t know 21 91 My city is a leader in making environmental improvements to make it more liveable for citizens 32 28 Urban “quality of life” is just a rich city concern—poor cities can’t hope to offer it 20 15 36 24 In my city there is a strong sense of participation and contribution to the local community 29 27 24 10 Cultural tolerance and good community relations are essential in making a city attractive as a place to live and work 46 46 2 Which statement best describes your view of life in your city? (% respondents) Life in my city is getting better 59 Life in my city is getting tougher 41 How old are you? (% respondents) 19-25 26-35 24 36-45 33 46-60 31 61-80 Which of the following best describes your relationship status? (% respondents) Married, children 58 Single 22 Married, no children 17 Prefer not to say 29 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth What is your current work situation? (% respondents) I not own a business but am an employee 61 I am an owner/manager 21 I run/am a partner in a company of which I was a founder 10 I run/am a partner in a subsidiary of a larger group I am a family member within a family business I am retired I am not currently working I run/am a partner in a company that I purchased Which of the following best describes your employment status? (% respondents) Full-time 93 Part-time Retired Student Unemployed Prefer not to say In which region are you personally based? (% respondents) Asia-Pacific 30 North America 30 Western Europe 28 Latin America Middle East and Africa Eastern Europe 30 © The Economist Intelligence Unit Limited 2011 While every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the information, opinions or conclusions set out in this white paper Cover image - © Petrenko Andriy/Shutterstock LONDON 26 Red Lion Square London WC1R 4HQ United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8500 E-mail: london@eiu.com NEW YORK 750 Third Avenue 5th Floor New York, NY 10017 United States Tel: (1.212) 554 0600 Fax: (1.212) 586 1181/2 E-mail: newyork@eiu.com HONG KONG 6001, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com GENEVA Boulevard des Tranchées 16 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com [...]... nightlife and sporting facilities/events 34 Access to decent childcare and education 28 Parks and access to green/open spaces 23 General environment and cleanliness 20 Layout of the city, quality of its buildings and housing 17 Access to quality healthcare 17 Range of shops and stores 6 12 © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth On the other hand, urban. .. bright, talented people to live and work in the city.” © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Conclusion O ur survey of urban professionals shows that a city’s liveability plays an important role in making it a more attractive place for workers and businesses But when they are exploring ways to boost economic growth in their cities, policymakers’... Limited 2011 Liveanomics Urban liveability and economic growth The new economy? Portland, Oregon, is one city that has gone through that process The city conducted an analysis of both its local industrial strengths and of the industries likely to show most growth nationally or globally It identified four industries—advanced manufacturing, clean technology and sustainability, digital development and open... shops and stores 6 24 © The Economist Intelligence Unit Limited 2011 Appendix Survey results Liveanomics Urban liveability and economic growth What would be the primary things you would improve/change in your city to make life less stressful and/ or improve the quality of life there? (% respondents) Public transport, road links and parking 59 General environment and cleanliness 35 Jobs market and cost... both good economics and good quality of life They feed each other.” © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth efficiency is reflected in some of the things our respondents say they would like to implement in their city “Make city government more transparent and accountable,” says one Others would like to see a reduction in “red tape” and “barriers... governance and political stability are the main benefits of being located in their city And with most city leaders across the world facing a prolonged period of fiscal austerity, they may find it worthwhile to increase their engagement with business to both understand their needs and draw on their expertise Liveability and city growth: a mixed picture While the idea that city growth and liveability. .. recreational side of their cities And there are business benefits—corporate sponsorship of the arts, recreational amenities, sports and entertainment can provide attractive branding opportunities Moreover, corporate leaders know that the presence of these amenities can help make their cities 18 © The Economist Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth “We cannot reach this... Intelligence Unit Limited 2011 Liveanomics Urban liveability and economic growth Key points n Unless civic leaders are able to foster economic opportunities, their city is likely to decline n The benefit of tax breaks for businesses is hard to calculate—policymakers should look at other incentives n Branding of cities plays an important role, both in attracting talent and in boosting business opportunities... this makes is that above all, urban policymakers need to be flexible and realistic in the strategies they adopt to promote business growth in different areas After all, the route to growth remains far from clear, particularly in times of economic volatility Improving a city’s liveability is an important goal regardless of its impact on economic growth, but its value as an economic development strategy... in which to live and work? Select up to three (% respondents) Jobs market and cost of living 58 Public transport, road links and parking 47 Safety and security 44 Culture, nightlife and sporting facilities/events 34 Access to decent childcare and education 28 Parks and access to green/open spaces 23 General environment and cleanliness 20 Layout of the city, quality of its buildings and housing 17 Access .. .Liveanomics Urban liveability and economic growth Preface L iveanomics: Urban liveability and economic growth is the second of two Economist Intelligence... 2011 Liveanomics Urban liveability and economic growth It is important to look at liveability a misunderstood and often misused term—but equally important to understand that for citizens and companies,... both understand their needs and draw on their expertise Liveability and city growth: a mixed picture While the idea that city growth and liveability might go hand in hand is appealing, experts’