A.T. Kearney’s eighth Global Cities report highlights regional trends revealed over the past decade and examines what defines the world’s most influential cities.
New York and San Francisco have retained their status as the world's most competitive and influential cities, according to the newly released Global Cities 2018 report from A.T. Kearney. This year's report combines the Global Cities Index and Global Cities Outlook to help multinational businesses assess the best places for expansion, investment, and recruiting new talent. The Index and Outlook studies complement one another and provide a look into both the current performance of the world's top cities and the potential of upcoming urban powerhouses. The report also highlights the success of China's super cities, which are increasingly drawing talent and corporate investment from around the globe.
"As we've seen with Amazon's second headquarters search in the US, competition between cities is real and the stakes are exceptionally high," said Mike Hales, A.T. Kearney partner and co-leader of the study. "Many cities fail to identify the advantages of investing in the right areas to attract investment and talent until it is too late. We hope this report helps companies identify places that offer current opportunities as well as future potential, and gives cities a basis for more proactive strategies toward urban development and transformation."
Highlights from the 2018 Global Cities Report
- Seven new cities have been added to the Index and the Outlook: In the US, Seattle joins the rankings for the first time, and in China, six cities have emerged in the rankings (Changsha, Foshan, Ningbo, Tangshan, Wuxi, and Yantai).
- New York maintains first place in the Global Cities Index driven by its strong performance in business activity and human capital.
- San Francisco holds on to first place in the Global Cities Outlook driven by its continued strength in innovation.
- The theoretical “perfect” city, one whose composite score across all Index metrics is 100, is composed of 15 cities. New York claims the top spot in five of the 27 metrics and Brussels in four. This reinforces that no city has a lock on all aspects that make a global city.
- The theoretical “fastest” city, one whose composite score across all Outlook metrics is 100, is composed of nine cities. – Melbourne and Sydney claim top spots in three of the 13 metrics, Moscow and London in two. The race for being the most global city in the future is wide open.
- The cities that have climbed the most in the Global Cities Index rankings since last year have made marked improvements in the areas of business activity and information exchange.
- In the Global Cities Outlook, cities that improved their economics and governance made the biggest leap in the rankings.
- China’s key cities have experienced greater progress than cities in the other regions of the world during the 10 years of A.T. Kearney’s Global Cities research; business activity remains the dominant factor, but human capital and cultural experience are also significant drivers of growth.
The 2018 Index finds New York City to be the world's most powerful and influential city for the second year in a row. The Global Cities Index provides insights into the performance and reach of the world's most influential cities. It is based on 27 metrics spanning five dimensions: business activity, human capital, information exchange, cultural experience, and political engagement. New York cemented its top spot this year by showing strong improvements in business activity, while also leading the global scores in human capital. "As companies experience strategic shifts in their businesses, Index insights can be crucial inputs into decisions on where and how to operate to win the war for growth and sustain performance with the right talent mix," said Nicole Dessibourg-Freer, co-author of the report and a consultant with A.T. Kearney.
For the fourth consecutive year, San Francisco holds on to the top position in the Global Outlook rankings. Driven by the high-growth companies in Silicon Valley, San Francisco continues to excel in innovation. The Global Cities Outlook identifies emerging cities that can rival established leaders based on 13 metrics across four dimensions: personal well-being, economics, innovation, and governance.
"It's ecosystems with the strongest commitment to innovation and development that are emerging as the world's best cities," said Erik Peterson, partner with A.T. Kearney and managing director of the firm's Global Business Policy Council. "Now more than ever, it's vital for cities to attract investment that drives growth. The cities highlighted in our report have discovered the right mix of ingredients to do so."
Learning from the Success of Chinese Super Cities
The annual scores of the seven Chinese cities highlighted 10 years ago in the original Global Cities Index have grown by an average 1.8 percent annually, outpacing all other regions in the report except Africa. A.T. Kearney digs into why these cities are so successful and the lessons others can learn from their urban transformation efforts.
"We've been tracking several Chinese cities over the past decade and have seen how coordinated local, regional, and national strategies and a holistic development approach have led to significant improvements," said Andrés Mendoza Peña, A.T. Kearney partner and co-author of the study. "The urban infrastructure in China is creating a really exciting business environment where tech start-ups can flourish. We're also seeing more and more top talent attracted by the wealth of cultural and educational opportunities in China."
Tatiana is the news coordinator for TravelDailyNews Media Network (traveldailynews.gr, traveldailynews.com and traveldailynews.asia). Her role includes monitoring the hundreds of news sources of TravelDailyNews Media Network and skimming the most important according to our strategy.
She holds a Bachelor's degree in Communication & Mass Media from Panteion University of Political & Social Studies of Athens and she has been editor and editor-in-chief in various economic magazines and newspapers.
