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The Barcelona Observatory. 2009-10 Report


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  • 1. r e p o r t
  • 2. In Barcelona, as in everywhere else, 2009 was the second year of the necessary to project itself as a powerful capital in the Mediterranean Eu- From the economic, business and social point of view, 2009 was a difficult pillars on which the Ara+que mai programme is based, which the Bar- deepest crisis for seventy years. An intense global recession with a strong rope arena. year. The worldwide recession that we have experienced has been the celona Chamber of Commerce offers companies with the aim of foster- impact on businesses, serious consequences for the job market and one strongest in the post-war period. The impact of the recession has also ing growth and improving competitiveness. As part of this programme, which will force us to reconsider the very basis of our production model Barcelona must also stand out as a city of creativity and education. An been hard on our economic sphere, both nationally and regionally and our institution fosters internationalisation to help companies begin and and future growth. educational city in the broadest sense of the word, where culture is a cen- locally. However, we began to register an improvement in the second half strengthen their presence abroad. It also offers support for innovation and tral pillar of public life. Where small and large cultural facilities are ac- of 2009, with more moderate falls in activity than during the first part of training through aid, courses and grants, and through advice to make this Fortunately, however, Barcelona is facing this difficult situation from a companied by politics that help people with an education to take a risk the year. In addition, this improvement translated into positive growth in investment profitable and to enhance the development of information and very different reality than that of seventy years ago as the city is starting with creative proposals, as is the case of the creation factories, and this economic activity in Catalonia in the first quarter of 2010, after falling for communication technologies. Parallel to this, the Chamber of Commerce from the footing of an economic situation and a competitiveness in Europe cultural and creative wealth generates citizenry, economic value and so- seven consecutive quarters, and it is predicted that this positive path will is developing a new support plan for business funding so that companies and worldwide that it did not enjoy in past crises. In effect – as this report cial change. become firmly established in 2011, even though the rate of growth will can find out all the financial instruments available to them and so get the by the Barcelona Observatory highlights – there are many prestigious in- still be weak. best funding scheme, and a business resources optimisation programme, dicators and sources that insist that despite the depth of this global crisis, To achieve its future objectives, Barcelona needs new connectivities that consisting of cost reduction and management improvement plans. Barcelona and its metropolitan area are one of the most attractive and afford it better internal organisation and that strengthen its openness to We should remember that the city of Barcelona has taken a significant competitive destinations in the world and a leading area in terms of its the world. I would like to highlight here the strategic value of the Mediter- qualitative leap in the last two decades and that, in addition, in the cur- We need to work so that the city continues to improve its positioning, both economy, business and attraction of talent. ranean corridor – recently endorsed by the European Commission – and rent setting of serious economic difficulties, the positioning of the city in at a European level and worldwide. We have clear examples of the ad- of the future Sagrera station, which will become the main gateway into the international and European context remains solid. We can see this vances we are making, such as the opening of the Alba Synchrotron, the In all, the challenges posed by the current economic situation – which are and out of Barcelona and one of the driving forces of a region – the north from the eighth report by the Barcelona Observatory, which Barcelona most powerful light source in southern Europe and the most complex and most acute in the problem of unemployment – mean that the main priority of the city – undergoing a profound transformation. Similarly, changes in City Council and the Barcelona Chamber of Commerce offer all economic high-level science facility in Spain, which came into operation in March of municipal government can be none other than the decisive fight against the global circuits and flows of goods strengthen the strategic positioning agents. By way of example, Barcelona was the fourth favourite European 2010, and the opening of the new Terminal T-1 at El Prat airport, which the crisis, in which the city is fully involved. I would like to comment here of the Mediterranean and represents the opportunity of the Port of Barce- city among European executives for locating their businesses in 2009, has led to an increase in the number of intercontinental flights from Bar- on the value of having such an instrument of coordination as the Agree- lona becoming one of the major distributors of maritime traffic from Asia. with the city going up one place compared with 2008 and becoming es- celona. Similarly, we need to continue advancing in projects that have a ment for Quality Employment in Barcelona – the result of the agreement tablished among the top five favourite cities for business. Barcelona also significant economic impact on the city, such as the future intermodal between the Government of Catalonia, Barcelona City Council and trades Finally, one of the symbols of identity of the Barcelona of the future must improved the ability to organise international meetings, for the second station of La Sagrera, which will connect the high-speed railway with the unions and business organisations – which has been strengthened since be sustainability. Due to conviction, due to the challenges that twenty- year running, to achieve fifth place worldwide. Similarly, the rate of busi- public and private transport networks. Today, this is the largest under- 2009 with new resources, new agents and new agreements. Besides this, first-century cities of the world in general and in the Mediterranean in ness activity in the province of Barcelona remains higher than countries ground railway project in Europe. after the greatest investment initiative of its history, with a total of 1,800 particular have to face, and because this is one of the keys to the trans- such as Finland, the United Kingdom, France and Japan. million euros between 2009 and 2010, the City Council is ready to put in formation of the economic model that we need. Barcelona’s commitment I would like to end by expressing my gratitude to the technical team for place an austerity plan that will contribute to reducing the public deficit to electric or hybrid vehicles, which forms a connection with our industrial Barcelona’s infrastructures, such as the airport and the port, also retain their hard work and their constant striving for improvement in the project while guaranteeing the priority investments and policies aimed at eco- tradition to progress towards a new energy model, is an emblematic ex- a preferred position: ninth European airport in volume of passengers and represented by the Barcelona Observatory and to all the institutions that nomic reactivation, care for people and coexistence in the public space. ample of the line to be pursued. first of the main Mediterranean ports in volume of cruise passengers. We have once again this year helped by providing information and enriching should also mention the good positioning of the IESE and ESADE busi- the content of the report that we now present to you. All of this austerity initiative, however, must not prevent future undertak- It is true that we are facing formidable challenges, but at the same time ness schools, in fourth and eighth place respectively in the European ings from going ahead. Over the last 30 years, Barcelona has been able to we have great assets with which to face them. One of the most important ranking published by the Financial Times in 2010. manage crises as opportunities to relaunch the economy, and it has come of these is the very strength of the Barcelona brand, which the reports by out stronger every time. In light of the formidable challenges posed by the Barcelona Observatory highlight year after year, and which we pro- All the agents, public and private, institutions and companies, have the current situation, we must once again ensure that short-term actions pose to manage explicitly in cooperation with the Chamber of Commerce helped make Barcelona an attractive and competitive city with a good ex- against the crisis are compatible with the medium- and long-term strat- and other major actors in the city. In presenting this eighth annual report, ternal image, but we need to keep working so that we do not lose this egy that the City Council and the leading economic and social agents are I would like to convey my congratulations to the technical team for their good positioning and to improve in those areas where there is still room redefining and channelling in what we are calling the 2020 Agenda. work, I would like to thank the cooperation of a broad range of institutions to grow. and organisations that provide their support and I would like to show my In effect, Barcelona aspires to become the principal economic power- faith in the strengthening of public-private cooperation, without a doubt Catalonia in general, and Barcelona in particular, are well positioned house of southern Europe on the 2020 horizon. On the basis of the diver- one of the distinctive traits and one of the keys to the success of Barce- in such key aspects as the degree of openness to the outside and the sified economic structure that characterises it, the city will continue to lona’s process of economic transformation. centres of excellence in applied research and higher education. These Miquel Valls i Maseda promote innovation and the knowledge economy, the attraction of compa- Jordi Hereu are the pillars of medium- and long-term sustainable economic growth: President of the Barcelona Chamber of Commerce nies and talent, the major transformation projects and the infrastructures Mayor of Barcelona internationalisation, innovation and education. And these are also the
  • 3. Report 2009-2010. Sumari 6 Introduction 46 Sustainability and quality of life 10 Datasheet Barcelona 46 Introduction 48 Environmental Commitments of European Companies 2009 14 the Barcelona observatory 49 Best European Cities for Workers’ Quality of Life 2009 50 Greenhouse Gas Emissions in Global Cities 18 results: 20 City for business 52 prices and costs 20 Introduction 52 Introduction 22 Best European cities for business 2009 54 Cost of living in cities around the world 2009 23 Entrepreneurial Activity in OECD Countries 2008 55 Price of Housing Rents in Cities of the World 2009 S u M M a r y 24 26 Business forecast for European regions 2010 Top European Regions receiving Foreign Investment Projects 56 57 Office Leasing Prices in Cities of the World 2009 Commercial Premises Leasing Prices in Cities of the World 2009 in 2008 58 Price of Industrial Land Leasing in European Cities 2009 4 27 Company tax and VAT in countries worldwide 2009 59 Salary Levels in Cities of the World 2009 5 28 Leading cities worldwide in the organisation of international meetings 2008 60 Labour market and training 30 the knowlegde society 60 Introduction 62 Employment rate in European regions 2008 30 Introduction 64 Regional unemployment in Europe for 2008 32 Population Employed in Technological Services and Manufacturing 65 Employees with university studies in European regions 2008 in European Regions 2008 66 The Best European Business Schools 2010 34 Investment in Research and Development and Population Employed in Science and Technology in European Regions 2006 68 Synthesis and 2008 36 Patent Application and Technological Patents in the top OECD 74 Monographic Provinces 2007 38 Primary cities in the world with regard to scientific production 2009 40 tourism 40 Introduction 42 Top European airports according to passenger volume 2009 43 Hotel accommodation in European provinces 2008 44 Cruises to the main Mediterranean ports 2008
  • 4. I N t r o D u C t I o N
  • 5. Report 2009-2010. Introduction The macroeconomic evolution of 2009 was marked by the most serious the Agreement, 7,500 direct job positions were created in the city in 2010. demonstrated by the fact that Barcelona is the leader of exports in the economic recession to have occurred in decades on a global level, with Similarly, the city of Barcelona is proactive in company support, a source Spanish economy and the notable resistance to the recession shown by sharp drops in the GDPs of Catalonia, Spain and the economies of the of job creation. In this regard, the Barcelona Chamber of Commerce has its tourism trade. Barcelona continues to maximise the attraction of for- OECD countries, a drastic reduction in international trade, a financial cri- developed a special plan to foster company growth and improve competi- eign investment, economic activity and talent with actions such as the sis that generated great difficulties for families and companies to obtain tiveness. This plan consists of providing companies with tools to obtain Barcelona Economic Triangle in cooperation with the Generalitat of Cata- credit and an intense adjustment process in the property market, particu- the best financing, promoting internationalisation with programmes and lonia to attract economic activity and foreign investment to the metro- larly in some economies. The collapse in activity during the first semester aids for companies to start up and consolidate their presence abroad, politan region of Barcelona, the motivation of the Do it in Barcelona pro- was followed by a more moderate decline in the second part of the year, promoting innovation through R&D&I support and aid, offering courses gramme for international professionals, researchers and entrepreneurs which, together with the gradual breakthrough of the more advanced and grants for training competitive professionals, and maximising busi- that want to begin their professional and business activity in the city, and economies from the recession, led to the recovery of business loyalty in- ness resources through optimal management. the progressive development of the international network of Consulates dexes and allowed a more favourable forecast to be given for 2010. of the Sea. The city of Barcelona has dealt with the recession by making the highest Under these difficult circumstances, special value can be given to the investment in its history: €1,028 million in 2009 and 836 million in 2010, Within the scope of traditional competitiveness factors, Barcelona con- solid competitive position that Barcelona has maintained among the top the highest investment per capita of the large Spanish cities. In addition tinues to focus on large productive infrastructures. The progressive im- European cities and that is described in detail in this report. In this re- to contributing proactively to stimulating economic activity, this injection provement in infrastructures with national and international connections gard, it is worth noting that in 2009, it recovered the fourth position among of resources will result in a significant improvement of public space and in recent years was reinforced in 2009 with the inauguration of the new the best cities for businesses in the continent according to the European equipment and will have an impact on all of the city’s districts. Further- airport terminal – with a capacity for 55 million visitors a year - the open- Cities Monitor prepared by Cushman & Wakefield – surpassed only by Lon- more, the municipal budget for 2010 will reinforce the resources destined ing of new intercontinental routes and the preparation of the strategic 8 9 don, Paris and Frankfurt – and for the fifth consecutive year it was in the for economic promotion policies and public care, and the city has healthy plan of the Aerial Route Development Committee (CDRA), which has con- top five positions in the ranking. In addition, it remained in first place as local finances that constitute a top-level asset for dealing with the current solidated the commitment to internationalisation. The Port of Barcelona the city with the best quality of life for workers and as the city with the economic situation. is the leading cruise centre, and this is accompanied by the implementa- greatest progress. Similarly, the prestigious FDI Magazine – the maga- tion of a Strategic Plan that will reinforce its logistic potential and capac- zine of the Financial Times – recently set Barcelona in fifth place in the While it is establishing short-term impact measures, Barcelona maintains ity. In addition, Barcelona continues to be in the first five positions in the global ranking of the 25 top European cities for the future 2010/2011 and a clear strategy for advancing towards a new economic growth model global ranking for organising trade fair and congress events. in first place among cities in southern Europe. While certain political and based on knowledge, creativity, innovation and sustainability. The reces- The current economic situation lends particular value to citizen proxim- economic regulation tools are in the hands of state governments or su- sion will not stop the city from implementing this strategy in depth, with ity policies. In the sphere of economic promotion, Barcelona is noted in pranational bodies, cities play a key role in the struggle against the reces- milestones such as the recent inauguration of the Synchrotron – the most this sense for fostering urban business proximity through its commercial sion in a global economy where the large urban areas are primary play- powerful synchrotron light source in the south of Europe and the most core policy, remodelling the city’s market network, specific measures for ers regarding growth and competition. In this respect, the proactive role complex and top-level scientific facility in the State - obtaining the dis- the city’s young people regarding professional guidance and entering the that Barcelona has again developed should be mentioned, leading to the tinction “International Campus of Excellence” for the Barcelona Knowledge labour market, or its dynamising actions in neighbourhoods that require OECD appointing the Barcelona Principles, ten recommendations resulting Campus project and the UAB, and the remarkable increase in the number special attention. from the exchange of experiences and cooperation of 41 cities under the of workers dedicated to research and development and other technologi- framework of the LEED (Local Economic and Employment Development) cal activities. Among the measures promoted by the local government, it To sum up, Barcelona is dealing with the economic recession by main- Programme, as the response for cities facing the challenges of the reces- is worth noting the progress of the strategic clusters of the innovation dis- taining favourable international positioning and developing policies in line sion. In fact, Barcelona is using these recommendations to guide it in its trict 22@ - ICT, design, medical technologies, media and energy - where with the OECD recommendations for recovering large urban areas. The response to the recession, using the strategic support points listed below. more than 1,500 companies have been located, the development of a new challenges presented by the current situation – in which the experts fore- agriculture and food cluster in the Zona Franca and the preparation of the cast that the breakthrough from the recession will open the doors to a The city is dealing with the recession by exercising cooperative leader- implementation of two new clusters on Education and Multilingualism. slow and complex recovery process – mean that it is essential to progress ship. Its strategy in terms of the labour market is indicated through the The city is also advancing in sustainability terms and, for example, Bar- in this strategy, to reinforce the various cooperation formulas between Agreement for Quality Employment in Barcelona – signed by the Minis- celona will coordinate part of the European research in renewable ener- the public and private sectors – one of the key reasons for the econom- try of Labour, Barcelona City Hall, Foment del Treball, PIMEC, CCOO and gies in the KIC Innoenergy project, with an associated investment of €450 ic transformation that the city has undergone – and to intensify actions UGT in May 2008, subsequently joined by the municipal groups of ICV- million, and it is working on the development and promotion of the use of leading to a change in the production model. EUiA and ERC - and it was reinforced during 2009-10 with additional re- electric vehicles in the Catalan capital. sources aimed at creating direct employment and providing courses and guidance for the unemployed and motivating the creation of new compa- The opening-up of Barcelona’s economy to the exterior is one of the nies by Barcelona Activa. With the application of combined measures in strength factors that has most clearly contributed to its recovery, as is
  • 6. D a t a S H e e t B a r C e L N a 10 11
  • 7. Report 2009-2010. Datasheet Barcelona 2009 GeoGrapHy Surface area (km2) 102.2 population 1,621,537 Foreign population (% of total) 17.5% Density (inhabitants/ km2) 15,866.3 Climate (Can Bruixa Observatory) Average monthly temperature* 17.8 Annual precipitation (mm)* 607.2 eCoNoMy DataSHeet BarCeLoNa 2009 MaCroeCoNoMIC Data: GDp (year-on-year growth, %)- Barcelonès* 1.7 population registered with the national insurance scheme 1,021,974 unemployment rate 16-64 years old (%) 15.4 employment rate 16-64 years old (%) 66.8 Labour force participation rate 16-64 years (%) 79 CpI (average change, %)- BCN Prov. 0.5 Imports (millions of €)- BCN Prov. 32,261.8 Importacions (milions d’€)- prov. Barcelona 48,519.77 Investments overseas (millions of €)- Catalonia 1,096.3 Foreign investments in Catalonia (millions of €)- Catalonia 1,365.3 Companies - BCN Prov. 467,385 Multinationals in Catalonia* 3,124 traDe aND tourISM retail establishments - BCN Prov. 74,692 Shopping centres and galleries 24 Municipal markets (number and commercial surface area (m2)) 45/206,769 Hotels Number 321 Beds 60,331 12 tourists 6,476,033 13 INFraStruCture airport Runways (number and length (m))** 3/3352;2660;2540 Maximum capacity of flights/hour** 90 Passengers (thousand) 27,312 port Land surface (ha) 828.9 Wharfs and landing stages (km) 20.3 Total traffic (thousands of tonnes) 42,980.8 Fira Barcelona (Barcelona fairgrounds) Exhibitions 52 Visitors 2,983,097 Total surface area devoted to exhibitionsc (m2) 633,774 eDuCatIoN aND CIty oF KNoWLeDGe Catalan universities 12 university students in Catalonia 212,959 Foreign schools in Catalonia 19 technology and research centres in Barcelona** 210 QuaLIty oF LIFe Beaches (number and metres) 7/ 3,910 Bike lane (km and “Bicing” service users) 156/182,062 Libraries* 214 Museums, collections and exhibition centres 41 public sport facilities (number and users)* 1,511/182,682 Cultural and leisure facilities (thousands of users) 41,989.4 Sources: AENA, City Council of Barcelona, Anuari comarcal de Caixa Catalunya, Fira de Barcelona, Government of Catalonia, Idescat, INE, Instituto Nacional de Meteorología, Puertos del Estado, Office of the Spanish Secretary of State for Trade, Turisme de Barcelona and Institut de Cultura de Barcelona * 2008 **2010
  • 8. t H e B a r C e L o N a o B S e r V a t o r y 14 15
  • 9. Informe 2009-2010. The Barcelona observatory We are pleased to present the 2009-2010 Barcelona Observatory Report The publication will include the following sections: The Barcelona Observatory is an initiative promoted by the Barcelona • A general introduction on the city’s economy and economic develop- City Council and Chamber of Commerce in conjunction with several local ment efforts. entities, which over the years have worked together with the executive secretary to provide information and make critical contributions in their • A section with the results of 26 indexes covering six fields: businesses, respective sectors. knowledge, tourism, sustainability and quality of life, prices and costs, and labour market and education. The purpose of the report – the twentieth annual Barcelona Observatory Report – is to provide a platform to help businesspeople make decisions • A white paper by Nick Leon, Director of Design London, has been in- and establish businesses in Barcelona, to attract talent and to provide cluded titled The Well Connected City: an Integrated Approach to Plan- support for the presentation of candidates for events or the opening of ning and Implementing Digital Technologies. venues in the city of Barcelona. As in previous years, Barcelona continues to be positioned among the top cities according to recognised economic • A section with a summarised comparison of Barcelona’s positioning and social indexes. among the top cities has been added which provides visual, condensed information for each of the indexes analysed. The format of the 2009-2010 report has been updated with four main features: The Barcelona Observatory can be characterised by the following key tenets: 16 17 • The number of indexes has been reassessed and changed significantly • It is based on a set of indexes, which are generally defined on a city in order to provide the reader with a comprehensive and coherent por- scale, but which can be expanded to cover issues of a territorial scale. trayal of the city’s main indexes, its positioning, its character and the challenges it faces. Specifically, the report now includes a total of 26 in- • Data is collect from a sample group that in some cases can include as dexes, two of which are new. For the first time the Barcelona Observa- many as 60 cities worldwide. It should be noted that in the case of certain tory will also provide information on the awarding of international patents indicators, due to the sample size, only the most important urban areas via the Patent Cooperation Treaty and present indexes of greenhouse gas are included. emissions. • Whenever possible, the indexes include graphs of trends so that devel- • Another new addition to the report will be a white paper written by a opments in each specific field can be assessed. recognised expert in the field of analysis and comparative study of urban economies, which over the years will provide insight into topics related to • The report’s sources of information are highly respected international this field in order to enrich content derived from the index analysis. institutes and entities. • Visual elements for each index have been introduced, in the form of • Data and information is compiled using the most up-to-date sources graphs and maps, which make the results easier to understand and available. trends easier to spot and analyse. The Barcelona Observatory also has its own website from which users • The amount of summarised graphic content has been increased, com- anywhere in the world can freely access information in the report as well bining all the indexes in order to make Barcelona’s positioning clear at a as supplementary content, and follow events and the most important glance. projects in Barcelona.
  • 10. r e S u L t S
  • 11. Report 2009-2010. City for business Introduction After the downturn in 2008 caused by the international property and fi- nancial crisis, the evolution of 2008 was marked by the worst economic recession in decades and a sharp drop in Gross Domestic Product in Catalonia, Spain and the OECD countries. Nevertheless, the decline in activity during the first quarter was followed by a more moderate con- traction in the second part of the year. This, together with the more ad- vanced economies gradually leaving the recession behind, resulted in the recovery of business confidence indexes and more favourable forecasts for 2010, as reflected in the Eurochambers annual survey. In this difficult climate, Barcelona maintained excellent positioning among top European cities selected by European executives for locating their businesses. Also, in 2009, it regained fourth place among the best cities for business according to Cushman & Wakefield’s European Cit- ies Monitor. Barcelona’s noteworthy rating was recently reaffirmed in the 20 selection of European Cities and Regions of the Future 2010/2011 in FDI Magazine – a magazine of the Financial Times – where Barcelona placed CITY FOR BUSINESS 21 fifth in the global ranking of the 25 top cities in Europe and first for cities in southern Europe. Other significant indicators corroborate Barcelona’s favourable positioning. These include the total entrepreneurial activity of the population residing in the province, which clearly exceeds the EU av- erage; foreign investment projects received, and the city’s excellent posi- tion in global ranking of the organisation of international meetings, which has improved for the second consecutive year. The City Council of Barcelona, the Chamber of Commerce and other local public and private entities jointly develop programmes that aim to con- solidate the Barcelona brand and its international position by attracting foreign businesses and financing, supporting strategic urban clusters, attracting and retaining talent, internationalising innovative companies, promoting international aerial connections and bringing conferences to the city. Among the projects developed in 2009, of particular interest are the Barcelona Innovation Zone, which is promoting a new cluster for the food sector and audiovisual and cultural industry in the Zona Franca; the signing of the cooperative agreement to develop the Barcelona Design Innovation Cluster; the promotion of the HiT World Innovation Summit fairs for innovation and emerging economic sectors; and The Brandery, a new contemporary urban fashion trade show; the extension of the inter- national Consulate of the Sea network to strengthen economic links with strategic urban areas; and the support of the creation of over 1,000 new companies by Barcelona Activa, a local development agency.
  • 12. Report 2009-2010. City for business Best European cities Ranking City Ranking Ranking Entrepreneurial Activity Country Entrepreneurial activity (% of population) 1990 2008 2009 for business 2009 1 2 London Paris 1 2 1 2 in OECD Countries 2008 Mexico United states 13.1 10.8 3 Frankfurt 3 3 Iceland 10.1 11 Barcelona 5 4 Greece 9.9 4 Brussels 4 5 Norway 8.7 17 Madrid 7 6 Ireland 7.6 12 Munich 9 7 Barcelona 7.5 Barcelona regains fourth position 5 Amsterdam 6 8 Barcelona beats the European Union yet another year Catalonia 7.3 15 Berlin 8 9 Finland 7.3 According to the European Cities Monitor study, prepared over the last 20 9 Milan 13 10 According to the Global Entrepreneurship Monitor (GEM) total entrepreneurial Spain 7.0 8 Geneva 11 11 Hungary 6.6 years by Cushman&Wakefield consultants with the opinions of top execu- activity of the population residing in the province of Barcelona in 2008 was 14 Hamburg 17 12 Latvia 6.5 tives from 500 European companies, Barcelona has regained fourth posi- 7 Zurich 10 13 7.5 %. This figure clearly exceeds the averages for the EU (6%) and Spain Slovenia 6.4 tion in the ranking of the continent’s best cities for locating businesses - Birmingham 21 14 (7%) as well as EU reference countries such as Germany (3.8 %), France Turkey 6.0 in 2009, only surpassed by London, Paris and Frankfurt, and ahead of 6 Düsseldorf 12 15 (5.6 %) and the United Kingdom (5.9 %). Similarly, it is at the high end of United Kingdom 5.9 Brussels. This enviable position is reinforced by the fact that Barcelona 13 Manchester 14 16 total entrepreneurial activity of OECD Member Countries, despite being France 5.6 16 Lisbon 16 17 Japan 5.4 has been among the top five cities rated best for doing business in the - 15 18 lower than countries such as the United States and Norway (8.7%). In a year Netherlands 5.2 Dublin last five years, three of which it was in fourth position. 18 Lyon 18 19 characterised by the beginning of a recession in the international economy, Italy 4.6 22 19 Stockholm 20 20 a decrease of 0.8 in total entrepreneurial activity in Barcelona compared to Denmark 4.4 23 L’European Cities Monitor places Barcelona in first place for European cit- 23 Prague 19 21 2007 is in line with the downward trend of this index in the whole European Romania 4.0 - Rome 25 22 Germany 3.8 ies that best promotes themselves as business centres, fourth place for Union. It is also worth noting that the business closure rate for entrepre- 25 Warsaw 24 23 Russia 3.5 office space availability and sixth place in terms of price-quality ratio for - Leeds 28 24 neurial activity in Barcelona (0.9%) is the lowest in the entire European Belgium 2.9 offices and internal transport facilities. - Copenhagen 23 25 Union. Note: Including start-ups (less 3 months of activity) and new firms (3 to 42 months of activity). 21 Budapest 22 25 The statistical source contains a total of 45 countries. The countries of reference are selected samples - Istanbul 29 27 Source: Global Entrepreneurship Monitor (GEM), Catalonia Executive Report 2008 20 Vienna 26 28 1.2 entrepreneurial activity 2008 (% of population) ranking of Barcelona 10 Glasgow 27 29 - Bucharest 31 30 10.1 - Helsinki 30 31 24 Moscow 32 32 Oslo 33 33 7.3 4 4 4 22 Athens 34 34 ISL 8.7 5 5 Note: In 1990, only 25 cities were included in the study. In 2009, 34 cities has been included in the study. Source: Cushman & Wakefield, European Cities Monitor 2009 FIN 6 6 6 6 7.6 Nor 6.5 3.5 4.4 5.9 rÚS 5.2 Let IrL DIN r.uN 2.9 3.8 p.BaI 5.6 11 BÈL aLe 6.6 6.4 4.0 1990 2001 2002 2003 2004 2005 2006 2007 2008 2009 7.3 Fra 7.5 Source: Cushman & Wakefield, European Cities Monitor Monitor 7.0 HoN eSL roM 4.6 Cat 9.9 6.0 BCN eSp Ita tur Gre Source: Global Entrepreneurship Monitor (GEM), Catalonia Executive Report
  • 13. Report 2009-2010. City for business Business forecast for European Better outlook for exports in Catalonia than in Bavaria, Berlin and London Region (CITY) Turnover (% Balance) Region (CITY) Exports (% Balance) Region (CITY) Investment (% Balance) regions 2010 2009 was characterised by a serious economic recession, but the outlook Portugal (LISBON) Masovian Voivodeship (WARSAW) 61 47 Portugal (LISBON) Denmark (COPENHAGEN) 62 51 Masovian Voivodeship (WARSAW) Portugal (LISBON) 31 30 for Catalan businesses for 2010 is a little more favourable according to Denmark (COPENHAGEN) 41 Central Italy (ROME) 37 Nord-Ovest Italy (MILAN) 28 West Midlands (BIRMINGHAM) 39 Escòcia (EDIMBURG) 34 Turkey (ISTANBUL) 24 the Eurochambers Survey. Companies can expect to see a slight increase Stockholm (STOCKHOLM) 34 Greece (ATHENS) 29 Greece (ATHENS) 16 in business figures in Catalonia, which has a better forecast than Spain London (LONDON) 33 Estonia (TALLINN) 28 Denmark (COPENHAGEN) 12 as a whole. An increase in exports is also predicted – 43% of Catalan Turkey (ISTANBUL) 31 Stockholm (STOCKHOLM) 27 Central Italy (ROME) 9 companies indicate that they will increase while 17% expect a decrease. Finland (HELSINKI) 29 Catalonia (BarCeLoNa) 26 Finland (HELSINKI) 4 Catalonia is also one of the regions with the most favourable forecasts, in North West (MANCHESTER) 27 Community of Valencia (VALENCIA) 24 Stockholm (STOCKHOLM) 2 Scotland (EDINBURGH) 25 Turkey (ISTANBUL) 23 Central Hungary (BUDAPEST) 0 line with regions such as Stockholm, and better than Bavaria, Berlin and Greece (ATHENS) 24 Finland (HELSINKI) Estonia (TALLINN) 22 -1 London. In terms of investment, 24% of Catalan businesses expect a de- Eastern Austria (VIENNA) 22 Eastern Austria (VIENNA) 22 europeaN uNIoN* -3 crease while 17% expect an increase. So we can expect to see a decrease Estonia (TALLINN) 19 Masovian Voivodeship (WARSAW) 20 Scotland (EDINBURGH) -3 in investment in 2010, one that will be less pronounced than 2009 and Île de France (PARIS) 17 Bavaria (MUNICH) 19 North Holland (AMSTERDAM) -5 europeaN uNIoN* 15 Berlin (BERLÍN) 18 Southern Holland (ROTTERDAM) -6 less intense than other regions such as Baden-Württemberg, Bavaria Southern Holland (ROTTERDAM) 14 Southern Holland (ROTTERDAM) 18 North West (MANCHESTER) -6 and Berlin; and the Spanish communities of Madrid and Valencia. Nord-Ovest Italy (MILAN) 12 Nord-Ovest Italy (MILAN) 18 Catalonia (BarCeLoNa) -7 Berlin (BERLÍN) 11 London (LONDON) 17 West Midlands (BIRMINGHAM) -7 Catalonia (BarCeLoNa) 10 europeaN uNIoN* 16 Île de France (PARIS) -7 24 North Holland (AMSTERDAM) 8 Spain 16 Basque Country (BILBAO) -9 25 Business perspectives in Catalonia Central Italy (ROME) 4 North Holland (AMSTERDAM) 13 Eastern Austria (VIENNA) -11 Community of Valencia (VALENCIA) 3 Île de France (PARIS) 12 London (LONDON) -12 60 3.7 4 Community of Madrid (MADRID) 2 Basque Country (BILBAO) 9 Hessen (FRANKFURT) -15 3.2 Spain 2 Baden-Württemberg (STUTTGART) 5 Spain -16 3 50 Baden-Württemberg (STUTTGART) -1 Community of Madrid (MADRID) 5 Berlin (BERLÍN) -17 2 Basque Country (BILBAO) -6 Hessen (FRANKFURT) 4 Bavaria (MUNICH) -22 Bavaria (MUNICH) -10 West Midlands (BIRMINGHAM) -2 Community of Madrid (MADRID) -23 40 1 Central Hungary (BUDAPEST) -18 Central Hungary (BUDAPEST) -5 Baden-Württemberg (STUTTGART) -24 5 turnover (rate of balance) 0.2 North West (MANCHESTER) -12 Community of Valencia (VALENCIA) -26 real GDp growth rate -0.5 (p) 0 30 Note: Data are not available for some countries/regions, wich explains blanks in the table. -1 The balances are calculated as the difference between the percentage of increase and percentage of decrease. The statistical source contains a total of 111 regions. The regions of reference are selected samples * Sample average. 20 -2 Source: Eurochambres, The Business Climate in Europe’s Regions in 2010 -3 10 -4.0 -4 0 -5 2006 2007 2008 2009 2010 Turnover Real GDP growth rate (p) Forecast of Camber of Commerce of Barcelona (January 2010) Source: Eurochambres and Idescat
  • 14. Report 2009-2010. City for business Top European Regions receiving Projects 2007 Region (CITY) Projects 2008 Company tax and VAT Country VAT Base Rate (%) Corporate Tax Rate Foreign Investment Projects 305 209 London (LONDON) Île de France (PARIS) 262 222 in countries worldwide 2009 Japan United States 5.0 - 40.7 40.0 in 2008 58 95 North Rhine-Westphalia (DÜSSELDORF) Autonomous community of Madrid (MADRID) 99 80 Argentina South Africa 21.0 14.0 35.0 34.6 43 Eastern Ireland (DUBLIN)1 68 India 12.5 34.0 90 Catalonia (BarCeLoNa) 61 Belgium 21.0 34.0 52 Upper Bavaria (MUNICH) 61 France 19.6 33.3 Catalonia is situated in the sixth position, ahead 71 Rhone-Alps (LYON) 58 General VAT is the fourth lowest in the European Union Canada 5.0 33.0 of Amsterdam, Milan and Manchester 60 Moscow (MOSCOW) 56 Italy 20.0 31.4 74 Darmstadt (FRANKFURT) 53 Despite having the most competitive company tax rate in the entirety of the Tunisia 18.0 30.0 66 Bucharest (BUCHAREST) 52 Spain 16.0 30.0 Catalonia attracted 61 foreign investment projects in 2008 and occupied democratic era, Spain remains at the medium-high end of international rank- 53 North Holland (AMSTERDAM) 50 Australia 10.0 30.0 the sixth position among the top receiving European regions. The interna- 61 Central Hungary (BUDAPEST) 46 ing with the seventh highest company tax of the OECD Member Countries. In Germany 19.0 29.4 tional financial crisis and the climate of economic recession caused a re- 38 Lombardy (MILAN) 46 fact, the decrease in the Spanish tax rate in the last decade was implemented Luxembourg 15.0 28.6 50 Stockholm (STOCKHOLM) 44 at the same time this tax was generally being lowered internationally in a more United Kingdom 15.0 28.0 duction in foreign investment in the majority of leading European regions. 37 Masovian Voivodeship (WARSAW)2 42 marked manner. Norway 25.0 28.0 In the case of Catalonia, after two consecutive years of notable increases, 25 Etelä-Suomi (HELSINKI) 42 Sweden 25.0 26.3 the number of projects was reduced and 2008 recorded numbers similar 49 Denmark (COPENHAGEN)3 39 Israel 16.5 26.0 This tax competition among the different countries to encourage investment to those in 2005, which was in any case above those recorded in regions 16 Berlin (BERLIN) 37 Finland 22.0 26.0 26 32 Zurich (ZURICH) 32 has increased the weight of indirect taxes on tax structures. In this regard, it is Netherlands 19.0 25.5 27 such as Amsterdam, Milan and Manchester. 23 Vienna (VIENNA) 31 worth noting that Spain has the fourth lowest general VAT rate in the European China 17.0 25.0 34 Sofia (SOFIA) 30 Union (16%) – VAT is only lower in Cyprus, Luxemburg and the United Kingdom Greece 19.0 25.0 It is also worth noting that 44% of the projects started in Catalonia are 40 Provence-Alps-Cote D’Azur (MARSEILLE) 30 (15%). The Spanish rate is in line with the international average, which was Denmark 25.0 25.0 located in the Barcelona area and in 2008, 3,124 foreign companies were 11 Greater Manchester (MANCHESTER) 29 15.2% in 2009 according to a comparative study on indirect taxes carried out Portugal 20.0 25.0 29 Prague (PRAGUE) 28 Austria 20.0 25.0 doing business in the Principality. by KPMG in 90 countries worldwide. It should be noted that both Spain and the 42 Brussels (BRUSSELS) 28 South Korea 10.0 24.2 21 South Holland (ROTTERDAM) 27 United Kingdom will be increasing their general VAT rates in 2010. Switzerland 7.6 21.2 16 Hamburg (HAMBURG) 24 Slovenia 20.0 21.0 projects of foreign investment (number) 34 Eastern Scotland (EDINBURGH) 23 Corporate tax 2009 (%) Czech Republic 19.0 20.0 35 West Midlands (BIRMINGHAM) 20 Poland 22.0 19.0 33 South-West Scotland (GLASGOW) 19 Slovakia 19.0 19.0 90 90 9 Languedoc-Roussillon (MONTPELLIER) 19 Hong Kong - 16.5 14 Stuttgart (STUTTGART) 19 Hungary 25.0 16.0 74 30 Midi-Pyrénées (TOULOUSE) 18 Latvia 21.0 15.0 28 26.3 26 70 25 Geneva (GENEVA) 18 Ireland 21.5 12.5 64 9 Latvia (RIGA) 18 61 61 Cyprus 15.0 10.0 53 19 Lisbon (LISBON) 16 18 Istanbul (ISTANBUL) 16 Nor Sue FIN Note: The statistical source contains a total of 116 countries. The countries of reference are selected 50 52 50 samples 12 Lazio (ROME) 16 25.5 44 46 15 Source: KPMG, KPMG’s Corporate and Indirecte Tax Rate Survey 2009 7 Estonia (TALLINN) 14 12.5 28 37 38 9 Attica (ATHENS) 13 34 25.5 29.4 Let 30 30 33 13 Autonomous community of Valencia (VALENCIA) 9 IrL DIN 19 15 Lithuania (VÍLNIUS) 9 28.6 r.uN 25 1 Oslo (OSLO) 9 20 p.BaI poL 10 17 1 Ankara (ANKARA) 3 BeL aLe 19 5 Basque Country (BILBAO) 2 LuX 25 21.2 r.tX 33.3 16 21 2005 2006 2007 2008 1 Eastern Ireland = Dublin, Mid-East, South-East. eSL 2 Masovian Voivodeship = Ciechanow, Plock, Ostrolecko, Siedlce, Radom, Warsaw, Miasto Warsaw. Catalonia (Barcelona) Upper Bavaria (Munich) 25 SuI auS 3 Denmark = Copenhagen, Copenhagen & Frederiskberg, Frederiskborg, Roskilde. HoN 30 eSL North Holland (Amsterdam) Lombardy (Milan) Source: Ernst & Young’s European Investment Monitor, 2009 Fra Source: Ernst & Young’s European Investment Monitor 31.4 por 25 eSp Ita Gre Source: KPMG, KPMG’s Corporate and Indirecte Tax Rate Survey 2009
  • 15. Report 2009-2010. City for business Growth rate Congresses 2007 City 2007/2008 (%) Congresses 2008 482 Singapore 32.16 637 357 Paris 17.37 419 276 Brussels 8.33 299 321 Vienna -22.43 249 Leading cities worldwide 175 129 Barcelona Tokyo 10.29 16.28 193 150 in the organisation 127 Seoul -1.57 125 91 Budapest 27.47 116 82 Copenhagen 26.83 104 of international meetings 2008 134 188 London Geneva -23.13 -45.74 103 102 129 Amsterdam -23.26 99 126 Lisbon -22.22 98 94 Sydney 3.19 97 Barcelona among the top five cities worldwide 103 Rome -8.74 94 87 Maastricht 5.75 92 According to the data from the Union of International Associations (UIA), in 74 Madrid 14.86 85 150 Berlin -44.00 84 2008 Barcelona was in fifth position for cities worldwide organising inter- 76 Athens 9.21 83 national meetings – with 193 conferences and conventions – and it made 86 Istanbul -4.65 82 the ranking for the second consecutive year after getting ahead of Gene- 84 Helsinki -5.95 79 va. The increase in the number of meetings in Barcelona was 10.3% com- 97 Prague -18.56 79 pared to 2007, and this is a particularly notable difference considering the 78 Washington 1.28 79 107 Beijing -29.91 75 reduction in the total number of international conferences held that year. 59 The Hague 25.42 74 59 Yokohama 15.25 68 28 In 2009, according to the International Congress and Convention Association 63 Lyon 6.35 67 29 (ICCA), Barcelona was in second position for cities worldwide hosting in- 53 Melbourne 26.42 67 139 New York -51.80 67 ternational meetings, only behind Vienna and gaining one position over 53 Valencia 16.98 62 2008. 100 Stockholm -41.00 59 66 Chicago -16.67 55 66 Kuala Lumpur -16.67 55 102 Montreal -46.08 55 ranking of Barcelona 80 Oslo -31.25 55 43 Buenos Aires 20.93 52 64 San Diego -20.31 51 55 Hong Kong -9.09 50 43 Orlando 16.28 50 5 49 New Delhi 0.00 49 40 Shanghai 20.00 48 56 Dublin -16.07 47 73 Munich -35.62 47 6 6 6 50 Noordwijk -10.00 45 43 Cape Town 2.33 44 51 Jeju -13.73 44 76 Bangkok -44.74 42 7 29 Boston 37.93 40 48 Vancouver -16.67 40 37 Cairo 2.70 38 61 Toronto -37.70 38 41 San Francisco -9.76 37 2004 2005 2006 2007 2008 42 Trieste -14.29 36 48 Warsaw -27.08 35 Source: Union of International Associations 25 Edinburgh 36.00 34 67 Kyoto -49.25 34 33 Luxembourg -6.06 31 32 St Petersburg -3.13 31 48 Moscow -37.50 30 25 New Orleans 20.00 30 46 Strasbourg -39.13 28 Note: Meetings counted under the heading A or B Source: Union of International Associations
  • 16. Report 2009-2010. The knowlegde society Introduction Barcelona continues to win positions due to the fact that it uses knowl- Significant progress has been made in the last few years in the field of edge as one of the city’s economic growth engines and is advancing in knowledge, and it has also been transferred to the production structure: both the provision of resource – infrastructural and economic – for re- Catalonia is currently situated among the top ten regions in Europe with search, and the transfer of knowledge to the production system and the regard to the number of workers in manufacturing sectors of high and generation and attraction of talent. medium-high technological intensity and in knowledge-intensive and high-technology service sectors, and by regions, it has the fifth highest The city continues to pave the way for the creation of poles of research number of employees in science and technology. Barcelona has a high- centre that permit the advancement of knowledge and its practical ap- quality training system. Recent examples of its potential are the award plication in the business world. A recent example is the Synchrotron – of the “International Campus of Excellence” distinction for the Barcelona the most powerful synchrotron light source in the south of Europe and Knowledge Campus project and the UAB, and the fact that 59 of the Mas- the most complex and top-level scientific installation in the State - which ter’s courses offered in the metropolitan area of Barcelona are classified came into operation in March 2010 and will serve high-technology com- as Masters of Global Excellence under the Strategic Metropolitan Plan. panies and researchers in various scientific fields from physics and Good schools and universities are essential for training good profession- chemistry to medicine and biology. Other examples are the Barcelona Bi- als and attracting talent from other cities of the world, to which the Do it omedical Research Park, the Catalonia Computing and Communications in Barcelona programme also contributes. This programme is promoted Centre (CESCA), the Nuclear Magnetic Resonance Laboratory (RMN- by the City Hall and it is aimed at international business people, profes- 30 Barcelona), the Barcelona SuperComputing Centre (BSC), the Technol- ogy Transfer Centre of the Universitat Politècnica de Catalunya (UPC) and sionals, researchers and graduates who want to do business in the city. THE KNOWLEDGE SOCIETY 31 the i2CAT Foundation. In total, the city has more than 400 research and innovation centres that form a powerful system of spaces for the produc- tion, transfer, dissemination and use of knowledge and act as a means of contact between the science and business worlds. One of the indices of knowledge generation and the transfer of this knowledge to practical applications is the research, development and innovation investment index. It should be noted that R+D expenditure in Catalonia increased from 1.06% of GDP in 2000 to 1.62% of GDP in 2008. Furthermore, the Catalan business community is very close to reaching two thirds of the goal for total R+D investment established in the Treaty of Lisbon. The effort to promote research in recent years has led to Barce- lona achieving the sixth position in Europe and the fifteenth on an inter- national level for scientific production, with 12,211 publications in 2009.
  • 17. Report 2009-2010. The knowlegde society Population Employed Catalonia is the fourth highest region in Europe with employees in manufacturing sectors of high and Employers in knowledge- Employers in high and medium- in Technological Services medium-high technological intensity Employers in knowledge-intensive high- intensive technology services % high-technology high technology Employers in high and medium-high manufacturing technology manufacturing sectors % and Manufacturing in European Catalonia remains in the fourth position in Europe for the second con- secutive year for the highest number of employees in manufacturing of Employed people services 2008 Region (CITY) sectors 2008 of Employed people 3.74 Lombardy (MILAN) 441.170 Regions 2008 162.444 10.17 sectors of high and medium-high technological intensity in 2008, behind 3.35 67.719 Stuttgart (STUTTGART) 419.358 20.76 Lombardy, Stuttgart and Upper Bavaria, and ahead of Île-de-France. The 5.83 128.168 Upper Bavaria (MUNICH) 321.024 14.61 2.70 94.361 Catalonia (BarCeLoNa) 311.880 8.93 Principality is also situated at the top end of the ranking in terms of the 6.36 339.151 Île de France (PARIS) 271.799 5.09 relative employment weight in manufacturing sectors of high and medi- 1.82 66.315 Istanbul (ISTANBUL) 245.710 6.73 um-high technological intensity, with a percentage of 8.9% of the total. 4.06 95.125 Düsseldorf (DÜSSELDORF) 171.160 7.30 During 1998-2008, the number of employees in these sectors in the Prin- 4.75 87.971 Darmstadt (FRANKFURT) 167.089 9.03 cipality showed an increase (close to 3% annually) which is the best evo- 4.30 122.782 Denmark (COPENHAGEN) 166.264 5.83 4.19 107.742 Rhone-Alps (LYON) 157.994 6.14 lution of the group of regions with the greatest industrial critical mass, 6.08 186.274 Autonomous community of Madrid (MADRID) 139.664 4.56 along with that of Upper Bavaria. 3.75 37.287 Basque Country (BILBAO) 96.770 9.73 5.76 77.283 Etelä-Suomi (HELSINKI) 93.734 6.99 In 2008, Catalonia is in the tenth position of European regions with the 6.40 143.465 Lazio (ROME) 91.815 4.09 4.51 68.387 Berlin (BERLIN) 91.083 6.00 32 most employment in knowledge-intensive and high-technology service 33 4.35 82.419 Provence-Alps-Cote D’Azur (MARSEILLE) 83.273 4.40 sectors, two positions lower than in 2007. In fact, the number of employ- 4.21 65.758 Eastern Ireland (DUBLIN) 82.612 5.29 ees in these activities in the Principality (94,361) is below the number in 5.77 71.947 Central Hungary (BUDAPEST) 80.737 6.48 Denmark, Rhône-Alpes and Düsseldorf, but above the number in Darm- 1.70 37.830 Autonomous community of Valencia (VALENCIA) 76.882 3.45 1.81 23.510 Ankara (ANKARA) 70.290 5.42 stadt. Similarly, the accumulated global increase in employment in Cata- 5.37 201.374 London (LONDON) 70.181 1.87 lonia reached a notable 68% during 1998-2008, and its weight within total 3.20 54.913 Attica (ATHENS) 58.199 3.39 employment grew from 2.3% to 2.7%. It should be noted that salaried 4.40 47.452 West Midlands (BIRMINGHAM) 54.375 5.05 workers of these services represent close to 5% of total employment in 3.40 40.197 Greater Manchester (MANCHESTER) 51.382 4.34 5.00 88.404 South Holland (ROTTERDAM) 46.323 2.62 Barcelona, increasing by 1.9% in 2009. 2.86 28.649 South-West Scotland (GLASGOW) 45.489 4.53 3.79 50.067 Lisbon (LISBON) 42.637 3.23 4.21 41.181 Eastern Scotland (EDINBURGH) 38.630 3.95 population employed in high and medium-high technology manufacturing sectors 5.78 59.719 Bucharest (BUCHAREST) 34.743 3.37 (thousand of people) 6.88 44.293 Prague (PRAGUE) 29.269 4.55 4.72 36.936 Vienna (VIENNA) 27.844 3.56 457 4.42 62.184 North Holland (AMSTERDAM) 24.601 1.75 441 1.62 7.147 Zagreb (ZAGREB) 15.963 3.61 1.89 17.642 Languedoc-Roussillon (MONTPELLIER) 15.697 1.68 6.66 40.336 Oslo (OSLO) 14.524 2.40 4.68 18.533 Brussels (BRUSSELS) 13.642 3.44 321 312 Note: knowledge-intensive and high-technology services covers information technology, telecommunications and research and development 261 The statistical source contains a total of 314 regions. The regions of reference are selected samples 248 Source: Eurostat 25 12 Lombardy Upper Bavaria Catalonia North Holland (Milan) (Munich) (Barcelona) (Amsterdam) 2000 2008 Source: Eurostat
  • 18. Report 2009-2010. The knowlegde society Investment in Research Catalonia is in the fifth position among European regions for employment in science and technology Total intramural R+D expenditure Total intramural R+D expenditure in Employees in science Employees in science and technology and Development and Population during 2003-2008 (% GDP) 2006 Business enterprise sector (% GDP) 2006 Region (CITY) and technology (thousand) 2008 (% Population between 15 and 74 years old) 2008 Employed in Science Catalonia had 652,000 workers dedicated to science and technology in 2008, remaining in the fifth position in European ranking of regions for - 0.37 - 1.05 Illa de França (PARÍS) Londres (LONDRES) 1,385 1,020 16.3 17.8 and Technology in European the sixth consecutive year. This favourable positioning is a result of the expansion of these activities in the Principality during 1998-2008, with 1.19 - 1.96 - Comunitat de Madrid (MADRID) Dinamarca (COPENHAGUEN) 842 699 17.3 17.1 Regions 2006 and 2008 0.92 1.42 Catalunya (BarCeLoNa) 652 11.7 an average annual increase of 6% in the number of employees, which - - Llombardia (MILÀ) 566 7.6 has increased the percentage weight of workers dedicated to science and - - Alta Baviera (MUNIC) 554 16.5 technology from 7.4% of the total in 1998 to 11.7% in 2008. 0.33 1.07 Mazowsze (VARSÒVIA) 536 12.9 - - Roine-Alps (LIÓ) 522 11.9 - - Stuttgart (STUTTGART) 409 13.4 In 2006, investment in research and development (R&D) in Catalonia rep- - - Berlín (BERLÍN) 400 14.4 resented 1.42% of the GDP, higher than regions like London, Dublin and - - Holanda Sud (ROTTERDAM) 395 15.2 Brussels but below the European average (1.85%) and still distant from - - Àtica (ATENES) 390 12.9 - - Darmstadt (FRANKFURT) 384 13.0 the Treaty of Lisbon objective for 2010 (3% of GDP). During the same year, - - Laci (ROMA) 384 9.0 the Catalan business sector came very close to achieving the two-thirds - - Holanda Nord (AMSTERDAM) 375 18.9 34 of total R&D investment established by the Treaty, contributing 0.92% of - - Düsseldorf (DÜSSELDORF) 372 9.2 35 the GDP. It should be noted that total R+D expenditures have increased 0.36 0.95 Comunitat Valenciana (VALÈNCIA) 365 9.6 - - Provença-Alps-Costa Blava (MARSELLA) 362 10.4 significantly, going from 1.06 % of GDP in 2000 to 1.62 % in 2008. 2.40 3.46 Finlàndia Sud (HÈLSINKI) 358 17.9 - - Estocolm (ESTOCOLM) 324 21.9 0.22 0.79 Lituània (VÍLNIUS) 311 11.8 population employed in science and technology (% Population between 15 and 74 years old) 0.80 1.24 Irlanda del sud-est (DUBLÍN) 299 12.3 0.78 1.45 Hongria central (BUDAPEST) 289 13.0 20 18.7 18.9 0.54 1.23 Bucarest (BUCAREST) 280 15.5 18.2 1.24 1.58 País Basc (BILBAO) 273 16.5 17.5 16.9 0.19 0.90 Sofia (SOFIA) 238 14.2 16.2 0.73 1.48 Lisboa (LISBOA) 232 10.7 16 14.2 - - Oslo (OSLO) 212 26.3 14.0 13.4 0.10 0.48 Escòcia de l’est (EDIMBURG) 196 13.5 0.35 0.70 Letònia (RIGA) 194 10.8 11.4 11.8 11.7 11.1 0.29 1.00 Gran Manchester (MANCHESTER) 191 9.9 12 10.8 - - Hamburg (HAMBURG) 187 13.1 9.5 9.2 8.8 9.1 - - Llenguadoc-Rosselló (MONTPELLER) 187 10.3 0.54 1.95 Escòcia del sud-oest (GLASGOW) 182 11.3 7.6 8 6.7 7.1 0.77 1.30 Midlands Oest (BIRMINGHAM) 175 9.2 6.5 6.5 1.14 2.47 Praga (PRAGA) 163 16.7 5.1 5.6 5.6 4.7 2.09 3.54 Viena (VIENA) 140 10.9 0.51 1.14 Estònia (TALLINN) 117 11.3 4 0.80 1.39 Brussel·les (BRUSSEL·LES) 107 13.8 2000 2001 2002 2003 2004 2005 2006 2007 2008 Nota: Treballadors que disposen de una formació científica de nivell superior i estan ocupats com a professionals o tècnics. La despesa interna inclou despeses en capital, corrents i laborals -tant d’investigadors com personal administratiu- vinculades a activitats de recerca en proporció del PIB Catalonia (Barcelona) La base de dades original conté 314 regions, si bé, la taula recull només una mostra seleccionada de regions de referència North Holland (Amsterdam) Font: Eurostat Lombardy (Milan) Source: Eurostat
  • 19. Report 2009-2010. The knowlegde society Patent Application and Barcelona records an increase in international technological patents Applications for PCT Applications for PCT technological patents per million inhabitants Total PCT patents applications technological patents Province (CITY) per million inhabitants Total PCT patents applications Technological Patents in the top 4,464.81 349.96 Tokyo (TOKYO) 635.95 8,113.42 3,568.99 374.64 Silicon Valley (SAN JOSE) 638.89 6,086.37 OECD Provinces 2007 In 2007, Barcelona occupied the 24th position among the top provinces of reference of the OECD, with 392 PCT patents, in accordance with the 1,476.60 1,151.81 63.91 140.20 New York (NEW YORK) Boston (BOSTON) 179.32 396.41 4,142.80 3,256.73 937.04 48.06 Los Angeles (LOS ANGELES) 129.16 2,518.05 inventor’s place of residence. The significant progress of the last dec- 1,102.22 109.94 Seoul (SEOUL) 217.75 2,183.07 ade has enabled it to reach the same number of patents as European 540.82 Osaka (OSAKA) 241.74 61.37 2,130.24 provinces of reference, such as Milan or Lyon, and overtake Amsterdam, 690.33 66.10 Chicago (CHICAGO) 188.29 1,966.37 Montreal, Dublin and Brussels, but nevertheless still far behind the main 1,208.22 266.15 Seattle (SEATTLE) 392.80 1,783.13 metropolises of global reference. In particular, it must be pointed out that 388.67 59.69 Houston (HOUSTON) 259.31 1,688.59 360.29 134.91 Stuttgart (STUTTGART) 610.41 1,630.21 Barcelona nearly doubled its number of PCT technological patents during Munich (MUNICH) 614.13 235.44 604.58 1,577.02 2002-2007, reaching almost the same level as Düsseldorf. This favoura- 544.37 281.50 Stockholm (STOCKHOLM) 557.83 1,078.73 ble evolution enabled Barcelona to maintain its position among the urban 77.82 26.27 Düsseldorf (DÜSSELDORF) 267.59 792.59 areas of reference (29th) in 2007. 399.95 289.55 Uusima (HELSINKI) 509.46 703.71 205.98 60.40 Berlin (BERLIN) 186.93 637.47 244.64 - London (LONDON) - 635.03 208.32 - Paris (PARIS) - 584.43 pCt* patents (number) 109.91 31.78 Rotterdam (ROTTERDAM) 145.58 503.45 36 37 85.49 21.95 Milan (MILAN) 113.58 442.46 600 36.51 - Rhône (LYON) - 396.34 74.43 14.04 Barcelona (BarCeLoNa) 73.87 391.51 84.00 32.07 Amsterdam (AMSTERDAM) 138.35 362.43 500 160.38 - Montreal (MONTREAL) - 348.88 407.5 126.10 20.60 Madrid (MADRID) 55.13 337.44 378.2 391.5 173.24 103.67 Vienna (VIENNA) 199.52 333.40 400 376.5 142.20 - Toronto (TORONTO) - 296.13 33.75 2.68 Istanbul (INSTANBUL) 17.86 224.61 300 272.4 38.51 76.43 Copenhagen (COPENHAGEN) 425.16 214.24 236.1 56.26 13.94 Rome (ROME) 51.08 206.23 212.4 85.43 - Bouches-du-Rhône (MARSEILLE) - 173.14 200 187.5 57.49 103.66 Oslo (OSLO) 233.63 129.56 57.42 - Dublin (DUBLIN) - 124.79 100 38.49 22.65 Budapest (BUDAPEST) 62.50 106.19 50.93 - Edinburgh (EDINBURGH) - 104.03 16.11 15.50 Brussels (BRUSSELS) 99.17 103.13 0 35.14 - Manchester (MANCHESTER) - 101.95 2000 2001 2002 2003 2004 2005 2006 2007 16.22 6.62 Valencia (VALENCIA) 33.73 82.71 Barcelona Milan 10.50 2.59 Attica (ATHENS) 17.52 70.91 Amsterdam Dublin 9.62 - Hérault (MONTPELLIER) - 69.80 12.13 10.11 Prague (PRAGUE) 44.70 53.64 * Patent Cooperation Treaty Source: OECD 11.77 - Birmingham (BIRMINGHAM) - 40.24 6.55 5.76 Vizcaya (BILBAO) 30.95 35.20 8.48 4.19 Lisbon (LISBON) 16.57 33.52 14.78 - Glasgow (GLASGOW) - 32.08 10.75 6.31 Warsaw (WARSAW) 18.79 32.03 Note: Counting patents according to the inventor’s region of residence The statistical source contains a total of 1742 provinces. The provinces of reference are selected samples Source: OECD
  • 20. Report 2009-2010. The knowlegde society World World European Ranking Ranking Ranking Publications 2008 City 2009 2009 in 2009 1 Beijing 1 - 33,376 2 London 2 1 30,145 3 Tokyo 3 - 28,893 4 Paris 4 2 24,269 5 New York 5 - 22,548 Boston Primary cities in the world 6 6 - 22,500 7 Seoul 7 - 22,294 8 Shanghai 8 - 17,156 with regard to scientific 9 10 Moscow Madrid 9 10 3 4 15,818 13,619 production 2009 11 Los Angeles 11 - 13,113 15 Rome 12 5 12,454 12 Baltimore 13 - 12,414 13 Toronto 14 - 12,414 20 Barcelona 15 6 12,211 Barcelona moves up five positions in the international 14 Philadelphia 16 - 12,199 21 Cambridge Massachusetts 17 - 12,190 ranking 17 Chicago 18 - 12,120 18 São Paulo 19 - 12,105 In 2009, Barcelona moved up to the 6th position in the European ranking 19 Berlin 20 7 11,972 and 15th in the international ranking for cities with scientific production, 16 Houston 21 - 11,808 24 Munich 22 8 10,909 with a total of 12,211 publications generated, a 4.7% increase on the pre- 23 Milan 23 9 10,673 vious year. 22 Osaka 24 - 10,596 25 Montreal 25 - 10,241 With reference to 2008, Barcelona moved up five positions in the interna- 27 Cambridge 26 10 9,624 26 Hong Kong 27 - 9,467 tional ranking, overtaking Philadelphia, Cambridge (Massachusetts), Chi- 38 28 Amsterdam 28 11 9,119 39 cago, São Paulo and Berlin, and it one place in the European city ranking. 31 Singapore 29 - 8,979 33 Melbourne 30 - 8,979 34 Zurich 31 12 8,707 32 Oxford 32 13 8,635 ranking of Barcelona 29 Pittsburgh 33 - 8,587 30 San Francisco 34 - 8,478 35 Stockholm 35 14 7,896 36 Athens 36 15 6,873 37 Prague 37 16 6,618 6 7 7 38 Copenhagen 38 17 6,425 9 41 Lyon 39 18 6,038 11 39 Manchester 40 19 6,030 40 Warsaw 41 20 5,786 43 Edinburgh 42 21 5,288 15 42 Mexico City 43 - 5,183 44 Brussels 44 22 5,173 20 47 Toulouse 45 23 5,163 21 21 48 Buenos Aires 46 - 4,901 45 Rio de Janeiro 47 - 4,803 49 Dublin 48 24 4,749 27 46 Naples 49 25 4,736 52 Hamburg 50 26 4,686 2005 2006 2007 2008 2009 50 New Delhi 51 - 4,623 55 Turin 52 27 4,617 World Ranking 53 Montpellier 53 28 4,590 European Ranking 51 Glasgow 54 29 4,467 Source: Universitat Politècnica de Catalunya - Centre de Política del Sòl i Valoracions 56 Valencia 55 30 4,444 54 St Petersburg 56 31 4,402 58 Marseille 57 32 4,379 57 Yokohama 58 - 4,234 59 Basel 59 33 4,116 60 Lisbon 60 34 4,056 62 Frankfurt 61 35 3,694 63 Tel Aviv 62 - 3,664 61 Liverpool 63 36 3,654 Source: Universidad Politécnica de Cataluña - Centro de Política del Suelo y Valoraciones, Reporte sobre la Evolución 2008-2009 de la producción científica de las principales ciudades del mundo
  • 21. Report 2009-2010. Tourism Introduction 2009 was characterised by a general decrease in tourism at a global lev- el, the main causes being economic uncertainty and a serious increase in the unemployment rate. Therefore, the economic context was not fa- vourable internally or externally. Despite this situation, Barcelona’s tour- ism sector has managed to resist the recession remarkably, and 2009 closed with a 2.6% increase in overnight stays and a slight reduction in the number of tourists, below that recorded at a European and global lev- el. In addition, the city continues to increase its number of hotels, which was 321 on 31 December 2009 and will continue to grow over the next few years. The forecast for 2010 is the opening of 15 new hotels, representing 1,505 new hotel places. Based on this evolution and the strong growth in tourism from 1993 to 2007, the city is working towards maintaining this increase while ensur- ing that it is economically and socially sustainable. The main instrument in this regard is the Strategic Tourism Plan 2015, undertaken by Turisme 40 de Barcelona, which will soon present the future lines of action regard- ing tourism in the city. It should be noted that, according to the studies TOURISM 41 carried out within the framework of the Plan, the city attracts a total of over 18 million tourists every year, who generate an approximate daily expenditure of €20,000,000 and an impact of between 8 and 10% of the Gross Domestic Product, manifesting the significant role that tourism plays in Barcelona’s economy. 2009 signified a major improvement for Barcelona in terms of infrastruc- tures linked to tourism and internationalisation. In June, the new T-1 ter- minal of the El Prat airport was inaugurated, with a surface area of over 500,000 m2 and a capacity for over 30 million passengers, spurring an increase from 237 to 248 intercontinental flights between 2008 and 2009. The forecasts for 2010 are a little better than 2009, suggesting that the main customer markets in Europe will slowly recover. In fact, data from the end of 2009 and the beginning of 2010 already present positive signs. In the first three months of 2010, the number of passengers using airport Barcelona increased by 5% - one of the best indicators recorded in Span- ish airports – and the number of tourists and overnight stays in the city show an interannual increase of two digits.
  • 22. Report 2009-2010. Tourism Top European airports City (AIRPORT) Growth rate Passengers Hotel accommodation Província (CIUTAT) 2008/2009 % 2009 Places 2007 Places 2008 according to passenger volume London Heathrow (LHR) Paris Roissy (CDG) -1.5 -4.9 66,037,578 57,883,282 in European provinces 2008 Paris (PARIS) London (LONDON) 154,524 124,920 156,330 124,920 2009 Frankfurt (FRA) Madrid (MAD) -4.7 -5.1 50,932,840 48,248,890 Rome (ROME) Barcelona (BarCeLoNa) 115,504 108,658 122,557 113,402 Amsterdam (AMS) -8.1 43,569,553 Madrid (MADRID) 92,802 96,547 Rome-Fiumicino (FCO) -4.0 33,723,213 Berlin (BERLIN) 76,168 79,668 Munich (MUC) -5.4 32,681,067 Milan (MILAN) 70,206 77,381 Barcelona remains in ninth position in Europe since London Gatwick (LGW) -5.3 32,401,046 Barcelona still holds fourth position in the EU with Prague (PRAGUE) 63,111 67,753 2004 Barcelona (BCN) -9.7 27,301,493 the most hotel accommodations among urban Attica (ATHENS) 61,888 62,168 Paris Orly (ORY) -4.2 25,101,709 Vienna (VIENNA) 44,414 49,005 Zurich (ZRH) -0.8 21,879,095 agglomerations Munich (MUNICH) 43,940 46,099 In 2009, the Barcelona International Airport recorded 27.3 million pas- Palma de Mallorca (PMI) -7.1 21,197,229 Lisbon (LISBON) 45,255 45,812 sengers, retaining ninth position in the European ranking. Despite a 9.7% Dublin (DUB) -12.6 20,504,705 In 2008, hotel accommodation in the province of Barcelona increased Dublin (DUBLIN) 39,893 42,559 decrease in the number of passengers compared with 2008, the Prat air- London Stansted (STN) -10.7 19,957,221 by 4,744 places, reaching 113,402. This data positioned Barcelona in Valencia (VALENCIA) 37,719 38,886 port has not lost its position due to the fact that the prevailing trend in the Copenhagen (CPH) -8.4 19,668,804 Budapest (BUDAPEST) 37,193 36,526 the fourth position among the top European urban agglomerations and Manchester (MAN) -12.0 18,840,008 Frankfurt (FRANKFURT) 31,505 32,071 evolution of passenger travelling via large European airports has been Moscow Domodedovo (DME) -8.6 18,674,947 eighth among the provinces in the continent for the most hotel accom- Bouches-du-Rhône (MARSEILLE) 30,570 31,250 decreasing. Vienna (VIE) -8.3 18,114,427 modations. Brussels (BRUSSELS) 30,610 31,170 Oslo (OSL) -6.6 18,079,732 Rhône (LYON) 26,770 27,544 42 Düsseldorf (DUS) -2.0 17,793,493 Manchester (MANCHESTER) 27,155 27,155 43 The opening of the new T1 terminal in June 2009 – which can hold 30 There was an increase of 73% in hotel capacity in the province of Barce- Milan-Malpensa (MXP) -8.7 17,551,635 Uusima (HELSINKI) 25,388 26,863 million passengers and has a surface area of over 500,000 m2 – has sub- lona from 1998 to 2008, which indicates a positive trend in line with the Brussels (BRU) -8.2 16,974,247 Warsaw (WARSAW) 18,610 22,677 stantially improved the airport’s capacity, and provided an opportunity to Athens (ATH) -1.4 16,213,723 performance of other leading urban areas. Düsseldorf (DÜSSELDORF) 19,230 20,911 make a qualitative leap and improve its positioning for intercontinental Stockholm-Arlanda (ARN) -11.4 16,098,610 Birmingham (BIRMINGHAM) 20,434 20,434 flights. Berlin (TXL) -2.1 14,180,237 Hérault (MONTPELLIER) 18,862 18,900 Lisbon (LIS) -2.5 13,260,974 Edinburgh (EDINBURGH) 18,268 18,268 Helsinki (HEL) -6.9 12,503,372 Hotel places (thousand) Glasgow (GLASGOW) 17,418 17,418 Hamburg (HAM) -4.7 12,229,271 180 Oslo (OSLO) 16,283 16,997 passengers (millions) Prague (PRG) -7.8 11,643,366 Bucharest (BUCHAREST) 12,215 16,882 Malaga (AGP) -9.3 11,605,981 Stuttgart (STUTTGART) 14,637 15,054 60 Nice (NCE) -5.3 9,831,136 160 Vizcaya (BILBAO) 10,582 10,932 Cologne/Bonn (CGN) -5.8 9,739,581 Riga (RIGA) 9,940 10,914 Gran Canaria (LPA) -10.4 9,143,329 Vilnius (VILNIUS) 8,186 8,457 50 Alicante (ALC) -4.6 9,131,323 Sofia (SOFIA) 5,765 8,326 140 Birmingham (BHX) -5.5 9,107,462 Greater Zagreb (ZAGREB) 6,376 6,594 Edinburgh (EDI) 0.5 9,050,890 40 Note: The statistical source contains a total of 1372 provinces. The provinces of reference are selected Stuttgart (STR) -10.0 8,934,493 120 samples Warsaw (WAW) -12.0 8,320,927 Source: Eurostat 9 9 9 30 Milan Linate (LIN) -10.5 8,295,099 113.4 9 9 Budapest (BUD) -4.1 8,084,364 109.8 107.4 108.7 100 104.2 Moscow-Vnukovo (VKO) -2.3 7,730,211 98.5 101.4 20 Marseille (MRS) 4.7 7,290,119 91.1 92.2 Glasgow (GLA) -11.6 7,228,659 80 10 Milan-Orio al Serio (BGY) 10.5 7,157,421 Tenerife South (TFS) -13.9 7,080,684 2000 2001 2002 2003 2004 2005 2006 2007 2008 Berlin (SXF) 2.4 6,797,158 Barcelona London Venice (VCE) -2.6 6,701,689 2005 2006 2007 2008 2009 Paris Rome Naples (NAP) -5.5 5,330,161 Barcelona (BCN) Munich (MUC) Posicion of Barcelona in the ranking Girona (GRO) -4.1 5,268,715 Note: Barcelona is compared with other big urban European centers Amsterdam (AMS) Dublin (DUB) Source: Eurostat Faro (FAO) -7.1 5,061,910 Source: Airport Council International, Worldwide Airport Traffic Statistics Hanover (HAJ) -11.8 4,969,799 Rome-Ciampin (CIA) 0.3 4,757,743 Valencia (VLC) -17.9 4,742,182 Source: Airport Council International, Worldwide Airport Traffic Statistics Statistics
  • 23. Report 2009-2010. Tourism Cruises to the main Barcelona reaches two million cruisers for the first time Passengers 2007 City Port Growth rate 2007/2008 % Passengers 2008 Mediterranean ports 2008 For the first time, in 2008, Barcelona exceeded two million cruise pas- sengers and occupied the leading position as the homeport for leading 1,765,838 1,219,886 Barcelona (port) Balearic Islands (Port) 1 17.21 7.72 2,069,651 1,314,090 Mediterranean cruise companies for the 8th consecutive year with a total 1,151,345 Naples (Port) 7.45 1,237,075 1,003,529 Venice (Port) 21.08 1,215,088 of 2,069,651 cruise passengers. Barcelona’s leading position is bolstered 686,000 Dubrovnik-Korkula (Port) 23.98 850,521 by the marked increase in cruise passengers recorded over the previous 713,114 Livorno (Port) 19.04 848,861 year (17.21%), clearly beating the 2nd and 3rd ports in the ranking, as well 559,411 French Riviera Ports (Port) 2 36.23 762,092 as the remaining candidates. Barcelona also held fourth position in inter- 721,592 Tunisian Ports (Port) 3 -3.71 694,829 489,532 Valletta (Port) 13.75 556,841 national homeport ranking according to the World’s Top 20 Cruise Home- 520,197 Genoa (Port) 5.33 547,905 ports 2008 published in the Dream World Cruise Destinations magazine. 471,395 Palermo (Port) 14.28 538,721 376,592 Portuguese Ports (Port) 4 11.19 418,725 The opening of the new terminal A in Adossat Quay in July 2008, where 427,408 Cyprus Ports (Port) -11.86 376,706 290,558 Malaga (Port) 21.48 352,959 high-tonnage vessels can dock, will help to consolidate Barcelona’s leading 293,296 Messina (Port) 14.94 337,117 position. 275,993 Gibraltar (Port) 11.96 308,989 184,117 Monaco (Port) 25.81 231,639 179,209 Valencia (Port) 11.23 199,335 99,281 Split (Port) 25.43 124,525 44 Cruise passengers (millions) 62,739 Ports Of Var (Port) 5 87.46 117,612 45 63,638 Cagliari (Port) 41.42 90,000 2.5 72,063 Alicante (Port) 14.47 82,487 36,439 Almeria (Port) 66.57 60,695 93,937 Alanya (Port) -39.60 56,734 2.0 1 1 Balearic Islands (Palma de Mallorca, Maho, Ibiza, Alcudia and La Savina). 4 Portuguese Ports (Lisboa, Azores and Patimao). 1 2 French Riviera Ports (Cannes, Nice and Villefranche). 5 VAR Ports (Toulon and Saint Tropez). 3 Tunisian Ports (La Goulette, Souse Bizerte). 1.5 Source: Med Cruise 2008 1 1 1.0 1 1 1 1 0.5 2 2000 2001 2002 2003 2004 2005 2006 2007 2008 Barcelona Naples Position of Barcelona in the ranking Balears Island (1) 1 Balearic Islands (Palma de Mallorca, Maó, Eivissa, Alcúdia and La Savina). Note: Barcelona is compared with two of the main ports of the Mediterranean Source: Med Cruise
  • 24. Report 2009-2010. Sustainability and quality of life Introduction Given our current circumstances, energy efficiency, the development of Considering the urban dimension, construction of the Zona Franca – Gran renewable energy sources and the progressive reduction of greenhouse Via l’Hospitalet Energy Generation Centre started in 2010. The office will effect gas emissions are essential elements when considering a new combine different systems in order to improve energy efficiency. The centre model for production and parameters for competition in the twenty-first will provide service to the new Marina and Zona Franca neighbourhoods in century. accordance with recent guidelines to incorporate the use of the most ef- ficient and least contaminating power supplies in the planning of major In light of this, Barcelona is stepping up its commitment to sustainability urban development projects, as was done in the Forum area and 22@. on all fronts, encompassing all aspects of urban life, business, economic promotion and urban development. Finally, it should be pointed out that the city of Barcelona’s environmental efforts have been recognised in Europe. This is corroborated by the fact Currently, the Barcelona Energy Agency is directing the Plan for Energy, that in 2010, Barcelona was selected to be one of six cities nominated to Climate Change and Air Quality (PECQ - Pla d’Energia, Canvi Climàtic i become the Green Capital of Europe in 2012-2013, a prize awarded by the Qualitat de l’Aire) for 2020, which will foster wide-reaching actions which European Commission to recognise the efforts of cities to preserve the take advantage of local renewable resources, and increased energy ef- environment. ficiency and management of demand. In terms of quality of life, Barcelona continues to be the European city 46 Barcelona is also well-positioned as an international centre for alterna- tive energy research, thanks in part to being selected as the location for with the best quality of life for workers for the twelfth consecutive year according to the European Cities Monitor. This distinction is reinforced SUSTAINABILITY AND QUALITY OF LIFE 47 Kic Innoenergy, a part of the European network for innovation in sustain- by the fact that other rankings such as the Global Urban Competitive- able energy. Kic Innoenergy is directed by the Polytechnic University of ness Report 2007-2008 ranks Barcelona as number eleven worldwide for Catalonia and ESADE with the participation of research centres and com- the city’s lifestyle. Also, the rankings of popular American and English panies in Spain and Portugal. magazines such as Askmen, Time Out and Monocle’s in 2009 show Bar- celona to be one of the most attractive cities for living, according to their On the subject of energy and climate change, this year the Observatory readers. is to include the results of a comparative study carried out by university experts published in Environmental Science and Technology, an Ameri- can magazine. It names Barcelona as the least contaminated of ten cit- ies analysed worldwide. Barcelona was also home to the Carbon Expo in 2009, a major international carbon emission control event. Of note on the business front is the promotion of an electric vehicle by Endesa and the City Council of Barcelona and the launching of Oficina LIVE (Logistics for the Implementation of the Electric Vehicle), which will set the timetable for the implementation for these types of vehicles in the city and the implementation of the MOVELE project – a project financed by the state government in Barcelona, Madrid and Seville to promote the use of electric vehicles. Also, environmental commitments made by companies in Barcelona, Catalonia and Spain are remarkable as demon- strated by the increase in 2009 of EMAS environmental management cer- tification and the adoption of ISO 14001 environmental quality standards.
  • 25. Report 2009-2010. Sustainability and quality of life Environmental Commitments Country Registration ISO 140001 2008 Registration EMAS 2009 Best European Cities Ranking 2008 City Ranking 2009 of European Companies 2009 Germany Spain 5,709 16,443 1,379 1,159 for Workers’ Quality of Life 2009 1 4 Barcelona Geneva 1 2 Italy 12,922 1,037 2 Munich 3 Catalonia - 310 12 Oslo 4 Austria 837 253 9 Madrid 5 Barcelona - 237 3 Stockholm 6 Denmark 873 93 5 Paris 7 The number of EMAS certificates in the area of Portugal 534 79 Barcelona, best European city for twelfth consecutive 9 Copenhagen 8 Barcelona increases by more than 50% Sweden 4,478 75 year 5 Zurich 9 Greece 463 69 12 Hamburg 10 United Kingdom 9,455 65 14 London 11 In 2009, there was a substantial increase recorded in the number of EU reg- Belgium 730 49 For the twelfth consecutive year, Barcelona is the best European city for 8 Amsterdam 12 istrations with regard to EMAS, the Eco-Management and Audit Scheme, Czech Republic 3,318 31 workers’ quality of life, according to the European executives surveyed in 15 Rome 13 both in Catalonia (52%) and in Barcelona (59%). This evolution largely ex- Finland 991 25 2009 by Cushman & Wakefield in the European Cities Monitor. It is followed 16 Lisbon 14 plains the increase recorded in Spain (12%), which reached a total of 1,159 Norway 673 21 in the ranking by Geneva, Munich – which loses its second position – and 7 Lyon 14 Hungary 1,834 20 17 Brussels 16 certified companies. In addition, it must be pointed out that Barcelona’s Poland 1,544 19 Oslo and Madrid, which made notable progress in comparison with 2008. 24 Leeds 17 companies obtained nearly the same number of EMAS certificates as Aus- France 3,482 17 11 Dublin 17 tria, and three times more than Sweden or the United Kingdom. Ireland 515 8 This privileged position for quality of life is one of the assets that allow 19 Vienna 19 48 Netherlands 1,314 7 22 Milan 20 49 Barcelona, year after year, to remain among the top European cities for Slovakia 672 6 20 Berlin 21 With regard to obtaining ISO 14001 certifications, Spanish companies were doing business, as it is one of the essential factors in deciding on busi- Latvia 79 6 27 Birmingham 22 once again the leaders in the European continent in 2008, with an interan- Cyprus 71 5 ness location and attracting and retaining talent. 18 Manchester 22 nual increase of nearly 19%. The dynamism of the Spanish business sector Romania 3,884 3 25 Düsseldorf 24 in this field has resulted in there being 3,500 more certified companies in Slovenia 444 3 23 Frankfurt 24 Estonia 233 2 21 Glasgow 24 Spain than in Italy, the second country in the continental ranking. Luxembourg 50 2 29 Prague 27 Malta 8 1 Best european cities in quality of life (ranking) 26 Athens 28 Lithuania 402 0 28 Helsinki 29 eMaS accreditations (number) Bulgaria 321 0 31 Bucharest 30 1 1 1 1 1 1 1 1 1 34 Istanbul 31 Source: European Commission, Eco-Management and Audit Scheme (EMAS) 2 30 Budapest 31 350 3 3 3 32 Warsaw 33 4 4 32 Moscow 34 300 5 5 6 Source: Cushman & Wakefield, European Cities Monitor 2009 237 250 4 8 8 8 200 162 168 149 10 4 4 11 150 4 123 12 100 5 13 15 50 17 2005 2006 2007 2008 2009 2001 2002 2003 2004 2005 2006 2007 2008 2009 Barcelona United Kingdom Position of Barcelona in the ranking Barcelona Munich Amsterdam Austria Source: Cushman & Wakefield, European Cities Monitor Source: European Commission, Eco-Management and Audit Scheme (EMAS)
  • 26. Report 2009-2010. Sustainability and quality of life Greenhouse Gas Emissions City T e CO2* per capita in Global Cities Barcelona Geneva 4,2 7,8 Prague 9,4 London 9,6 New York 10,5 Bangkok 10,7 Toronto 11,6 Barcelona records the lowest level of emissions per Cape Town 11,6 capita among 10 of the world’s cities Los Angeles 13,0 Denver 21,5 According to the pioneer article “Greenhouse Gas Emissions in Global Cit- * Tons of equivalence CO2 Note: Emissions from end-use activity. Includes GHG emissions that occur outside the boundaries of the ies” presented by a group of experts in the magazine Environmental Science cities. and Technology, Barcelona has the lowest level of emissions per capita Source: Environmental Science and Technology. American Chemical Society (4.2 t e CO2/cap.) of the ten cities analysed, beating the figures of Prague, Bangkok, Geneva, Toronto, Cape Town, London, New York, Los Angeles and Denver. 50 51 The combination of geographic factors – climate, access to resources and geographic position in relation to communications – and technical factors – energy generation, compact urban model and waste processing – work in favour of this good result for Barcelona. In addition, the fact that part of the energy consumed comes from energy generated in the city or from Catalan nuclear power stations help to maintain low levels of pollution in the city. However, the same study warns that the emissions may increase in Barce- lona due to the harbour and airport extensions and the progressive use of electricity-dependent technologies. Greenhouse Gas emissions (t e CO2 per capita) Barcelona 4.2 Geneva 7.8 Praga 9.4 London 9.6 New York 10.5 Bangkok 10.7 Cape Town 11.6 Toronto 11.6 Los Angeles 13.0 Denver 21.5 0 5 10 15 20 25 Source: Environmental Science and Technology. American Chemical Society
  • 27. Report 2009-2010. Prices and costs Introduction The city of Barcelona continues to maintain a competitive position among the top cities in Europe and the world. 2009 was a year of very moderate growth in terms of prices, and in some cases there was even a decrease. This tendency was quite general on an international lev- el, and it occurred in Barcelona as a result of the drop in demand and also in prices of raw materials such as oil. In fact, prices in Barcelona province increased by 0.5% in 2009, far below the rates of the period from 2002 to 2008 (3.7%), and only slightly above the growth recorded in Catalonia (0.2% in 2009). In this context, the city of Barcelona recorded drops in the prices of of- fice leasing, property and industrial land. These reductions left Barce- lona in a more competitive position than the previous year, improving by seven positions – dropping from 31 to 38 – in the world cost-of-living ranking drawn up by Mercer Human Resource Consulting. In any case, the city remains among the leading European cities in relation to in- 52 dustrial land leasing, but it recorded varying evolutions in premises leasing in the main commercial streets. In terms of salaries, Barcelona PRICES AND COSTS 53 remains in the middle bracket of the cities of the world studied in 2009. However, the level of prices is not the only advantage Barcelona has over the competition. The city continues to work towards improving the quantity and quality of its supply of space for economic activity with policies such as the development of new business areas included in the Barcelona Economic Triangle: – district 22@, the Delta Bcn area and the Alba Park. There are also other factors, such as the quality of goods or services provided, location, environment, etc. which can differentiate it from other cities and make it more competitive, and in this regard Bar- celona has assets that give it particular added value, such as its high quality of life.
  • 28. Report 2009-2010. Prices and costs Cost of living in cities around World ranking World ranking Price of Housing Rents in Cities City 2008 City 2009 Apartment rental ($/month) the world 2009 2 11 Tokyo Osaka 1 2 of the World 2009 New York Tokyo 8,330 7,200 1 Moscow 3 Hong Kong 7,150 8 Geneva 4 Dubai 4,990 6 Hong Kong 5 Moscow 4,470 9 Zurich 6 Chicago 4,410 7 Copenhagen 7 Miami 4,260 Barcelona moves up seven positions in the global 22 New York 8 Barcelona continues to be competitive, with prices Helsinki 3,920 ranking 20 Beijing 9 below the average of the leading cities of the world Sydney 3,800 13 Singapore 10 Singapore 3,660 10 Milan 11 Milan 3,570 Barcelona moved up seven positions in the ranking of cities worldwide 24 Shanghai 12 In 2009, the cost of renting a home in Barcelona was on average approxi- Dublin 3,500 for cost of living in 2009. The annual study made by Mercer Human Re- 12 Paris 13 mately $1,870 per month, according to data from the Swiss Banking Un- London 3,450 source Consulting, based on the analysis of prices of over 200 products 4 Oslo 14 ion. This price continues to be competitive in relation to the leading cities Seoul 3,400 and basic services in 143 cities worldwide, placed Barcelona in the 38th 89 Caracas 15 in Europe and the world such as London, Paris, New York, Frankfurt and Los Angeles 3,360 3 London 16 Paris 3,280 position in 2009. Brussels, situating Barcelona 33% below the average index of the cities 14 Tel Aviv 17 Geneva 3,230 16 Rome 18 studied. Zürich 2,930 The improvement in the city’s cost of living position was mainly due to the 21 Helsinki 19 Frankfurt 2,900 54 52 Dubai 20 Brussels 2,880 55 devaluation of the euro against the dollar, which began halfway through The current recession, which was largely sparked by the property mar- 19 Vienna 21 Toronto 2,770 2008. In contrast, inflation did not have a significant effect on fluctuations ket, has halted the sharp growth in housing prices recorded in previous 61 Shenzhen 22 Oslo 2,720 in ranking as falling prices in raw materials, energy and basic consumer 55 Los Angeles 23 years. In this context, between 2006 and 2009, home rentals in Barcelona Amsterdam 2,580 goods were widely seen on a global level in 2009. 70 Guangzhou 23 showed a more moderate increase than in the majority of cities analysed, Copenhagen 2,440 16 Dublin 25 with an average annual variation of 5%, keeping Barcelona in the middle- Rome 2,390 65 Abu Dhabi 26 Budapest 2,340 lower bracket of the urban areas studied. 34 Douala 27 São Paulo 2,310 ranking of Barcelona 25 Athens 28 Vienna 2,260 Highest cost 25 Amsterdam 29 Rio de Janeiro 2,240 45 Bratislava 30 House rental prices ($/month) Kiev 2,000 31 31 89 White Plains 31 Barcelona 1,870 30 Lagos 32 Ljubljana 1,870 4,000 74 Tehran 33 Madrid 1,830 51 Abidjan 34 Stockholm 1,830 3,500 38 41 Dakar 34 Berlin 1,820 78 San Francisco 34 3,000 Athens 1,800 43 28 Madrid 37 Montreal 1,800 43 Luxembourg 38 2,500 Warsaw 1,750 31 Barcelona 38 Bratislava 1,630 57 Algiers 40 2,000 31 Buenos Aires 1,560 77 Honolulu 41 34 Shanghai 1,430 1,500 1,870 39 Brussels 41 1,610 Prague 1,370 56 56 80 Beirut 41 42 Santiago de Chile 1,310 44 Almaty 44 1,000 34 Lisbon 1,270 1,090 Lowest cost 75 Miami 45 990 Vilnius 1,220 500 2004 2005 2006 2007 2008 2009 18 St Petersburg 46 Johannesburg 1,180 37 Munich 47 Sofia 1,180 Source: Mercer Human Resource Consulting, Worldwide Cost of Living Survey - city rankings 40 Frankfurt 48 2000 2003 2006 2009 Mexico City 930 38 Berlin 49 Riga 860 Barcelona Milan Posició de Barcelona 84 Chicago 50 Amsterdam Dublin Note: Rents are based on apartments built after 1980 (4 rooms, kitchen, bathroom; with garage) Source: Mercer Human Resource Consulting, World-wide Cost of Living Survey 2009 - city rankings including all incidental costs, the level of housing comfort conforms to the expectations of salaried mid- Source: Price & Earnings around the Globe, UBS management employees in areas favored by them. The statistical source contains a total of 73 cities. The cities of reference are selected samples Source: Prices & Earnings around the Globe 2009, UBS
  • 29. Report 2009-2010. Prices and costs Rental commercial City Street premises (€/m²) New York Cinquena Avinguda 13,027 Hong Kong Causeway Bay 11,687 Paris Avenue des Champs Elysées 7,732 Milan Via Montenapoleone 6,800 New York Madison Avenue 6,705 Rome Via Condotti 6,500 Tokyo Ginza 5,950 Office Leasing Prices in Cities Commercial Premises Leasing London New Bond Street 5,885 Zürich Bahnhofstrasse 5,246 City Office rental (€/m²) Paris Rue du Faubourg St Honoré 4,787 of the World 2009 London Tokyo 1,359 1,262 Prices in Cities of the World Dublin London Grafton Street Oxford Street 4,356 4,101 Moscow Paris 968 901 2009 Los Angeles Munich Sydney Rodeo Drive (Beverly Hills) Kaufingerstraße Pitt Street Mall 3,832 3,600 3,437 Bombay 898 New Delhi 659 Seoul Myeongdong 3,410 Luxembourg 652 Frankfurt Zeil 3,120 Barcelona becomes more competitive in a climate of Rio de Janeiro 643 Prices in Barcelona are more than 50% lower than in Athens Ermou 3,120 falling prices Milan 621 Paris and London Vienna Kärntnerstraße 3,120 Zürich 613 Chicago North Michigan Avenue 3,065 Dublin 598 San Francisco Union Square 3,065 According to the Global Market Rents study by Richard Ellis, in 2009 office Geneva 580 After some years of an upward trend, the impact of the economic reces- Madrid preciados 2,880 leasing in the city of Barcelona dropped sharply by 24%, setting the price Istanbul 570 sion and the drop in demand in retail activity meant that in 2009 leasing Barcelona portal de l’Àngel 2,760 per square metre at €333, a quarter of the price in London. After the Frankfurt 555 prices of commercial premises fell by 8% in the top European cities and São Paulo Iguatemi Shopping 2,695 Hong Kong 553 Stuttgart Königstraße 2,640 upward evolution of the period from 2004 to 2007, the economic recession by 6% on a global level. In this climate, the evolution in main commercial Edinburgh 530 Berlin Tauentzienstraße (south) 2,640 led to huge price drops for offices on an international level in 2008, and streets in Barcelona in 2009 shows a contrast between the 4.5 % increase Melbourne Bourke Street 2,577 Manchester 524 particularly in 2009, especially in cities in the countries most affected by New York 507 in the price of commercial premises in Portal de l’Àngel – which became Hamburg Mönckebergstraße 2,520 the financial and property crisis. In this regard, Barcelona stands among Rome 505 the 23rd most expensive street in the world – the maintenance of those Madrid Serrano 2,520 56 Stockholm 499 Moscow Tverskaya 2,492 57 the 15 most competitive cities of the 50 studied in terms of leasing – in Passeig de Gràcia and Rambla Catalunya and the reduction (-12.5%) in Madrid 498 Barcelona passeig de Gràcia 2,400 gaining positions over Amsterdam, Helsinki and Hamburg - moving from those in Avinguda Diagonal. On the whole, however, Barcelona continues Singapore Orchard Road 2,302 Glasgow 488 a middle-low position in 2008 to a low position in 2009. Athens 474 to be in a good position for attracting retail activity, and leasing prices Amsterdam Kalverstraat 2,300 Seoul 465 in Portal de l’Àngel are still less than half of those of the main shopping Copenhagen Strøget 2,216 Munich 455 Shanghai East Nanjing Road 2,204 streets in Paris, Rome and London. Toronto 447 Toronto Bloor Street 1,989 office rental prices (M/m2) Shanghai 437 Prague Na Prikope/Wenceslas Square 1,980 Oslo 431 Birmingham High Street 1,936 900 Amsterdam 400 rental prices for commercial premises (t/m2) Newcastle Northumberland Street 1,840 Brussels 398 Edinburgh Princes Street 1,827 Warsaw 387 Rambla de Catalunya Manchester Market Square 1,807 800 1,320 Prague 387 (Barcelona) 1,320 Istanbul Abdi Ipekci (European side) 1,709 Sydney 383 Kalverstraat 2,300 Rotterdam Lijnbaan 1,700 700 (Amsterdam) 2,400 Oslo Karl Johan Gate 1,661 Washington D.C. 380 Passeig de Gràcia 2,400 Brussels Rue Neuve 1,625 Beijing 368 (Barcelona) 2,400 600 Valencia Colon 1,560 Helsinki 367 Portal de l’Àngel 2,760 Kuala Lumpur Suria KLCC 1,559 Buenos Aires 367 (Barcelona) 2,640 500 Hamburg 343 Preciados Beijing Wanfujing 1,495 2,880 45 Copenhagen 340 (Madrid) 2,880 Lyon Rue de la République 1,473 400 43 Barcelona 333 Tel Aviv Ramat Aviv 1,452 38 3,600 3,360 Rio de Janeiro Rio Sul Shopping 1,446 29 40 Vienna 332 Lisbon Grafton Street 4,356 Helsinki City Centre 1,440 300 316 (Dublín) 5,621 Seville tetuán 1,440 Mexico City 289 Via Montenapoleone 6,800 Vancouver Robson Street 1,392 Berlin 276 (Milà) 6,700 2005 2006 2007 2008 2009 Bilbao Gran Via 1,380 Montreal 275 Avenue des Champs Elysées 7,732 Barcelona Milan Munich Posició de Barcelona Silicon Valley 273 (París) 7,732 Marseille Rue St Ferréol 1,326 Amsterdam Dublin Boston 268 Cinquena Avinguda Barcelona rambla de Catalunya 1,320 13,027 San Juan de Puerto Rico 255 (Nova York) 12,612 Stockholm Biblioteksgatan 1,286 Source: CB Richard Ellis, Global Market Rents San Francisco 250 Zaragoza pl. de la Independencia 1,260 Santiago de Chile 243 2008 2009 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Budapest Váci utca 1,200 Atlanta 155 Beirut ABC Centre Achrafieh 997 Source: Cushman & Wakefield, Main Streets Across the World Lisbon Chiado 960 Note: The annual price includes the total costs for occupying an office located in the centre of the city. Bombay Linking Road, Western Suburban 945 The statistical source contains a total of 179 cities. The cities of reference are selected samples Source: CB Richard Ellis, Global Market Rents 2009 Kuwait City Raya Mall 886 Barcelona avinguda Diagonal 840 Note: Annual price per square metre. The statistical source contains a total of 177 cities. The cities of reference are selected samples Source: Cushman & Wakefield, Main Streets Across the World 2009
  • 30. Report 2009-2010. Prices and costs Price of Industrial Land Leasing Highest price for a premises of more than Highest price for a premises of more than Salary Levels in Cities Gross salary City Net salary (New York = 100) (New York = 100) in European Cities 2009 5,000 m² City 5,000 m² (€/m²/year) in 2009 of the World 2009 116 112 Zürich Geneva 120 108 (€/m²/year) in 2008 100 New York 100 210 Londres 161 84 Dublin 99 130 Oslo 137 126 Copenhagen 94 86 Moscou 130 91 Los Angeles 92 130 Dublín 115 93 Oslo 84 Barcelona is situated in the sixth position in the 130 Hèlsinki 110 Barcelona, in an intermediate position among the 81 Helsinki 83 108 Barcelona 102 continental ranking, with a price reduction of 5% 96 Madrid 84 world’s major cities 81 Miami 83 74 Tokyo 83 72 Zagreb 78 80 Chicago 79 Barcelona remained at the top end of European cities with regard to indus- 75 Copenhaguen 77 Barcelona offers competitive salary levels in relation to other cities of the Frankfurt 84 77 trial land leasing in 2009, with a maximum price of E102/m2/year which 105 Estocolm 75 world. In 2009 it occupied the 24th position among the 49 cities in the 82 Brussels 75 72 Frankfurt 69 situated it in the sixth position in the continental ranking, while in 2008 it global ranking and the 16th in the European ranking, dropping by 3 and 70 Sydney 74 72 Sofia 66 occupied the fifth position. London continues to be the most expensive in- 2 positions respectively in comparison with 2008 after a number of years 72 Vienna 74 90 Amsterdam 65 69 London 73 dustrial location in Europe, followed by Oslo, Moscow, Dublin and Helsinki. 66 Istanbul 64 with an upward trend. One of the main factors explaining this evolution is 76 Berlin 72 78 Belgrad 60 the depreciation of the euro with regard to the dollar, which has led to a 79 Amsterdam 71 70 Milà 58 The unfavourable evolution of industrial activity in 2009 in the majority of fall in salary levels in most European cities compared with the reference 75 Stockholm 71 58 54 Bucarest 54 59 urban areas analysed in the study led to a standstill or reduction in the index of New York, with decreases of 20, 25 and 36 points in Barcelona, 69 Paris 70 54 Praga 54 64 Montreal 68 price of industrial land, which in the case of Barcelona fell by 5% in com- 53 París 53 Berlin and London, respectively. 65 Toronto 68 parison with the previous year. 48 Lió 49 55 Madrid 63 46 Bratislava 46 55 Barcelona 62 45 Brussel·les 45 64 Milan 61 44 Lilla 45 Net salary level (New York=100) 38 Dubai 53 Highest price for a premises of more than 5,000 m2 (M/m2/year) 44 Varsòvia 44 45 Lisbon 49 42 Antvers 42 105 50 Rome 48 48 Budapest 42 150 99 New York=100 45 Athens 46 39 Limburg 40 34 Hong Kong 42 Font: King Sturge, European Industrial Property Markets 2009 85 44 Ljubljana 36 30 Seoul 32 125 77 5 73 27 Singapore 31 71 5 67 26 Moscow 31 3 62 São Paulo 29 6 60 61 25 100 6 25 Prague 27 26 Johannesburg 27 21 Bratislava 23 75 22 Rio de Janeiro 23 22 Riga 23 21 Warsaw 21 50 22 Vilnius 21 15 Buenos Aires 18 Dublin Munich Amsterdam Barcelona Milan 15 Santiago de Chile 17 2006 2007 2008 2009 15 Shanghai 16 2006 2009 Barcelona Milan Posició de Barcelona 19 Budapest 16 Source: Prices & Earnings around the Globe, UBS Amsterdam Dublin 13 Sofia 14 11 Kiev 12 Source: King Sturge, European Industrial Property Markets 8 Mexico City 9 Note: Effective hourly wages for 14 professions.Net after deduction of taxes and social security contributions The statistical source contains a total of 73 cities. The cities of reference are selected samples Source: Prices & Earnings around the Globe 2009, UBS
  • 31. Report 2009-2010. Labour market and training Introduction The fall in economic activity in Spain and Catalonia in 2008 and its in- tensification in 2009 had a negative effect on the labour market both in Barcelona and its surrounding area. Even though there were signs of al- leviation towards the end of the year, experts agree that the recovery of jobs lost as a result of the recession will extend into 2011. This process of adjustment in the labour market and net destruction of jobs is a result of a period of expansion that lasted over a decade, and it has led to a net increase in the unemployment rate in Barcelona, Catalo- nia and Spain that is above the European average, which the Principality exceeded in 2008 and the city of Barcelona exceeded in 2009 with an un- employment rate of over 15%. Despite this unfavourable evolution, the structural advance in partici- pation levels reached in the labour market during the previous phase means that activity and employment rates in Barcelona and Catalonia 60 continue clearly to exceed the EU average. On the other hand, the trend in the city is less negative than in its surrounding area: it has over a mil- LABOUR MARKET AND TRAINING 61 lion people registered with the Social Security and it closed 2009 with an employment rate (79%) that was higher than both the European average and the rates before the recession. The city has a powerful instrument for developing local active employ- ment and development policies agreed between the City Hall and the Generalitat (Government) of Catalonia, the Quality Employment Agree- ment, which aims to alleviate the effects of this situation and advance in economic recovery towards a model of future growth. With regard to education, Barcelona continues to be the only city with two business schools that are among the top ten in Europe and the top twenty worldwide according to the Financial Times. In addition, in 2009 they con- solidated two new distinctions: according to The Economist Intelligence Unit, the IESE School occupies the top position in the global ranking in the full-time MBA classification, and the Financial Times recognises the Master’s Course in International Management given by Esade – within the framework of the CEMS alliance of European business schools and universities – as the best in the world. Finally, it must be pointed out that the percentage of workers with uni- versity studies in Catalonia was significant in 2008 and is above the EU-15 average, reaching a level of almost 39% in the case of women.
  • 32. Report 2009-2010. Labour market and training Employment rate in European The employment rate stays above the European average Female employment rate (%) 2008 Growth rate 2007/2008 (in p.p) Region (CITY) Growth rate 2007/2008 (in p.p) Employment rate (%) 2008 regions 2008 Catalonia registered an employment rate of 69.9% in 2008, although this represents a 1.1% decrease compared to the previous year, it is still 4 78.5 72.7 1.9 1.8 Oslo (OSLO) North Holland (AMSTERDAM) 1.0 1.6 79.8 78.3 points above the rate recorded in the whole of the EU and higher than 74.3 1.1 Denmark (COPENHAGEN) 0.9 78.1 leading regions such as London, Dublin, Île-de-France and Lombardy. 75.1 1.0 Stockholm (STOCKHOLM) 1.0 77.0 69.8 1.2 South Holland (ROTTERDAM) 0.9 76.1 The employment rate for women showed particularly favourable gains 70.7 1.7 Upper Bavaria (MUNICH) 75.8 1.3 and was not affected by the current economic trend. Women’s employ- 69.5 1.6 Stuttgart (STUTTGART) 1.4 75.3 ment increased by 0.7% in the Principality of Andorra, reaching 62.2%, 69.6 0.3 Eastern Scotland (EDINBURGH) 0.4 74.6 and for the third consecutive year it exceeded the objective of 60% estab- 71.7 -0.2 Etelä-Suomi (HÈLSINKI) 0.7 74.0 66.1 1.5 Darmstadt (FRANKFURT) 1.4 72.0 lished by the Lisbon Summit for the year, although it is still far behind 64.0 -0.7 Prague (PRAGUE) -0.1 71.5 Scandinavia, where the rate is over 70%. 67.6 2.2 Sofia (SOFIA) 2.5 71.0 66.5 1.6 Hamburg (HAMBURG) 1.2 70.9 The employment rate in Barcelona was 66.8% in the fourth quarter of 62.2 0.7 Catalonia (BarCeLoNa) -1.1 69.9 66.3 0.4 Estonia (TALLINN) 0.4 69.8 2009, while the employment rate for women reached 62.7%. Despite the 62.0 0.0 Autonomous Community of Madrid (MADRID) -1.2 69.6 decrease in this index over the year, these percentages exceeded those 62.0 1.4 London (LONDON) 1.3 69.6 in Spain by 7.9% and 9.4% and are above the average in the European 65.1 -1.5 South-West Scotland (GLASGOW) -1.4 69.4 Union. 65.4 1.0 Latvia (RIGA) 0.3 68.6 62 65.3 0.8 Lisbon (LISBON) 1.2 68.5 63 61.1 -0.4 Eastern Ireland (DUBLIN) -1.3 68.3 63.2 -1.1 Greater Manchester (MANCHESTER) -0.8 68.0 employment rates (%) 59.2 1.1 Basque Country (BILBAO) 0.5 67.9 61.4 0.4 Düsseldorf (DÜSSELDORF) 1.0 67.8 75 64.6 1.6 Île de France (PARIS) 0.9 67.6 71.0 62.3 1.0 Vienna (VIENNA) 0.4 67.4 70.4 57.1 0.5 Lombardy (MILAN) 0.3 67.0 69.3 69.9 70 59.0 0.7 europeaN uNIoN 0.5 65.9 67.0 61.1 0.8 Rhone-Alps (LYON) -0.3 65.7 66.3 55.4 0.5 Autonomous Community of Valencia (VALENCIA) 64.7 64.9 64.5 -1.3 65 64.0 58.0 2.3 Masovian Voivodeship (WARSAW) 3.7 64.6 54.9 0.2 Spain -1.3 64.3 61.8 -0.4 Lithuania (VÍLNIUS) -0.6 64.3 60 57.3 -1.4 West Midlands (BIRMINGHAM) -1.8 63.7 52.2 2.0 Attica (ATHENS) 1.0 63.4 56.2 0.3 Bucharest (BUCHAREST) 0.9 63.3 55 60.9 0.3 Berlin (BERLIN) 0.5 62.9 56.5 0.1 Central Hungary (BUDAPEST) 0.0 62.7 56.8 1.6 Provence-Alps-Cote D’Azur (MARSEILLE) 1.4 61.6 50 54.5 1.1 NeW MeMBer StateS * 1.2 61.2 2000 2001 2002 2003 2004 2005 2006 2007 2008 49.0 0.9 Lazio (ROME) 0.5 60.2 Catalonia Spain European Union 54.4 -0.6 Languedoc-Roussillon (MONTPELLIER) 0.0 58.8 48.4 0.1 Brussels (BRUSSELS) 0.8 55.6 Source: Eurostat 20.8 0.9 Istanbul (ISTANBUL) 0.1 44.8 20.7 0.0 Ankara (ANKARA) -1.0 43.5 Note: Active population between 15 and 64 years old The statistical source contains a total of 314 regions. The regions of reference are selected samples * Without Bulgaria and Romania Source: Eurostat
  • 33. Report 2009-2010. Labour market and training Regional unemployment Female un- Unemployment Employees with university Female employment employees Employees in Europe for 2008 rate (%) 2.3 Prague (PRAGUE) Region (CITY) rate (%) 1.9 studies in European with tertiary with tertiary education 2008 education 2.6 3.0 North Holland (AMSTERDAM) Sofia (SOFIA) 2.6 2.9 regions 2008 (%) Region (CITY) 2008 (%) 2.6 Oslo (OSLO) 2.9 54.69 Oslo (OSLO) 51.73 3.3 South Holland (ROTTERDAM) 3.0 56.53 Brussels (BRUSSELS) 50.91 3.7 Denmark (COPENHAGEN) 3.3 51.54 Basque Country (BILBAO) 48.84 The economic recession places the unemployment rate 3.4 Upper Bavaria (MUNICH) 3.3 The percentage of Catalan workers with university 49.68 London (LONDON) 47.92 above the European average for the first time in 4 years 2.5 Bucharest (BUCHAREST) 3.4 studies exceeds the European average 49.88 Etelä-Suomi (HELSINKI) 44.00 4.8 Lombardy (MILAN) 3.7 45.60 Autonomous community of Madrid (MADRID) 43.62 4.9 Stuttgart (STUTTGART) 4.2 47.21 Eastern Scotland (EDINBURGH) 43.15 After three consecutive years of maintaining the unemployment rate 46.88 Stockholm (STOCKHOLM) 42.63 5.3 Central Hungary (BUDAPEST) 4.6 below the EU average, the effects of the economic recession on the la- 4.4 Eastern Scotland (EDINBURGH) 4.8 In 2008, 34.6% of the Catalan work force had university studies, a higher 45.30 Île de France (PARIS) 42.50 bour market have increased the unemployment rate in the Principality of 5.3 Stockholm (STOCKHOLM) 5.2 percentage than in the EU-15 and more than in 2007, although slightly 42.91 North Holland (AMSTERDAM) 41.47 Andorra to 9 % in 2008. This is 2 points more than the European Union, 5.6 Etelä-Suomi (HÈLSINKI) 5.3 lower than the Spanish average. The percentage of female employees 41.67 Berlin (BERLIN) 40.59 4.7 South-West Scotland (GLASGOW) 5.4 45.76 Eastern Ireland (DUBLIN) 39.80 but less than the unemployment rate in Spain (11.3 %) and regions such with higher education in Catalonia was 38.6%, once again higher than 5.3 Estonia (TALLINN) 5.5 41.77 South-West Scotland (GLASGOW) 38.07 as the West Midlands, Berlin and Brussels. The unemployment rate for the percentage for men, higher than the percentage for women from the 41.45 Denmark (COPENHAGEN) 37.27 4.2 Eastern Ireland (DUBLIN) 5.6 women in Catalonia was 9 % in 2008, 1.2 points more than the previous 5.6 Lithuania (VÍLNIUS) 5.8 previous year and higher than the EU average, but lower than the per- 43.69 Sofia (SOFIA) 36.87 64 36.23 South Holland (ROTTERDAM) 36.61 65 year and 1.3 above the EU average. Nevertheless, the difference between 6.4 Masovian Voivodeship (WARSAW) 6.0 centage recorded in Spain. As a whole, while there has been progress in 6.2 Darmstadt (FRANKFURT) 6.1 41.95 Lithuania (VÍLNIUS) 35.74 unemployment rates for men and women in Catalonia was 0 for the first higher education in Catalonia in 2008, it is necessary to continue working 7.7 Basque Country (BILBAO) 6.4 30.10 Upper Bavaria (MUNICH) 35.46 time, while both Spain and the great majority of European regions had a to close the gap between the level of studies of the labour force in the 39.91 Spain 35.05 8.6 Attica (ATHENS) 6.5 higher unemployment rate for women than for men. In Barcelona, the 7.2 Rhone-Alps (LYON) 6.6 Principality of Andorra and those in the regions of northern Europe. 38.57 Catalonia (BarCeLoNa) 34.62 unemployment rate reached 8.4% in the fourth quarter of 2008. The gen- 6.5 Vienna (VIENNA) 6.7 36.86 Bucharest (BUCHAREST) 34.50 7.5 NeW MeMBer StateS * 6.8 36.27 Attica (ATHENS) 33.28 eral situation worsened in 2009, with the unemployment rate reaching 7.5 europeaN uNIoN 7.0 32.39 Prague (PRAGUE) 33.19 15.4% in the fourth quarter. This was still less than the Principality of An- population with university studies (% of total employment) 37.57 Rhone-Alps (LYON) 33.08 7.1 London (LONDON) 7.1 dorra and the Spain, with 1.7% and 3.3% respectively. 6.4 Hamburg (HAMBURG) 7.1 37.89 Languedoc-Roussillon (MONTPELLIER) 32.97 6.5 Île de France (PARIS) 7.2 34.26 Central Hungary (BUDAPEST) 32.94 7.0 Düsseldorf (DÜSSELDORF) 7.4 42 40.17 Masovian Voivodeship (WARSAW) 32.50 9.7 Lazio (ROME) 7.5 40 34.43 Greater Manchester (MANCHESTER) 32.32 unemployment rates (%) 35.66 West Midlands (BIRMINGHAM) 32.04 6.9 Latvia (RIGA) 7.5 36 35 6.7 Greater Manchester (MANCHESTER) 7.7 33 23.81 Stuttgart (STUTTGART) 31.64 12 31 5 28.05 Darmstadt (FRANKFURT) 31.61 8.3 Provence-Alps-Cote D’Azur (MARSEILLE) 8.1 29 8.4 Lisbon (LISBON) 8.2 36.07 Autonomous community of Valencia (VALENCIA) 31.10 10.1 9.6 Autonomous Community of Madrid (MADRID) 8.7 23 49.54 Ankara (ANKARA) 30.54 10.0 32.01 Provence-Alps-Cote D’Azur (MARSEILLE) 30.10 10 9.7 9.0 Catalonia (BarCeLoNa) 9.0 7.5 West Midlands (BIRMINGHAM) 9.4 18 31.35 europeaN uNIoN 28.63 8.9 9.0 8.6 10.0 Languedoc-Roussillon (MONTPELLIER) 9.7 35.36 Latvia (RIGA) 28.33 11.9 Istanbul (ISTANBUL) 9.9 28.26 Vienna (VIENNA) 27.93 9 21.71 Düsseldorf (DÜSSELDORF) 25.33 8 14.8 Ankara (ANKARA) 10.5 7.0 13.0 Spain 11.3 28.65 Lisbon (LISBON) 24.59 6.6 6.5 13.6 Autonomous Community of Valencia (VALENCIA) 12.1 28.63 NeW MeMBer StateS * 23.77 13.4 Berlin (BERLIN) 15.1 29.44 Lazio (ROME) 23.61 6 16.6 Brussels (BRUSSELS) 15.9 Nord Holland Eastern Ireland Upper Bavaria Catalonia Lombardy 40.93 Istanbul(ISTANBUL) 21.77 (Amsterdam) (DUBLIN) (Munich) (Barcelona) (Milan) 21.63 Lombardy (MILAN) 18.06 Note: The statistical source contains a total of 314 regions. The regions of reference are selected samples * Without Bulgaria and Romania 2000 2008 Note: % aged between 25 and 64 with university qualifications Source: Eurostat The statistical source contains a total of 314 regions. The regions of reference are selected samples 4 Source: Eurostat * Without Bulgaria and Romania 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: Eurostat Catalonia Spain European Union Source: Eurostat
  • 34. Report 2009-2010. Labour market and training The Best European Business Barcelona continues to be in a leading position as a city of educational excellence European Ranking 2010 Business School City World Ranking 2010 Schools 2010 The IESE and ESADE business schools are in the fourth and eighth posi- 1 2 London Business School Insead London Fontainebleau 1 5 tions in the European ranking of the top 100 full-time MBA programmes 3 IE Business School Madrid 6 4 Iese Business School Barcelona 11 according to the Financial Times published in 2010, gaining one place each IMD 5 Lausanne 15 in comparison with their result in 2008. Furthermore, these two prestig- 6 University of Oxford: Saïd Oxford 16 ious institutions achieved the eleventh and nineteenth positions in the 7 HEC Paris Paris 18 global ranking, maintaining and improving by two positions, respectively, 8 esade Business School Barcelona 19 9 University of Cambridge: Judge Cambridge 21 their 2008 result. In this regard, Barcelona consolidates itself as the only 10 Lancaster University Management School Lancaster 24 city with two educational institutions among Europe’s top ten business 11 Rotterdam School of Management, Erasmus University Rotterdam 25 schools. In addition, in 2009 they consolidated this outstanding position 12 Cranfield School of Management Cranfield 26 with two new distinctions: according to The Economist Intelligence Unit, 13 Imperial College Business School London 32 14 SDA Bocconi Milano 38 the IESE School occupies the top position in the global ranking of the full- 15 Manchester Business School Manchester 40 time MBA classification, and the Financial Times recognises the Master’s 16 City University: Cass London 41 Course in International Management given by Esade – within the frame- 17 Warwick Business School Coventry 42 work of the CEMS alliance of European business schools and universities 18 University of Strathclyde Business School Glasgow 51 19 Aston Business School Birmingham 73 66 – as the best in the world. 20 Durham Business School Durham 74 67 21 Birmingham Business School Birmingham 75 22 University of Bath School of Management Bath 87 position in european ranking 23 Vlerick Leuven Gent Management School Ghent 87 24 University of Edinburgh Business School Edinburgh 89 25 Bradford School of Management/TiasNimbas Business School Bradford 89 26 EM Lyon Lyon 97 27 University College Dublin: Smurfit Dublin 98 3 Source: Financial Times 4 4 4 5 6 7 8 8 9 10 10 2005 2006 2007 2008 2009 2010 IESE Business School ESADE Business School Source: Financial Times
  • 35. S y N t H e S I S
  • 36. Report 2009-2010. Synthesis The 2009-2010 report released by the Barcelona Observatory makes it The future holds some important challenges for Barcelona, in an extre- Employers in high Population clear that, although the world is being battered by the crisis, Barcelona mely complex context because of Spain’s current economic situation. and medium- employed in has not relinquished its solid international position and that it is still an This situation means an organised, firm policy is needed face the crisis, Business Inward Foreign Organization of high technology science and Total PCT patents Business Cities, Entrepreneurial perspectives Investment Corporate tax, International manufacturing technology, applications, Scientific extremely strong brand: which will stimulate new, quality employment. Austerity must be practi- 2009 activity, 20081,3 exports, 20101,2 Projects, 20082 20091,3 Meetings, 2008 sectors, 20081,2 20081,2 20071,2 Production, 2009 ced in public funding, which must continue to focus strategically on the Firstly, according to top European executives, Barcelona is back in fourth new, production model for the future based on knowledge, creativity and 1 London Mexico Lisbon London Japan Singapore Milan Paris Tokyo Beijing position in the ranking of the Continent’s best business cities and is innovation. This investment must define the overall management of the among the world’s top five for organising international conferences and Barcelona brand and new types of public and private collaboration as 2 Paris United states Copenhagen Paris United States Paris Stuttgart London Silicon Valley London meetings. Even though the evolution of the indicators and direct and in- fundamental instruments. direct foreign investment and business activity is clearly in recession, this 3 Frankfurt Iceland Rome Düsseldorf Argentina Brussels Munich Madrid New York Tokyo is not denying Barcelona and Catalonia a prominent position in the Euro- pean context. 4 Barcelona Greece Edinburgh Madrid South Africa Vienna Barcelona Copenhaguen Boston Paris The successful strategy of moving towards a knowledge and creativity- 5 Brussels Norway Athens Dublin India Barcelona Paris Barcelona Los Angeles New York based economy is leading to significant progress. One particularly outs- tanding fact is that Barcelona is 15th in the world ranking of cities in 6 Madrid Ireland Tallinn Barcelona Belgium Tokyo Istanbul Milan Seoul Boston terms of scientific production. Catalonia is also among the five top regi- ons in Europe in terms of specialist science and technology workers and 70 7 Munich Barcelona Stockholm Munich France Seoul Düsseldorf Munich Osaka Seoul 71 workers employed by high or medium-high intensity technology manu- facturers. 8 Amsterdam Catalonia Barcelona Lyon Canada Budapest Frankfurt Warsaw Chicago Shanghai Barcelona is still firmly established among Europe’s leading cities for tourists.Its tourist industry has been notably resistant to the crisis, with 9 Berlin Finland Valencia Moscow Italy Copenhagen Copenhaguen Lyon Seattle Moscow its clear leadership in Mediterranean cruises and improvements to air- port infrastructures. 10 Milan Spain Istanbul Frankfurt Tunisia London Lyon Stuttgart Houston Madrid Barcelona has been a leader in quality of life for some years now, thanks 11 Geneva Hungary Helsinki Bucharest Barcelona Geneva Madrid Berlin Stuttgart Los Angeles to good performance of some significant sustainability indicators, such as the low level of CO, emissions in comparative terms. 12 Hamburg Latvia Vienna Amsterdam Australia Amsterdam Bilbao Rotterdam Munich Rome Barcelona moved up seven positions in the world ranking of cities for cost 13 Zurich Slovenia Warsaw Budapest Germany Lisbon Helsinki Athens Stockholm Baltimore of living, and registered falls in office and industrial land rental prices, which make its offer more competitive. However, salaries have not risen 14 Birmingham Turkey Munich Milan Luxembourg Sydney Rome Frankfurt … Toronto to the same degree as they have in the reference cities. 15 Düsseldorf United Kingdom Berlin Stockholm United Kingdom Rome Berlin Rome 22 Barcelona Barcelona When it comes to training, Barcelona has two business schools which position it among European and world leaders, and the percentage of 1 Selected sample ranking workers with university studies is continuing to grow. 2 Regions or provinces ranking 3 Country ranking The evolution of its employment indicators was not so favorable, with job losses and an unemployment rate above the European average for the first time in four years. However, the value of overall employment and the women’s employment rate are above European Union averages.
  • 37. Report 2009-2010. Synthesis Apartment rental Rental price for Employees Hotel places, Cruise Regristation Quality of life of Cost of living, prices, Office rental Rental prices for commercial industrial land, Salary levels, Employment rate, Unemployment with tertiary Airport passengers, 2009 20081,2 Passengers, 2008 EMAS, 20093 workers, 2009 CO2 emissions 2009 20091 prices, 20091 premises, 20091 2009 20091 20081,2 rate, 20081,2 education, 20081,2 European business schools, 2010 1 London Heathrow (LHR) Paris Barcelona Germany Barcelona Barcelona Tokyo New York Londres 1 New York-5th Avenue London Zürich Oslo Prague Oslo London-London Business School 2 Paris Roissy (CDG) London Balearic Islands Spain Geneva Geneva Osaka Tokyo Tòquio 2 Hong Kong-Causeway Bay Oslo Geneva Amsterdam Amsterdam Brussels Fontainebleau-Insead 3 Frankfurt (FRA) Rome Naples Italy Munich Prague Moscow Hong Kong Moscou 3 Paris-Avenue des Champs Elysées Moscow New York Copenhaguen Sofia Bilbao Madrid-IE Business School 4 Madrid (MAD) Barcelona Venice Catalonia Oslo London Geneva Dubai París 4 Milan-Via Montenapoleone Dublin Dublin Stockholm Oslo London Barcelona-Iese Business School 5 Amsterdam (AMS) Madrid Dubrovnik-Korkula Austria Madrid New York Hong Kong Moscow Bombai 5 New York-Madison Avenue Helsinki Copenhagen Rotterdam Rotterdam Helsinki Lausana-IMD 6 Rome-Fiumicino (FCO) Berlin Livorno Barcelona Stockholm Bangkok Zurich Chicago Nova Delhi 6 Rome-Via Condotti Barcelona Los Angeles Munich Copenhagen Madrid Oxford-University of Oxford: Saïd 72 7 Munich (MUC) Milan French Riviera Denmark Paris Toronto Copenhagen Miami Luxemburg 7 Tokyo-Ginza Madrid Oslo Stuttgart Munich Edinburgh París-HEC Paris 73 8 London Gatwick (LGW) Prague Tunisia Portugal Copenhagen Cape Town New York Helsinki Rio de Janeiro 8 London-New Bond Street Zagreb Helsinki Edinburgh Bucharest Stockholm Barcelona-Esade Business School 9 Barcelona (BCN) Athens Valletta Sweden Zurich Los Angeles Beijing Sydney Milà 9 Zürich-Bahnhofstrasse Copenhagen Miami Helsinki Milan Paris Cambridge-University of Cambridge: Judge 10 Paris Orly (ORY) Vienna Genoa Greece Hamburg Denver Singapore Singapore Zuric 10 Paris-Rue du Faubourg St Honoré Stockholm Tokyo Frankfurt Stuttgart Amsterdam Lancaster-Lancaster University Management School 11 Zurich (ZRH) Munich Palermo United Kingdom London Milan Milan Dublín 11 Dublin-Grafton Street Frankfurt Chicago Prague Budapest Berlin Rotterdam-Rotterdam School of Management, Erasmus University 12 Palma de Mallorca (PMI) Lisbon Portugal Belgium Amsterdam Shanghai Dublin Ginebra 12 London-Oxford Street Sofia Frankfurt Sofia Edinburgh Dublin Cranfield-Cranfield School of Management 13 Dublin (DUB) Dublin Cyprus Czech Republic Rome Paris London Istanbul 13 … Amsterdam Brussels Hamburg Stockholm Glasgow Londres-Imperial College Business School 14 London Stansted (STN) Valencia Malaga Finland Lisbon … … … 14 23 Barcelona-Portal de l’Àngel Istanbul … Barcelona ... ... Milà-SDA Bocconi 15 Copenhagen (CPH) Budapest Messina Norway Lyon 38 Barcelona 31 Barcelona 40 Barcelona 15 31 Barcelona-Passeig de Gràcia Belgrade 24 Barcelona Tallinn 37 Barcelona 20 Barcelona Manchester-Manchester Business School 1 Selected sample ranking 1 Selected sample ranking 2 Regions or provinces ranking 2 Regions or provinces ranking 3 Country ranking 3 Country ranking
  • 38. M o N o G r a p H I C
  • 39. Informe 2009-2010. Monogràfic THE WELL-CONNECTED The imperative of innovation investments in new digital technologies and differences in deployment and usage models favouring certain cities in the rapidly shifting 21st century While the city deployments differed considerably. as did the outcomes, we identified a common set of problems encountered by cities and city CITY The battleground of international competitiveness in the 21st century world? It is an environment where cities are competing for investment and districts. These are: is innovation and cities [1], which are increasingly viewed as the caul- new jobs, and trying to become hubs of innovation in the knowledge econo- drons of innovation, enriching not only their surrounding regions, but my to deliver prosperity to their citizens. • capabilities of public sector organisations to develop, build and operate AN INTEGRATED APPROACH their nations. Across the globe, cities are undergoing massive renewal, the systems fundamental shifts in the nature of work and the workplaces they host, In this paper we explore the key challenges facing cities in their deploy- • sustainable business model TO PLANNING AND DEPLOYMENT and transformations to their output and consumption. And in the rap- ment of pervasive broadband networks and related services and draw par- • achieving cross-departmental buy-in and cooperation OF DIGITAL TECHNOLOGIES idly industrialising countries we see small towns being transformed into metropolises and entire new cities planned. From the City of London to allels with the challenges faced by cities in the 19th century in their de- ployment of telephony and electrical networks. The analysis can provide • transforming service delivery rather than simply e-enabling the front end of existing services Chennai, Shoreditch to Shanghai, and Amsterdam to Dubai; cities are guidance to policymakers and practitioners, especially technology and ICT April 2010 growing, transforming and repositioning themselves as players on a glo- service providers. This guidance is embodied in a strategic planning model • creating compelling content and services and engaging and involving Nick Leon, Director of Design London at the Royal College bal stage. This transformation includes major installation and renewal of based on eight factors related to these challenges. This model provides the community in determining the content, services and priorities of Art and Imperial College ICT infrastructures and radical changes in the delivery of public services. policymakers and practitioners with a tool for a more integrated approach • comprehensive deployment models and accessibility for the entire to planning, the prioritisation of requirements, the assessment of vendor community including people with special needs Historically, cities became established at the intersections of trade propositions, and calibration of systems once they have been deployed. • internal and external governance and asset ownership models; clear routes or where geography favoured production and distribution of physi- definition of roles and responsibilities. cal goods. These advantages were reinforced through agglomeration, Over a two-year period, Imperial College London carried out nine detailed economies of scale, the development of sophisticated infrastructures, case studies in European and US cities and a quantitative analysis of 168 A comparison of the case study cities with the experience of cities at the 76 especially road, rail and air links, and the enrichment and diffusion of US cities [5]. The research involved interviewing over 100 members of the end of the 19th and early 20th centuries, as they deployed new techno- 77 expert knowledge through universities and research centres. In present city authorities and related agencies and private sector organisations. The logical infrastructures such as electricity, telephony, telegraphy, etc, day knowledge-based, services-led economies where communications findings were published in 2010. highlights similar sets of challenges. Historical analysis as well as Large networks can sometimes seem more important than rail and road net- Technical Systems (LTS) theory [6], [7] predicts many of the problems be- works, global cities are emerging as the command and control centres of The individual city case studies, information from interviews and documen- ing experienced by the cities in the case studies and points to a series international business, and the ICT infrastructure they provide is a major tation on other cities, show that there is wide variation in terms of the suc- of factors that must be addressed for a city to successfully exploit new influence on businesses seeking to relocate. cess of the various initiatives. technological infrastructures and deliver the social and economic divi- The research highlighted the need for a more integrated approach to plan- dend from their deployment. ning technical infrastructure with spatial planning, economic development and social capital development strategies within the city. This model, which is depicted in Figure 1, illustrates the principle attributes of what we refer The Knowledge-Based, Networked Economy and the Role of ICT to as a Well-Connected City. Eight factors that can influence a successful outcome In a global and highly networked economy, cities are linked one to another Infrastructure Regional and city and in turn to secondary nodes of production, distribution and consump- and services level policies for to support innovation including I have synthesised the challenges that emerge from the case studies and tion. There is evidence that the strongest cities become stronger and for knowledge presence of lead those predicted by LTS theory and the related literature on urbanism, those that are left behind the climb to achieve prosperity is long and tortu- intensive, service users innovation and capabilities, into eight key factors for effective city-wide ous. For instance, New York is the only one of the 16 largest cities, in either led, networked economy Infrastructure economic Demand as well broadband networks and related services. The case studies and other the north-eastern or mid-western United States, with a higher population and Services Development as supply side interviews indicate that these factors are those most likely to influence today than it had 50 years ago. The decline of some cities has been precipi- interventions successful outcome and that lack of focus in any one of them could result tous, with their populations halving over the last 70 years while the total US in flawed deployment and suboptimal outcomes. Well population almost doubled in the same period. As Glaeser pointed out in Connected his analysis of the Skilled City, the stakes are high and the future economic City We will now examine each of these factors in relation to the case stud- vitality of major cities depends on their ability to attract, develop and main- ies, and some examples of best practice. The eight influencing factors we tain skilled resources. Built environment, Large pool consider are: amenities and urban Design Social Capital of scientific programmes and technical The topic I am investigating in this paper is how cities are using techno- to attract and resources and 1. functionality logical systems to transform and compete in the global knowledge-based connect firms and regional market 2. accessibility economy, and the role of digital and communications technologies and re- skilled knowledge for specialised workers skills 3. compelling content lated services and how they fit into a more comprehensive, integrated ap- 4. deployment and delivery proach to planning. Roads, railways and airports, electricity and telecom- 5. service integration munications transformed cities in the 19th and 20th centuries. How are Figure 1: Integrated Planning Model for a Well-Connected City 6. spatial integration
  • 40. Informe 2009-2010. Monogràfic 7. governance and ownership to ensure an entire city and its suburbs could be covered by municipal This sense of ownership, locality and currency is crucial to usage, and in its programmes which kick started the massive exploitation of fixed 8. sustainability - economic, technological, environmental. broadband, while Stuttgart tested 1,500 different types of mobile phones the importance of compelling content is reflected in the Barcelona case and mobile broadband services. In contrast, Barcelona’s Virtual Memoria to ensure that its MobilCity services could be used almost regardless of study and the Virtual Memoria project. project is trying to reach a large community of retired people as well as Functionality: refers to the nature of the infrastructure, the technolo- the type of device and its form factor. schoolchildren. However, without the investment in deployment they are gies and standards supported by the network, network capacity, latency, The nature of the services and content of municipal or community broad- reaching only hundreds rather than tens of thousands of users who could availability, security and quality of service. Cities such as Taipei, Songdo Digital Bridge in Shoreditch, RegenTV in Newham and the telecare portal band networks is analogous to the multiplicity of applications of electri- benefit from this initiative. Similarly, Shoreditch was faced with deploy- in Seoul, and Canary Wharf are examples of high performance networks in Karlskrona are all examples of portals designed to be accessed using cal energy in the home. The development of telephony services since the ment challenges with the roll out of the Digital Bridge platform and servic- with rich functionality supporting a broad range of technologies. Cities digital TV, and combine the familiar interface of a remote control, and 1950s has transformed the value of telecommunications to the public es. These were again down to an imbalance of resources between service where coverage is patchy, performance inconsistent or poor find it dif- video and data formats accessible to users with limited or no experience and private sectors and for home use. In 1878, when Edison launched the innovation and service deployment. ficult to attract subscribers, and those they do attract often discontinue of using computers and browser-based GUI. The case study of the City benefits of installing electricity in their homes to the public it was on the their subscriptions. Lack of security deters content providers and the en- of London in particular demonstrates that it is essential to allow other basis of incandescent lamps, electricity meters, and electrical appliances The growth of new energy technologies in the 19th century give some terprise market. The importance of security, especially for the enterprise firms access to systems through the provision of guest capabilities for such as dynamos. At that time he still had not developed a practical in- clues as to the challenges we might face in the 21st century with dig- market, was stressed in an interview with Niall Murphy, CTO of Cloud the wireless networks in firms they may be visiting. This highlights the candescent lamp or even reliable electricity generation or distribution ital technologies. Steam engines and then electrical networks deploy- Networks, and by the Canary Wharf Corporation executive team respon- importance of security to give firms confidence in allowing access. Ac- capabilities. However, he knew that compelling applications and services ments emphasise the importance of generating demand through educat- sible for Canary Wharf’s wireless network. The issue of functionality is cessibility also includes affordability of the service and a key element of would be required to establish a market. Within a decade, the firm Merz ing users on potential applications and value of services for residential closely entwined with politics. Poor performance and patchy coverage of the deployment in Philadelphia, Corpus Christi and San Francisco was and McLellan in England was working with firms to help them under- and professional markets. Charles T James was an engineer in the late municipal wireless networks, especially when they have been promoted the provision of low-cost broadband access for the community, including stand how to reorganise their manufacturing plants to exploit the new 19th century who travelled the Eastern seaboard of the US explaining and as a low cost alternative to the DSL or cable broadband services from in- free wireless access to some city specific services. energy source and Samuel Insull in Chicago ran the “electricity store” educating mill owners about the transformations achievable by steam cumbent telecoms operators, have political ramifications for the city au- Early deployments of electric and telephone networks experienced simi- to promote the appliances that could be used at home, spending more powered mills. He demonstrated how these mills could be relocated from 78 thorities and mayors who are promoting pervasive broadband availability lar problems including limitations of geographic coverage, especially into on the promotion of these services than was spent by the entire British the inaccessible and narrow valleys required for water power, to wharves 79 for all as a key plank of their campaigns. dispersed suburbs, poor districts and rural environments and interop- electricity industry at the time. The electric streetcar was another exam- where coal could be delivered and products transported more easily, or erability. Users were faced with the problem of proprietary systems and ple of how electricity networks could deliver a new and valued service closer to the markets they served [8]. Engineering consultants, such as Cities such as Corpus Christi, Portland and Philadelphia are regularly being locked into one supplier for all components of the system. The law for consumers. It was introduced first in Berlin and Chicago, and later in Von Miller, Merz and McLellan, and Klingenberg, worked in close part- cited in the US press as examples of cities where the expectations of on interoperability of different services and networks was introduced in New York. nership with entrepreneurs such as Emil Rathenau, who founded AEG, citizens and performance of the network are not aligned, and where sub- the UK with the Electrical Act of 1882 and subsequent acts in 1885 which and Edison to develop demand for electricity services. They worked with scriber numbers are low and comments in online forums and chat rooms ensured that users could purchase electrical appliances from suppliers The old electrical networks and the new digital networks deliver value large public sector and private corporations, demonstrating how electric- are negative. A century ago there were similar problems in London when other than the electric network supplier. In the early days of electricity through the services they enable. They are crucial enabling components ity could transform manufacturing processes and public transportation, each London borough acted independently and the lack of standardisa- supply, transformers were used to ensure interoperability before stand- in much larger socio-economic and technological network. The appli- and designed the electrical systems to supply motors and machine tools. tion and limited functionality of services made electricity a luxury service ards emerged. The initial costs of the electricity supply in London meant cations must be attractive whether an information search service for that offered little more than lighting. Compounding this were the early that home electric lighting was a luxury reserved for the rich. This con- employment opportunities in the borough, a managed service for small Deployment is the translation of a technological system into user value, technical failures of flagship projects such as the Holborn Viaduct Station trasts with the situation in Berlin where the city authorities negotiated businesses (Corpus Christi and Shoreditch), a socio-cultural service such coupled with a transformation of the industrial, institutional and indi- and Sebastian de Ferranti’s Deptford project for a massive power station with AEG and Siemens & Halske to create the Berlin electricity supply as Virtual Memoria in Barcelona, or lamps, dynamos, vacuum cleaners, vidual user to enable them to assimilate that system and translate the to supply most of London in the 1890s. The technical failure, particularly company, BEW, and where price was regulated by the city. Policies to and electric streetcars in Berlin, Chicago, London and New York, there benefits gained into business, social or personal value. This is at least as at Deptford, increased political nervousness about large scale projects. ensure the widespread accessibility of electricity supply both in terms of needs to be compelling content and applications to drive the diffusion important today with digital technologies as it was a century ago. This highlights the importance of realistic expectations about functional- coverage and pricing were a core element in the public private partner- and the adoption of this form of technological innovation. ity, and promotion of that functionality. It underlines the importance of ships, one of the best being Berlin. The importance of coverage and ac- ensuring effective technological understanding among city authority and cessibility is as relevant in digital technologies today as it was in teleph- Service transformation and Integration: Digital broadband networks public officials. ony, telegraphy, electrical power, transport and sanitation over a century Deployment: A city or individual firm may produce good content and offer provide a means not only of delivering existing services and content, ago, and accessibility has more than just a physical dimension. extensive services and excellent functionality but if the resources are not but enabling service transformation. Corpus Christi, Westminster, and in place to help new users learn about the services and their value, train Shoreditch are both web-enabling their services with an internet front accessibility: of municipal broadband networks and related services re- them in their use, and support their use, then all investment will be wast- end and transforming their services in terms of scope and end to end fers to the need to provide access via a wide range of devices, PC, digital Compelling Content: Taking existing content and simply enabling it for ed. The case studies and secondary research on other cities identifies delivery with the goal of improving their effectiveness and efficiency. The TV, mobile phones. It includes ease of access via a single portal with a delivery over a broadband network is likely to be ineffective as we found in that some cities have invested heavily in infrastructure and services, but big gains reported are in workforce productivity and greater community single sign-on to multiple applications, or via a familiar interface regard- the case studies. Both information and service content have to be highly usage rates were low, or services and delivery had not been well thought engagement. The risks involved in making only cosmetic changes are less of the technology. Network coverage and continuity or persistence of relevant to users, and users need to be involved in its definition and crea- through and support costs were too high. Where a city works with a third poor take up of services, or uneven take up. If the front end of a serv- connection and applications on the move, as well as ubiquitous access tion. Digital Bridge is one of the best examples of compelling content and party with previous experience in the deployment of city networks and ice is transformed so it increases community awareness of the service, are important. Affordability is also important. The case study of the City of shows that it requires regular updating in terms of content and style. Dig- their exploitation, success is more likely. However experience needs to ease of use and attractiveness, but if delivery uses existing methods and London explained how some boroughs had deployed a wireless network ital Bridge in Shoreditch is exemplary in its engagement with the local be relevant, because cities have different social, cultural and economic resources the service will be overstretched, quality will be poor and re- that enabled users to work through their existing service provider inter- community, in establishing priorities for content, and creating a sense contexts that will strongly influence the outcome. South Korea invested sources and spending may rise. All of these scenarios will impact on the faces – Vodafone, Skype, Vonage, i-Pass, etc. - that could be accessed us- of ownership. Another example is at Newham and the RegenTV project. massively in deployment and training potential users of ICT and broad- long-term sustainability of the service. ing a broad range of devices. Corpus Christi deployed around 2,000 nodes Most of the TV content is created by the community, for the community. band-enabled internet services, and over 3 million people participated
  • 41. Informe 2009-2010. Monogràfic History gives us many examples of the transforming characteristic of new industries supported. The CCS framework shown in Figure 2 is a refine- model includes the community and its role in specifying the content and The approach to tackling the issue of economic sustainability is to have a technological systems, enabling transformation of production processes ment of the Well-Connected City planning schematic shown earlier. The nature of the services that will be delivered and also the stance of whoever killer application, for instance automated meter reading (AMR) in Corpus and public services. For instance the Franklin Institute noted that the ad- framework highlights the relationship between each of the components is operating the network – whether their stance will be neutral in relation Christi, parking enforcement in Westminster, or an intelligent transpor- vantage of electricity: “almost prophetic anticipation of the assembly line, as well as the three networks of actors that commission new technical to content and scope of new services or do they have vested interests. tation system in Stuttgart. In each of these cases there are tangible, di- lay primarily in freedom to locate machinery, improvements in lighting infrastructure and related services, the consumers of the services offered rect budgetary savings and in the case of parking enforcement additional and ventilation, cleanliness” and “the 20-30% increases in output that and the firms or organisations that undertake the deployment and provi- Experience from the City of London and Karlskrona highlights why com- income from these services. These effective applications justify initial were attributable to all these factors”. sion of the infrastructure and services. municating agreed aims and objectives to all the stakeholders and agree- network deployment and running costs. The incremental costs of adding ment about key performance indicators is crucial. Comparison of the applications with softer benefits will be modest in comparison and not Just over 100 years ago Charles Merz of the engineering consulting firm CCS Framework and Key actors electrification of London and Berlin in the 1880s is an example here. Con- subject to changes in the political priorities of the incumbent administra- Merz and McLellan advised potential customers that electrical power and tinuously changing the indicators or vacillating between them can reduce tion. User Experience and Value For Business and motors could “replace steam engines, and that the workplace could be Consumers confidence and the sustainability of an initiative. Objectives are not fixed reorganised because individual electric motor drive permitted more free- by the governance model, but consideration needs to be given to a formal Another solution is to work with a partner, as in the City of London case dom of location”, and the deployment and transformations made possi- change management process to allow adaptations and refinements not study, which can make the investments required to deploy the network, Applications and Service ble by electrification rather than Taylorism enabled American factories to only to the services but also to their performance measurement. and bring in a range of additional content and service partners to pro- Industrial and Social Capital including autoritats municipals i responsables Delivery Governance Including Social and double productivity between 1900 and 1930. The challenge of establishing an appropriate governance model that re- vide added value services. Such an approach lowers the costs of systems Political context and economic Skills and Cultural Context flects the capabilities of the public and private sector partners arises in deployment and ensures regular updates. Companies such as Earthlink development strategy de sistemes i serveis Comunitat i usuaris The introduction of earlier technological networks, substituting one the implementation of all the technological systems. A city authority’s re- and Cloud Networks have a series of partnerships in place, and an exist- dels serveis component of the system while retaining the configuration of the other Technological Systems sources and its capabilities will shape the form of any public private part- ing business model based on subscriptions. This model enabled them to components – whether technological, organisational, process design, or nership. Hughes describes the relationship between the partners in Berlin take over the existing network assets and operations already deployed by 80 institutional - is not sustainable. If only the technical components of the as follows: cities or to install new networks and make services available to the city 81 system are changed, they are likely to snap back into their earlier shape. as the anchor tenant, with shared revenues in exchange for rights of way Spatial Organisation and Urban Planning “The Municipal Government was not overawed by the technical, mana- to city assets such as lamp posts and other street furniture. Spatial integration: ICT and the extension of its reach through fixed and gerial, scientific and financial power of its private utility. Berlin officials wireless broadband networks are enabling new services and applica- Environment - Physical drew upon the proud tradition of the Prussian civil service, demanding The case study research found evidence of the challenges facing cities tions. These in turn are promoting changes in lifestyles, work patterns and receiving the same respect and authority that public officials of the such as Norwich, and inner city districts in London such as Shoreditch and in the case of the public sector, the nature of service delivery. These Systems and related technical and finance service providers state and national governments received”. and Newham, which are finding it difficult to sustain ongoing operations, services are bringing new meaning to public spaces, malls, parks, city Figure 2: CCS Framework and Key actors move from pilot to full roll out of services, and refresh the technology squares as they are transformed into spaces where people can meet to And with reference to London, which contrasts poorly with Berlin, he to meet evolving community needs. In the case of Shoreditch, once ini- work or access community services. We are all experiencing a trend to- adds that a similarly progressive combination of coordinated forces was tial funding from the local authority, UK government programmes such wards greater mobility, distributed work patterns and knowledge inten- needed to overcome the vested and historical interests in London, how- as the New Deal for Communities, or EU funding under Objective 2 was sive work, and the development of open innovation models that involve ever such a combination did not exist. exhausted, without a sustainable economic model, the municipality or These shape the configuration of the technological system, and in turn, collaboration across an extended enterprise, rather than through verti- district was faced with having to find another partner or closing down will reshape the city. One of the more striking examples of this is Berlin cally integrated firms. The types of knowledge and the respective spatial Good governance accompanies a city or its agencies capabilities and the the initiative. What often starts as a programme addressing social cohe- and described by Thomas Hughes: conditions required to support the diversity of work patterns in different above lessons are pertinent to the deployment of all types of technologi- sion and community engagement, or delivering new and more efficient industries, vary depending on the industry sector and even the specific cal systems. community services on the back of a technological model, can quickly “As in other industrializing cities, electric light and power helped shape team working practices. Trends emerge as cities take account of these become a failed project. Berlin’s architecture; deeply influenced the design of its factories, and factors and plan spatial organisations and infrastructure around the re- Sustainability: Some of the initiatives studied have run out of funding or workshops, and chemical plants; stimulated industrial growth; deter- quirements of industries and firms and institutions involved. An example lost momentum in terms of organisational support, usage or exploitation. We can consider these issues as being ‘econo-technical’ in nature and mined the location of the city’s transportation systems; provided tel- of this is the 22@ District of Innovation in Barcelona. Ramon Sagarra, who The research found that almost all of the initiatives had received seed we see that one of the more important aspects of Edison’s activities was ephone and telegraph communication; and when substituted for steam is responsible for the city’s infrastructure, is planning the transformation funding but without the development of a sustainable business model in his concern for economic factors, at every stage of the technology devel- power, lessened noise and dirt. In short electrification affected the way in of the infrastructure, the networks, and their capacity, and the spatial place from the start, exhibit a tendency to expire within 3 years. The ini- opment. Since technological change involves economic, legal, legislative which workers labored and management organized, and Berliners lived. organisation of each urban industry cluster. In Barcelona, the spatial or- tial funding might launch them with some acclaim, but after a year, even and scientific aspects, Edison needed a highly supportive financier net- Because of this, the private company that supplied most of the electric ganisation of the new industrial zones where firms, universities, research if the results were good, the next budget cycle is underway or budgets work, from the very outset. This network was developed with the help of light and power for Berlin until 1915, and the municipal government that centres and incubators are clustered, takes account of the different work already set, and it is too late for funding to be reallocated from depart- Grosvenor Lowrey, Edison’s Chief Counsel, and his close association with regulated electrical supply shaped the history of Berlin.” [6] patterns and interactions in each designated industry cluster – bio-med- ments who are benefitting from the new services. Typically, a third year Drexel Morgan and Company. Without this, Edison’s inventions could not ical, digital media, ICT, and most recently the new energy park, bTEC. of funding might be secured during the second year, but it is often inad- have been commercialised successfully and transferred to other world Governança: Governance is a broad topic but the most fundamental area equate and even more new investment is required by now to refresh the cities. Successful deployment of new technological systems involves a relates to who owns and shapes the technological system, in the context The Complex City Systems (CCS) conceptual framework posited by Leon technology. The result is that the project is choked of new investment, synthesis of social and market needs, financial trends, economic prin- of this paper, who owns the broadband network and who controls its ev- [5] indicates that the nature of technological systems, their configuration service quality falls without a technology refresh, deployment resources ciples, technological innovations, engineering design, and managerial olution and sets the future strategy. These issues need to be considered and style of their deployment are closely related to the spatial and geo- are insufficient and usage falls – a vicious cycle ensues that is likely to techniques. Over a century ago we see evidence of this synthesis, yet the in terms of the content to be delivered over the network. The governance graphic characteristics of the region, city or district and the nature of the spell the demise of the project. case studies show that the planning and deployment of digital technolo-
  • 42. Informe 2009-2010. Monogràfic gies including municipal wireless and high speed broadband do not al- Each of these factors provides a measure for planning and assessing the plinary innovation system, and an integrated infrastructure programme ways exploit an integrated planning approach that involves all of these overall effectiveness and sustainability of the CCS framework as shown linked to strategic urban design. factors. in Figure 4 which depicts the primary link between attributes and the rel- evant components of the CCS framework. In the case studies we identified only a handful of global cities who can At the start of the 21st century, a sustainable system municipal and com- demonstrate such an integrated approach. The price of failure is high. munity broadband will need to involve all of these social, economic and Content Accesibility When London failed to exploit such an integrated approach 120 years ago technological components, just as we observed 120 years earlier with with the introduction of electrical networks it ceded its position as a lead- the deployment of electrical and telecommunications networks. Deployment ing industrial city to other global cities and took 40 years to recover. Cities User Experience and Value For Business and Consumers that fail to innovate risk a steep decline. The deployment of digital tech- nologies is a crucial ingredient in creating an environment for innovation. Summary of the factors and a potential planning approach However, unless the planning and deployment of these technologies are Service integrated with the social, cultural and economic programmes of the city, Cities and districts may not excel in all of the eight factors described Integration Aplications and Service the transformation of its services and the overall spatial planning, these economic development strategy Industrial and Social Capital Delivery Governance Including Social above; however, overlooking one or more may reduce or negate the value technologies will not contribute fully to the innovative capacity of the city, Skills and Cultura Context Sustainability and poltical context and of the investment, or may determine an unsustainable path. Balance is public service transformation or social cohesion. Functionality Technological required, spending a lot on services and not enough on accessibility, de- including Infrastructure and Systems ploying a network without a sustainable business model, developing con- Spatial tent without involving users or spending enough on deploying the service Integration Spatial Organisation in the community, will likely produce poor results, as evidenced by the and Urban Planning Governance and Partnership 82 case studies and experience in other cities. Model 83 Environment - Physical Figure 3 provides a schematic depiction of these eight attributes; as a city plans deployment it can prioritise needs and the requirements of the sys- Figure 4: Integrating the CCS Framework with the ICT Integration Quotient tem. Cities’ needs differ based on overall objectives, the specific services they deploy, and the existing capabilities and resources available. Cities can use these eight attributes to compare competing proposals and eval- uate actual deployment against planned objectives. The concentric rings represent the levels of importance of each attribute, which is assessed Conclusions by the city authority, and the level of deployment versus best in class ex- amples. In this paper we have explored the similarity between the deployment of digital technologies at the start of the 21st century and a historical analy- Content Accessibility sis of how cities planned and exploited a radical new set of technologies in the late 19th century. The findings and the tools we describe can help city authorities, systems and service providers, strategists and practition- Funtionality Sustainability ers to operationalise the findings from the case studies and historical analysis. With the tools outlined here, city authorities and related agen- cies will be better able to develop more effective strategies for digital net- works and related systems architectures, requirements statements and deployment plans. Service Governance The tools can be used not only in the planning but also in the assessment Integration of the solutions proposed by prospective partners, vendors or the city’s own resources and enable them to measure results, compare capabilities Spatial Integration Desployment delivered with originally projected needs, and compare with deployments in other world cities. Plan Actual In conclusion, creating a smart city needs a great deal more than smart Figure 3: Schematic for ICT Innovation Quotient infrastructure or ‘plumbing,’ A well-connected city is connected by more than technology, the connection begins with a connected planning proc- ess that involves inclusive social and cultural development programmes, an aligned economic development strategy, a sophisticated interdisci-
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