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Growth and Change
Vol. 46 No. 2 (June 2015), pp. 233–252
DOI: 10.1111/grow.12085
City Branding as a Response to Global
Intercity Competition
ARI-VEIKKO ANTTIROIKO
ABSTRACT Globalisation is dramatically changing the context of urban communities and the premises for urban
development policy. In the context of global intercity competition, cities’ major goal is to increase their competitiveness, in which the positioning and attractiveness of a city have a critical function. Attraction-oriented development
strategies aim at effective absorption of external resources from the global space of flows. At the core of attraction
strategy are business promotion activities with appealing incentives, but it is assumed that such a competition is risky
and may lead to a race to the bottom. Therefore the emphasis is increasingly on less costly and more synergistic city
marketing, which utilises city branding and “city profiling” that aim at attract high value-adding services or high-tech
firms. This paper proposes a city attraction hypothesis that states that global intercity competition is essentially about
a city’s ability to attract the highest possible value from global flows of values in order to promote urban development.
The result of such a global intercity competition determines cities’ functions and positions in the global division of
labour and thus in the global urban hierarchy, and ultimately determines their ability to increase prosperity and welfare
in urban communities.
G
lobalisation implies a development towards a world-scale systemic interdependency. In
such a process, real exchange and interactive relations become boundary-eroding. This, in
turn, is why globalisation is dramatically changing the context of local communities. However,
local places remain important even in a globalised world, for the circulation of people and capital
and related economic and social complexes are anchored in specific places (Sassen 2006; Smith
2002).
Because of increased cross-boundary flows of resources, urban governments have become
increasingly concerned with their role in the global economy. Such an orientation paves the way to
a new role for cities, their strategic task being to adjust to the conditions of the global economy.
(Anttiroiko 2009b; Anttiroiko and Kasvio 2005; Chien 2008; Douglass 2002; Kresl and Fry 2005;
Sassen 2006; Savitch and Kantor 2003; Sellers 2002). This in turn has increased their interest in
internationally oriented city marketing.
The objective of this article is to describe how globalisation and related intercity competition pose
challenges to the development of post-industrial cities in the developed world. Attention is paid to
industrial specialisation and “profiling” of cities designed to attract resources from the global flows
of values. More precisely, this article aims at 1) analysing the fundamental logic of attractionoriented intercity competition, 2) categorising economic city profile options associated with postindustrial economic activities, 3) identifying advanced cities in each post-industrial activity area on
the basis of empirical sector-specific city rankings, and lastly, 4) discussing the strategic and social
dimensions of such attraction-oriented economic city branding.
Ari-Veikko Anttiroiko is an adjunct professor at the University of Tampere, Tampere, Finland. His e-mail address is:
kuaran@uta.fi.
Submitted October 2011; revised June 2012; accepted August 2012.
© 2014 Wiley Periodicals, Inc
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GROWTH AND CHANGE, JUNE 2015
The City Attraction Hypothesis
At the core of the urban attraction strategy are promotion activities with appealing incentives
offered to businesses, including the donation of land, pledges to build infrastructure to support a
new facility, low-interest loans, tax reliefs or tax holidays, free training for workers or provision
of other public services (Kresl and Fry 2005; Savitch and Kantor 2003; Sellers 2002). In this field,
municipal business promotion campaigns to attract foreign direct investments constitute a paradigmatic case for attraction strategy. Other forms of the attraction-based approach include providing premises for international agencies, hosting major international events or promoting
tourism (Kresl and Fry 2005; van Gelder and Allan 2006). Especially in investment-oriented cases,
such strategies are costly and extremely risky. Moreover, if they are not based on real local
strengths, benefits are unlikely to stand the test of time. This means that cities must have a
strategic approach to attractiveness in order to avoid high-risk investments and short-sighted
solutions.
Attraction strategies take three major forms, which can be used individually or in different
combinations: providing premises, incentives, and information. The first is based on investments
with the aim of developing and utilising world-class developments, attractions, or business sites,
which, especially in the case of large-scale investment projects, are highly risky. An alternative and
apparently less risky approach is the provision of financial incentives and tax reliefs. The third way
is simply to try to attract the attention of potential investors and other stakeholders in the international arena with large-scale advertising and promotion campaigns. Aggressive use of any of
these approaches—investment-oriented, subsidy-oriented, and marketing-oriented approaches—in
global competition may lead to a race to the bottom and are thus likely to have a negative aggregate
impact on urban development (Allard 2006; Brecher and Costello 1994; Chien 2008; UN-HABITAT
2004; van Gelder and Allan 2006).
It goes without saying that in some cases, any of these strategies may work well for an
individual city, but at an aggregate level their impact may be questionable because of the race
to the bottom effect caused by narrow-minded and investment-oriented local development
policy. Such strategies may prove unfeasible especially for middle and lower rank cities with few
special advantages in the global intercity competition. Thus, in general, cities would do well to
seek a more feasible approach to both supporting existing economic life and attracting new
resources from the global value flows. Place promotion, city marketing, and city branding
are strategic tools for such an approach (Anholt 2007; Dinnie 2010; Kavaratzis and Ashworth
2008).
One of the strategic decisions of cities in the context of globalisation is to determine the most
beneficial mix of offerings, interactions, and attraction factors in order to derive maximum benefits
from the local-global dialectic (Harvey 1989). This requires an understanding of both the local
community and its economic environment. With regard to such premises, I formulate a city attraction
hypothesis that includes five main arguments on the premises of the attraction-based global intercity
competition:
1. Global intercity competition is about the attractiveness of a city. What is essential in global
attractiveness is the types of values a city is able to attract from the global value flows, be they
founded on organisational demand or individual consumption.
2. For any city, it is rational to attract the highest possible value in terms of urban development based
on their goals, attraction factors, and locality characteristics, such as population, geography,
location, and natural resources.
GLOBAL INTERCITY COMPETITION
235
3. Attraction of optimal value constellations requires a strategic city marketing approach, with
special reference to industrial specialisation and economic city branding as part of a wider range
of place promotion activities.
4. Materialised attractiveness determines a city’s function in the global division of labour and
position in the global urban hierarchy.
5. The higher position in the urban hierarchy and the greater the ability to attract resources from the
global value flows, the better are the chances to create local prosperity and to ensure the
well-being of citizens and the entire local community.
The hypotheses presented above outline the basic rationality of urban development in the age of
globalisation. They aim to clarify how intensification of intercity competition tends to increase city
governments’ conscious attempts to manage their contextual relations and, so to strengthen
attraction-oriented thinking among city management and developers. This phenomenon has its
darker side, too, for it may loosen city administration’s connection to local communities and lure
cities into a bold “development game” that may be alienated from local realities. This suggests that
even if the strategic element of city attraction hypothesis is crucial for urban development in the
global age, it also contains seeds of “uncreative destruction.” This point has been elaborated most
notably in critical and neo-Marxist urban analyses since the late 1980s (Harvey 1989; Logan and
Molotch 1987; Logan 1999).
City Branding as a Strategic Tool
The conscious attempt of governments to shape a specifically designed place identity and promote
it to identified markets is almost as old as territorial government itself (Anholt 2007; Kavaratzis
2008; Kavaratzis and Ashworth 2005, 2008). Cities are finding it insufficient merely to invest in the
provision of urban facilities: “they make serious efforts to communicate their attractiveness and
creativity inside and outside the city” (Hospers 2008:227). City branding represents one of the most
recent features of such efforts. It is understood as the means both for achieving competitive
advantage in order to increase inward investments and tourism, and also for achieving community
development, reinforcing local identity and the identification of the citizens with their city and
activating all social forces to support development efforts. In addition, the environmental dimension
has assumed an increasingly important role in city branding (Dinnie 2010; Kavaratzis 2004;
Miyamoto 2007). One of the cases that has generally been thought to be able to balance such
aspects—competitiveness, inclusion, and sustainability—is Barcelona (García 2004; Marshall
2004).
Brand management emerged in business life in the early decades of the 20th century. Its application to urban development began to attract attention from the 1990s onwards. A successful brand
is an identifiable product, service, person, or place augmented in such a way that the buyer, user, or
investor perceives relevant, unique added value, which matches their needs most closely. Furthermore, its success results from being able to sustain such added value in the face of competition (de
Chernatony and McDonald 1992). Such thinking provides a fresh perspective on the development
challenges of cities in a situation in which attraction is becoming a critical success factor because of
the global mobility of resources.
We have little empirical evidence on how to brand a city successfully (Parkerson and Saunders
2004). Most great cities have a brand that has developed as a kind of evolutionary process or
sequence of events that evolved step by step from special preconditions or some historically
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significant events. The most well-known city branding cases are those of the cities at the top of the
global urban hierarchy and, in the usual case, reflect the special conditions of such internationally
renowned cities. The most famous cases in this category are the branding of New York (Bendel 2010;
Greenberg 2008), Singapore (Koh 2011), Seoul (Kim and Kim 2010), and Barcelona (Bellaso 2010).
However, this does not reflect the realities of most of the cities around the world, as for many of them
the mission is simply to increase the awareness of the target audience that the city exists (Salman
2008). This is particularly important for tourist destinations that depend on consumption by large
masses of visitors (see Tasci and Gartner 2007).
City branding is becoming increasingly challenging because of intensified global intercity competition and pervasive trends of service transformation, creative city development, and digitalisation,
which when combined create new premises for urban competitiveness. These trends enforce the
immaterialisation of the economy implying that the focus should be increasingly on high technology,
high value-adding services, and cultural amenities.
A special legitimation problem related to city branding is the apparent difficulty in branding a city,
which pits conscious branding efforts to gain high mindshare for a brand against the long-term
evolution of the image of a city. For example, if a manager of a manufacturing company considers
creating connections with some high-tech centres or R&D hubs in the world, there are literally
thousands of viable options available, but because of the reputation of various high-tech centres, his
or her attention is attracted by only a handful of such centres. The consciously promoted brand is an
attempt to associate the city with a desired category of urban development, analogously to the way
in which Hoover was synonymous with vacuum cleaners, Xerox with copy machines, or “googling”
(after Google) with the use of a web search engine. However, no city government can exercise
exhaustive control over the image of the city, which is why branding is always a risky business and
resembles a kind of viral branding or partnership approach to city branding, which is a middle
strategy between mindshare brand and natural evolution of the image (van Gelder and Allan 2006).
For example, in a Bloomberg’s financial news article entitled “Made-in-London Scandals Risk City
Reputation as Money Center,” it is speculated that London may be risking losing its status as the
world’s top financial centre “as the $360 trillion interest-rate fixing probe follows a series of market
abuses by banks that eroded trust in a city already shrinking faster than rivals” (Crowley and
Choudhury 2012). This illustrates that branding has a strong tie with both economic realities and the
increasing mediatisation of the economy (Rawolle and Lingard 2010).
City branding may be used with an emphasis on industrial development and economic activities,
which in the context of post-industrial cities revolve around post-industrial economic activities. Such
a perspective helps to focus on the city’s role and profile in economic terms, thereby providing a
good way of combining city branding with local economic development policy. Moreover, such an
approach indicates that city branding has a primary connection to exogenous growth, whereas its
connection to the endogenous growth model with an emphasis on internal factors is assumed to be
weaker or at least more complicated (e.g., in the case of branding of Arno Valley in Tuscan, empirical
evidence indicates that the brand triggered limited social learning, fairly weak community-building,
and left little room for institutional change; see Pasquinelli 2010). Economic city branding can thus
be seen primarily as a tool for economic development that is determined by external factors, which
reflects the fundamental logic crystallised in city attraction hypothesis.
Economic Profiles of Post-Industrial Cities
According to the rationality assumption based on both the previously discussed city attraction
hypothesis and the more widely discussed world city hypothesis (Friedmann 2005; Sassen 1991/
GLOBAL INTERCITY COMPETITION
237
2001), in order to maximise welfare for their communities, city governments strive for as high a
position as possible in the urban hierarchy. Such a tendency is associated with cities’ ability to attract
high value-adding activities to their communities. Such high value-adding, knowledge-intensive and
service-oriented economic activities rely on sufficient concentrations of skilled workers and creative
people (Florida 2005). This is an indication of the increased importance of knowledge,
know-how, innovativeness, and creativity to high-profile urban development strategy, reflecting not
only the informational mode of development but a transition towards a kind of creational mode of
development, in which growth is increasingly based on innovativeness and creativity (cf. Castells
1999; Florida 2005). It is noteworthy that in spite of globalisation agglomeration economies and thus
proximity factors have a considerable role to play—even in services and creative industries (Kolko
2007; Rubalcaba and Carrido 2006).
Cities may profile themselves utilising both hard and soft productive inputs. At the core of hard
factors are corporate power and capital on the one hand and knowledge and technology on the
other. Softer factors may focus on business and professional services or culture and entertainment.
On this basis we may divide city profiles into four broad categories, which relate to specific city
conceptions (Anttiroiko 2009b):
1. Capital: headquarter cities, financial centres and business service centres.
2. Knowledge: college towns, knowledge cities, science cities and high-tech centres.
3. Mobility: logistics hub, hospitality city, conference city and MICE (meeting, incentive, convention, and exhibition) cities.
4. Pleasure: cultural city, tourist centre, creative city, shopping city and service city.
These form a field of high value-adding city profiles, which are illustrated in Figure 1. The profiles
presented in the figure are examples of city profiles, meant only to show some of the most widely
discussed city conceptions and profiles.
An important context for such profiling of a city is post-industrial society or information
society or network society, depending on which factors are emphasised. At the level of urban
communities, this discussion may be attached to the generic concept of post-industrial city. This
is a city that strives to adjust to the conditions of post-industrial society, as first theorised by
Daniel Bell (1973). This development is accelerated by globalisation, as manufacturing from highcost cities, especially from North America and Western Europe, seeks more favourable environments for production in terms of regulation, taxation, labour costs, and proximity of markets. The
most characteristic feature of a post-industrial city is that its employment is based on advanced,
knowledge-intensive and high value-adding and IT-enabled services, i.e., jobs in the professions,
management, administration, and technical industries. Another trend is to rely in development
policy design and implementation on new forms of governance—especially networking and
partnership—and on such progressive ideas as sustainable development and smart growth, which
are apparent in the strategies of many global and internationally oriented cities (Savitch and
Kantor 2003). Yet, even if there are some common denominators in the premises of the postindustrial cities, they have different profiles, which reflects the varieties in preconditions of each
city in coping with the problems of declining industries, changing occupational structures, increasing educational requirements, and the urgent need for job creation and wider local economic
restructuring.
What follows is a description of city profiles and sector-specific rankings, which are useful in
determining the strategic branding options for post-industrial cities.
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GROWTH AND CHANGE, JUNE 2015
High-tech
city
Financial
centre
Technology
Know-how
R&D
Capital
Finance
Insurance
Business
service city
Financial
district
Corporate
intelligence
Business
services Head office
cluster
Logistic
hub
Transport
Logistics
Warehousing
Knowledge
Research
Education
High-tech
park
City
profile
University
campus
Cultural
centre
Art
Culture
History
Exhibition Tourist
centre
destination
Logistics
city
Exhibitions
Conferences
Hospitality
Conference
city
Knowledge
city
Cultural
city
Entertainment
Tourism
Well-being
Tourist
city
FIGURE 1. CITY PROFILE PIE: EIGHT POST-INDUSTRIAL ECONOMIC CITY PROFILES.
Source: Anttiroiko (2009b).
Cities of corporate power, capital, and business intelligence. A special place in the global
urban hierarchy is reserved for those cities that have attracted corporate management functions—
strategic planning, corporate law, finance, marketing, human resources, and so forth—and various
business services, some of them specialised in international business. A headquarter city is a special
agglomeration of such functions (Collis, Young, and Goold 2007; Davis and Henderson 2004;
Diacon and Klier 2003; Strauss-Kahn and Vives 2009; Wanner, LeClef, and Shimizu 2004; Bloom
and Grant 2011). A large number of headquarters not only strengthens the city as a command centre
of economy but also increases the demand for legal and accounting staff and various business
services. A global overview of top headquarter cities is presented in Table 1.
Another indicator of the special attractiveness of a city is its role as a host for multinational
corporations (MNCs). Here again, the top-level players include well-known global cities and business hubs of emerging markets, as illustrated in Table 2.
Finance is a critical part of business life and also the most globalised sector in the economy.
Consequently, successful financial centres have traditionally had a high profile in the global urban
hierarchy (Agnes 2000; Castells 1999; Clark and Wójcik 2007; Dixon 2011; Reszat 2002; Sassen
1991/2001). The preconditions for building such centres include open financial markets, free flow of
capital, transparent political, regulatory and tax regimes, skilled workforce, and high quality physical
infrastructure. Old and still powerful financial centres are located in the U.S. and Europe, including
New York, London, Zurich, and Frankfurt, but the world’s largest companies are increasingly opting
to locate their offices in Asia’s booming cities, reflecting the eastward drift in global economic power
(CBRE 2011). The first successful financial centres in Asia were Tokyo, Hong Kong, and Singapore.
Since the opening up of the Chinese economy, Shanghai, Beijing, and Shenzhen have emerged as
GLOBAL INTERCITY COMPETITION
239
TABLE 1. TOP 20 HEADQUARTER CITIES BY TOTAL REVENUES.
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
City
Number
of GICS
Number
of HQs
Aggregate revenue
(billion USD)
Tokyo
Paris
New York
London
Seoul
Beijing
Dallas
San Francisco
Chicago
Nagoya
Osaka
Fayetteville
Munich
Moscow
Houston
Minneapolis
The Hague
Hong Kong
Shanghai
San Jose
10
10
10
9
9
7
9
8
9
6
8
2
6
6
7
7
3
9
7
4
163
61
84
59
42
34
18
17
32
19
34
2
10
17
28
14
4
49
16
25
3,115.02
1,956.69
1,541.50
1,416.25
758.01
707.66
558.77
540.33
497.13
464.01
439.96
435.03
434.95
383.30
380.05
375.85
363.12
347.49
340.49
324.82
Source: Taylor and Csomós (2011).
GICS, Global Industry Classification Standard; HQ, Headquarter.
TABLE 2. OFFICE PRESENCE OF INTERNATIONAL COMPANIES BY CITY.
Rank
1
2
3
4
5
6
7
8
9
10
Source: CBRE (2011).
City
Number of
companies
% of companies
present in city
(n = 280)
Hong Kong
Singapore
Tokyo
London
Shanghai
Moscow
Beijing
Madrid
Dubai
Paris
191
189
179
177
172
170
169
167
157
156
68.2
67.5
63.9
63.2
61.4
60.7
60.4
59.6
56.1
55.7
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GROWTH AND CHANGE, JUNE 2015
TABLE 3. MAJOR GLOBAL FINANCIAL CENTRES.
Rank
1
2
3
4
5
7
8
9
10
12
13
14
15
16
17
19
20
City
GFCI9 ratinga
London
New York City
Hong Kong
Singapore
Shanghai
Tokyo
Chicago
Zurich
Geneva
Sydney
Toronto
Boston
San Francisco
Frankfurt am Main
Shenzhen
Seoul
Beijing
Washington, DC
Taipei
Paris
775
769
759
722
694
694
673
665
659
658
658
656
655
654
653
651
650
650
639
637
a
The Global Financial Centres Index (ninth edition) is based on two sets of data input: 75 instrumental factors and responses to an online survey. Scores are aggregate values drawn from these two
data sets.
Source: Yeandle (2011).
new rivals with a claim to become the economic and financial centres of the Greater China region
(Heng 2003). Recently, Seoul has also improved its position as an East Asian financial centre
(Yeandle 2011) (see Table 3).
Besides the clusters of headquarters, MNCs, and financial institutes, some cities may have a
business-friendly environment or may possess special strengths in a wide range of business services.
Kotkin (2009) describes the relevance of this sector as follows: “Media coverage of America’s best
jobs usually focuses on blue-collar sectors, like manufacturing, or elite ones, such as finance or
technology. But if you’re seeking high-wage employment, your best bet lies in the massive ‘business
and professional services’ sector.” The cities with such strengths at the top of the urban hierarchy are
called “global cities”; they have a special position as trans-territorial marketplaces and command
centres, as described by Sassen (1991/2001) in her seminal book on New York, London, and Tokyo.
Thus, internationally oriented business services are for obvious reasons the most developed in global
cities, such as New York, Tokyo, Paris, Hong Kong, and London (see Table 4).
Cities of knowledge and high technology. A group of cities that reflect the current trend in
knowledge-based economy are concentrations of knowledge, science, and technology, sometimes
referred to as knowledge cities. According to Carrillo (2006), knowledge cities are urban commu-
GLOBAL INTERCITY COMPETITION
241
TABLE 4. TOP 10 GLOBAL CITIES FOR BUSINESS ACTIVITY.a
City
New York
Tokyo
Paris
Hong Kong
London
Beijing
Singapore
Shanghai
Seoul
Chicago
2010 Rank
2010 Score
1
2
3
4
5
6
7
8
9
10
6.4
6.4
6.3
5.4
5.2
4.7
4.7
4.5
4.5
3.5
a
Business activity is scored on the basis of five factors: number of international conferences, flow
of goods, capital markets, number of companies among the top 40 global service firms, and number
of Fortune Global 500 companies with headquarters in the city.
Source Data: A.T. Kearney Global Cities Index 2010.
Source: Global Sherpa (2011).
nities that possess an economy driven by high value-added exports created through research,
technology, and brainpower. In these communities, knowledge is valued and nurtured, resources are
dedicated to supporting knowledge dissemination, learning and innovation, and knowledge is harnessed to create products and services that add value and create wealth (see Table 5).
Paradigmatic examples of such cities are university cities, college towns, and cities of science,
such as Cambridge, Oxford, and London in the UK, or Boston and Cambridge, MA, and Berkeley
and Palo Alto, CA, in the U.S. A special category of city, the global university city, hosts top rank
universities which attract a huge amount of paying international students and have a lot of international research projects, exemplified by Harvard University (Cambridge, MA), MIT (Cambridge,
MA), University of Cambridge (UK), UC Berkeley (CA), Stanford University (CA), University of
Oxford (UK), and the like. The Global University City Index measures liveability, education expenditure, the number of graduates produced, and how many universities the city has in the Financial
Times Higher Education top universities list. The 2008 Global University City Index gives the
highest rank to the following cities: 1) London, 2) Boston, 3) Tokyo, 4) Melbourne, 5) Sydney, 6)
Pittsburgh, 7) Paris, 8) Vienna, 9) Chicago, and 10) New York (Tomazin 2008).
Under this category, we may also include more technology-oriented conceptions, such as
technocities, high-tech cities, e-cities, smart communities, ubiquitous cities, intelligent cities, and so
forth (Aurigi 2005; Komninos 2002; Downey and McGuigan 1999). The most important formation
in industrial terms has been the high-tech city, i.e., a city profiled by its extensive high-tech industries
and R&D activities. This was probably the most popular urban high-tech development paradigm in
the 1980s, and even more so in the 1990s. In high-tech development, Silicon Valley in California
became a global benchmark for urban developers. One indication of the power of this trend is that
since the 1980s the number of science parks proliferated in different parts of the world (Anttiroiko
2004; Castells and Hall 1994).
Most of the high-tech cities are specialised in a few products and technologies. A competitive
environment inevitably leads to specialisation, for no single site can create world-class expertise with
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GROWTH AND CHANGE, JUNE 2015
TABLE 5. TOP 10 GLOBAL CITIES FOR HUMAN CAPITAL.a
City
London
New York
Los Angeles
Chicago
Hong Kong
Tokyo
Sydney
Boston
Toronto
San Francisco
2010 Rank
2010 Score
1
2
3
4
5
6
7
8
9
10
5.6
5.4
4.6
4.6
4.4
4.1
3.7
3.4
3.1
3.1
a
Human capital is scored on the basis of five factors: size of a city’s foreign-born population, quality
of its universities, number of international schools, international student population, and percentage
of residents with university degrees.
Source Data: A.T. Kearney Global Cities Index 2010.
Source: Global Sherpa (2011).
a broad set of high technologies. Cortright and Mayer (2001) analysed 14 American high-tech
metropolitan areas and observed that each area tended to specialise in relatively few products or
technologies, with the exception of such large-scale concentrations as Route 128 around Boston and
San Jose at the heart of Silicon Valley (Anttiroiko 2004; Chapple et al. 2004).
The top U.S. high-tech cities, such as San Jose, Washington, DC, Boston, San Francisco, Seattle,
Austin, and Raleigh (Cook 2009), are ranked high in global comparison. Even if this trend began in
the U.S., leading U.S. cities are challenged by numerous European and Asian high-tech centres with
varying profiles. The top high-tech cities include such European cities as Munich, Stockholm, and
Cambridge (UK) and such Asian cities as Seoul, Singapore, Taipei, and Hong Kong (Anttiroiko
2004; Belisle 2009; Icon 2007).
The high-tech field is changing slowly from production-oriented conceptions towards a stronger
demand-orientation and high-tech services even to the extent that in spatial terms the time of isolated
suburban science parks is said to be over (Castells 2001). The new paradigm emphasises closer
connection to a rich innovation milieu, demand, and services, which requires close proximity to the
very heart of urban life. This may, in the long run, change the overall picture in favour of liveable
metropolitan high-tech areas.
Cities of logistics, exhibitions, and hospitality. Services have been and continue to be on the
urban development agenda, including such a broad range of activity areas as logistics, transportation,
tourism, hospitality, entertainment, retail trade, consumer services, welfare services, and cultural
services (Bryson, Daniels, and Warf 2004; Clark 2004; Hanssens, Derudder, and Witlox 2012;
Konishi 2000; Law 2002; Martinelli and Moulaert 1993; Miles and Miles 2004; Fisher 2007). Let us
first discuss cities with two different roles in international business and trade: transport interchange
and host city for trade fairs and conferences.
Some studies indicate that investments in transport infrastructure are among the most important
contributors to urban growth (UN-HABITAT 2008). Related to this, transportation is also critical to
GLOBAL INTERCITY COMPETITION
243
the location decisions of international business. This is one reason why the development of a logistics
city—be it global or regional logistic hub or a specialised port city, airport city, or distribution or
warehousing hub—is an appealing profile for a city in the globalising world. The top 10 logistics
performers in 2010 include (starting from the highest rank of the Logistics Performance Index 2010):
Germany, Singapore, Sweden, the Netherlands, Luxembourg, Switzerland, Japan, UK, Belgium, and
Norway (Arvis et al. 2010).
European cities, especially those in continental Europe, such as Rotterdam, Hamburg, and
Frankfurt, have for long served as major global and regional logistic hubs. Similar kinds of logistics
hubs in the U.S. include New York-Newark, Houston, Minneapolis-St. Paul, Dallas-Ft. Worth,
Chicago, Cleveland, and Detroit (King and Keating 2005; Steele 2009). In the Asian context,
world-class logistics hubs include Singapore and Hong Kong, challenged by such ambitious developments as Shanghai and other Chinese logistics hubs as well as Dubai Logistics City in the United
Arab Emirates, envisioned to be the world’s first integrated multi-modal logistics platform for air,
sea, and road services (Jacoby and Yang 2008).
A special form of service city, which combines logistics, exhibitions, and hospitality is the so-called
MICE city, which provides a range of meeting, incentive, convention, and exhibition (MICE)
functions, offered mainly to business people and to professional and international organisations.
Well-known MICE cities include Paris, Vienna, Barcelona, and Berlin in Europe, and Singapore,
Seoul, and Hong Kong in Asia (see Table 6).
Although some 80 percent of inbound arrivals to cities are tourists, MICE travel is increasingly
important for cities, not only because of the higher per capita expenditure of MICE travellers, but
also because of its huge promotional impact (Bremner 2007).
TABLE 6. INTERNATIONAL MEETING CITIES: NUMBER OF MEETINGS PER CITY.
Ranking
1
2
3
4
5
6
7
8
10
11
13
15
a
City
No. of meetingsa
Vienna
Barcelona
Paris
Berlin
Singapore
Copenhagen
Stockholm
Amsterdam
Lisbon
Beijing
Buenos Aires
Seoul
Budapest
Madrid
Prague
160
135
131
129
119
103
102
98
98
96
90
90
87
87
86
The ICCA ranking covers meetings organised by international associations which take place on a
regular basis and which rotate between a minimum of three countries.
Source: ICCA 2010.
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Cities of consumption and culture. Tourism, shopping, and entertainment are conventional
elements of service city as illustrated in fashion capitals like Paris and Milan, sports cities such as
Melbourne, Sydney, Vancouver, Manchester, and Dubai Sports City, shopping cities like Düsseldorf
and Hong Kong, quick wedding destinations like Las Vegas and New York and the like.
Economically, the most important type of city in this field is a tourist city, which is also vital for
many post-industrial cities, even if tourism is often associated with low value-adding services
provided by renowned historical and cultural sites or coastal destinations. Yet, as tourism itself is a
broad phenomenon, including beach tourism, shopping, and conference travel, the list of major
tourist cities is dominated by well-known global cities and metropolitan areas, including London,
Bangkok, Paris, Singapore, Hong Kong, New York City, Dubai, Rome, Seoul, Barcelona, Dublin,
Bahrain, Shanghai, Toronto, Kuala Lumpur, Istanbul, Madrid, Amsterdam, Mecca, and Prague
(Bremner 2007). Another important consumption-related indicator is shopping. According to the
World Shopping Capitals 2011 survey carried out by the Centre for Retail Research in 2010, London
was found to be the world’s shopping capital in terms of the actual retail market, followed by other
cities from the apex of the global urban hierarchy, Tokyo, Paris, and New York (see Table 7). The most
TABLE 7. SHOPPING CAPITALS BY FOOD AND NON-FOOD SALES.
City
Ranking
Sales (billion euros)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
108.49
106.44
91.96
78.15
33.94
29.27
29.09
28.81
28.00
25.27
24.01
19.94
19.22
18.74
18.52
15.24
14.77
14.15
10.24
9.91
7.67
2.60
734.44
33.38
London
Tokyo
Paris
New York
Los Angeles
Hong Kong
Dubai
Sydney
Singapore
Barcelona
Milan
Manchester
Madrid
Berlin
Rome
Amsterdam
Moscow
Copenhagen
Oslo
Stockholm
Rio de Janeiro
Johannesburg
Totals
Statistical mean
Source: Centre for Retail Research (2011).
GLOBAL INTERCITY COMPETITION
245
popular global shopping destinations for overseas tourists are London, Singapore, New York, Dubai,
Paris, Hong Kong, and Rome (Centre for Retail Research 2011).
Interestingly, welfare services are also slowly attracting increasing attention among urban developers because of the continuing increase in the demand for services related to health, well-being, and
self-development. An interesting expression of this trend is a healthcare town, which is based on the
increased regional and global demand for medical services—a trend that evolved from cosmetic
surgery to alternative and conventional medicine (Woodman 2010).
One of the general factors here is the liveability of the city, as this can be used as an indicator of
a precondition for a city profile in which well-being and health have a significant role. Usually,
middle-sized cities in wealthy countries with a relatively low population density have been favoured
in liveability rankings (The Economist 2011).
Lastly, history, arts, culture, and creativity may help to generate income and jobs. This is
highlighted in the concept of creative city, which reflects the transition towards a higher trajectory of
urban development and is often a part of a wider progressive agenda combining it with the ideas of
smart growth and sustainable city (Miyamoto 2007; Scott 2006). The formation of creative cities is
a global phenomenon and has various expressions in different parts of the world. In the American
context, for example, large cities with high status in creativity ranking, according to Richard Florida
(2002, 2005), include San Francisco, Austin, San Diego, Boston, Seattle, Chapel Hill, Houston,
Washington, New York, Dallas, and Minneapolis, i.e., areas that are well known for their success in
various high-tech fields. Examples of creative city developments in larger cities are the City of
Yokohama in Japan, Sydney in Australia, and Toronto and Vancouver in Canada, in which the
creative city concept has been integrated in their urban planning, branding, and development
strategies.
Even if cultural services as an industry are not seen as high value-adding business as such, this is
one of the emerging urban development trends, not least because it gives a fairly coherent view of
how to respond to the need to restructure a local community that is losing manufacturing industries
and is often in immediate need of considering how to utilise local culture in the development of the
service sector and how to convert old factory buildings or warehouses into cultural centres and
deserted harbours into entertainment zones (Landry 2008; Mommaas 2004; Scott 2006) (see
Table 8).
Cities in the Global Urban Hierarchy
Cities’ positions and principal roles in the global division of labour form a global urban hierarchy.
It can thus be used as a rough indicator of success in global intercity competition. In academic
research special attention has for long been paid to the top of the urban hierarchy, i.e., global cities
with a wide range of attraction factors and capabilities in globally oriented business services
(Abrahamson 2004; Castells 1999; Friedmann 2005; Miyamoto 2007; Sassen 1991/2001).
The most powerful nodes of global flows of values—New York, London, and Tokyo—are in
unique positions in the global urban hierarchy and form a special case for urban attractiveness, which
is based on head offices, financial services, and international business services, but are strong also
in such areas as MICE, shopping, and cultural services. In terms of attraction, there are also several
other multidimensional global cities, which have strengths in several post-industrial functions, such
as Singapore, Hong Kong, and Dubai. This group also includes cities such as Seoul, Shanghai,
Chicago, San Francisco, Sydney, and Vancouver, to name some well-known multi-profile cases. In
terms of attractiveness, the third category is cities with a narrower base of attractiveness, exemplified
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GROWTH AND CHANGE, JUNE 2015
TABLE 8. TOP 10 GLOBAL CITIES FOR CULTURAL EXPERIENCE.a
City
London
Paris
New York
Tokyo
Moscow
Los Angeles
San Francisco
Berlin
Buenos Aires
Chicago
2010 Rank
2010 Scoreb
1
2
3
4
5
6
7
8
9
10
7.6
6.3
5.5
5.4
4.9
4.2
3.9
3.8
3.8
3.7
a
Cultural experience is scored on the basis of six factors: museums, visual and performing arts,
major sporting events a city hosts, international travellers, diverse culinary establishments, and sister
city relationships.
b
Values are calculated on a scale 0 to 10.
Source data: A.T. Kearney Global Cities Index 2010.
Source: Global Sherpa (2011).
by such cases as San Jose as a high-tech centre, Milan as a city of fashion, Zurich as a financial
centre, Vienna as a MICE city, and the like.
The most widely cited world city rankings based on business services were made by Beaverstock,
Smith, and Taylor (1999), who ended up with the following global view of the hierarchy of world
cities:
A. Alpha world cities (full service world cities)
1. London, Paris, New York, Tokyo
2. Chicago, Frankfurt, Hong Kong, Los Angeles, Milan, Singapore
B. Beta world cities (major world cities)
3. San Francisco, Sydney, Toronto, Zurich
4. Brussels, Madrid, Mexico City, Sao Paulo
5. Moscow, Seoul
C. Gamma world cities (minor world cities)
6. Amsterdam, Boston, Caracas, Dallas, Düsseldorf, Geneva, Houston, Jakarta, Johannesburg, Melbourne, Osaka, Prague, Santiago, Taipei, Washington, DC
7. Bangkok, Beijing, Montreal, Rome, Stockholm, Warsaw
8. Atlanta, Barcelona, Berlin, Buenos Aires, Budapest, Copenhagen, Hamburg, Istanbul,
Kuala Lumpur, Manila, Miami, Minneapolis, Munich, Shanghai
In general, capital cities are likely to have more of the characteristics of a global city. It is also a
rule that it is difficult for more than one or two cities per country to be included in the top ranks of
global cities. For example, London and Paris belong to the highest rank of global cities, but no other
UK or French cities succeed in this ranking. There are exceptions to this rule, however, as some large
GLOBAL INTERCITY COMPETITION
247
economies such as the U.S., China, and Germany place more than one city on the list. The U.S. has
the strongest position with several cities in the rank of global cities (Global Sherpa 2011). Another
rule is that the higher position in the ranking of global cities, the less strategic role the mindshare type
city branding has. The image of the city is always important, but active city branding is particularly
critical for those emerging cities struggling to gain recognition as global players.
Cities’ positions regarding the global division of labour change over time, and attraction is one of
the key determinants in such a global transformation because of the interdependence and mobility
that characterises our times. A large proportion of high-tech jobs have for long been moving from
high-tech regions of developed countries to the emerging economies of India and China and to many
other developing countries (Kresl and Fry 2005). There is also a trend for offshoring services and
white-collar work (Collins and Brainard 2006; Markusen 2005). Such trends have boosted the
development of many Asian urban centres, such as Seoul, Taipei, Shanghai, Guangzhou, Bangalore,
and the like, which can be expected to improve their positions in the global urban hierarchy as the
hubs of the world’s fastest growing economic region.
Remarks on Social Risks and Tensions
There are inherent social risks and tensions in attraction-oriented urban development. One of the
fundamental social issues is who ultimately reaps the benefits of attraction-oriented development.
Are attraction-oriented strategies too costly and do they benefit MNCs, global meritocracy, and local
elites rather than local residents? An expression of such a tension is visible in Toronto, a creative city
par excellence, whose development policy has been challenged by activists of “creative class
struggle” movement (http://creativeclassstruggle.wordpress.com/). In general, the attraction-oriented
approach has a tendency to lift development processes away from the grassroots level realities, which
may cause problems in the long run by bringing destructive elements to local economy, creating
exclusive enclaves to a city, and relying on risky large-scale investments. The case of Osaka’s
development policy in the 1980s and 1990s aptly illustrates the realisation of such risks, as largescale investments in business locations were made in the context of an excessively optimistic growth
image, insufficient risk assessment, and minimal involvement of educational institutions in creating
innovation milieu, thus leading to a massive urban policy failure (Anttiroiko 2009a; Kamo 2000).
The key dimensions of such a potential trap of attraction-oriented policy are depicted in Figure 2.
In the ideal sense, city branding is an integrative process with consensual and inclusive work
methods seeking legitimate solutions based on dialogue between developers and citizens and taking
into account the need to balance between diversification and specialisation. Yet, in real life, it is easy
for any city government to adopt a rational planning and development model that produces professionally constructed, yet potentially biased strategies. In such a case, there is a risk of lacking the
utilisation of local potential, being inclined to short-sighted policy and “attraction hysteria” among
urban developers, and designing high-cost attraction strategies, which rely too much on footloose
firms’ location decisions. To avoid this, there should be enough balancing between social and
economic elements in city branding, as illustrated in Figure 2.
Conclusions
The global competition of cities is ultimately about their attractiveness, which determines what
kind of resources each city is able to attract from the global flows of capital, know-how, goods, and
services, and what kind of products and services it may successfully offer to global markets. Faced
248
GROWTH AND CHANGE, JUNE 2015
Local society: lack
of concern of
inclusiveness
Attractionoriented
policy
Local government:
attraction hysteria
and narrow-minded
developmentalism
Economic city
branding as
potentially
destructive
element of
urban
development
Local economy:
attention to
location decisions
of footloose firms
Corrective
measures:
- Social
inclusion
- Integrated
policies
- Development
dialogue
- Smart growth
- Economic
diversification
- Sustainable
development
FIGURE 2. THREE DIMENSIONS OF AN ATTRACTION ORIENTED POLICY TRAP.
with such a challenge, cities may utilise economic city branding as a tool to attract values from the
space of flows through economic city profiling. The city profile model presented in this article, with
eight post-industrial economic city profiles, provides one framework for considering the economic
branding options for post-industrial cities.
On the basis of empirical observations, the cities that belong to the apex of the urban hierarchy,
i.e., full service global cities, are in a rank of their own, including cities like New York, London, and
Tokyo. Their “brand” is built upon their factual high status and a wide variety of post-industrial
functions. In the second rank of global cities with multidimensional profiles, ranging from business
services to high-tech and to logistics and tourism, we can identify cities and city-states like Singapore, Hong Kong, and Dubai. In their case, strategic city branding is an important tool in keeping
them attractive in the knowledge-based global economy. For more specialised lower rank cities,
branding is even more important as they must gain, increase, or maintain their visibility in selected
areas as global players, as Zurich in the banking industry, Charlotte in North Carolina as a financial
centre and a headquarter city, Milan as a global fashion capital, and Vienna as a MICE city. In this
respect, their city branding effort may appear to follow traditional mindshare branding. The risk is
that a narrow economic profile will increase vulnerability and creates path dependency from which
it may be difficult to break away.
Economic city branding is no panacea for cities’ problems in coping with globalisation challenge,
but it helps to utilise local economic potential in the attraction-oriented intercity competition by
focussing branding efforts on attracting values from the global value flows with a targeted view to
business sectors or industry groups.
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