ESADE MBA City Monitor 2015

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MBA  CITY  MONITOR

Ivan  BofarullDirector,  Global  Intelligence

Barcelona,  Oct  2015

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Aknowledgment

• I  want to thankDr.  Xavier  Mendoza  (ESADE),  who published“Business  Schools and  attracting talent to Barcelona”  in  2008  (Paradigmesmagazines,  issue #1,  Dec.08).

• TheMBA  City  Monitor,  although consideringa  methodologywithsignificant variations, has  been inspiredbyhis vision.  

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Sources  of  data

• Financial Times  MBA  rankings  2013,  2014,  2015• Bloomberg Business  Week MBA  rankings,  2014• Financial Times  ranking  of  “top  MBA  programs for entrepreneurship”,  2015• Economist Intelligence Unit (EIU)  “Hotspots 2025”  city report,  2013• Global  Talent Risk report,  Boston  Consulting Group (BCG)and  World Economic Forum,  2011

• The 4  global  forces …  ,  McKinsey Global  Institute (MGI),  2015• “The Second Machine  Age”,  E.Brynjfolsson &  A.McAfee (MIT),  2014• “The Economic case  for welcoming immigrant entrepreneurs”,  KauffmanFoundation,  2015

• Google  maps• LinkedIn  

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Cities,  talent  attraction&

MBAs

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Cities  and  talent  attraction

• “The global  talent risk is growing.  Soon staggering talent gaps  will appearin  large parts of  theworld threateningeconomicgrowth.  Economieswillstruggle”.  (BCG)  

• “The roots of  talent scarcity in  theWestern  hemisphere are  no  mystery:  populations are  ageing rapidly and  educational standards are  insufficient.”  (BCG)

• We will see competition for talent on an unprecedented scale.  Human  capital  is replacing financial capital  as  the engine of  economic prosperity.”  (BCG)

• On top  of  that,  In  the Second Machine  Age,  competition for highly-­‐skilledtalentwill intensify (Brynjfolsson&  McAfee,  MIT)

• “The US  will need to add 25  million+  workers to its talent base  by 2030  tosustain economicgrowth.  Western  Europe:  45  million+.”  (BCG)

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Cities  and  talent  attraction

• 50%+  of  the world’s population lives in  cities,  which generate 80%  of  theGDP  worldwide.  (EIU)

• Urbanization,  a  major disruptive force (McKinsey Global  Institute)• Global  hubs increasingly influential:  decisionsmade from  a  city-­‐

perspective (for instance,  the case  of  the City  of  London,  Hong  Kong,  Singapore,…)  rather than a  country  or regional  perspective.  (EIU)

• New  highly-­‐skilled,  creative,  global  class– Increasingly urban (Martin  Prosperity Institute,  U.Toronto)– increasinglymobile,  which increases city’s competition for talent attraction and  

retention.  (BCG)

• As  much as  American  cities capitalized talentmobility in  thewake of  theSecond WorldWar,  a  question looms today:  which citieswill capitalize onthe global  talentmobility flows after the Great  Recession and  the Dawn of  the SecondMachine  Age?    (EIU)

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The  MBA  City  Monitor

• Is  there  any  tool  or  actionable  metric  that  we  can  provide  for  cities  to  measure  their  ability  to  attract  global,  highly  skilled  talent?

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The  MBA  City  Monitor

• Location &  MBAs have a  lot to do  with eachother à Location is a  major driver  prospectivestudents consider before applying toMBA  programs.

• MBA  students &  alumni are  key for cities within a  context of  “global  talent risk”*:  top  MBAs are  a  unique talent platform cities can  tap for theireconomic growth.

• Why not predicting a  city’s appeal  for talent witha  single  metric?:  

How many top  international students are  doing anMBA  in  your city at  any time  of  the year?  

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The  MBA  City  Monitor.  Inputs.

When it comes  to considerMBA  students/alumnia  talent platform for cities,  we shouldmake two previous considerations:

• Sample “Curation”– MBAs have to be  a  reliable,  “high-­‐quality”  source of  talent for the city.  We have taken

the Financial Times  MBA  ranking  as  a  signal of  this qualityà only programs ranked by FT  have been considered as  a  base  for our calculations.  

• Size and  network effects– Volume is relevant to produce  network effects.  An extra  effort has  been put in  the

calculations to include not only MBAs within specific city limits but in  a  metro  area and  beyond ,as  long as  the city is within a  2  hr.  driving distance.

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The  MBA  City  Monitor.  Inputs

Definition of  the universe and  methodology for the purpose of  the MBA  City  Monitor:

Criteria that have to  do  with “sample curation”• TheMBA  programhas  been ranked by the Financial Times  in  at  least one

of  the last three editions of  theMBA  ranking• Full  Time  general  management program (not part time,  evening,  

specialized,  and  other variations)• International  students (internationalmobility presumes  a  higher level of  

commitmentwith a  specific destination)

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The  MBA  City  Monitor.  Inputs

Definition of  the universe and  methodology for the purpose of  the MBA  City  Monitor:

Criteria that have to do  with “size /  network effects”• Enrollments,  not intakes (BloombergBusiness  Week school profiles)  

– Intakes would over-­‐represent cities with one-­‐Year MBA  programs.

• Urban areas,  not strictly city limits (for instance:  Oxford  and  Cambridge  add to London)– Max.  2h  driving distance according to Google  Maps (without traffic)

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The  MBA  City  Monitor.  Outputs

• City  ranking  by total  international enrolled students• City  ranking  by total  international enrolled students (per  1  million citizens)

– When it comes  to  enrollments per  1M  people,  only cities/metro  areas larger than 1Mhave been considered

• Country  ranking  by total  internationalenrolledstudents

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The rankings

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The Top  10  CitiesBy international enrollment

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#10.  Raleigh-­Durham,  NC

International  enrollment:  630Total  enrollment:  1,454

International  enrollment per  1M:  370

-­2

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#9.  Singapore

International  enrollment:  677Total  enrollment:  742

International  enrollment per  1M:  128

=

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#8.  Barcelona

International  enrollment:  771Total  enrollment:  873

International  enrollment per  1M:  143

*BCN  has  dropped  3  spots  in  the  ranking  because  Eada,  one  of  the  top  three  b-­schools  in  the  city,  has  not  been  ranked  among  the  top100  by  the  FT  in  the  last  3  years

-­3

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#7.  San  Francisco  –San  Jose

International  enrollment:  804Total  enrollment:  1,548

International  enrollment per  1M:  125

+3

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#6.  Toronto  

International  enrollment:  808Total  enrollment:  1,384

International  enrollment per  1M:  145

+1

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#5.  Paris

International  enrollment:  860Total  enrollment:  911

International  enrollment per  1M:  83

+1

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#4.  London

International  enrollment:  938Total  enrollment:  1,042

International  enrollment per  1M:  63

-­1

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#3.  Chicago

International  enrollment:  1,124Total  enrollment:  2,661

International  enrollment per  1M:  118

+1

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#2.  New  York

International  enrollment:  1,167Total  enrollment:  2,693

International  enrollment per  1M:  61

=

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#1.  Boston

International  enrollment:  1,637Total  enrollment:  3,694

International  enrollment per  1M:  363

=

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Rank City International  MBA  enrollment

1 Boston 1637

2 NY 1167

3 Chicago 1124

4 Toronto 808

5 SF  /  Silicon Valley 804

6 Raleigh-­‐Durham,  NC 630

7 Philadelphia 572

The top  in  North  America

*Only urban areas with:-­ 500+  intl’  MBA  students

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Rank City International  MBA  enrollment

1 London 938

2 Paris 860

3 Barcelona 771

4 Madrid 531

The top  in  Europe

*Only urban areas with:-­ 500+  intl’  MBA  students

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The Top  10  CitiesBy international enrollment

per  1M  population

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Rank City International  MBA  enrollment

Int’  enrollmentper  1M

1 Boston 1637 363

2 Raleigh-­‐Durham,  NC 630 315

3 Toronto 808 145

4 Barcelona 771 143

5 Singapore 677 128

6 SF-­‐Silicon Valley 804 125

7 Chicago 1124 117

8 Philadelphia 572 95

9 Paris 860 83

9= Madrid 531 83

The  top  10  citiesby  international  

enrollment  per  1M*

*Only urban areas with:-­ 1M+  pop.-­ 500+  intl’  MBA  students

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Rank City International  MBA  enrollment x 1M

1 Boston 363

2 Raleigh-­‐Durham,  NC 315

3 Toronto 145

4 SF  /  Silicon Valley 125

5 Chicago 117

The top  in  North  America (x  1M)

*Only urban areas with:-­ 1M+  pop.-­ 500+  intl’  MBA  students

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Rank City International  MBA  enrollment x 1M

1 Barcelona 143

2 Paris 83

2= Madrid 83

4 London 63

The top  in  Europe(x  1M)

*Only urban areas with:-­ 1M+  pop.-­ 500+  intl’  MBA  students

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Top  countries

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Rank Country International  MBA  enrollment

1 US 10,202

2 UK 1,400

3 Canada 1,211

4 Spain 1,003

5 France 887

6 Singapore 677

7 China 527

Top  countries

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Takeaways

• The US  is still the dominant country  in  theworld when it comes  toattractinga  global  top-­‐notchMBA  population (close to 60%  of  total).

• In  particular,  the East  Coast attracts 1/3  of  the global  top  MBA  population,  and  the Ivy League  corridor accounts for almost 20%!

• However,  the San  Francisco  -­‐ Silicon Valley  area has  experienced thehighest growth in  the last 3  years.  A  plausible  explanation is thatMBAsincreasingly considerworking in  start-­‐ups  a  main career option.

• Outside of  the US,  theUK,  Canada,  Spain and  France  are  the leadingcountries,  while Toronto,    London,  Paris  and  Barcelona/Madrid  their keyhub cities.

• Emerging hubs in  Asia  still struggle to have a  relevant population of  thistype of  international students (in  this program format).

• For both cities and  countries,  the global  MBA  population in  top  programs,  should be  one of  the targets  of  specific policy initiatives that help to  address the “talent risk”  in  the decades to  come  (see Appendix)

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Appendix (1)

• In  2015,  Kauffman Foundation released a  major research on the impact of  immigrants into theAmerican  entrepreneurial ecosystem:– 24  out of  the top  50  venture-­‐backed startups had at  least a  foreign-­‐born co-­‐founder– 40%  out of  the Fortune 500  founders were foreign-­‐born or son/daughter of  immigrant.

• MBAs are  not a  majority amongco-­‐founders (Inc.  Magazine)  but are  instrumental  in  making start-­‐ups  successful (hired for management team).– In  top  MBA  programs,  between 80%  and  100%  of  startups are  still operating three years

after (Financial Times  “top  MBA  programs for entrepreneurship”).

• In  Barcelona:– 40%  out of  Wired Magazine’s hottest startups (2014)  have a  foreign-­‐born founder.– 10%  of  top  MBAs start up  new  businesses.– 80%+  are  foreign-­‐born.– 80%+  are  still operating after three years.

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Appendix (2)

• International  students in  top  MBA  programs can  be  instrumental  in  theconfigurationof  a  healthy and  robust entrepreneurialecosystem.– Foreign-­‐born citizens seem to  have incentives  to  give the “extra  mile”  when it comes  to  

entrepreneurship or simply put,  are  more  creative because of  the “out-­‐of-­‐the-­‐comfort-­‐zone”  context where they develop.

– Top  MBA  students have specific abilities instrumental  for the success of  startups and  forentrepreneurial ecosystems to  thrive.

– Local  governments should address specific policies to  tap into this talent base  and  facilitate this virtuous cycle to  happen.  

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@ivanbofarull