The Barcelona Observatory. 2009-10 Report

R E P O R T

OBSERVATORI DE BARCELONAOctober 2010

BARCELONA CITY COUNCIL

Jordi W. Carnes i Ayats

Deputy Mayor for Treasury Affairs and Economic Promotion

Mateu Hernandez i Maluquer

General Manager of Economic Promotion

Àngels Santigosa i Copete

Director of the Study Programme on Economic Activities and Employment

BARCELONA CHAMBER OF COMMERCE

Miquel Valls i Maseda

President

Xavier Carbonell i Roura

Managing Director of the Barcelona Chamber of Commerce

Joan Ramon Rovira i Homs

Director of the Economic Studies Office of the Barcelona Chamber of Commerce

TECHNICAL TEAM

Oscar Villar

Economist. Coordinator of the Executive Secretariat of the Barcelona Observatory

Teresa Udina

Economist. Economic Activities and Employment Studies Programme

Management, Barcelona City Council

Ana Belmonte

Economist. Economic Studies Office of the Barcelona Chamber of Commerce

Sandra Gutiérrez

Statistician. Economic Studies Office of the Barcelona Chamber of Commerce

Graphic Design:

Toni Fresno

Barcelona Chamber of Commerce

Layout:

DVA Associats

Prepress and Printing:

Ingoprint

Copyright Deposit:XXXX

r e p o r t

In Barcelona, as in everywhere else, 2009 was the second year of the deepest crisis for seventy years. An intense global recession with a strong impact on businesses, serious consequences for the job market and one which will force us to reconsider the very basis of our production model and future growth.

Fortunately, however, Barcelona is facing this difficult situation from a very different reality than that of seventy years ago as the city is starting from the footing of an economic situation and a competitiveness in Europe and worldwide that it did not enjoy in past crises. In effect – as this report by the Barcelona Observatory highlights – there are many prestigious in-dicators and sources that insist that despite the depth of this global crisis, Barcelona and its metropolitan area are one of the most attractive and competitive destinations in the world and a leading area in terms of its economy, business and attraction of talent.

In all, the challenges posed by the current economic situation – which are most acute in the problem of unemployment – mean that the main priority of municipal government can be none other than the decisive fight against the crisis, in which the city is fully involved. I would like to comment here on the value of having such an instrument of coordination as the Agree-ment for Quality Employment in Barcelona – the result of the agreement between the Government of Catalonia, Barcelona City Council and trades unions and business organisations – which has been strengthened since 2009 with new resources, new agents and new agreements. Besides this, after the greatest investment initiative of its history, with a total of 1,800 million euros between 2009 and 2010, the City Council is ready to put in place an austerity plan that will contribute to reducing the public deficit while guaranteeing the priority investments and policies aimed at eco-nomic reactivation, care for people and coexistence in the public space.

All of this austerity initiative, however, must not prevent future undertak-ings from going ahead. Over the last 30 years, Barcelona has been able to manage crises as opportunities to relaunch the economy, and it has come out stronger every time. In light of the formidable challenges posed by the current situation, we must once again ensure that short-term actions against the crisis are compatible with the medium- and long-term strat-egy that the City Council and the leading economic and social agents are redefining and channelling in what we are calling the 2020 Agenda.

In effect, Barcelona aspires to become the principal economic power-house of southern Europe on the 2020 horizon. On the basis of the diver-sified economic structure that characterises it, the city will continue to promote innovation and the knowledge economy, the attraction of compa-nies and talent, the major transformation projects and the infrastructures

necessary to project itself as a powerful capital in the Mediterranean Eu-rope arena.

Barcelona must also stand out as a city of creativity and education. An educational city in the broadest sense of the word, where culture is a cen-tral pillar of public life. Where small and large cultural facilities are ac-companied by politics that help people with an education to take a risk with creative proposals, as is the case of the creation factories, and this cultural and creative wealth generates citizenry, economic value and so-cial change.

To achieve its future objectives, Barcelona needs new connectivities that afford it better internal organisation and that strengthen its openness to the world. I would like to highlight here the strategic value of the Mediter-ranean corridor – recently endorsed by the European Commission – and of the future Sagrera station, which will become the main gateway into and out of Barcelona and one of the driving forces of a region – the north of the city – undergoing a profound transformation. Similarly, changes in the global circuits and flows of goods strengthen the strategic positioning of the Mediterranean and represents the opportunity of the Port of Barce-lona becoming one of the major distributors of maritime traffic from Asia.

Finally, one of the symbols of identity of the Barcelona of the future must be sustainability. Due to conviction, due to the challenges that twenty-first-century cities of the world in general and in the Mediterranean in particular have to face, and because this is one of the keys to the trans-formation of the economic model that we need. Barcelona’s commitment to electric or hybrid vehicles, which forms a connection with our industrial tradition to progress towards a new energy model, is an emblematic ex-ample of the line to be pursued.

It is true that we are facing formidable challenges, but at the same time we have great assets with which to face them. One of the most important of these is the very strength of the Barcelona brand, which the reports by the Barcelona Observatory highlight year after year, and which we pro-pose to manage explicitly in cooperation with the Chamber of Commerce and other major actors in the city. In presenting this eighth annual report, I would like to convey my congratulations to the technical team for their work, I would like to thank the cooperation of a broad range of institutions and organisations that provide their support and I would like to show my faith in the strengthening of public-private cooperation, without a doubt one of the distinctive traits and one of the keys to the success of Barce-lona’s process of economic transformation.

Jordi Hereu Mayor of Barcelona

From the economic, business and social point of view, 2009 was a difficult year. The worldwide recession that we have experienced has been the strongest in the post-war period. The impact of the recession has also been hard on our economic sphere, both nationally and regionally and locally. However, we began to register an improvement in the second half of 2009, with more moderate falls in activity than during the first part of the year. In addition, this improvement translated into positive growth in economic activity in Catalonia in the first quarter of 2010, after falling for seven consecutive quarters, and it is predicted that this positive path will become firmly established in 2011, even though the rate of growth will still be weak.

We should remember that the city of Barcelona has taken a significant qualitative leap in the last two decades and that, in addition, in the cur-rent setting of serious economic difficulties, the positioning of the city in the international and European context remains solid. We can see this from the eighth report by the Barcelona Observatory, which Barcelona City Council and the Barcelona Chamber of Commerce offer all economic agents. By way of example, Barcelona was the fourth favourite European city among European executives for locating their businesses in 2009, with the city going up one place compared with 2008 and becoming es-tablished among the top five favourite cities for business. Barcelona also improved the ability to organise international meetings, for the second year running, to achieve fifth place worldwide. Similarly, the rate of busi-ness activity in the province of Barcelona remains higher than countries such as Finland, the United Kingdom, France and Japan.

Barcelona’s infrastructures, such as the airport and the port, also retain a preferred position: ninth European airport in volume of passengers and first of the main Mediterranean ports in volume of cruise passengers. We should also mention the good positioning of the IESE and ESADE busi-ness schools, in fourth and eighth place respectively in the European ranking published by the Financial Times in 2010.

All the agents, public and private, institutions and companies, have helped make Barcelona an attractive and competitive city with a good ex-ternal image, but we need to keep working so that we do not lose this good positioning and to improve in those areas where there is still room to grow.

Catalonia in general, and Barcelona in particular, are well positioned in such key aspects as the degree of openness to the outside and the centres of excellence in applied research and higher education. These are the pillars of medium- and long-term sustainable economic growth: internationalisation, innovation and education. And these are also the

pillars on which the Ara+que mai programme is based, which the Bar-celona Chamber of Commerce offers companies with the aim of foster-ing growth and improving competitiveness. As part of this programme, our institution fosters internationalisation to help companies begin and strengthen their presence abroad. It also offers support for innovation and training through aid, courses and grants, and through advice to make this investment profitable and to enhance the development of information and communication technologies. Parallel to this, the Chamber of Commerce is developing a new support plan for business funding so that companies can find out all the financial instruments available to them and so get the best funding scheme, and a business resources optimisation programme, consisting of cost reduction and management improvement plans.

We need to work so that the city continues to improve its positioning, both at a European level and worldwide. We have clear examples of the ad-vances we are making, such as the opening of the Alba Synchrotron, the most powerful light source in southern Europe and the most complex and high-level science facility in Spain, which came into operation in March 2010, and the opening of the new Terminal T-1 at El Prat airport, which has led to an increase in the number of intercontinental flights from Bar-celona. Similarly, we need to continue advancing in projects that have a significant economic impact on the city, such as the future intermodal station of La Sagrera, which will connect the high-speed railway with the public and private transport networks. Today, this is the largest under-ground railway project in Europe.

I would like to end by expressing my gratitude to the technical team for their hard work and their constant striving for improvement in the project represented by the Barcelona Observatory and to all the institutions that have once again this year helped by providing information and enriching the content of the report that we now present to you.

Miquel Valls i MasedaPresident of the Barcelona Chamber of Commerce

4

S u M M a r y

6 Introduction

9 Datasheet Barcelona

12 The Barcelona observatory

14 Results:

15 City for business

16 Introduction17 Best European cities for business 18 Entrepreneurial activity in OECD countries19 Business perspectives in the European regions for 2010: The opinion of business people21 Main European regions receiving foreign investment projects22 Corporate tax and VAT in countries around the world23 Main world cities organizing international meetings

24 The knowlegde society

25 Introduction26 Population employed in technological manufacturing sectors and services in European regions28 Population employed in science and technology and Research and Development expenditure in European regions30 Applications for patents in main OECD provinces32 Main cities of the world in scientific production 33 Tourism

34 Introduction35 Main European airports by volume of passengers36 Hotel accommodation in European provinces37 Cruises at main Mediterranean ports

38 Sustainability and quality of life

39 Introduction41 The compromise of European companies42 Best European cities for quality of life of employees43 Greenhouse gas emissions in world Cities

44 Prices and costs

45 Introduction46 Cost of living in cities around the world 47 Apartment rental prices in the cities of the world48 Office rental prices in the cities of the world49 Rental prices for commercial permises in the cities of the world50 Rental prices for industrial land in the cities of the world51 Wage Levels in Cities of the World

52 Labour market and training

53 Introduction54 Employment rate in European regions56 Unemployment rate in European regions 57 Employees with university studies in European regions58 The best European business schools

60 Synthesis

65 Monographic

Report 2009-2010. Sumari

5

I N t r o D u C t I o N

7

The macroeconomic evolution of 2009 was marked by the most serious economic recession to have occurred in decades on a global level, with sharp drops in the GDPs of Catalonia, Spain and the economies of the OECD countries, a drastic reduction in international trade, a financial cri-sis that generated great difficulties for families and companies to obtain credit and an intense adjustment process in the property market, particu-larly in some economies. The collapse in activity during the first semester was followed by a more moderate decline in the second part of the year, which, together with the gradual breakthrough of the more advanced economies from the recession, led to the recovery of business loyalty in-dexes and allowed a more favourable forecast to be given for 2010.

Under these difficult circumstances, special value can be given to the solid competitive position that Barcelona has maintained among the top European cities and that is described in detail in this report. In this re-gard, it is worth noting that in 2009, it recovered the fourth position among the best cities for businesses in the continent according to the European Cities Monitor prepared by Cushman & Wakefield – surpassed only by Lon-don, Paris and Frankfurt – and for the fifth consecutive year it was in the top five positions in the ranking. In addition, it remained in first place as the city with the best quality of life for workers and as the city with the greatest progress. Similarly, the prestigious FDI Magazine – the maga-zine of the Financial Times – recently set Barcelona in fifth place in the global ranking of the 25 top European cities for the future 2010/2011 and in first place among cities in southern Europe. While certain political and economic regulation tools are in the hands of state governments or su-pranational bodies, cities play a key role in the struggle against the reces-sion in a global economy where the large urban areas are primary play-ers regarding growth and competition. In this respect, the proactive role that Barcelona has again developed should be mentioned, leading to the OECD appointing the Barcelona Principles, ten recommendations resulting from the exchange of experiences and cooperation of 41 cities under the framework of the LEED (Local Economic and Employment Development) Programme, as the response for cities facing the challenges of the reces-sion. In fact, Barcelona is using these recommendations to guide it in its response to the recession, using the strategic support points listed below.

The city is dealing with the recession by exercising cooperative leader-ship. Its strategy in terms of the labour market is indicated through the Agreement for Quality Employment in Barcelona – signed by the Minis-try of Labour, Barcelona City Hall, Foment del Treball, PIMEC, CCOO and UGT in May 2008, subsequently joined by the municipal groups of ICV-EUiA and ERC - and it was reinforced during 2009-10 with additional re-sources aimed at creating direct employment and providing courses and guidance for the unemployed and motivating the creation of new compa-nies by Barcelona Activa. With the application of combined measures in

the Agreement, 7,500 direct job positions were created in the city in 2010. Similarly, the city of Barcelona is proactive in company support, a source of job creation. In this regard, the Barcelona Chamber of Commerce has developed a special plan to foster company growth and improve competi-tiveness. This plan consists of providing companies with tools to obtain the best financing, promoting internationalisation with programmes and aids for companies to start up and consolidate their presence abroad, promoting innovation through R&D&I support and aid, offering courses and grants for training competitive professionals, and maximising busi-ness resources through optimal management.

The city of Barcelona has dealt with the recession by making the highest investment in its history: €1,028 million in 2009 and 836 million in 2010, the highest investment per capita of the large Spanish cities. In addition to contributing proactively to stimulating economic activity, this injection of resources will result in a significant improvement of public space and equipment and will have an impact on all of the city’s districts. Further-more, the municipal budget for 2010 will reinforce the resources destined for economic promotion policies and public care, and the city has healthy local finances that constitute a top-level asset for dealing with the current economic situation.

While it is establishing short-term impact measures, Barcelona maintains a clear strategy for advancing towards a new economic growth model based on knowledge, creativity, innovation and sustainability. The reces-sion will not stop the city from implementing this strategy in depth, with milestones such as the recent inauguration of the Synchrotron – the most powerful synchrotron light source in the south of Europe and the most complex and top-level scientific facility in the State - obtaining the dis-tinction “International Campus of Excellence” for the Barcelona Knowledge Campus project and the UAB, and the remarkable increase in the number of workers dedicated to research and development and other technologi-cal activities. Among the measures promoted by the local government, it is worth noting the progress of the strategic clusters of the innovation dis-trict 22@ - ICT, design, medical technologies, media and energy - where more than 1,500 companies have been located, the development of a new agriculture and food cluster in the Zona Franca and the preparation of the implementation of two new clusters on Education and Multilingualism. The city is also advancing in sustainability terms and, for example, Bar-celona will coordinate part of the European research in renewable ener-gies in the KIC Innoenergy project, with an associated investment of €450 million, and it is working on the development and promotion of the use of electric vehicles in the Catalan capital.

The opening-up of Barcelona’s economy to the world is one of the strength factors that has most clearly contributed to its recovery, as is

demonstrated by the fact that Barcelona is the leader of exports in the Spanish economy and the notable resistance to the recession shown by its tourism trade. Barcelona continues to maximise the attraction of for-eign investment, economic activity and talent with actions such as the Barcelona Economic Triangle in cooperation with the Generalitat of Cata-lonia to attract economic activity and foreign investment to the metro-politan region of Barcelona, the motivation of the Do it in Barcelona pro-gramme for international professionals, researchers and entrepreneurs that want to begin their professional and business activity in the city, and the progressive development of the international network of Consulates of the Sea.

Within the scope of traditional competitiveness factors, Barcelona con-tinues to focus on large productive infrastructures. The progressive im-provement in infrastructures with national and international connections in recent years was reinforced in 2009 with the inauguration of the new airport terminal – with a capacity for 55 million visitors a year - the open-ing of new intercontinental routes and the preparation of the strategic plan of the Aerial Route Development Committee (CDRA), which has con-solidated the commitment to internationalisation. The Port of Barcelona is the leading cruise centre, and this is accompanied by the implementa-tion of a Strategic Plan that will reinforce its logistic potential and capac-ity. In addition, Barcelona continues to be in the first five positions in the global ranking for organising trade fair and congress events.

The current economic situation lends particular value to citizen proxim-ity policies. In the sphere of economic promotion, Barcelona is noted in this sense for fostering urban business proximity through its commercial core policy, remodelling the city’s market network, specific measures for the city’s young people regarding professional guidance and entering the labour market, or its dynamising actions in neighbourhoods that require special attention.

To sum up, Barcelona is dealing with the economic recession by main-taining favourable international positioning and developing policies in line with the OECD recommendations for recovering large urban areas. The challenges presented by the current situation – in which the experts fore-cast that the breakthrough from the recession will open the doors to a slow and complex recovery process – mean that it is essential to progress in this strategy, to reinforce the various cooperation formulas between the public and private sectors – one of the key reasons for the econom-ic transformation that the city has undergone – and to intensify actions leading to a change in the production model.

Report 2009-2010. Introduction

8

11

D a t a S H e e t

B a r C e L N a

10

Datasheet Barcelona 2009

11

Surface area (km2)populationForeign population (% of total)Density (inhabitants/ km2)Climate (Can Bruixa Observatory) Average monthly temperature (ºC)* Annual precipitation (mm)*

MaCroeCoNoMIC Data:GDp (year-on-year growth, %)- Barcelonès*population registered with the national insurance schemeunemployment rate 16-64 years old (%)employment rate 16-64 years old (%)Labour force participation rate 16-64 years (%)CpI (average change, %)- BCN Prov.exports (millions of € ) - BCN Prov.Imports (millions of €)- BCN Prov.Investments overseas (millions of €)- CataloniaForeign investments (millions of €)- CataloniaCompanies - BCN Prov.Multinationals in Catalonia*

traDe aND tourISMretail establishments - BCN Prov.Commercial and Shopping centers and galleriesMunicipal markets (number and commercial surface area (m2))Hotels Number Bedstourists

INFraStruCtureairport Runways (number and length (m))** Maximum capacity of flights/hour** Passengers (thousand)

port Land surface (ha) Wharfs and landing stages (km) Total traffic (thousands of tonnes)

Fira Barcelona (Barcelona fairgrounds) Exhibitions Visitors Total surface area devoted to exhibitionsc (m2)

Catalan universitiesuniversity students in CataloniaForeign schools in Cataloniatechnology parks and research centers in Barcelona**

Beaches (number and metres)Bike lane (km and “Bicing” service users)Libraries*Museums, collections and exhibition centrespublic sport facilities (number and users)*Cultural and leisure facilities (thousands of users)

102.21,621,537

17.515,866.3

17.8607.2

1.71,021,974

15.466.8

790.5

32,261.848,519.77

1,096.31,365.3467,385

3,124

74,69224

45/206,769

32160,331

6,476,033

3/3352;2660;254090

27,312

828.920.3

42,980.8

522,983,097

633,774

12212,959

19210

7/ 3,910156/182,062

21441

1,511/182,68241,989.4

GeoGrapHy

eCoNoMy

eDuCatIoN aND CIty oF KNoWLeDGe

QuaLIty oF LIFe

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

Report 2009-2010. Datasheet Barcelona 2009

15

t H e B a r C e L o N a

o B S e r V a t o r y

We are pleased to present the 2009-2010 Barcelona Observatory Report

The Barcelona Observatory is an initiative promoted by the Barcelona City Council and Chamber of Commerce in conjunction with several local entities, which over the years have worked together with the executive secretary to provide information and make critical contributions in their respective sectors.

The purpose of the report – the twentieth annual Barcelona Observatory Report – is to provide a platform to help business people make decisions and establish businesses in Barcelona, to attract talent and to provide support for the presentation of candidates for events or the opening of venues in the city of Barcelona. As in previous years, Barcelona continues to be positioned among the top cities according to recognised economic and social indexes.

The format of the 2009-2010 report has been updated with four main features:

• The number of indexes has been reassessed and changed significantly in order to provide the reader with a comprehensive and coherent por-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-dexes, two of which are new. For the first time the Barcelona Observa-tory will also provide information on the awarding of international patents via the Patent Cooperation Treaty and present indexes of greenhouse gas emissions.

• Another new addition to the report will be a white paper written by a recognised expert in the field of analysis and comparative study of urban economies, which over the years will provide insight into topics related to this field in order to enrich content derived from the index analysis.

• Visual elements for each index have been introduced, in the form of graphs and maps, which make the results easier to understand and trends easier to spot and analyse.

• The amount of summarised graphic content has been increased, com-bining all the indexes in order to make Barcelona’s positioning clear at a glance.

The publication will include the following sections:

• A general introduction on the city’s economy and economic develop-ment efforts.

• A section with the results of 26 indexes covering six fields: businesses, knowledge, tourism, sustainability and quality of life, prices and costs, and labour market and education.

• A white paper by Nick Leon, Director of Design London, has been in-cluded titled The Well Connected City: an Integrated Approach to Plan-ning and Implementing Digital Technologies.

• A section with a summarised comparison of Barcelona’s positioning among the top cities has been added which provides visual, condensed information for each of the indexes analysed.

The Barcelona Observatory can be characterised by the following key tenets:

• It is based on a set of indexes, which are generally defined on a city scale, but which can be expanded to cover issues of a territorial scale. • Data is collect from a sample group that in some cases can include as many as 60 cities worldwide. It should be noted that in the case of certain indicators, due to the sample size, only the most important urban areas are included.

• Whenever possible, the indexes include graphs of trends so that devel-opments in each specific field can be assessed.

• The report’s sources of information are highly respected international institutes and entities.

• Data and information is compiled using the most up-to-date sources available.

The Barcelona Observatory also has its own website from which users anywhere in the world can freely access information in the report as well as supplementary content, and follow events and the most important projects in Barcelona.

Informe 2009-2010. The Barcelona observatory

13

r e S u L t S

21CITY FOR BUSINESS 15

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 selection of European Cities and Regions of the Future 2010/2011 in FDI Magazine – a magazine of the Financial Times – where Barcelona placed 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.

16

17

Best European cities for business in 2009

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

Source: Cushman & Wakefield, European Cities Monitor Monitor

123

114

1712

515

98

147 - 6

1316 -

181923 -

25 - -

21 -

2010 - -

24

22

123547968

13111710211214161518201925242823222926273130323334

123456789

10111213141516171819202122232425252728293031323334

LondonParisFrankfurtBarcelonaBrusselsMadridMunichAmsterdamBerlinMilanGenevaHamburgZurichBirminghamDüsseldorfManchesterLisbonDublinLyonStockholmPragueRomeWarsawLeedsCopenhagenBudapestIstanbulViennaGlasgowBucharestHelsinkiMoscowOsloAthens

CityRanking

2008Ranking

2009Ranking

1990

ranking of Barcelona

2009200820072006200520042003200220011990

444

55

6666

11

Barcelona regains fourth position

According to the European Cities Monitor study, prepared over the last 20 years by Cushman&Wakefield consultants with the opinions of top execu-tives from 500 European companies, Barcelona has regained fourth posi-tion in the ranking of the continent’s best cities for locating businesses in 2009, only surpassed by London, Paris and Frankfurt, and ahead of Brussels. This enviable position is reinforced by the fact that Barcelona has been among the top five cities rated best for doing business in the last five years, three of which it was in fourth position.

The European Cities Monitor places Barcelona in first place among Euro-pean cities that best promotes themselves as business centres, fourth place for office space availability and sixth place in terms of price-quality ratio for offices and internal transport facilities.


18

Entrepreneurial activity in OECD countries in 2008

Entrepreneurial activity (% of population)Country

entrepreneurial activity 2008 (% of population)

MexicoUnited statesIcelandGreeceNorwayIrelandBarcelonaCataloniaFinlandSpainHungaryLatviaSloveniaTurkeyUnited KingdomFranceJapanNetherlandsItalyDenmarkRomaniaGermanyRussiaBelgium

13.110.810.1

9.98.77.67.57.37.37.06.66.56.46.05.95.65.45.24.64.44.03.83.52.9

Note: Including start-ups (less 3 months of activity) and new firms (3 to 42 months of activity). The statistical source contains a total of 45 countries. The countries of reference are selected samplesSource: Global Entrepreneurship Monitor (GEM), Catalonia Executive Report 2008

7.0

7.57.3

5.6

4.6

3.8

5.2

2.9

9.9 6.0

3.5

7.38.7

4.4

4.0

6.6

6.5

6.4

5.9

7.6

10.1

Spa

BCNCat

Fra

Ita

Ger

Net

BeL

Gretur

ruS

FIN

Nor

DeN

roMHuN

Lat

SLo

u.KI

Ire

ICe

Barcelona above the European Union yet another year

According to the Global Entrepreneurship Monitor (GEM) total entrepreneurial activity of the population residing in the province of Barcelona in 2008 was 7.5 %. This figure clearly exceeds the averages for the EU (6%) and Spain (7%) as well as EU reference countries such as Germany (3.8 %), France (5.6 %) and the United Kingdom (5.9 %). Similarly, it is at the high end of total entrepreneurial activity of OECD Member Countries, despite being lower than countries such as the United States and Norway (8.7%). In a year characterised by the beginning of a recession in the international economy, a decrease of 0.8 in total entrepreneurial activity in Barcelona compared to 2007 is in line with the downward trend of this index in the whole European Union. It is also worth noting that the business closure rate for entrepre-neurial activity in Barcelona (0.9%) is the lowest in the entire European Union.

Source: Global Entrepreneurship Monitor (GEM), Catalonia Executive Report

19

Business perspectives in the European regions for 2010: The opinion of business people

(p) Forecast of Camber of Commerce of Barcelona (January 2010)Source: Eurochambres and Idescat

60

50

40

30

20

10

0

4

3

2

1

0

-1

-2

-3

-4

-5

Business perspectives in Catalonia

turn

over

(rat

e of

bal

ance

, %)

rea

l GD

p (g

row

th a

nnua

l rat

e, %

)

20102009200820072006

5

Better outlook for exports in Catalonia than in Bavaria, Berlin and London

2009 was characterised by a serious economic recession, but the outlook for Catalan businesses for 2010 is a little more favourable according to the Eurochambers Survey. Companies can expect to see a slight increase in business figures in Catalonia, which has a better forecast than Spain as a whole. An increase in exports is also predicted – 43% of Catalan companies indicate that they will increase while 17% expect a decrease. Catalonia is also one of the regions with the most favourable forecasts, in line with regions such as Stockholm, and better than Bavaria, Berlin and London. In terms of investment, 24% of Catalan businesses expect a de-crease while 17% expect an increase. So we can expect to see a decrease in investment in 2010, one that will be less pronounced than in 2009 and less intense than in other regions such as Baden-Württemberg, Bavaria and Berlin; and the Spanish communities of Madrid and Valencia.

TurnoverReal GDP growth rate

3.73.2

0.2

-4.0

-0.5 (p)


20

Portugal (LISBON)Masovian Voivodeship (WARSAW)Denmark (COPENHAGEN)West Midlands (BIRMINGHAM)Stockholm (STOCKHOLM)London (LONDON)Turkey (ISTANBUL)Finland (HELSINKI)North West (MANCHESTER)Scotland (EDINBURGH)Greece (ATHENS)Eastern Austria (VIENNA)Estonia (TALLINN)Île de France (PARIS)europeaN uNIoN*Southern Holland (ROTTERDAM)Nord-Ovest Italy (MILAN)Berlin (BERLÍN)Catalonia (BarCeLoNa)North Holland (AMSTERDAM)Central Italy (ROME)Community of Valencia (VALENCIA)Community of Madrid (MADRID)SpainBaden-Württemberg (STUTTGART)Basque Country (BILBAO)Bavaria (MUNICH)Central Hungary (BUDAPEST)

Portugal (LISBON)Denmark (COPENHAGEN)Central Italy (ROME)Scotland (EDINBURGH)Greece (ATHENS)Estonia (TALLINN)Stockholm (STOCKHOLM)Catalonia (BarCeLoNa)Community of Valencia (VALENCIA)Turkey (ISTANBUL)Finland (HELSINKI)Eastern Austria (VIENNA)Masovian Voivodeship (WARSAW)Bavaria (MUNICH)Berlin (BERLÍN)Southern Holland (ROTTERDAM)Nord-Ovest Italy (MILAN)London (LONDON)europeaN uNIoN*SpainNorth Holland (AMSTERDAM)Île de France (PARIS)Basque Country (BILBAO)Baden-Württemberg (STUTTGART)Community of Madrid (MADRID)Hessen (FRANKFURT)West Midlands (BIRMINGHAM)Central Hungary (BUDAPEST)North West (MANCHESTER)

Masovian Voivodeship (WARSAW)Portugal (LISBON)Nord-Ovest Italy (MILAN)Turkey (ISTANBUL)Greece (ATHENS)Denmark (COPENHAGEN)Central Italy (ROME)Finland (HELSINKI)Stockholm (STOCKHOLM)Central Hungary (BUDAPEST)Estonia (TALLINN)europeaN uNIoN*Scotland (EDINBURGH)North Holland (AMSTERDAM)Southern Holland (ROTTERDAM)North West (MANCHESTER)Catalonia (BarCeLoNa)West Midlands (BIRMINGHAM)Île de France (PARIS)Basque Country (BILBAO)Eastern Austria (VIENNA)London (LONDON)Hessen (FRANKFURT)SpainBerlin (BERLÍN)Bavaria (MUNICH)Community of Madrid (MADRID)Baden-Württemberg (STUTTGART)Community of Valencia (VALENCIA)

61474139343331292725242219171514121110

84322

-1-6

-10-18

62513734292827262423222220191818181716161312

9554

-2-5

-12

313028241612

9420

-1-3-3-5-6-6-7-7-7-9

-11-12-15-16-17-22-23-24-26

Note: Data are not available for some countries/regions, wich explains blanks in the table. 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.Source: Eurochambres, The Business climate in Europe’s regions in 2010

Region (CITY) Region (CITY) Region (CITY)Turnover

(% Balance)

Exports (% Balance)

Investment (% Balance)

21

Main European regions receiving foreign investment projects in 2008

305209

5895439052716074665361385037254916322334401129422116343533

9143025

9191812

79

1315

115

London (LONDON)Île de France (PARIS)North Rhine-Westphalia (DÜSSELDORF)Autonomous community of Madrid (MADRID)Eastern Ireland (DUBLIN)1

Catalonia (BarCeLoNa)Upper Bavaria (MUNICH)Rhone-Alps (LYON)Moscow (MOSCOW)Darmstadt (FRANKFURT)Bucharest (BUCHAREST)North Holland (AMSTERDAM)Central Hungary (BUDAPEST)Lombardy (MILAN)Stockholm (STOCKHOLM)Masovian Voivodeship (WARSAW)2

Etelä-Suomi (HELSINKI)Denmark (COPENHAGEN)3

Berlin (BERLIN)Zurich (ZURICH)Vienna (VIENNA)Sofia (SOFIA)Provence-Alps-Cote D’Azur (MARSEILLE)Greater Manchester (MANCHESTER)Prague (PRAGUE)Brussels (BRUSSELS)South Holland (ROTTERDAM)Hamburg (HAMBURG)Eastern Scotland (EDINBURGH)West Midlands (BIRMINGHAM)South-West Scotland (GLASGOW)Languedoc-Roussillon (MONTPELLIER)Stuttgart (STUTTGART)Midi-Pyrénées (TOULOUSE)Geneva (GENEVA)Latvia (RIGA)Lisbon (LISBON)Istanbul (ISTANBUL)Lazio (ROME)Estonia (TALLINN)Attica (ATHENS)Autonomous community of Valencia (VALENCIA)Lithuania (VÍLNIUS)Oslo (OSLO)Ankara (ANKARA)Basque Country (BILBAO)

262222

998068616158565352504646444242393732313030292828272423201919191818181616161413

99932

Projects 2007 Projects 2008Region (CITY)

1 Eastern Ireland = Dublin, Mid-East, South-East.2 Masovian Voivodeship = Ciechanow, Plock, Ostrolecko, Siedlce, Radom, Warsaw, Miasto Warsaw.3 Denmark = Copenhagen, Copenhagen & Frederiskberg, Frederiskborg, Roskilde.Source: Ernst & Young’s European Investment Monitor, 2009

Source: Ernst & Young’s European Investment Monitor

projects of foreign investment (number)

2008200720062005

Catalonia (Barcelona)North Holland (Amsterdam)

Upper Bavaria (Munich)Lombardy (Milan)

64

30

25

44

52

61

37

50

53

74

33

3846

17

90

61

Catalonia is situated in the sixth position, ahead of Amsterdam, Milan and Manchester

Catalonia attracted 61 foreign investment projects in 2008 and occupied the sixth position among the top receiving European regions. The interna-tional financial crisis and the climate of economic recession caused a re-duction in foreign investment in the majority of leading European regions. In the case of Catalonia, after two consecutive years of notable increases, the number of projects was reduced and 2008 recorded numbers similar to those in 2005, which was in any case above those recorded in regions such as Amsterdam, Milan and Manchester.

It is also worth noting that 44% of the projects started in Catalonia are located in the Barcelona area and in 2008, 3,124 foreign companies were doing business in the region.

90

70

50

30

10


22

Standard VAT is the fourth lowest in the European Union

Despite having the most competitive company tax rate in the democratic era, Spain remains at the medium-high end of international ranking with the sev-enth highest corporate tax of the OECD Member Countries. In fact, the de-crease in the Spanish tax rate in the last decade was implemented at the same time this tax was generally being lowered internationally in a more marked manner.

This tax competition among the different countries to encourage investment has increased the weight of indirect taxes on tax structures. In this regard, it is worth noting that Spain has the fourth lowest general VAT rate in the European Union (16%) – VAT is only lower in Cyprus, Luxemburg and the United Kingdom (15%). The Spanish rate is in line with the international average, which was 15.2% in 2009 according to a comparative study on indirect taxes carried out by KPMG in 90 countries worldwide. It should be noted that both Spain and the United Kingdom will be increasing their general VAT rates in 2010.

Corporate tax and VAT in countries around the world in 2009

30

33.3

25

29.4

21.2

25.5

28.6

34

25

2628 26.3

25.5

19

19

20

16

15

21

25

31.4

2812.5

Spa

Fra

por

Ita

Ger

SWI

Net

LuXBeL

Gre

FINNor SWe

DeN

poL

SLo

C.re

HuN

Lat

SLo

auS

u.KI

Ire

JapanUnited States

ArgentinaSouth Africa

IndiaBelgium

FranceCanada

ItalyTunisia

SpainAustraliaGermany

LuxembourgUnited Kingdom

NorwaySweden

IsraelFinland

NetherlandsChina

GreeceDenmarkPortugal

AustriaSouth KoreaSwitzerland

SloveniaCzech Republic

PolandSlovakia

Hong KongHungary

LatviaIrelandCyprus

5.0-

21.014.012.521.019.6

5.020.018.016.010.019.015.015.025.025.016.522.019.017.019.025.020.020.010.0

7.620.019.022.019.0

-25.021.021.515.0

40.740.035.034.634.034.033.333.031.430.030.030.029.428.628.028.026.326.026.025.525.025.025.025.025.024.221.221.020.019.019.016.516.015.012.510.0

Note: The statistical source contains a total of 116 countries. The countries of reference are selected samplesSource: KPMG, KPMG’s Corporate and Indirect Tax Rate Survey 2009

Country VAT Standard Rate (%)

Corporate tax 2009 (%)

Corporate Tax Rate (%)

Source: KPMG, KPMG’s Corporate and Indirect Tax Rate Survey 2009

23

Main world cities organizing international meetings in 2008

Source: Union of International Associations


20082007200620052004

6 6

7

6

5

SingaporeParisBrusselsViennaBarcelonaTokyoSeoulBudapestCopenhagenLondonGenevaAmsterdamLisbonSydneyRomeMaastrichtMadridBerlinAthensIstanbulHelsinkiPragueWashingtonBeijingThe HagueYokohamaLyonMelbourneNew YorkValenciaStockholmChicagoKuala LumpurMontrealOsloBuenos AiresSan DiegoHong KongOrlandoNew DelhiShanghaiDublinMunichNoordwijkCape TownJejuBangkokBostonVancouverCairoTorontoSan FranciscoTriesteWarsawEdinburghKyotoLuxembourgSt PetersburgMoscowNew OrleansStrasbourg

482357276321175129127

9182

134188129126

94103

8774

1507686849778

10759596353

13953

1006666

102804364554349405673504351762948376141424825673332482546

32.1617.37

8.33-22.4310.2916.28-1.5727.4726.83

-23.13-45.74-23.26-22.22

3.19-8.745.75

14.86-44.00

9.21-4.65-5.95

-18.561.28

-29.9125.4215.25

6.3526.42

-51.8016.98

-41.00-16.67-16.67-46.08-31.2520.93

-20.31-9.0916.28

0.0020.00

-16.07-35.62-10.00

2.33-13.73-44.7437.93

-16.672.70

-37.70-9.76

-14.29-27.0836.00

-49.25-6.06-3.13

-37.5020.00

-39.13

637419299249193150125116104103102

9998979492858483827979797574686767676259555555555251505049484747454444424040383837363534343131303028

Congresses 2007Growth rate

2007/2008 (%) Congresses 2008City

Note: Meetings counted under the heading A or BSource: Union of International Associations

Barcelona among the top five cities worldwide

According to the data from the Union of International Associations (UIA), in 2008 Barcelona was in fifth position for cities worldwide organising inter-national meetings – with 193 conferences and conventions – and it made the ranking for the second consecutive year after getting ahead of Gene-va. The increase in the number of meetings in Barcelona was 10.3% com-pared to 2007, and this is a particularly notable difference considering the reduction in the total number of international conferences held that year.

In 2009, according to the International Congress and Convention Association (ICCA), Barcelona was in second position for cities worldwide hosting in-ternational meetings, only behind Vienna and gaining one position over 2008.

31THE KNOWLEDGE SOCIETY 24

Report 2009-2010. The knowlegde society

Introduction

Barcelona continues to win positions due to the fact that it uses knowl-edge as one of the city’s economic growth engines and is advancing in both the provision of resources – infrastructural and economic – for re-search, and the transfer of knowledge to the production system and the generation and attraction of talent.

The city continues to pave the way for the creation of poles of research centres that permit the advancement of knowledge and its practical ap-plication in the business world. A recent example is the Synchrotron – the most powerful synchrotron light source in the south of Europe and the most complex and top-level scientific installation in the State - which came into operation in March 2010 and will serve high-technology com-panies and researchers in various scientific fields from physics and chemistry to medicine and biology. Other examples are the Barcelona Bi-omedical Research Park, the Catalonia Computing and Communications Centre (CESCA), the Nuclear Magnetic Resonance Laboratory (RMN-Barcelona), the Barcelona SuperComputing Centre (BSC), the Technol-ogy Transfer Centre of the Universitat Politècnica de Catalunya (UPC) and 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.

25

Significant progress has been made in the last few years in the field of knowledge, and it has also been transferred to the production structure: Catalonia is currently situated among the top ten regions in Europe with regard to the number of workers in manufacturing sectors of high and medium-high technological intensity and in knowledge-intensive and high-technology service sectors, and by regions, it has the fifth highest number of employees in science and technology. Barcelona has a high-quality training system. Recent examples of its potential are the award of the “International Campus of Excellence” distinction for the Barcelona Knowledge Campus project and the UAB, and the fact that 59 of the Mas-ter’s courses offered in the metropolitan area of Barcelona are classified as Masters of Global Excellence under the Strategic Metropolitan Plan. Good schools and universities are essential for training good profession-als and attracting talent from other cities of the world, to which the Do it in Barcelona programme also contributes. This programme is promoted by the City Hall and it is aimed at international business people, profes-sionals, researchers and graduates who want to do business in the city.

26

population employed in high and medium-high technology manufacturing sectors (thousands of people)

Catalonia is the fourth highest region in Europe with employees in manufacturing sectors of high and medium-high technological intensity

Catalonia remains in the fourth position in Europe for the second con-secutive year for the highest number of employees in manufacturing sectors of high and medium-high technological intensity in 2008, behind Lombardy, Stuttgart and Upper Bavaria, and ahead of Île-de-France. The region is also situated at the top end of the ranking in terms of the rela-tive employment weight in manufacturing sectors of high and medium-high technological intensity, with a percentage of 8.9% of the total. Dur-ing 1998-2008, the number of employees in these sectors in Catalonia showed an increase (close to 3% annually) which is the best evolution of the group of regions with the greatest industrial critical mass, along with that of Upper Bavaria.

In 2008, Catalonia is in the tenth position of European regions with the most employment in knowledge-intensive and high-technology service sectors, two positions lower than in 2007. In fact, the number of employ-ees in these activities in Catalonia (94,361) is below the number in Den-mark, Rhône-Alpes and Düsseldorf, but above the number in Darmstadt. Similarly, the accumulated global increase in employment in Catalonia reached a notable 68% during 1998-2008, and its weight within total em-ployment grew from 2.3% to 2.7%. It should be noted that salaried work-ers of these services represent close to 5% of total employment in Barce-lona, increasing by 1.9% in 2009.

Population employed in technological manufacturing sectors and services in European regions in 2008

Source: Eurostat

Lombardy (Milan)

Upper Bavaria (Munich)

Catalonia (Barcelona)

North Holland (Amsterdam)

321

261 248

12

441457

312

25

2000 2008


27

Lombardy (MILAN)Stuttgart (STUTTGART)

Upper Bavaria (MUNICH)Catalonia (BarCeLoNa)

Île de France (PARIS)Istanbul (ISTANBUL)

Düsseldorf (DÜSSELDORF)Darmstadt (FRANKFURT)Denmark (COPENHAGEN)

Rhone-Alps (LYON)Autonomous community of Madrid (MADRID)

Basque Country (BILBAO)Etelä-Suomi (HELSINKI)

Lazio (ROME)Berlin (BERLIN)

Provence-Alps-Cote D’Azur (MARSEILLE)Eastern Ireland (DUBLIN)

Central Hungary (BUDAPEST)Autonomous community of Valencia (VALENCIA)

Ankara (ANKARA)London (LONDON)

Attica (ATHENS)West Midlands (BIRMINGHAM)

Greater Manchester (MANCHESTER)South Holland (ROTTERDAM)

South-West Scotland (GLASGOW)Lisbon (LISBON)

Eastern Scotland (EDINBURGH)Bucharest (BUCHAREST)

Prague (PRAGUE)Vienna (VIENNA)

North Holland (AMSTERDAM)Zagreb (ZAGREB)

Languedoc-Roussillon (MONTPELLIER)Oslo (OSLO)

Brussels (BRUSSELS)

441.170419.358321.024311.880271.799245.710171.160167.089166.264157.994139.664

96.77093.73491.81591.08383.27382.61280.73776.88270.29070.18158.19954.37551.38246.32345.48942.63738.63034.74329.26927.84424.60115.96315.69714.52413.642

162.44467.719

128.16894.361

339.15166.31595.12587.971

122.782107.742186.274

37.28777.283

143.46568.38782.41965.75871.94737.83023.510

201.37454.91347.45240.19788.40428.64950.06741.18159.71944.29336.93662.184

7.14717.64240.33618.533

10.1720.7614.618.935.096.737.309.035.836.144.569.736.994.096.004.405.296.483.455.421.873.395.054.342.624.533.233.953.374.553.561.753.611.682.403.44

3.743.355.832.706.361.824.064.754.304.196.083.755.766.404.514.354.215.771.701.815.373.204.403.405.002.863.794.215.786.884.724.421.621.896.664.68

Employees in high and medium-high technology manufacturing sectors (% of Employed people)

Employees in knowledge-

intensive high-technology

services

Employees in high and medium-

high technology manufacturing

sectors

Employees in knowledge-intensive high-technology services (%

of Employed people) Region (CITY)

Note: knowledge-intensive and high-technology services covers information technology, telecommunications and research and development The statistical source contains a total of 314 regions. The regions of reference are selected samples Source: Eurostat

28

Catalonia is in the fifth position among European regions for employment in science and technology during 2003-2008

Catalonia had 652,000 workers dedicated to science and technology in 2008, remaining in the fifth position in European ranking of regions for the sixth consecutive year. This favourable positioning is a result of the expansion of these activities in Catalonia during 1998-2008, with an aver-age annual increase of 6% in the number of employees, which has in-creased the percentage weight of workers dedicated to science and tech-nology from 7.4% of the total in 1998 to 11.7% in 2008.

In 2006, investment in research and development (R&D) in Catalonia rep-resented 1.42% of the GDP, higher than regions like London, Dublin and Brussels but below the European average (1.85%) and still distant from the Treaty of Lisbon objective for 2010 (3% of GDP). During the same year, the Catalan business sector came very close to achieving the two-thirds of total R&D investment established by the Treaty, contributing 0.92% of the GDP. It should be noted that total R+D expenditures have increased significantly, going from 1.06 % of GDP in 2000 to 1.62 % in 2008.

Population employed in science and technology in 2008 and Research and Development expenditure in 2006 in European regions

Source: Eurostat

population employed in science and technology (% Population between 15 and 74 years old)

2008200620032000 2001 2002 2004 2005 2007

Catalonia (Barcelona)North Holland (Amsterdam)Lombardy (Milan)

4.7 5.1 5.6 5.66.5 6.5 6.7 7.1

7.6

8.89.5 9.2 9.1

11.1 11.4 11.810.8

11.7

13.414.0 14.2

16.2

18.7

17.516.9

18.218.920

16

12

8

4


29

Île de France (PARIS) London (LONDON)

Autonomous Community of Madrid (MADRID) Denmark (COPENHAGEN) Catalonia (BarCeLoNa)

Lombardy (MILAN) Upper Bavaria (MUNICH)

Masovian Voivodeship (WARSAW) Rhone-Alps (LYON)

Stuttgart (STUTTGART) Berlin (BERLIN)

South Holland (ROTTERDAM) Attica (ATHENS)

Darmstadt (FRANKFURT) Lazio (ROME)

North Holland (AMSTERDAM) Düsseldorf (DÜSSELDORF)

Autonomous Community of Valencia (VALENCIA) Provence-Alps-Cote D’Azur (MARSEILLE)

Etelä-Suomi (HÈLSINKI) Stockholm (STOCKHOLM)

Lithuania (VÍLNIUS) Eastern Ireland (DUBLIN)

Central Hungary (BUDAPEST) Bucharest (BUCHAREST) Basque Country (BILBAO)

Sofia (SOFIA) Lisbon (LISBON)

Oslo (OSLO) Eastern Scotland (EDINBURGH)

Latvia (RIGA) Greater Manchester (MANCHESTER)

Hamburg (HAMBURG) Languedoc-Roussillon (MONTPELLIER)

South-West Scotland (GLASGOW) West Midlands (BIRMINGHAM)

Prague (PRAGUE) Vienna (VIENNA)

Estonia (TALLINN) Brussels (BRUSSELS)

1,3851,020

842699652566554536522409400395390384384375372365362358324311299289280273238232212196194191187187182175163140117107

-1.051.96

-1.42

--

1.07---------

0.95-

3.46-

0.791.241.451.231.580.901.48

-0.480.701.00

--

1.951.302.473.541.141.39

16.317.817.317.111.7

7.616.512.911.913.414.415.212.913.0

9.018.9

9.29.6

10.417.921.911.812.313.015.516.514.210.726.313.510.8

9.913.110.311.3

9.216.710.911.313.8

-0.371.19

-0.92

--

0.33---------

0.36-

2.40-

0.220.800.780.541.240.190.73

-0.100.350.29

--

0.540.771.142.090.510.80

Employees in science and technology (% Population between 15 and 74 years old) 2008

Employees in science

and technology (thousand) 2008

Total internal R+D expenditure in

Business enterprise sector (% GDP) 2006

Total internal R+D expenditure (%

GDP) 2006Region (CITY)

Note: People between 15 and 74 years old that have successfully completed education at the third level in a Science and Technology field of study (ISCED ‘97 version levels 5a, 5b or 6) and are employed in a Science and Technology occupation (ISCO ‘88 COM codes 2 or 3). Internal expenditure includes spending on capital investment, running costs and salaries (of both researchers and administrative staff) involved in research activities as a proportion of GDP. The statistical source contains a total of 314 regions. The regions of reference are selected samples Source: Eurostat

30

2007

Barcelona records an increase in international technological patents

In 2007, Barcelona occupied the 24th position among the top provinces of reference of the OECD, with 392 PCT patents, in accordance with the inventor’s place of residence. The significant progress of the last dec-ade has enabled it to reach the same number of patents as European provinces of reference, such as Milan or Lyon, and overtake Amsterdam, Montreal, Dublin and Brussels, but nevertheless still far behind the main metropolises of global reference. In particular, it must be pointed out that Barcelona nearly doubled its number of PCT technological patents during 2002-2007, reaching almost the same level as Düsseldorf. This favoura-ble evolution enabled Barcelona to maintain its position among the urban areas of reference (29th) in 2007.

600

500

400

300

200

100

0

* Patent Cooperation TreatySource: OECD

pCt* patents (number)

200620032000 2001 2002 2004 2005

Barcelona MilanAmsterdam Dublin

187.5212.4 236.1

272.4

378.2 376.5

407.5391.5

Applications for patents in main OECD provinces in 2007


31

Province (CITY)

349.96374.64

63.91140.20

48.06109.94

61.3766.10

266.1559.69

134.91235.44281.50

26.27289.55

60.40--

31.7821.95

-14.0432.07

-20.60

103.67-

2.6876.4313.94

-103.66

-22.65

-15.50

-6.622.59

-10.11

-5.764.19

-6.31

635.95638.89179.32396.41129.16217.75241.74188.29392.80259.31610.41604.58557.83267.59509.46186.93

--

145.58113.58

-73.87

138.35-

55.13199.52

-17.86

425.1651.08

-233.63

-62.50

-99.17

-33.7317.52

-44.70

-30.9516.57

-18.79

4,464.813,568.991,476.601,151.81

937.041,102.22

540.82690.33

1,208.22388.67360.29614.13544.37

77.82399.95205.98244.64208.32109.91

85.4936.5174.4384.00

160.38126.10173.24142.20

33.7538.5156.2685.4357.4957.4238.4950.9316.1135.1416.2210.50

9.6212.1311.77

6.558.48

14.7810.75

Applications for PCT technological patents

Total PCT patents applications per million inhabitants

Applications for PCT technological patents per million inhabitants

Tokyo (TOKYO)Silicon Valley (SAN JOSE)New York (NEW YORK)Boston (BOSTON)Los Angeles (LOS ANGELES)Seoul (SEOUL)Osaka (OSAKA)Chicago (CHICAGO)Seattle (SEATTLE)Houston (HOUSTON)Stuttgart (STUTTGART)Munich (MUNICH)Stockholm (STOCKHOLM)Düsseldorf (DÜSSELDORF)Uusima (HELSINKI)Berlin (BERLIN)London (LONDON)Paris (PARIS)Rotterdam (ROTTERDAM)Milan (MILAN)Rhône (LYON)Barcelona (BarCeLoNa)Amsterdam (AMSTERDAM)Montreal (MONTREAL)Madrid (MADRID)Vienna (VIENNA)Toronto (TORONTO)Istanbul (INSTANBUL)Copenhagen (COPENHAGEN)Rome (ROME)Bouches-du-Rhône (MARSEILLE)Oslo (OSLO)Dublin (DUBLIN)Budapest (BUDAPEST)Edinburgh (EDINBURGH)Brussels (BRUSSELS)Manchester (MANCHESTER)Valencia (VALENCIA)Attica (ATHENS)Hérault (MONTPELLIER)Prague (PRAGUE)Birmingham (BIRMINGHAM)Vizcaya (BILBAO)Lisbon (LISBON)Glasgow (GLASGOW)Warsaw (WARSAW)

Note: Counting patents according to the inventor’s region of residenceThe statistical source contains a total of 1742 provinces. The provinces of reference are selected samplesSource: OECD

8,113.426,086.374,142.803,256.732,518.052,183.072,130.241,966.371,783.131,688.591,630.211,577.021,078.73

792.59703.71637.47635.03584.43503.45442.46396.34391.51362.43348.88337.44333.40296.13224.61214.24206.23173.14129.56124.79106.19104.03103.13101.95

82.7170.9169.8053.6440.2435.2033.5232.0832.03

Total PCT patents applications

32

Barcelona moves up five positions in the international ranking

In 2009, Barcelona moved up to the 6th position in the European ranking and 15th in the international ranking for cities with scientific production, with a total of 12,211 publications generated, a 4.7% increase on the pre-vious year.

With reference to 2008, Barcelona moved up five positions in the interna-tional ranking, overtaking Philadelphia, Cambridge (Massachusetts), Chi-cago, São Paulo and Berlin, and one place in the European city ranking.

Main cities of the world in scientific production in 2009

Source: Universitat Politècnica de Catalunya - Centre de Política del Sòl i Valoracions


20092008200720062005

World RankingEuropean Ranking

27

21 21 20

15

119

7 76

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

Publications in 2009City

BeijingLondonTokyoParisNew YorkBostonSeoulShanghaiMoscowMadridLos AngelesRomeBaltimoreTorontoBarcelonaPhiladelphiaCambridge MassachusettsChicagoSão PauloBerlinHoustonMunichMilanOsakaMontrealCambridgeHong KongAmsterdamSingaporeMelbourneZurichOxfordPittsburghSan FranciscoStockholmAthensPragueCopenhagenLyonManchesterWarsawEdinburghMexico CityBrusselsToulouseBuenos AiresRio de JaneiroDublinNaplesHamburgNew DelhiTurinMontpellierGlasgowValenciaSt PetersburgMarseilleYokohamaBaselLisbonFrankfurtTel AvivLiverpool

123456789

101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960616263

-1-2----34-5--6----7-89--

10-

11--

1213

--

1415161718192021

-2223

--

242526

-272829303132

-333435

-36

33,37630,14528,89324,26922,54822,50022,29417,15615,81813,61913,11312,45412,41412,41412,21112,19912,19012,12012,10511,97211,80810,90910,67310,59610,241

9,6249,4679,1198,9798,9798,7078,6358,5878,4787,8966,8736,6186,4256,0386,0305,7865,2885,1835,1735,1634,9014,8034,7494,7364,6864,6234,6174,5904,4674,4444,4024,3794,2344,1164,0563,6943,6643,654

123456789

101115121320142117181916242322252726283133343229303536373841394043424447484549465250555351565458575960626361

European Ranking

2009

World Ranking

2009

World Ranking

2008

41TOURISM

Report 2009-2010. Tourism

33

40

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 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 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.

34

35

Barcelona remains in ninth position in Europe since 2004

In 2009, the Barcelona International Airport recorded 27.3 million pas-sengers, retaining ninth position in the European ranking. Despite a 9.7% decrease in the number of passengers compared with 2008, the Prat air-port has not lost its position due to the fact that the prevailing trend in the evolution of passenger travelling via large European airports has been decreasing.

The opening of the new T1 terminal in June 2009 – which can hold 30 million passengers and has a surface area of over 500,000 m2 – has sub-stantially improved the airport’s capacity, and provided an opportunity to make a qualitative leap and improve its positioning for intercontinental flights.

Main European airports by volume of passengers in 2009

Growth rate 2008/2009 %

Passengers 2009City (AIRPORT)

66,037,57857,883,28250,932,84048,248,89043,569,55333,723,21332,681,06732,401,04627,301,49325,101,70921,879,09521,197,22920,504,70519,957,22119,668,80418,840,00818,674,94718,114,42718,079,73217,793,49317,551,63516,974,24716,213,72316,098,61014,180,23713,260,97412,503,37212,229,27111,643,36611,605,981

9,831,1369,739,5819,143,3299,131,3239,107,4629,050,8908,934,4938,320,9278,295,0998,084,3647,730,2117,290,1197,228,6597,157,4217,080,6846,797,1586,701,6895,330,1615,268,7155,061,9104,969,7994,757,7434,742,182

Source: Airport Council International, Worldwide Airport Traffic Statistics Statistics

London Heathrow (LHR)Paris Roissy (CDG)Frankfurt (FRA)Madrid (MAD)Amsterdam (AMS)Rome-Fiumicino (FCO)Munich (MUC)London Gatwick (LGW)Barcelona (BCN)Paris Orly (ORY)Zurich (ZRH)Palma de Mallorca (PMI)Dublin (DUB)London Stansted (STN)Copenhagen (CPH)Manchester (MAN)Moscow Domodedovo (DME)Vienna (VIE)Oslo (OSL)Düsseldorf (DUS)Milan-Malpensa (MXP)Brussels (BRU)Athens (ATH)Stockholm-Arlanda (ARN)Berlin (TXL)Lisbon (LIS)Helsinki (HEL)Hamburg (HAM)Prague (PRG)Malaga (AGP)Nice (NCE)Cologne/Bonn (CGN)Gran Canaria (LPA)Alicante (ALC)Birmingham (BHX)Edinburgh (EDI)Stuttgart (STR)Warsaw (WAW)Milan Linate (LIN)Budapest (BUD)Moscow-Vnukovo (VKO)Marseille (MRS)Glasgow (GLA)Milan-Orio al Serio (BGY)Tenerife South (TFS)Berlin (SXF)Venice (VCE)Naples (NAP)Girona (GRO)Faro (FAO)Hanover (HAJ)Rome-Ciampin (CIA)Valencia (VLC)

-1.5-4.9-4.7-5.1-8.1-4.0-5.4-5.3-9.7-4.2-0.8-7.1

-12.6-10.7

-8.4-12.0

-8.6-8.3-6.6-2.0-8.7-8.2-1.4

-11.4-2.1-2.5-6.9-4.7-7.8-9.3-5.3-5.8

-10.4-4.6-5.50.5

-10.0-12.0-10.5

-4.1-2.34.7

-11.610.5

-13.92.4

-2.6-5.5-4.1-7.1

-11.80.3

-17.9

Source: Airport Council International, Worldwide Airport Traffic Statistics

passengers (millions)

Posicion of Barcelona in the ranking

20092008200720062005

Barcelona (BCN) Munich (MUC)Amsterdam (AMS) Dublin (DUB)

60

50

40

30

20

10

9999

9


36

Barcelona still holds fourth position in the EU with the most hotel accommodations among urban agglomerations

In 2008, hotel accommodation in the province of Barcelona increased by 4,744 places, reaching 113,402. This data positioned Barcelona in the fourth position among the top European urban agglomerations and eighth among the provinces in the continent for the most hotel accom-modations.

There was an increase of 73% in hotel capacity in the province of Barce-lona from 1998 to 2008, which indicates a positive trend in line with the performance of other leading urban areas.

Hotel accommodation in European provinces in 2008

Places 2007 Places 2008Province (CITY)

Note: The statistical source contains a total of 1372 provinces. The provinces of reference are selected samplesSource: Eurostat

Paris (PARIS)London (LONDON)Rome (ROME)Barcelona (BarCeLoNa)Madrid (MADRID)Berlin (BERLIN)Milan (MILAN)Prague (PRAGUE)Attica (ATHENS)Vienna (VIENNA)Munich (MUNICH)Lisbon (LISBON)Dublin (DUBLIN)Valencia (VALENCIA)Budapest (BUDAPEST)Frankfurt (FRANKFURT)Bouches-du-Rhône (MARSEILLE)Brussels (BRUSSELS)Rhône (LYON)Manchester (MANCHESTER)Uusima (HELSINKI)Warsaw (WARSAW)Düsseldorf (DÜSSELDORF)Birmingham (BIRMINGHAM)Hérault (MONTPELLIER)Edinburgh (EDINBURGH)Glasgow (GLASGOW)Oslo (OSLO)Bucharest (BUCHAREST)Stuttgart (STUTTGART)Vizcaya (BILBAO)Riga (RIGA)Vilnius (VILNIUS)Sofia (SOFIA)Greater Zagreb (ZAGREB)

154,524124,920115,504108,658

92,80276,16870,20663,11161,88844,41443,94045,25539,89337,71937,19331,50530,57030,61026,77027,15525,38818,61019,23020,43418,86218,26817,41816,28312,21514,63710,582

9,9408,1865,7656,376

156,330124,920122,557113,402

96,54779,66877,38167,75362,16849,00546,09945,81242,55938,88636,52632,07131,25031,17027,54427,15526,86322,67720,91120,43418,90018,26817,41816,99716,88215,05410,93210,914

8,4578,3266,594

Note: Barcelona is compared with other big urban European centers Source: Eurostat

Hotel places (thousand)

2008200620032000 2001 2002 2004 2005 2007

Barcelona LondonParis Rome

113.4108.7107.4109.8104.2

101.498.592.291.1

180

160

140

120

100

80

37

Barcelona reaches two million cruisers for the first time

For the first time, in 2008, Barcelona exceeded two million cruise pas-sengers and occupied the leading position as the homeport for leading Mediterranean cruise companies for the 8th consecutive year with a total of 2,069,651 cruise passengers. Barcelona’s leading position is bolstered by the marked increase in cruise passengers recorded over the previous year (17.21%), clearly beating the 2nd and 3rd ports in the ranking, as well as the remaining candidates. Barcelona also held fourth position in inter-national homeport ranking according to the World’s Top 20 Cruise Home-ports 2008 published in the Dream World Cruise Destinations magazine.

The opening of the new terminal A in Adossat Quay in July 2008, where high-tonnage vessels can dock, will help to consolidate Barcelona’s leading position.

Cruises at main Mediterranean ports in 2008

1 Balearic Islands (Palma de Mallorca, Maó, Eivissa, Alcúdia and La Savina).Note: Barcelona is compared with two of the main ports of the MediterraneanSource: Med Cruise

Cruise passengers (millions)

2008200620032000 2001 2002 2004 2005 2007

Barcelona NaplesBalears Island (1)

2.5

2.0

1.5

1.0

0.5

Position of Barcelona in the ranking

1

1

11

111

12


38

Growth rate 2007/2008 %City PortPassengers 2007 Passengers 2008

1 Balearic Islands (Palma de Mallorca, Maho, Ibiza, Alcudia and La Savina).2 French Riviera Ports (Cannes, Nice and Villefranche).3 Tunisian Ports (La Goulette, Souse Bizerte).Source: Med Cruise 2008

4 Portuguese Ports (Lisboa, Azores and Patimao).5 VAR Ports (Toulon and Saint Tropez).

2,069,6511,314,0901,237,0751,215,088

850,521848,861762,092694,829556,841547,905538,721418,725376,706352,959337,117308,989231,639199,335124,525117,612

90,00082,48760,69556,734

Barcelona (port)Balearic Islands (Port) 1

Naples (Port)Venice (Port)Dubrovnik-Korkula (Port)Livorno (Port)French Riviera Ports (Port) 2

Tunisian Ports (Port) 3

Valletta (Port)Genoa (Port)Palermo (Port)Portuguese Ports (Port) 4

Cyprus Ports (Port)Malaga (Port)Messina (Port)Gibraltar (Port)Monaco (Port)Valencia (Port)Split (Port)Ports Of Var (Port) 5

Cagliari (Port)Alicante (Port)Almeria (Port)Alanya (Port)

1,765,8381,219,8861,151,3451,003,529

686,000713,114559,411721,592489,532520,197471,395376,592427,408290,558293,296275,993184,117179,209

99,28162,73963,63872,06336,43993,937

17.217.727.45

21.0823.9819.0436.23-3.7113.75

5.3314.2811.19

-11.8621.4814.9411.9625.8111.2325.4387.4641.4214.4766.57

-39.60

47SUSTAINABILITY AND QUALITY OF LIFE

Report 2009-2010. Sustainability and quality of life

39

46

Introduction

Given our current circumstances, energy efficiency, the development of renewable energy sources and the progressive reduction of greenhouse effect gas emissions are essential elements when considering a new model for production and parameters for competition in the twenty-first century.

In light of this, Barcelona is stepping up its commitment to sustainability on all fronts, encompassing all aspects of urban life, business, economic promotion and urban development.

Currently, the Barcelona Energy Agency is directing the Plan for Energy, Climate Change and Air Quality (PECQ - Pla d’Energia, Canvi Climàtic i Qualitat de l’Aire) for 2020, which will foster wide-reaching actions which take advantage of local renewable resources, and increased energy ef-ficiency and management of demand.

Barcelona is also well-positioned as an international centre for alterna-tive energy research, thanks in part to being selected as the location for Kic Innoenergy, a part of the European network for innovation in sustain-able energy. Kic Innoenergy is directed by the Polytechnic University of Catalonia and ESADE with the participation of research centres and com-panies in Spain and Portugal.

On the subject of energy and climate change, this year the Observatory 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.

Considering the urban dimension, construction of the Zona Franca – Gran Via l’Hospitalet Energy Generation Centre started in 2010. The office will combine different systems in order to improve energy efficiency. The centre will provide service to the new Marina and Zona Franca neighbourhoods in accordance with recent guidelines to incorporate the use of the most ef-ficient and least contaminating power supplies in the planning of major urban development projects, as was done in the Forum area and 22@.

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 that in 2010, Barcelona was selected to be one of six cities nominated to become the Green Capital of Europe in 2012-2013, a prize awarded by the European Commission to recognise the efforts of cities to preserve the environment.

In terms of quality of life, Barcelona continues to be the European city with the best quality of life for workers for the twelfth consecutive year according to the European Cities Monitor. This distinction is reinforced by the fact that other rankings such as the Global Urban Competitive-ness Report 2007-2008 ranks Barcelona as number eleven worldwide for the city’s lifestyle. Also, the rankings of popular American and English 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 readers.

40

41

The number of EMAS certificates in the area of Barcelona increases by more than 50%

In 2009, there was a substantial increase recorded in the number of EU reg-istrations with regard to EMAS, the Eco-Management and Audit Scheme, both in Catalonia (52%) and in Barcelona (59%). This evolution largely ex-plains the increase recorded in Spain (12%), which reached a total of 1,159 certified companies. In addition, it must be pointed out that Barcelona’s companies obtained nearly the same number of EMAS certificates as Aus-tria, and three times more than Sweden or the United Kingdom.

With regard to obtaining ISO 14001 certifications, Spanish companies were once again the leaders in the European continent in 2008, with an interan-nual increase of nearly 19%. The dynamism of the Spanish business sector in this field has resulted in there being 3,500 more certified companies in Spain than in Italy, the second country in the continental ranking.

Environmental commitments of European companies in 2009

Source: European Commission, Eco-Management and Audit Scheme (EMAS)

eMaS accreditations (number)

200820062005 2007 2009

Barcelona United KingdomAustria

350

300

250

200

150

100

50


4

5

Registration EMAS 2009Country

Registration ISO 140001 2008

Source: European Commission, Eco-Management and Audit Scheme (EMAS)

5,70916,44312,922

-837

-873534

4,478463

9,455730

3,318991673

1,8341,5443,482

5151,314

6727971

3,884444233

508

402321

GermanySpainItalyCataloniaAustriaBarcelonaDenmarkPortugalSwedenGreeceUnited KingdomBelgiumCzech RepublicFinlandNorwayHungaryPolandFranceIrelandNetherlandsSlovakiaLatviaCyprusRomaniaSloveniaEstoniaLuxembourgMaltaLithuaniaBulgaria

1,3791,1591,037

310253237

937975696549312521201917

876653322100

123

162 168149

237

4

44

Report 2009-2010. Sustainability and quality of life

42

Barcelona, best European city for twelfth consecutive year

For the twelfth consecutive year, Barcelona is the best European city for workers’ quality of life, according to the European executives surveyed in 2009 by Cushman & Wakefield in the European Cities Monitor. It is followed in the ranking by Geneva, Munich – which loses its second position – and Oslo and Madrid, which made notable progress in comparison with 2008.

This privileged position for quality of life is one of the assets that allow Barcelona, year after year, to remain among the top European cities for doing business, as it is one of the essential factors in deciding on busi-ness location and attracting and retaining talent.

Best European cities for quality of life of employees in 2009

Ranking 2009Ranking 2008 City

Source: Cushman & Wakefield, European Cities Monitor 2009

BarcelonaGenevaMunichOsloMadridStockholmParisCopenhagenZurichHamburgLondonAmsterdamRomeLisbonLyonBrusselsLeedsDublinViennaMilanBerlinBirminghamManchesterDüsseldorfFrankfurtGlasgowPragueAthensHelsinkiBucharestIstanbulBudapestWarsawMoscow

142

1293595

1214

81516

717241119222027182523212926283134303232

123456789

10111213141416171719202122222424242728293031313334

Source: Cushman & Wakefield, European Cities Monitor

Best european cities in quality of life (ranking)

2009200720042001 2002 2003 2005 2006 2008

Barcelona Munich Amsterdam

1 1 1 1 1 1 1 1 12

3 3 34 4

5 56

8 8 8

1011

1213

15

17

43

Barcelona records the lowest level of emissions per capita among 10 of the world’s cities

According to the pioneer article “Greenhouse Gas Emissions in Global Cit-ies” presented by a group of experts in the magazine Environmental Science and Technology, Barcelona has the lowest level of emissions per capita (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.

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 in world Cities

T e CO2* per capitaCity

* Tons of equivalence CO2

Note: Emissions from end-use activity. Includes GHG emissions that occur outside the boundaries of the cities. Source: Environmental Science and Technology. American Chemical Society

Barcelona GenevaPragueLondonNew YorkBangkokTorontoCape TownLos AngelesDenver

4.27.89.49.6

10.510.711.611.613.021.5

Source: Environmental Science and Technology. American Chemical Society

Greenhouse Gas emissions (t e CO2 per capita)

1550

Barcelona

Geneva

Praga

London

New York

Bangkok

Cape Town

Toronto

Los Angeles

Denver

10 20 25

4.2

7.8

9.4

9.6

10.5

10.7

11.6

11.6

13.0

21.5

53PRICES AND COSTS

Report 2009-2010. Prices and costs

44

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-dustrial land renting, but it recorded varying evolutions in premises renting in the main commercial streets. In terms of salaries, Barcelona 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.

45

46

Cost of living in cities around the world in 2009

Ranking 2009Ranking 2008 City

Source: Mercer Human Resource Consulting, World-wide Cost of Living Survey 2009 - city rankings

TokyoOsakaMoscowGenevaHong KongZurichCopenhagenNew YorkBeijingSingaporeMilanShanghaiParisOsloCaracasLondonTel AvivRomeHelsinkiDubaiViennaShenzhenLos AngelesGuangzhouDublinAbu DhabiDoualaAthensAmsterdamBratislavaWhite PlainsLagosTehranAbidjanDakarSan FranciscoMadridLuxembourgBarcelonaAlgiersHonoluluBrusselsBeirutAlmatyMiamiSt PetersburgMunichFrankfurtBerlinChicago

211

18697

222013102412

489

314162152196155701665342525458930745141782843315777398044751837403884

123456789

1011121314151617181920212223232526272829303132333434343738384041414144454647484950

Source: Mercer Human Resource Consulting, Worldwide Cost of Living Survey - city rankings


2007 2008 2009200620052004

Highest cost

Lowest cost

31

38

31

56

43

56

Barcelona moves up seven positions in the global ranking

Barcelona moved up seven positions in the worldwide ranking of cities for cost of living in 2009. The annual study made by Mercer Human Re-source Consulting, based on the analysis of prices of over 200 products and basic services in 143 cities worldwide, placed Barcelona in the 38th position in 2009.

The improvement in the city’s cost of living position was mainly due to the devaluation of the euro against the dollar, which began halfway through 2008. In contrast, inflation did not have a significant effect on fluctuations in ranking as falling prices in raw materials, energy and basic consumer goods were widely seen on a global level in 2009.


47

Barcelona continues to be competitive, with prices below the average of the leading cities of the world

In 2009, the cost of renting a home in Barcelona was on average approxi-mately $1,870 per month, according to data from the Swiss Banking Un-ion. This price continues to be competitive in relation to the leading cities in Europe and the world such as London, Paris, New York, Frankfurt and Brussels, situating Barcelona 33% below the average index of the cities studied.

The current recession, which was largely sparked by the property mar-ket, has halted the sharp growth in housing prices recorded in previous years. In this context, between 2006 and 2009, home rentals in Barcelona showed a more moderate increase than in the majority of cities analysed, with an average annual variation of 5%, keeping Barcelona in the middle-lower bracket of the urban areas studied.

Apartment rental prices in the cities of the world in 2009

Apartment rental ($/month)City

Note: Rents are based on apartments built after 1980 (4 rooms, kitchen, bathroom; with garage) including all incidental costs, the level of housing comfort conforms to the expectations of salaried mid-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

New YorkTokyoHong KongDubaiMoscowChicagoMiamiHelsinkiSydneySingaporeMilanDublinLondonSeoulLos AngelesParisGenevaZürichFrankfurtBrusselsTorontoOsloAmsterdamCopenhagenRomeBudapestSão PauloViennaRio de JaneiroKievBarcelonaLjubljanaMadridStockholmBerlinAthensMontrealWarsawBratislavaBuenos AiresShanghaiPragueSantiago de ChileLisbonVilniusJohannesburgSofiaMexico CityRiga

8,3307,2007,1504,9904,4704,4104,2603,9203,8003,6603,5703,5003,4503,4003,3603,2803,2302,9302,9002,8802,7702,7202,5802,4402,3902,3402,3102,2602,2402,0001,8701,8701,8301,8301,8201,8001,8001,7501,6301,5601,4301,3701,3101,2701,2201,1801,180

930860

Source: Price & Earnings around the Globe, UBS

apartment rental prices ($/month)

20062000 2003 2009

Barcelona MilanDublinAmsterdam

4,000

3,500

3,000

2,500

2,000

1,500

1,000

500


3134

4234

1,8701,610

1,090990

48

Barcelona becomes more competitive in a context of falling prices

According to the Global Market Rents study by Richard Ellis, in 2009 office leasing in the city of Barcelona dropped sharply by 24%, setting the price per square metre at €333, a quarter of the price in London. After the upward evolution of the period from 2004 to 2007, the economic recession led to huge price drops for offices on an international level in 2008, and particularly in 2009, especially in cities in the countries most affected by the financial and property crisis. In this regard, Barcelona stands among the 15 most competitive cities of the 50 studied in terms of leasing – gaining positions over Amsterdam, Helsinki and Hamburg - moving from a middle-low position in 2008 to a low position in 2009.

Office rental prices in the cities of the world in 2009

Office rental (€/m²)City

Note: The annual price includes the total costs for occupying an office located in the centre of the city. The statistical source contains a total of 179 cities. The cities of reference are selected samplesSource: CB Richard Ellis, Global Market Rents 2009

LondonTokyoMoscowParisBombayNew DelhiLuxembourgRio de JaneiroMilanZürichDublinGenevaIstanbulFrankfurtHong KongEdinburghManchesterNew YorkRomeStockholmMadridGlasgowAthensSeoulMunichTorontoShanghaiOsloAmsterdamBrusselsWarsawPragueSydneyWashington D.C.BeijingHelsinkiBuenos AiresHamburgCopenhagenBarcelonaViennaLisbonMexico CityBerlinMontrealSilicon ValleyBostonSan Juan de Puerto RicoSan FranciscoSantiago de ChileAtlanta

1,3591,262

968901898659652643621613598580570555553530524507505499498488474465455447437431400398387387383380368367367343340333332316289276275273268255250243155

Source: CB Richard Ellis, Global Market Rents

office rental prices (M/m2)

200820062005 2007 2009

Barcelona Milan MunichDublinAmsterdam

900

800

700

600

500

400

300

38

45

4043

29



49

Prices in Barcelona are more than 50% lower than in Paris and London

After some years of an upward trend, the impact of the economic reces-sion and the drop in demand in retail activity meant that in 2009 leasing prices of commercial premises fell by 8% in the top European cities and by 6% on a global level. In this climate, the evolution in main commercial streets in Barcelona in 2009 shows a contrast between the 4.5 % increase in the price of commercial premises in Portal de l’Àngel – which became the 23rd most expensive street in the world – the maintenance of those in Passeig de Gràcia and Rambla Catalunya and the reduction (-12.5%) in those in Avinguda Diagonal. On the whole, however, Barcelona continues to be in a good position for attracting retail activity, and leasing prices in Portal de l’Àngel are still less than half of those of the main shopping streets in Paris, Rome and London.

Rental prices for commercial permises in the cities of the world in 2009

Rental commercial premises (€/m²)City Street

Note: Annual price per square metre.The statistical source contains a total of 177 cities. The cities of reference are selected samplesSource: Cushman & Wakefield, Main Streets Across the World 2009

New YorkHong KongParisMilanNew YorkRomeTokyoLondonZürichParisDublinLondonLos AngelesMunichSydneySeoulFrankfurtAthensViennaChicagoSan FranciscoMadridBarcelonaSão PauloStuttgartBerlinMelbourneHamburgMadridMoscowBarcelonaSingaporeAmsterdamCopenhagenShanghaiTorontoPragueBirminghamNewcastleEdinburghManchesterIstanbulRotterdamOsloBrusselsValenciaKuala LumpurBeijingLyonTel AvivRio de JaneiroHelsinkiSevilleVancouverBilbaoMarseilleBarcelonaStockholmZaragozaBudapestBeirutLisbonBombayKuwait City Barcelona

5th AvenueCauseway BayAvenue des Champs ElyséesVia MontenapoleoneMadison AvenueVia CondottiGinzaNew Bond StreetBahnhofstrasseRue du Faubourg St HonoréGrafton StreetOxford StreetRodeo Drive (Beverly Hills)KaufingerstraßePitt Street MallMyeongdongZeilErmouKärntnerstraßeNorth Michigan AvenueUnion Squarepreciadosportal de l’ÀngelIguatemi ShoppingKönigstraßeTauentzienstraße (south)Bourke StreetMönckebergstraßeSerranoTverskayapasseig de GràciaOrchard RoadKalverstraatStrøgetEast Nanjing RoadBloor StreetNa Prikope/Wenceslas SquareHigh StreetNorthumberland StreetPrinces StreetMarket SquareAbdi Ipekci (European side)LijnbaanKarl Johan GateRue NeuveColonSuria KLCCWanfujingRue de la RépubliqueRamat AvivRio Sul ShoppingCity CentretetuánRobson StreetGran ViaRue St Ferréolrambla de CatalunyaBiblioteksgatanpl. de la IndependenciaVáci utcaABC Centre AchrafiehChiadoLinking Road, Western SuburbanRaya Mallavinguda Diagonal

13,02711,687

7,7326,8006,7056,5005,9505,8855,2464,7874,3564,1013,8323,6003,4373,4103,1203,1203,1203,0653,0652,8802,7602,6952,6402,6402,5772,5202,5202,4922,4002,3022,3002,2162,2041,9891,9801,9361,8401,8271,8071,7091,7001,6611,6251,5601,5591,4951,4731,4521,4461,4401,4401,3921,3801,3261,3201,2861,2601,200

997960945886840

Source: Cushman & Wakefield, Main Streets Across the World

rental prices for commercial premises (t/m2)

8,0000

Rambla de Catalunya(Barcelona)

Kalverstraat(Amsterdam)

Passeig de Gràcia(Barcelona)

Portal de l’Àngel(Barcelona)

Preciados(Madrid)

Grafton Street(Dublín)

Via Montenapoleone(Milà)

Avenue des Champs Elysées(París)

5th Avenue(New York)

2,000 12,00010,0006,0004,000 14,000

13,027

7,732

6,800

4,356

3,600

2,880

2,760

2,400

2,300

1,320

12,612

7,732

6,700

5,621

3,360

2,880

2,640

2,400

2,400

1,320

2008 2009

50

Barcelona is situated in the sixth position in the continental ranking, with a price reduction of 5%

Barcelona remained at the top end of European cities with regard to indus-trial land leasing in 2009, with a maximum price of E102/m2/year which situated it in the sixth position in the continental ranking, while in 2008 it occupied the fifth position. London continues to be the most expensive in-dustrial location in Europe, followed by Oslo, Moscow, Dublin and Helsinki.

The unfavourable evolution of industrial activity in 2009 in the majority of urban areas analysed in the study led to a standstill or reduction in the price of industrial land, which in the case of Barcelona fell by 5% in com-parison with the previous year.

Rental prices for industrial land in the cities of the world in 2009

Highest price for a premises of more than 5,000 m² (€/m²/year)

in 2009

Highest price for a premises of more than

5,000 m² (€/m²/year) in 2008 City

Font: King Sturge, European Industrial Property Markets 2009

London Oslo Moscow Dublin Helsinki Barcelona Madrid Zagreb Copenhagen Stockholm Frankfurt Sofia Amsterdam Istanbul Belgrade Milan Bucharest Prague Paris Lyon Bratislava Brussels Lille Warsaw Antwerp Budapest Limburg

210130

86130130108

967275

1057272906678705454534846454444424839

161137130115110102

847877756966656460585454534946454544424240

Source: King Sturge, European Industrial Property Markets

Highest price for a premises of more than 5,000 m2 (M/m2/year)

2009200820072006

Barcelona MilanAmsterdam Dublin

3

150

125

100

75

50

65

6



51

Barcelona, in an intermediate position among the world’s major cities Barcelona offers competitive salary levels in relation to other cities of the world. In 2009 it occupied the 24th position among the 49 cities in the global ranking and the 16th in the European ranking, dropping by 3 and 2 positions respectively in comparison with 2008 after a number of years with an upward trend. One of the main factors explaining this evolution is the depreciation of the euro with regard to the dollar, which has led to a fall in salary levels in most European cities compared with the reference index of New York, with decreases of 20, 25 and 36 points in Barcelona, Berlin and London, respectively.

Wage Levels in Cities of the World in 2009

Net wage (New York = 100)

Gross wage (New York = 100) City

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

ZürichGenevaNew YorkDublinCopenhagenLos AngelesOsloHelsinkiMiamiTokyoChicagoFrankfurtBrusselsSydneyViennaLondonBerlinAmsterdamStockholmParisMontrealTorontoMadridBarcelonaMilanDubaiLisbonRomeAthensHong KongLjubljanaSeoulSingaporeMoscowSão PauloPragueJohannesburgBratislavaRio de JaneiroRigaWarsawVilniusBuenos AiresSantiago de ChileShanghaiBudapestSofiaKievMexico City

120108100

999492848383837977757474737271717068686362615349484642363231312927272323232121181716161412

9

116112100

84126

91938181748084827072697679756964655555643845504534443027262525262122222122151515191311

8

Source: Prices & Earnings around the Globe, UBS

Net wage level (New York=100)

MilanAmsterdamMunich BarcelonaDublin

577

85

7367

60

99105

New York=100

71

62 61

2006 2009

61LABOUR MARKET AND TRAINING

Report 2009-2010. Labour market and training

52

60

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, Cata-lonia and Spain that is above the European average, which Catalonia ex-ceeded in 2008 and the city of Barcelona exceeded in 2009 with an unem-ployment 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 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-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 Council 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.

53

54

The employment rate stays above the European average

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 points above the rate recorded in the whole of the EU and higher than leading regions such as London, Dublin, Île-de-France and Lombardy. The employment rate for women showed particularly favourable gains and was not affected by the current economic trend. Women’s employ-ment increased by 0.7% in Catalonia, reaching 62.2%, and for the third consecutive year it exceeded the objective of 60% established by the Lis-bon Summit for the year, although it is still far behind Scandinavia, where the rate is over 70%.

The employment rate in Barcelona was 66.8% in the fourth quarter of 2009, while the employment rate for women reached 62.7%. Despite the decrease in this index over the year, these percentages exceeded those in Spain by 7.9% and 9.4% and are above the average in the European Union.

Employment rate in European regions in 2008

Source: Eurostat

employment rates (%)

2008200620032000 2001 2002 2004 2005 2007

Catalonia Spain European Union

75

70

65

60

55

50

69.971.0

70.469.3

67.066.3

64.564.964.0


55

Note: Active population between 15 and 64 years oldThe statistical source contains a total of 314 regions. The regions of reference are selected samples* Without Bulgaria and RomaniaSource: Eurostat

Oslo (OSLO)North Holland (AMSTERDAM)Denmark (COPENHAGEN)Stockholm (STOCKHOLM)South Holland (ROTTERDAM)Upper Bavaria (MUNICH)Stuttgart (STUTTGART)Eastern Scotland (EDINBURGH)Etelä-Suomi (HÈLSINKI)Darmstadt (FRANKFURT)Prague (PRAGUE)Sofia (SOFIA)Hamburg (HAMBURG)Catalonia (BarCeLoNa)Estonia (TALLINN)Autonomous Community of Madrid (MADRID)London (LONDON)South-West Scotland (GLASGOW)Latvia (RIGA)Lisbon (LISBON)Eastern Ireland (DUBLIN)Greater Manchester (MANCHESTER)Basque Country (BILBAO)Düsseldorf (DÜSSELDORF)Île de France (PARIS)Vienna (VIENNA)Lombardy (MILAN)europeaN uNIoNRhone-Alps (LYON)Autonomous Community of Valencia (VALENCIA)Masovian Voivodeship (WARSAW)SpainLithuania (VÍLNIUS)West Midlands (BIRMINGHAM)Attica (ATHENS)Bucharest (BUCHAREST)Berlin (BERLIN)Central Hungary (BUDAPEST)Provence-Alps-Cote D’Azur (MARSEILLE)NeW MeMBer StateS *Lazio (ROME)Languedoc-Roussillon (MONTPELLIER)Brussels (BRUSSELS)Istanbul (ISTANBUL)Ankara (ANKARA)

1.91.81.11.01.21.71.60.3

-0.21.5

-0.72.21.60.70.40.01.4

-1.51.00.8

-0.4-1.11.10.41.61.00.50.70.80.52.30.2

-0.4-1.42.00.30.30.11.61.10.9

-0.60.10.90.0

79.878.378.177.076.175.875.374.674.072.071.571.070.969.969.869.669.669.468.668.568.368.067.967.867.667.467.065.965.764.764.664.364.363.763.463.362.962.761.661.260.258.855.644.843.5

78.572.774.375.169.870.769.569.671.766.164.067.666.562.266.362.062.065.165.465.361.163.259.261.464.662.357.159.061.155.458.054.961.857.352.256.260.956.556.854.549.054.448.420.820.7

1.01.60.91.00.91.31.40.40.71.4

-0.12.51.2

-1.10.4

-1.21.3

-1.40.31.2

-1.3-0.80.51.00.90.40.30.5

-0.3-1.33.7

-1.3-0.6-1.81.00.90.50.01.41.20.50.00.80.1

-1.0

Female employment rate (%) 2008

Growth rate 2007/2008 (in p.p)

Growth rate 2007/2008 (in p.p)

Employment rate (%) 2008Region (CITY)

56

The economic recession places the unemployment rate above the European average for the first time in 4 years

After three consecutive years of maintaining the unemployment rate be-low the EU average, the effects of the economic recession on the labour market have increased the unemployment rate Catalonia to 9 % in 2008. This is 2 points more than the European Union, but less than the unem-ployment rate in Spain (11.3 %) and regions such as the West Midlands, Berlin and Brussels. The unemployment rate for women in Catalonia was 9 % in 2008, 1.2 points more than the previous year and 1.3 above the EU average. Nevertheless, the difference between unemployment rates for men and women in Catalonia was 0 for the first time, while both Spain and the great majority of European regions had a higher unemployment rate for women than for men. In Barcelona, the unemployment rate reached 8.4% in the fourth quarter of 2008. The general situation wors-ened in 2009, with the unemployment rate reaching 15.4% in the fourth quarter. This was still less than Catalonia and Spain, with 1.7% and 3.3% respectively.

Unemployment rate in European regions in 2008

Unemployment rate (%)

Female unemployment

rate (%) Region (CITY)

Note: The statistical source contains a total of 314 regions. The regions of reference are selected samples* Without Bulgaria and RomaniaSource: Eurostat

Prague (PRAGUE)North Holland (AMSTERDAM)Sofia (SOFIA)Oslo (OSLO)South Holland (ROTTERDAM)Denmark (COPENHAGEN)Upper Bavaria (MUNICH)Bucharest (BUCHAREST)Lombardy (MILAN)Stuttgart (STUTTGART)Central Hungary (BUDAPEST)Eastern Scotland (EDINBURGH)Stockholm (STOCKHOLM)Etelä-Suomi (HÈLSINKI)South-West Scotland (GLASGOW)Estonia (TALLINN)Eastern Ireland (DUBLIN)Lithuania (VÍLNIUS)Masovian Voivodeship (WARSAW)Darmstadt (FRANKFURT)Basque Country (BILBAO)Attica (ATHENS)Rhone-Alps (LYON)Vienna (VIENNA)NeW MeMBer StateS *europeaN uNIoNLondon (LONDON)Hamburg (HAMBURG)Île de France (PARIS)Düsseldorf (DÜSSELDORF)Lazio (ROME)Latvia (RIGA)Greater Manchester (MANCHESTER)Provence-Alps-Cote D’Azur (MARSEILLE)Lisbon (LISBON)Autonomous Community of Madrid (MADRID)Catalonia (BarCeLoNa)West Midlands (BIRMINGHAM)Languedoc-Roussillon (MONTPELLIER)Istanbul (ISTANBUL)Ankara (ANKARA)SpainAutonomous Community of Valencia (VALENCIA)Berlin (BERLIN)Brussels (BRUSSELS)

1.92.62.92.93.03.33.33.43.74.24.64.85.25.35.45.55.65.86.06.16.46.56.66.76.87.07.17.17.27.47.57.57.78.18.28.79.09.49.79.9

10.511.312.115.115.9

2.32.63.02.63.33.73.42.54.84.95.34.45.35.64.75.34.25.66.46.27.78.67.26.57.57.57.16.46.57.09.76.96.78.38.49.69.07.5

10.011.914.813.013.613.416.6

Source: Eurostat

unemployment rates (%)

2008200620032000 2001 2002 2004 2005 2007

European UnionSpainCatalonia

12

10

8

6

4

9.0

6.56.6

7.0

9.710.0

10.1

8.68.9


57

The percentage of Catalan workers with university studies exceeds the European average

In 2008, 34.6% of the Catalan work force had university studies, a higher percentage than in the EU-15 and more than in 2007, although slightly lower than the Spanish average. The percentage of female employees with higher education in Catalonia was 38.6%, once again higher than the percentage for men, higher than the percentage for women from the previous year and higher than the EU average, but lower than the per-centage recorded in Spain. As a whole, while there has been progress in higher education in Catalonia in 2008, it is necessary to continue working to close the gap between the level of studies of the labour force in Catalo-nia and those in the regions of northern Europe.

Employees with university studies in European regions in 2008

Source: Eurostat

population with university studies (% of total employment)

Lombardy (Milan)

Upper Bavaria (Munich)

Eastern Ireland (DUBLIN)

Catalonia (Barcelona)

Nord Holland (Amsterdam)

5

40

23

3129

9

42

3336 35

18

2000 2008

Employees with tertiary

education 2008 (%)

Female employees

with tertiary education 2008

(%) Region (CITY)

Note: % aged between 25 and 64 with university qualifications The statistical source contains a total of 314 regions. The regions of reference are selected samples* Without Bulgaria and RomaniaSource: Eurostat

Oslo (OSLO)Brussels (BRUSSELS)Basque Country (BILBAO)London (LONDON)Etelä-Suomi (HELSINKI)Autonomous community of Madrid (MADRID)Eastern Scotland (EDINBURGH)Stockholm (STOCKHOLM)Île de France (PARIS)North Holland (AMSTERDAM)Berlin (BERLIN)Eastern Ireland (DUBLIN)South-West Scotland (GLASGOW)Denmark (COPENHAGEN)Sofia (SOFIA)South Holland (ROTTERDAM)Lithuania (VÍLNIUS)Upper Bavaria (MUNICH)SpainCatalonia (BarCeLoNa)Bucharest (BUCHAREST)Attica (ATHENS)Prague (PRAGUE)Rhone-Alps (LYON)Languedoc-Roussillon (MONTPELLIER)Central Hungary (BUDAPEST)Masovian Voivodeship (WARSAW)Greater Manchester (MANCHESTER)West Midlands (BIRMINGHAM)Stuttgart (STUTTGART)Darmstadt (FRANKFURT)Autonomous community of Valencia (VALENCIA)Ankara (ANKARA)Provence-Alps-Cote D’Azur (MARSEILLE)europeaN uNIoN Latvia (RIGA)Vienna (VIENNA)Düsseldorf (DÜSSELDORF)Lisbon (LISBON)NeW MeMBer StateS *Lazio (ROME)Istanbul(ISTANBUL)Lombardy (MILAN)

54.6956.5351.5449.6849.8845.6047.2146.88 45.3042.9141.6745.7641.7741.4543.6936.2341.9530.1039.9138.5736.8636.2732.3937.5737.8934.2640.1734.4335.6623.8128.0536.0749.5432.0131.35 35.3628.2621.7128.6528.6329.4440.9321.63

51.7350.9148.8447.9244.0043.6243.1542.63 42.5041.4740.5939.8038.0737.2736.8736.6135.7435.4635.0534.6234.5033.2833.1933.0832.97 32.9432.5032.3232.0431.6431.6131.1030.5430.1028.63 28.3327.9325.3324.5923.7723.6121.7718.06

58

Barcelona continues to be in a leading position as a city of educational excellence

The IESE and ESADE business schools are in the fourth and eighth posi-tions in the European ranking of the top 100 full-time MBA programmes according to the Financial Times published in 2010, gaining one place each in comparison with their result in 2008. Furthermore, these two prestig-ious institutions achieved the eleventh and nineteenth positions in the global ranking, maintaining and improving by two positions, respectively, their 2008 result. In this regard, Barcelona consolidates itself as the only city with two educational institutions among Europe’s top ten business schools. In addition, in 2009 they consolidated this outstanding position with two new distinctions: according to The Economist Intelligence Unit, the IESE School occupies the top position in the global ranking of the full-time MBA classification, and the Financial Times recognises the Master’s Course in International Management given by Esade – within the frame-work of the CEMS alliance of European business schools and universities – as the best in the world.

The best European business schools in 2010

Source: Financial Times

position in european ranking

2008 2009 2010200720062005

IESE Business School ESADE Business School

5

9

4

8

4

7

6

10

4

10

3

8


59

World Ranking 2010European Ranking 2010 Business School City

Source: Financial Times

London Business SchoolInseadIE Business SchoolIese Business SchoolIMDUniversity of Oxford: SaïdHEC Parisesade Business SchoolUniversity of Cambridge: JudgeLancaster University Management SchoolRotterdam School of Management, Erasmus UniversityCranfield School of ManagementImperial College Business SchoolSDA BocconiManchester Business SchoolCity University: CassWarwick Business SchoolUniversity of Strathclyde Business SchoolAston Business SchoolDurham Business SchoolBirmingham Business SchoolUniversity of Bath School of ManagementVlerick Leuven Gent Management SchoolUniversity of Edinburgh Business SchoolBradford School of Management/TiasNimbas Business SchoolEM LyonUniversity College Dublin: Smurfit

LondonFontainebleauMadridBarcelonaLausanneOxfordParisBarcelonaCambridgeLancasterRotterdamCranfieldLondonMilanoManchesterLondonCoventryGlasgowBirminghamDurhamBirminghamBathGhentEdinburghBradfordLyonDublin

123456789

101112131415161718192021222324252627

156

111516181921242526323840414251737475878789899798

S y N t H e S I S

61

The 2009-2010 report released by the Barcelona Observatory makes it clear that, although the world is being battered by the crisis, Barcelona has not relinquished its solid international position and that it is still an extremely strong brand:

Firstly, according to top European executives, Barcelona is back in fourth position in the ranking of the Continent’s best business cities and is among the world’s top five for organising international conferences and meetings. Even though the evolution of the indicators and direct and in-direct foreign investment and business activity is clearly in recession, this is not denying Barcelona and Catalonia a prominent position in the Euro-pean context.

The successful strategy of moving towards a knowledge and creativity-based economy is leading to significant progress. One particularly outs-tanding fact is that Barcelona is 15th in the world ranking of cities in terms of scientific production. Catalonia is also among the five top regi-ons in Europe in terms of specialist science and technology workers and workers employed by high or medium-high intensity technology manu-facturers.

Barcelona is still firmly established among Europe’s leading cities for tourists.Its tourist industry has been notably resistant to the crisis, with its clear leadership in Mediterranean cruises and improvements to air-port infrastructures.

Barcelona has been a leader in quality of life for some years now, thanks to good performance of some significant sustainability indicators, such as the low level of CO, emissions in comparative terms.

Barcelona moved up seven positions in the world ranking of cities for cost of living, and registered falls in office and industrial land rental prices, which make its offer more competitive. However, salaries have not risen to the same degree as they have in the reference cities.

When it comes to training, Barcelona has two business schools which position it among European and world leaders, and the percentage of workers with university studies is continuing to grow.

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 rate and the women’s employment rate are above European Union averages.

The future holds some important challenges for Barcelona, in an ex-tremely complex context because of Spain’s current economic situati-on. This situation means a firm policy established by consensus that is needed to face the crisis, which will stimulate new, quality employment. Austerity must be practiced in public funding, which must continue to fo-cus strategically on the new, production model for the future based on knowledge, creativity and innovation. This investment must define the overall management of the Barcelona brand and new types of public and private collaboration as fundamental instruments.

Report 2009-2010. Synthesis

62

London

Paris

Frankfurt

Barcelona

Brussels

Madrid

Munich

Amsterdam

Berlin

Milan

Geneva

Hamburg

Zurich

Birmingham

Düsseldorf

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

Mexico

United states

Iceland

Greece

Norway

Ireland

Barcelona

Catalonia

Finland

Spain

Hungary

Latvia

Slovenia

Turkey

United Kingdom

Lisbon

Copenhagen

Rome

Edinburgh

Athens

Tallinn

Stockholm

Barcelona

Valencia

Istanbul

Helsinki

Vienna

Warsaw

Munich

Berlin

London

Paris

Düsseldorf

Madrid

Dublin

Barcelona

Munich

Lyon

Moscow

Frankfurt

Bucharest

Amsterdam

Budapest

Milan

Stockholm

Japan

United States

Argentina

South Africa

India

Belgium

France

Canada

Italy

Tunisia

Barcelona

Australia

Germany

Luxembourg

United Kingdom

Singapore

Paris

Brussels

Vienna

Barcelona

Tokyo

Seoul

Budapest

Copenhagen

London

Geneva

Amsterdam

Lisbon

Sydney

Rome

Milan

Stuttgart

Munich

Barcelona

Paris

Istanbul

Düsseldorf

Frankfurt

Copenhaguen

Lyon

Madrid

Bilbao

Helsinki

Rome

Berlin

Paris

London

Madrid

Copenhaguen

Barcelona

Milan

Munich

Warsaw

Lyon

Stuttgart

Berlin

Rotterdam

Athens

Frankfurt

Rome

Tokyo

Silicon Valley

New York

Boston

Los Angeles

Seoul

Osaka

Chicago

Seattle

Houston

Stuttgart

Munich

Stockholm

…

22 Barcelona

Beijing

London

Tokyo

Paris

New York

Boston

Seoul

Shanghai

Moscow

Madrid

Los Angeles

Rome

Baltimore

Toronto

Barcelona

Business Cities, 2009

Entrepreneurial activity, 20081,3

Business perspectives in exports, 20101,2

Inward Foreign Investment

Projects, 20082

Corporate tax, 20091,3

Organization of International

Meetings, 2008

Employees in high and medium-

high technology manufacturing sectors, 20081,2

Population employed in science and technology,

20081,2

Scientific Production, 2009

PCT patents applications,

20071,2

1 Selected sample ranking 2 Regions or provinces ranking 3 Country ranking

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London Heathrow (LHR)

Paris Roissy (CDG)

Frankfurt (FRA)

Madrid (MAD)

Amsterdam (AMS)

Rome-Fiumicino (FCO)

Munich (MUC)

London Gatwick (LGW)

Barcelona (BCN)

Paris Orly (ORY)

Zurich (ZRH)

Palma de Mallorca (PMI)

Dublin (DUB)

London Stansted (STN)

Copenhagen (CPH)

Paris

London

Rome

Barcelona

Madrid

Berlin

Milan

Prague

Athens

Vienna

Munich

Lisbon

Dublin

Valencia

Budapest

Barcelona

Balearic Islands

Naples

Venice

Dubrovnik-Korkula

Livorno

French Riviera

Tunisia

Valletta

Genoa

Palermo

Portugal

Cyprus

Malaga

Messina

Germany

Spain

Italy

Catalonia

Austria

Barcelona

Denmark

Portugal

Sweden

Greece

United Kingdom

Belgium

Czech Republic

Finland

Norway

Barcelona

Geneva

Munich

Oslo

Madrid

Stockholm

Paris

Copenhagen

Zurich

Hamburg

London

Amsterdam

Rome

Lisbon

Lyon

Barcelona

Geneva

Prague

London

New York

Bangkok

Toronto

Cape Town

Los Angeles

Denver

Tokyo

Osaka

Moscow

Geneva

Hong Kong

Zurich

Copenhagen

New York

Beijing

Singapore

Milan

Shanghai

Paris

…

38 Barcelona

New York

Tokyo

Hong Kong

Dubai

Moscow

Chicago

Miami

Helsinki

Sydney

Singapore

Milan

Dublin

London

…

31 Barcelona

Londres

Tòquio

Moscou

París

Bombai

Nova Delhi

Luxemburg

Rio de Janeiro

Milà

Zuric

Dublín

Ginebra

Istanbul

…

40 Barcelona

Airport passengers, 2009Hotel places,

20081,2

Cruise Passengers, 2008

EMAS Regristation,

20093Quality of life of employees, 2009 CO2 emissions

Cost of living, 2009

Apartment rental prices,20091

Office rental prices, 20091


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New York-5th Avenue

Hong Kong-Causeway Bay

Paris-Avenue des Champs Elysées

Milan-Via Montenapoleone

New York-Madison Avenue

Rome-Via Condotti

Tokyo-Ginza

London-New Bond Street

Zürich-Bahnhofstrasse

Paris-Rue du Faubourg St Honoré

Dublin-Grafton Street

London-Oxford Street

…

23 Barcelona-Portal de l’Àngel

31 Barcelona-Passeig de Gràcia

London

Oslo

Moscow

Dublin

Helsinki

Barcelona

Madrid

Zagreb

Copenhagen

Stockholm

Frankfurt

Sofia

Amsterdam

Istanbul

Belgrade

Zürich

Geneva

New York

Dublin

Copenhagen

Los Angeles

Oslo

Helsinki

Miami

Tokyo

Chicago

Frankfurt

Brussels

…

24 Barcelona

Oslo

Amsterdam

Copenhaguen

Stockholm

Rotterdam

Munich

Stuttgart

Edinburgh

Helsinki

Frankfurt

Prague

Sofia

Hamburg

Barcelona

Tallinn

Oslo

Brussels

Bilbao

London

Helsinki

Madrid

Edinburgh

Stockholm

Paris

Amsterdam

Berlin

Dublin

Glasgow

...

20 Barcelona

Prague

Amsterdam

Sofia

Oslo

Rotterdam

Copenhagen

Munich

Bucharest

Milan

Stuttgart

Budapest

Edinburgh

Stockholm

...

37 Barcelona

London-London Business School

Fontainebleau-Insead

Madrid-IE Business School

Barcelona-Iese Business School

Lausanne-IMD

Oxford-University of Oxford: Saïd

Paris-HEC Paris

Barcelona-Esade Business School

Cambridge-University of Cambridge: Judge

Lancaster-Lancaster University Management School

Rotterdam-Rotterdam School of Management,Erasmus University

Cranfield-Cranfield School of Management

London-Imperial College Business School

Milano-SDA Bocconi

Manchester-Manchester Business School

Rental prices for commercial premises, 20091

Rental price for industrial land,

2009Wage levels,

20091

Employment rate, 20081,2

Employees with tertiary

education, 20081,2 Unemployment

rate, 20081,2 European business schools, 2010


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M o N o G r a p H I C

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The imperative of innovation

The battleground of international competitiveness in the 21st century is innovation and cities [1], which are increasingly viewed as the caul-drons of innovation, enriching not only their surrounding regions, but their nations. Across the globe, cities are undergoing massive renewal, fundamental shifts in the nature of work and the workplaces they host, and transformations to their output and consumption. And in the rap-idly industrialising countries we see small towns being transformed into metropolises and entire new cities planned. From the City of London to Chennai, Shoreditch to Shanghai, and Amsterdam to Dubai; cities are growing, transforming and repositioning themselves as players on a glo-bal stage. This transformation includes major installation and renewal of ICT infrastructures and radical changes in the delivery of public services.

Historically, cities became established at the intersections of trade routes or where geography favoured production and distribution of physi-cal goods. These advantages were reinforced through agglomeration, economies of scale, the development of sophisticated infrastructures, especially road, rail and air links, and the enrichment and diffusion of expert knowledge through universities and research centres. In present day knowledge-based, services-led economies where communications networks can sometimes seem more important than rail and road net-works, global cities are emerging as the command and control centres of international business, and the ICT infrastructure they provide is a major influence on businesses seeking to relocate. [2], [3]

The Knowledge-Based, Networked Economy and the Role of ICT In a global and highly networked economy, cities are linked one to another and in turn to secondary nodes of production, distribution and consump-tion. There is evidence that the strongest cities become stronger and for those that are left behind the climb to achieve prosperity is long and tortu-ous. For instance, New York is the only one of the 16 largest cities, in either the north-eastern or mid-western United States, with a higher population today than it had 50 years ago. The decline of some cities has been precipi-tous, with their populations halving over the last 70 years while the total US population almost doubled in the same period. As Glaeser pointed out in his analysis of the Skilled City, the stakes are high and the future economic vitality of major cities depends on their ability to attract, develop and main-tain skilled resources. [4], [5]

The topic I am investigating in this paper is how cities are using techno-logical systems to transform and compete in the global knowledge-based economy, and the role of digital and communications technologies and re-lated services and how they fit into a more comprehensive, integrated ap-proach to planning. Roads, railways and airports, electricity and telecom-munications transformed cities in the 19th and 20th centuries. How are

THE WELL-CONNECTED CITY AN INTEGRATED APPROACH TO PLANNING AND DEPLOYMENT OF DIGITAL TECHNOLOGIES

April 2010 Nick Leon, Director of Design London at the Royal College of Art and Imperial College

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investments in new digital technologies and differences in deployment and usage models favouring certain cities in the rapidly shifting 21st century world? It is an environment where cities are competing for investment and new jobs, and trying to become hubs of innovation in the knowledge econo-my to deliver prosperity to their citizens.

In this paper we explore the key challenges facing cities in their deploy-ment of pervasive broadband networks and related services and draw par-allels with the challenges faced by cities in the 19th century in their de-ployment of telephony and electrical networks. The analysis can provide guidance to policymakers and practitioners, especially technology and ICT service providers. This guidance is embodied in a strategic planning model based on eight factors related to these challenges. This model provides policymakers and practitioners with a tool for a more integrated approach to planning, the prioritisation of requirements, the assessment of vendor propositions, and calibration of systems once they have been deployed.

Over a two-year period, Imperial College London carried out nine detailed case studies in European and US cities and a quantitative analysis of 168 US cities [6]. The research involved interviewing over 100 members of the city authorities and related agencies and private sector organisations. The findings were published in 2010.

The individual city case studies, information from interviews and documen-tation on other cities, show that there is wide variation in terms of the suc-cess of the various initiatives.

The research highlighted the need for a more integrated approach to plan-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 to as a Well-Connected City.

While the city deployments differed considerably. as did the outcomes, we identified a common set of problems encountered by cities and city districts. These are:

• capabilities of public sector organisations to develop, build and operate the systems

• sustainable business model• achieving cross-departmental buy-in and cooperation • transforming service delivery rather than simply e-enabling the front

end of existing services• creating compelling content and services and engaging and involving

the community in determining the content, services and priorities• comprehensive deployment models and accessibility for the entire

community including people with special needs• internal and external governance and asset ownership models; clear

definition of roles and responsibilities.

A comparison of the case study cities with the experience of cities at the end of the 19th and early 20th centuries, as they deployed new techno-logical infrastructures such as electricity, telephony, telegraphy, etc, highlights similar sets of challenges. Historical analysis as well as Large Technical Systems (LTS) theory [7], [8] predicts many of the problems be-ing experienced by the cities in the case studies and points to a series of factors that must be addressed for a city to successfully exploit new technological infrastructures and deliver the social and economic divi-dend from their deployment.

Eight factors that can influence a successful outcome

I have synthesised the challenges that emerge from the case studies and those predicted by LTS theory and the related literature on urbanism, innovation and capabilities, into eight key factors for effective city-wide broadband networks and related services. The case studies and other interviews indicate that these factors are those most likely to influence successful outcome and that lack of focus in any one of them could result in flawed deployment and suboptimal outcomes.

We will now examine each of these factors in relation to the case stud-ies, and some examples of best practice. The eight influencing factors we consider are:

1. functionality2. accessibility3. compelling content4. deployment and delivery5. service integrationFigure 1: Integrated Planning Model for a Well-Connected City

Large pool of scientific and technical resources and regional market for specialised skills

Regional and city level policies for innovation including presence of lead users

Demand as well as supply side interventions

Built environment, amenities and programmes to attract and connect firms and skilled knowledge workers

Infrastructure and services to support knowledge intensive, service led, networked economy

Social Capital

economic Development

Well Connected

City

urban Design

Infrastructure and Services

Report 2009-2010. Monographic

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6. spatial integration7. governance and ownership8. sustainability - economic, technological, environmental.

Functionality: refers to the nature of the infrastructure, the technolo-gies and standards supported by the network, network capacity, latency, availability, security and quality of service. Cities such as Taipei, Songdo in Seoul, and Canary Wharf are examples of high performance networks with rich functionality supporting a broad range of technologies. Cities where coverage is patchy, performance inconsistent or poor find it dif-ficult to attract subscribers, and those they do attract often discontinue their subscriptions. Lack of security deters content providers and the en-terprise market. The importance of security, especially for the enterprise market, was stressed in an interview with Niall Murphy, CTO of Cloud Networks, and by the Canary Wharf Corporation executive team respon-sible for Canary Wharf’s wireless network. The issue of functionality is closely entwined with politics. Poor performance and patchy coverage of municipal wireless networks, especially when they have been promoted as a low cost alternative to the DSL or cable broadband services from in-cumbent telecoms operators, have political ramifications for the city au-thorities and mayors who are promoting pervasive broadband availability for all as a key plank of their campaigns.

Cities such as Corpus Christi, Portland and Philadelphia are regularly cited in the US press as examples of cities where the expectations of citizens and performance of the network are not aligned, and where sub-scriber numbers are low and comments in online forums and chat rooms are negative. A century ago there were similar problems in London when each London borough acted independently and the lack of standardisa-tion and limited functionality of services made electricity a luxury service that offered little more than lighting. Compounding this were the early technical failures of flagship projects such as the Holborn Viaduct Station and Sebastian de Ferranti’s Deptford project for a massive power station to supply most of London in the 1890s. The technical failure, particularly at Deptford, increased political nervousness about large scale projects. This highlights the importance of realistic expectations about functional-ity, and promotion of that functionality. It underlines the importance of ensuring effective technological understanding among city authority and public officials.

accessibility: of municipal broadband networks and related services re-fers to the need to provide access via a wide range of devices, PC, digital TV, mobile phones. It includes ease of access via a single portal with a single sign-on to multiple applications, or via a familiar interface regard-less of the technology. Network coverage and continuity or persistence of connection and applications on the move, as well as ubiquitous access are important. Affordability is also important. The case study of the City of London explained how some boroughs had deployed a wireless network that enabled users to work through their existing service provider inter-faces – Vodafone, Skype, Vonage, i-Pass, etc. - that could be accessed us-

ing a broad range of devices. Corpus Christi deployed around 2,000 nodes to ensure an entire city and its suburbs could be covered by municipal broadband, while Stuttgart tested 1,500 different types of mobile phones to ensure that its MobilCity services could be used almost regardless of the type of device and its form factor.

Digital Bridge in Shoreditch, RegenTV in Newham and the telecare portal in Karlskrona are all examples of portals designed to be accessed using digital TV, and combine the familiar interface of a remote control, and video and data formats accessible to users with limited or no experience of using computers and browser-based GUI. The case study of the City of London in particular demonstrates that it is essential to allow other firms access to systems through the provision of guest capabilities for the wireless networks in firms they may be visiting. This highlights the importance of security to give firms confidence in allowing access. Ac-cessibility also includes affordability of the service and a key element of the deployment in Philadelphia, Corpus Christi and San Francisco was the provision of low-cost broadband access for the community, including free wireless access to some city specific services. Early deployments of electric and telephone networks experienced simi-lar problems including limitations of geographic coverage, especially into dispersed suburbs, poor districts and rural environments and interop-erability. Users were faced with the problem of proprietary systems and being locked into one supplier for all components of the system. The law on interoperability of different services and networks was introduced in the UK with the Electrical Act of 1882 and subsequent acts in 1885 which ensured that users could purchase electrical appliances from suppliers other than the electric network supplier. In the early days of electricity supply, transformers were used to ensure interoperability before stand-ards emerged. The initial costs of the electricity supply in London meant that home electric lighting was a luxury reserved for the rich. This con-trasts with the situation in Berlin where the city authorities negotiated with AEG and Siemens & Halske to create the Berlin electricity supply company, BEW, and where price was regulated by the city [7]. Policies to ensure the widespread accessibility of electricity supply both in terms of coverage and pricing were a core element in the public private partner-ships, one of the best being Berlin. The importance of coverage and ac-cessibility is as relevant in digital technologies today as it was in teleph-ony, telegraphy, electrical power, transport and sanitation over a century ago, and accessibility has more than just a physical dimension.

Compelling Content: Taking existing content and simply enabling it for delivery over a broadband network is likely to be ineffective as we found in the case studies. Both information and service content have to be highly relevant to users, and users need to be involved in its definition and crea-tion. Digital Bridge is one of the best examples of compelling content and shows that it requires regular updating in terms of content and style. Dig-ital Bridge in Shoreditch is exemplary in its engagement with the local community, in establishing priorities for content, and creating a sense of ownership. Another example is at Newham and the RegenTV project.

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Most of the TV content is created by the community, for the community. This sense of ownership, locality and currency is crucial to usage, and the importance of compelling content is reflected in the Barcelona case study and the Virtual Memoria project.

The nature of the services and content of municipal or community broad-band networks is analogous to the multiplicity of applications of electri-cal energy in the home. The development of telephony services since the 1950s has transformed the value of telecommunications to the public and private sectors and for home use. In 1878, when Edison launched the benefits of installing electricity in their homes to the public it was on the basis of incandescent lamps, electricity meters, and electrical appliances such as dynamos. At that time he still had not developed a practical in-candescent lamp or even reliable electricity generation or distribution capabilities. However, he knew that compelling applications and services would be required to establish a market. Within a decade, the firm Merz and McLellan in England was working with firms to help them under-stand how to reorganise their manufacturing plants to exploit the new energy source and Samuel Insull in Chicago ran the “electricity store” to promote the appliances that could be used at home, spending more on the promotion of these services than was spent by the entire British electricity industry at the time. The electric streetcar was another exam-ple of how electricity networks could deliver a new and valued service for consumers. It was introduced first in Berlin and Chicago, and later in New York. [7], [8]

The old electrical networks and the new digital networks deliver value through the services they enable. They are crucial enabling components in much larger socio-economic and technological network. The appli-cations must be attractive whether an information search service for employment opportunities in the borough, a managed service for small businesses (Corpus Christi and Shoreditch), a socio-cultural service such as Virtual Memoria in Barcelona, or lamps, dynamos, vacuum cleaners, and electric streetcars in Berlin, Chicago, London and New York, there needs to be compelling content and applications to drive the diffusion and the adoption of this form of technological innovation.

Deployment: A city or individual firm may produce good content and offer extensive services and excellent functionality but if the resources are not in place to help new users learn about the services and their value, train them in their use, and support their use, then all investment will be wast-ed. The case studies and secondary research on other cities identifies that some cities have invested heavily in infrastructure and services, but usage rates were low, or services and delivery had not been well thought through and support costs were too high. Where a city works with a third party with previous experience in the deployment of city networks and their exploitation, success is more likely. However experience needs to be relevant, because cities have different social, cultural and economic contexts that will strongly influence the outcome. South Korea invested massively in deployment and training potential users of ICT and broad-

band-enabled internet services, and over 3 million people participated in its programmes which kick started the massive exploitation of fixed and mobile broadband services. In contrast, Barcelona’s Virtual Memoria project is trying to reach a large community of retired people as well as schoolchildren. However, without the investment in deployment they are reaching only hundreds rather than tens of thousands of users who could benefit from this initiative. Similarly, Shoreditch was faced with deploy-ment challenges with the roll out of the Digital Bridge platform and servic-es. These were again down to an imbalance of resources between service innovation and service deployment.

The growth of new energy technologies in the 19th century give some clues as to the challenges we might face in the 21st century with digital technologies. Steam engines and then electrical networks deployments emphasise the importance of generating demand through educating users on potential applications and value of services for residential and professional markets. Charles T James was an engineer in the late 19th century who travelled the Eastern seaboard of the US explaining and edu-cating mill owners about the transformations achievable by steam pow-ered mills. He demonstrated how these mills could be relocated from the inaccessible and narrow valleys required for water power, to wharves where coal could be delivered and products transported more easily, or closer to the markets they served [8]. Engineering consultants, such as Von Miller, Merz and McLellan, and Klingenberg, worked in close partner-ship with entrepreneurs such as Emil Rathenau, who founded AEG, and Edison to develop demand for electricity services. They worked with large public sector and private corporations, demonstrating how electricity could transform manufacturing processes and public transportation, and designed the electrical systems to supply motors and machine tools. [7]

Deployment is the translation of a technological system into user value, coupled with a transformation of the industrial, institutional and indi-vidual user to enable them to assimilate that system and translate the benefits gained into business, social or personal value. This is at least as important today with digital technologies as it was a century ago.

Service transformation and Integration: Digital broadband networks provide a means not only of delivering existing services and content, but enabling service transformation. Corpus Christi, Westminster, and Shoreditch are both web-enabling their services with an internet front end and transforming their services in terms of scope and end to end delivery with the goal of improving their effectiveness and efficiency. The big gains reported are in workforce productivity and greater community engagement. The risks involved in making only cosmetic changes are poor take up of services, or uneven take up. If the front end of a serv-ice is transformed so it increases community awareness of the service, ease of use and attractiveness, but if delivery uses existing methods and resources the service will be overstretched, quality will be poor and re-sources and spending may rise. All of these scenarios will impact on the long-term sustainability of the service.


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History gives us many examples of the transforming characteristic of new technological systems, enabling transformation of production processes and public services. For instance the Franklin Institute noted that the ad-vantage of electricity: “almost prophetic anticipation of the assembly line, lay primarily in freedom to locate machinery, improvements in lighting and ventilation, cleanliness” and “the 20-30% increases in output that were attributable to all these factors”. [9]

Just over 100 years ago Charles Merz of the engineering consulting firm Merz and McLellan advised potential customers that electrical power and motors could “replace steam engines, and that the workplace could be reorganised because individual electric motor drive permitted more free-dom of location”, and the deployment and transformations made possi-ble by electrification rather than Taylorism enabled American factories to double productivity between 1900 and 1930. [7]

The introduction of earlier technological networks, substituting one component of the system while retaining the configuration of the other components – whether technological, organisational, process design, or institutional - is not sustainable. If only the technical components of the system are changed, they are likely to snap back into their earlier shape.

Spatial integration: ICT and the extension of its reach through fixed and wireless broadband networks are enabling new services and applica-tions. These in turn are promoting changes in lifestyles, work patterns and in the case of the public sector, the nature of service delivery. These services are bringing new meaning to public spaces, malls, parks, city squares as they are transformed into spaces where people can meet to work or access community services. We are all experiencing a trend to-wards greater mobility, distributed work patterns and knowledge inten-sive work, and the development of open innovation models that involve collaboration across an extended enterprise, rather than through verti-cally integrated firms. The types of knowledge and the respective spatial conditions required to support the diversity of work patterns in different industries, vary depending on the industry sector and even the specific team working practices. Trends emerge as cities take account of these factors and plan spatial organisations and infrastructure around the re-quirements of industries and firms and institutions involved. An example of this is the 22@ District of Innovation in Barcelona. Ramon Sagarra, who is responsible for the city’s infrastructure, is planning the transformation of the infrastructure, the networks, and their capacity, and the spatial organisation of each urban industry cluster. In Barcelona, the spatial or-ganisation of the new industrial zones where firms, universities, research centres and incubators are clustered, takes account of the different work patterns and interactions in each designated industry cluster – bio-med-ical, digital media, ICT, and most recently the new energy park, bTEC.

The Complex City Systems (CCS) conceptual framework posited by Leon [5] indicates that the nature of technological systems, their configuration and style of their deployment are closely related to the spatial and geo-graphic characteristics of the region, city or district and the nature of the

industries supported. The CCS framework shown in Figure 2 is a refine-ment of the Well-Connected City planning schematic shown earlier. The framework highlights the relationship between each of the components as well as the three networks of actors that commission new technical infrastructure and related services, the consumers of the services offered and the firms or organisations that undertake the deployment and provi-sion of the infrastructure and services.

These shape the configuration of the technological system, and in turn, will reshape the city. One of the more striking examples of this is Berlin and described by Thomas Hughes:

“As in other industrializing cities, electric light and power helped shape Berlin’s architecture; deeply influenced the design of its factories, and workshops, and chemical plants; stimulated industrial growth; deter-mined the location of the city’s transportation systems; provided tel-ephone and telegraph communication; and when substituted for steam power, lessened noise and dirt. In short electrification affected the way in which workers labored and management organized, and Berliners lived. Because of this, the private company that supplied most of the electric light and power for Berlin until 1915, and the municipal government that regulated electrical supply shaped the history of Berlin.” [7]

Governance: Governance is a broad topic but the most fundamental area relates to who owns and shapes the technological system, in the context of this paper, who owns the broadband network and who controls its ev-olution and sets the future strategy. These issues need to be considered in terms of the content to be delivered over the network. The governance

Figure 2: CCS Framework and Key actors

User Experience and Value For Business and Consumers

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model includes the community and its role in specifying the content and nature of the services that will be delivered and also the stance of whoever is operating the network – whether their stance will be neutral in relation to content and scope of new services or do they have vested interests.

Experience from the City of London and Karlskrona highlights why com-municating agreed aims and objectives to all the stakeholders and agree-ment about key performance indicators is crucial. Comparison of the electrification of London and Berlin in the 1880s is an example here. Con-tinuously changing the indicators or vacillating between them can reduce confidence and the sustainability of an initiative. Objectives are not fixed by the governance model, but consideration needs to be given to a formal change management process to allow adaptations and refinements not only to the services but also to their performance measurement. The challenge of establishing an appropriate governance model that re-flects the capabilities of the public and private sector partners arises in the implementation of all the technological systems. A city authority’s re-sources and its capabilities will shape the form of any public private part-nership. Hughes describes the relationship between the partners in Berlin as follows:

“The Municipal Government was not overawed by the technical, mana-gerial, scientific and financial power of its private utility. Berlin officials drew upon the proud tradition of the Prussian civil service, demanding and receiving the same respect and authority that public officials of the state and national governments received”. [7]

And with reference to London, which contrasts poorly with Berlin, he adds that a similarly progressive combination of coordinated forces was needed to overcome the vested and historical interests in London, how-ever such a combination did not exist. Good governance accompanies a city or its agencies capabilities and the above lessons are pertinent to the deployment of all types of technologi-cal systems.

Sustainability: Some of the initiatives studied have run out of funding or lost momentum in terms of organisational support, usage or exploitation. The research found that almost all of the initiatives had received seed funding but without the development of a sustainable business model in place from the start, exhibit a tendency to expire within 3 years. The ini-tial funding might launch them with some acclaim, but after a year, even if the results were good, the next budget cycle is underway or budgets already set, and it is too late for funding to be reallocated from depart-ments who are benefitting from the new services. Typically, a third year of funding might be secured during the second year, but it is often inad-equate and even more new investment is required by now to refresh the technology. The result is that the project is choked of new investment, service quality falls without a technology refresh, deployment resources are insufficient and usage falls – a vicious cycle ensues that is likely to spell the demise of the project.

The approach to tackling the issue of economic sustainability is to have a killer application, for instance automated meter reading (AMR) in Corpus Christi, parking enforcement in Westminster, or an intelligent transpor-tation system in Stuttgart. In each of these cases there are tangible, di-rect budgetary savings and in the case of parking enforcement additional income from these services. These effective applications justify initial network deployment and running costs. The incremental costs of adding applications with softer benefits will be modest in comparison and not subject to changes in the political priorities of the incumbent administra-tion.

Another solution is to work with a partner, as in the City of London case study, which can make the investments required to deploy the network, and bring in a range of additional content and service partners to pro-vide added value services. Such an approach lowers the costs of systems deployment and ensures regular updates. Companies such as Earthlink and Cloud Networks have a series of partnerships in place, and an exist-ing business model based on subscriptions. This model enabled them to take over the existing network assets and operations already deployed by cities or to install new networks and make services available to the city as the anchor tenant, with shared revenues in exchange for rights of way to city assets such as lamp posts and other street furniture.

The case study research found evidence of the challenges facing cities such as Norwich, and inner city districts in London such as Shoreditch and Newham, which are finding it difficult to sustain ongoing operations, move from pilot to full roll out of services, and refresh the technology to meet evolving community needs. In the case of Shoreditch, once ini-tial funding from the local authority, UK government programmes such as the New Deal for Communities, or EU funding under Objective 2 was exhausted, without a sustainable economic model, the municipality or district was faced with having to find another partner or closing down the initiative. What often starts as a programme addressing social cohe-sion and community engagement, or delivering new and more efficient community services on the back of a technological model, can quickly become a failed project.

We can consider these issues as being ‘econo-technical’ in nature and we see that one of the more important aspects of Edison’s activities was his concern for economic factors, at every stage of the technology devel-opment. Since technological change involves economic, legal, legislative and scientific aspects, Edison needed a highly supportive financier net-work, from the very outset. This network was developed with the help of Grosvenor Lowrey, Edison’s Chief Counsel, and his close association with Drexel Morgan and Company. Without this, Edison’s inventions could not have been commercialised successfully and transferred to other world cities. Successful deployment of new technological systems involves a synthesis of social and market needs, financial trends, economic prin-ciples, technological innovations, engineering design, and managerial techniques. Over a century ago we see evidence of this synthesis, yet the case studies show that the planning and deployment of digital technolo-


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gies including municipal wireless and high speed broadband do not al-ways exploit an integrated planning approach that involves all of these factors.

At the start of the 21st century, a sustainable system municipal and com-munity broadband will need to involve all of these social, economic and technological components, just as we observed 120 years earlier with the deployment of electrical and telecommunications networks.

Summary of the factors and a potential planning approach

Cities and districts may not excel in all of the eight factors described above; however, overlooking one or more may reduce or negate the value of the investment, or may determine an unsustainable path. Balance is required, spending a lot on services and not enough on accessibility, de-ploying a network without a sustainable business model, developing con-tent without involving users or spending enough on deploying the service in the community, will likely produce poor results, as evidenced by the case studies and experience in other cities.

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-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 by the city authority, and the level of deployment versus best in class ex-amples.

Each of these factors provides a measure for planning and assessing the overall effectiveness and sustainability of the CCS framework as shown in Figure 4 which depicts the primary link between attributes and the rel-evant components of the CCS framework.

Figure 3: Schematic for ICT Innovation Quotient

Accessibility

Plan

Content

DesploymentSpatial Integration

Sustainability

Actual

Funtionality

Governance Service Integration

Figure 4: Integrating the CCS Framework with the ICT Integration Quotient

User Experience and Value For Business and Consumers

Content Accesibility

Deployment

Service Integration

Sustainability

Functionality

Governance and Partnership

Model

Spatial Integration

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Technological Infrastructure and Systems

Spatial Organisation and Urban Planning

Environment - Physical

Conclusions

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-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-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.

The tools can be used not only in the planning but also in the assessment of the solutions proposed by prospective partners, vendors or the city’s own resources and enable them to measure results, compare capabilities delivered with originally projected needs, and compare with deployments in other world cities.

In conclusion, creating a smart city needs a great deal more than smart 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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plinary innovation system, and an integrated infrastructure programme linked to strategic urban design.

In the case studies we identified only a handful of global cities who can demonstrate such an integrated approach. The price of failure is high. When London failed to exploit such an integrated approach 120 years ago with the introduction of electrical networks it ceded its position as a lead-ing industrial city to other global cities and took 40 years to recover. Cities that fail to innovate risk a steep decline. The deployment of digital tech-nologies is a crucial ingredient in creating an environment for innovation. However, unless the planning and deployment of these technologies are integrated with the social, cultural and economic programmes of the city, the transformation of its services and the overall spatial planning, these technologies will not contribute fully to the innovative capacity of the city, public service transformation or social cohesion.


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