Despite Brexit, London tops PwC's Global Cities of Opportunity Index and moves up in competitiveness

[mike2000 is back]

Despite Brexit, London tops PwC's Global Cities of Opportunity Index

27 September 2016

London retains the top slot as a centre for business, commerce and culture in PwC's latest Cities of Opportunity Index of 30 major global cities. Economic clout, reputation as a city gateway, ease of doing business, universities, innovation, entertainment and attractions are all reasons why London is the number one global city of opportunity.
For the second time in a row, London performs strongly across the range of indicators that measure the performance of major international cities. The findings show London significantly extending its lead across the performance indicators by 6.5 per cent ahead of its closest rival Singapore, followed by Toronto, Paris and Amsterdam.
The economic power of the British capital is reinforced as it takes top spot comfortably ahead of the two global powerhouses - New York and Beijing. Madrid is the surprise city, making huge advances to turn the spotlight on mainland Europe with improved GDP and the best jobs growth of any European city.
According to David Snell, PwC partner in London, ''Change is ahead and it remains to be seen what impact the UK's decision to leave the EU will have on our vibrant city. London is one of the world's leading financial centres and financial services will continue to make a major contribution to the UK economy.

London is the World's Financial hub.

"The sector accounts for 8 per cent of total UK economic activity and directly employs 1.1 million people - around 3.6 per cent of the total UK workforce, generating income, investment and exports. This is a major opportunity for financial services firms to work with regulators, investors and clients in order to shape a new rulebook fit for the new climate.''
Nevertheless, London continues to be the supreme gateway city and stands out as the global hub for business and leisure travel. The strong performance is due to the city's ranking in variables such as hotel rooms, international tourists, number of international meetings, incoming and outgoing passenger flows and airport connectivity.

London is a major intellectual centre and its focus on innovation and intellectual property is also rewarded with top position this year, ahead of San Francisco and up from last year's number two spot.

A strong performance is also seen in the quality of universities and access to libraries. In this category London is one of the top cities best suited for young people aged between 15 and 29 in variables such as: how youth live, work and play in their urban setting.
The UK capital also stands out not only for the maturity of its technology, but also for the diversity of its cultural offering. It also came top in its attractiveness to employees looking to relocate.

Snell adds, ''Brexit will bring challenges, but it's important we remain positive. If Brexit has effects on London, they will play out in a process over time in areas like talent mobility, trade and regulation. But it is worth remembering that London is resilient, agile and great at adapting. London is open for business and we must seize the opportunities that lie ahead.

London leads the world in Financial clout but also performs well in intellectual capital and innovation.


''The consistent performance of London across a range of measures shows that its success goes much deeper than economic might alone. London's cultural vibrancy in particular, significantly contributes to its strength and standing on the world stage. Those that live and work in London are proud and passionate for what our city stands for.
''This great city continues to have a lot to offer, and a lot to protect, in terms of its history, culture, business and financial leadership. The growing tech city in Shoreditch, creative industries in Soho and the concept of connecting across the regions will offer huge potential and will benefit the capital and the country in the years to come.''

• London beats all other cities in terms of its economic and financial clout, intellectual capital and innovation

• London is the supreme gateway city and the global hub for business and leisure travel
• Brexit will bring challenges and opportunities but London remains agile and resilient
• Good quality of life proves to be a winning ingredient for city success

However, reaching the top doesn't come without a price. London is the most expensive city for business occupancy and the cost of living. There is also room for improvement when it comes to sustainability. And, while London has one of the best transport systems, affordability is a big issue.

The top three cities within each key indicator are:

Intellectual capital and innovation: London, San Francisco, Paris

Technology readiness: Singapore, London, Amsterdam

City gateway: London, Paris, Beijing

Transportation and Infrastructure: Singapore, Dubai, Stockholm (London 8th)

Health, safety and security: Tokyo, Toronto, Sydney (London 8th)

Sustainability & the natural environment: Stockholm and Sydney (tied for first), Seoul and Toronto (tied for second), Amsterdam (London 13th)

Demographics and liveability: New York and Paris (tied for first), London, Los Angeles

Economic clout: London, New York, Beijing
Ease of doing business: Singapore, Hong Kong, London

Cost: Johannesburg, Toronto, Los Angeles (London 26th)


Commenting on PwC's Cities of Opportunity Index, London mayor, Sadiq Khan, said, "I'm very pleased that this report reaffirms London as the leading global city in terms of economic importance, intellectual capital and innovation. This is the best city in the world; it's open for business, creative, entrepreneurial, agile, full of opportunity and a hub for business and leisure travel.

''Despite the recent vote to leave the European Union, there is no doubt that this will continue to be the best place in the world to do business. I am determined to make the capital an even more prosperous city and to spread the opportunity it brings to all Londoners.''
The study reinforces the need for a balance of social and economic factors across the community as a whole. It finds high scores in the human elements of urban life including good quality of life, senior wellbeing, housing, literacy and enrolment, and disaster preparedness.

Snell concludes,''Over half the world's population lives in cities, and they represent engines of regional\or countries' economies. A good life is not a luxury, it's a basic requirement for cities and businesses to attract and retain talent. Strong performing cities are those planning and providing across all the measures of the long term quality of life of its people. Having the infrastructure in place – social, economic and physical – builds stronger communities and in turn the resilience of the city no matter what it faces.''
PwC's top Cities of Opportunity:

Toronto ranked third and led in health, security and safety

Cities of Opportunity's comprehensive measurement of major centres of business, commerce, intellectual capital and culture, highlights the complex economic and policy challenges cities face to succeed. Each city's score is the sum of its rankings across variables/ performance indicators.


Singapore, the city-state renowned for its planned development, comes in second – up from third position in 2014. In addition to ranking No1 in three indicators – technology readiness, transportation and infrastructure and the ease of doing business – the city performs well in the area of tax. An analysis of corporate total tax rate, personal rate, and tax efficiency shows that Singapore, along with Dubai and Hong Kong, have the lowest rates and highest efficiency collectively.

Toronto, third in the study, ranks in the top 10 in seven of 10 indicators, and does particularly well in categories that speak to the daily needs and concerns of urban residents – finishing second in health, safety and security; second in cost; and third in sustainability and the natural environment (tied with Seoul).

Paris rises to fourth position overall from sixth in 2014 despite a decade of economic pressure and more recently, terror attacks. Paris performed strongly across the measures, the only city to make the top 10 in 9 out of 10 indicators. It returns to first in demographics and liveability overall, tying New York. Paris also bounces back to 2nd as a city gateway after falling to 7th in 2014.

Amsterdam enters the study for the first time this year – in fifth position. The city finished in the top five in three indicators (intellectual capital and innovation; technology readiness; and sustainability and the natural environment). It also finished in the top 10 in a further four indicators (city getaway; health safety and security; demographics and liveability; and economic clout), challenging the traditional urban powerhouses.

New York At No 6,remains part of a global urban elite – but drops from second position in 2014 and first-place rankings in the editions before that. The city scores lower in many of this year's newly-introduced measures and is overtaken by other cities' gains in existing variables. It needs to improve substantially in sustainability and the natural environment, and health, safety and security (both #16) as well as cost (No 25). On the upside, the city finished No 1 (tied with Paris) in demographics and liveability, No 2 in economic clout, and No 3 in technology readiness (tied with Amsterdam).

Stockholm, seventh, performs particularly well in the area of sustainability and the natural environment (No 1 tied with Sydney) and transportation and infrastructure (No 3). In addition, the city outscores all others in two new variables, senior wellbeing and water-related business risk.

Beijing, which retains its overall No 19 spot, performs particularly well in two study indicators: city gateway (No 3) and economic clout (No 3).

Eight different cities finish first in at least one indicator. One of them – Johannesburg – tops all cities in competitiveness on cost, but isn't in the overall top 10.

While the need for risk resilience is not new, the potential for disruption have skyrocketed with cities facing increasing risk from extreme weather, terrorism, nuclear mishaps and other manmade threats, as well as disease.

This year's study shows that the most vulnerable cities can also be the most resilient; Tokyo came top in exposure to risk and in their ability to deal with it – outperforming all other cities in natural disaster preparedness.
Amsterdam has the second highest disaster vulnerability but the fifth highest preparedness.

http://www.domain-b.com/economy/worldeconomy/20160907_retains.html

@waz , @Blue Marlin, @Kaptaan. Shrugging off BREXIT?

 

[mike2000 is back]

British economy also moved up to seventh place in competiveness, leapfroging Japan, Hong Kong and Finland in global 'competitiveness' league
World Economic Forum praises country's status 'as a digital pioneer and support for entrepreneurs'.

The World Economic Forum's annual Global Competitiveness Report rankings 2016.

 

[Cyberian]

That's because the UK is still part of the European Union.

 

[waz]

No real surprise there. Rule Britannia @mike2000 is back . Thanks for the thread.

That's because the UK is still part of the European Union.

The expectations and negative fallout of the Brexit was supposed to dent all this, and nothing happened. Although there may be some fallout when we leave, but in several years time, the economy will be stronger than ever. You need to read what the German business chief sad about this;

http://www.dailymail.co.uk/news/art...er-EU-Brexit-says-Germany-business-chief.html

 

[mike2000 is back]

No real surprise there. Rule Britannia @mike2000 is back . Thanks for the thread.



The expectations and negative fallout of the Brexit was supposed to dent all this, and nothing happened. Although there may be some fallout when we leave, but in several years time, the economy will be stronger than ever. You need to read what the German business chief sad about this;

http://www.dailymail.co.uk/news/art...er-EU-Brexit-says-Germany-business-chief.html

As I said before, we have been a global power before there was anything like the E.U.We will carry-on being one even after leaving the E.U. Leaving the E.U doesn't means leaving Europe. The E.U is just a grouping, doesn't determine whether a country will be productive or not or that we won't be trading/cooperating with our E.U friends/partners. We just want more sovereignty and control over our world affairs/immigration/trade deals etc . Obviously there are advantages and disadvantages in leaving the E.U. So we will make full use of the advantages while mitigating and adapting to those disadvantages. We are a resilient power and God at adapting to changes circumstances and a changing world. We will survive and thrive.
Our strengths/skills/knowledge/innovativeness/attraction, global language/culture/financial reach etc is not something others can simply buy /purchase or take away that easilly. PERIOD .



On another note:
9 things you didn't know about the U.K's Tech Scene


GERARD GRECH, TECH CITY UK SEPTEMBER 25, 2016 9:05 AM
TAGS: GERARD GRECH, UNITED KINGDOM

ARM Holdings plc a semiconductor and software design company, Headquartered in Cambridge.it is considered to be market dominant in the field of processors for mobile phones (smartphones or otherwise) and tablet computers. Image Credit: Pavel Ignatov/Shutterstock


“Where are the UK tech companies that can become the next Google or Facebook?” goes the cry. Well, I think the UK has plenty of what it takes to grow a tech titan or two, or three.

Britain consistently punches above its weight when it comes to digital innovation and technology. In a recent OECD/McKinsey 2016 report, the UK was ranked top in its digital share of overall GDP (10 percent), beating the USA (8 percent) and Sweden (7 percent).

Meanwhile, PwC has just placed London number one, for the second time, on its bi-annual list of Cities of Opportunity. London’s status as a world financial center, conveniently positioned halfway between Asia and the US, has helped it foster a strong tech innovation community over several years.

Six years ago the UK government decided to get behind its burgeoning tech talent, and the result is one of the most generous tax-relief systems anywhere in the world for starting a business. With supportive regulation, lots of available finance, and politicians keen to bring jobs into their neighborhoods, you can see why tech companies like Deliveroo and Shazam are thriving across the country. Indeed, over 40 percent of all European tech unicorns are based in the UK.

Then there’s culture. The UK’s economic liberalism and cultural variety – engendered over centuries not decades – have played a crucial part in its digital success.

For those considering investing in or starting up a UK-based tech business, here are a few things you should know:

1. The UK is the second biggest destination in the world for VC money, on a per capita basis

Venture capitalists invested a record $3.6 billion in the UK’s tech scene last year, up 70 percent from the year before. The country has consistently attracted more than 30 percent of all European VC funds for several years. On a per capita basis, the UK is the second biggest destination for VC money in the world, after the US, counting all investments made between 2009 and 2015, according to EY.

According to Pitchbook, the VC database, 2015 was the fifth consecutive year of growth for the UK’s tech sector. In fact, tech investment in London in 2015 was almost 20 times what it was in 2010. And in June 2016, the UK was already on track to exceed last year’s funding level yet again.

So far, Brexit does not appear to be having any impact. It’s fair to say that leaving the European Union may not have been on the road map for many in the sector, but we’ll rise to the challenge, while pushing hard for this community to become even more open to global tech talent and investment.

2. It’s not just London

There are 1.56 million jobs in the digital tech economy, with almost three times more jobs being created in the sector than in the wider economy. Tech hubs are emerging organically across the country, specializing in different capabilities; from cyber security to digital media. Edinburgh is home to billion-dollar companies Skyscanner and Fanduel as well as rapidly growing startups like Administrate and TV Squared.

Manchester, where over 50,000 people work in the digital economy, is another fast-growing tech hub, home to MoneySuperMarket and The Hut. Newcastle has companies such as Performance Horizons and scaling mobile payment firm ImpulsePay.

3. Our internationally renowned universities are a crucial part of the ecosystem

There are over 170 universities in the UK, with six in the world’s top 30. Oxford University, Cambridge University, and Imperial College are in the global top 10. The turnout of graduates is the highest in Western Europe. British universities are world class and produce over 5,000 new STEM PhDs per year.

Collaboration between our universities and businesses is rated as the fourth best in the world, according to the World Economic Forum’s latest Global Competitiveness report. Entrepreneurialism is thriving on campuses, and connections to universities are becoming crucial in funding deals.

4. The UK is second in the world for tech startup exits, after the US

Access to London’s capital markets is important as businesses scale up.

The London Stock Exchange is the second largest financial market in the world, based on the number of companies listed. London’s recent Tech IPO successes include payments firm Worldpay, which raised over $2.6 billion, and cyber security firm Sophos, now worth more than $1.6 billion. Other listings include Zoopla and Just Eat, both valued over $1 billion in 2014.

Even before last year’s bumper crop of IPOs, the London market was a great place for tech firms to raise money. Between 2011 and 2015 there were 22 tech IPOs on the LSE, with the average IPO proceeds coming in at $492 million.

Right now, UK firms can choose if they want to IPO and open themselves up to public scrutiny. Fortunately, there is so much VC funding around that fast-growing firms can raise capital without having to list.

IPOs aside, there were 135 mergers and acquisitions in the second quarter of 2016 in the UK, accounting for 65 percent of all activity across Europe, according to CB Insights. In fact, the UK ranked second in the CB Insights Global Tech Exits listing for the first half of 2016.

5. Some of the UK’s biggest tech success stories have stayed under the radar

ARM Holdings is a case in point. ARM designs the chips that power 95 percent of the world’s smartphones, and its technology effectively put a computer in everyone’s pocket. This summer, the Cambridge-based company, which few consumers had heard of, accepted a $32 billion takeover offer from Japanese conglomerate Softbank.

Other big tech successes from the UK that you may have never heard of include Imagination Technologies Group, which designs and licenses chips for use in smartphones and other household appliances. Aveva, also based in Cambridge, is an engineering software business.

Meanwhile, Newbury-based Micro Focus, a software company that deals with software systems, has boldly just put in a $8 billion bid for a part of HP’s business.

We’re proud of our home-grown success stories, but it’s also important that many of the world’s biggest tech companies have opened headquarters in the UK. Facebook’s largest engineering team outside Silicon Valley is based here, while Google and Apple also have a substantial presence.

Proximity to these big companies helps local entrepreneurs aspire to create global companies themselves. When an innovative company like Magic Pony can be snapped up by Twitter for $150 million, as happened in July 2016, it inspires everyone in the ecosystem.

6. The UK government helps tech companies from cradle to exit

There is help for tech entrepreneurs at every stage of their business evolution, ranging from R&D tax credits and entrepreneurs’ capital gains relief to grants to an online Digital Academy for anyone wanting to acquire the skills to digitize their business. The UK also has a dedicated visa scheme for digital innovation experts. Government-backed enterprise schemes help private investor capital find its way into the ecosystem, and coding is now taught to all primary school children, from the age of five. The UK government has put many of its biggest interactions with its people online – from voter registration to car taxes. The UN recently ranked Britain number one in the digital delivery of services to its citizens.

7. You say fintech — I say ed tech, ad tech, prop tech, health tech, media and entertainment

Because of its supremacy in financial services, there is a tendency to assume London is dominated by fintech. There are plenty of businesses starting up in this space, like Monzo, Pockit, and Atom Bank, and some amazing unicorn companies like Transferwise and WorldPay. But the UK’s digital economy is more diverse than you might imagine.

We are seeing a rapid digitization in healthcare and education, with startups like Network Locum, a company that matches locum doctors with medical practices in need, and eSchools and RefMe in the education space. The gaming sector has already created world beaters like Tomb Raider and Grand Theft Auto, while gambling companies like Betfair, Playtech, and 888 Holdings are also international players. Property tech companies like Zoopla Property Group and Rightmove are potentially world leaders, thriving on the back of one of the most active real estate markets in the world. The flurry of proptech startups include Trussle, an online mortgage broker, and Purplebricks, which is undercutting traditional estate agents.

8. Brits are geeks at heart

Vodafone Group plc is a British multinational telecommunications company with a presence in about 50 countries globally and headquartered in London.Among mobile operator groups globally, Vodafone ranked fourth by revenue and second (behind China Mobile) in the number of connections (435.9 million) as of 2015. Image credit: Pavel Ignatov/Shutterstock


Britain is a nation of early adopters who have embraced smartphones and the mobile Internet more rapidly than other nations. We also spend more time online than any other European country, according to the media regulator Ofcom. Phones are widely used for music streaming, with digital formats now accounting for 54 percent of all UK music consumption. Brits also spend more time using phones for social networking than any other Europeans and spend more than double the next European country (France) online per capita. This wouldn’t be possible without the UK’s broadband and telecoms market, which is one of the most competitive in the world and expects to the begin commercial rollout of 5G services in 2020.

9. First-generation entrepreneurs are now creating their own funds and building a sustainable ecosystem

After a wave of successful IPOs, Britain’s first generation of VC funds and angel investors are looking for places to invest their money. The recycling of capital into startups is something that has helped Silicon Valley maintain its supremacy across a couple of generations. Now in the UK we are starting to see the end of one cycle and the beginning of another.

While the most established VC funds were largely set up by former investment bankers, today’s funds are increasingly built by successful tech entrepreneurs, such as MMC Ventures, LocalGlobe, Spring Ventures, BGF Ventures, Entrepreneur First, and others. The recent M&A activity in the sector – particularly the takeover of ARM Holdings – will release fresh talent into the market along with a wave of investment. This is not just money; this is capital with knowledge behind it.

And it’s not all about the money. Which is why the UK tech community set up Founders Pledge, where tech founders donate at least 2 percent of their personal proceeds to support social causes following an exit. We’re building a tech community that will last here, and we believe in paying it forward.

http://venturebeat.com/2016/09/25/9-things-you-didnt-know-about-the-uks-tech-scene/