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REGIONS

AMERICAN CITIES OF THE FUTURE

American Cities of
the Future 2019/20
Winners
NEW YORK CONTINUES TO REIGN AS THE LEADER OF fDi’s
AMERICAN CITIES OF THE FUTURE 2019/20 RANKING. SAN
FRANCISCO RETAINS SECOND PLACE WITH TORONTO
RISING TO THIRD. NAOMI DAVIES REPORTS

Skyscraping performance: New York is still top of fDi’s American Cities of the Future

N
ew York has once again outperformed its 2009 and 2018, more than 60,000 patents
Americas rivals in fDi’s American Cities were registered, cementing San Francisco’s
of the Future 2019/20 ranking, solidify- importance as one of the world’s top cities for
ing its status as an economic powerhouse and innovation.
the region’s commercial capital. The city was Toronto rises to third in this year’s ranking,
also crowned best major city for Economic up from fourth in the previous study. It had an
Potential, Human Capital and Lifestyle and 80% increase in FDI in R&D compared with
Connectivity. According to data from greenfield 2017/18. In December 2018, US-based online
investment monitor fDi Markets, it attracted retail giant Amazon expanded its Toronto tech
836 FDI projects between 2014 and 2018 – more hub while announcing plans to create 600 new
than double the number of its closest competi- jobs in software development, machine learn-
tor, Toronto, and held a 10% share of total US ing, cloud computing, digital advertising and
FDI. New York also benefits from the highest artificial intelligence.
GDP of all locations analysed.
San Francisco maintains its second posi- A big jump
tion. The city saw an almost 30% increase in Meanwhile, Chicago has notched up the big-
outward FDI between 2014 and 2018. Between gest movement in this year’s top 10, soaring

40 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

nine places to sixth. The city attracted 49 FDI TOP 10 OVERALL AMERICAN CITIES OF THE FUTURE 2019/20
projects in 2018, its highest such figures since RANK CITY STATE COUNTRY
fDi Markets records began in 2003. Most FDI 1 New York New York US
investment between 2014 and 2018 was in 2 San Francisco California US
sales, marketing and support, business ser- 3 Toronto Ontario Canada
vices and headquarters activities (together 4 Montréal Quebec Canada
accounting for more than three-quarters of 5 Houston Texas US
Chicago’s inward FDI). Canada-based BMO 6 Chicago Illinois US
Financial Group, Italy-based confectioner Fer- 7 Boston Massachusetts US
rara Candy and Germany-based navigational 8 Los Angeles California US
software company Here are among the compa- 9 Palo Alto California US
nies that decided to establish headquarters in 10 Seattle Washington US
the city in 2018.
Mexico City is named fDi’s Latin American TOP 10 OVERALL NORTH AMERICAN CITIES OF THE FUTURE 2019/20
City of the Future, up from third place in RANK CITY STATE COUNTRY
2017/18, and is the only Latin American city fea- 1 New York New York US
tured in our overall Major Cities category. 2 San Francisco California US
It fares particularly well in the Economic 3 Toronto Ontario Canada
Potential classification and enjoys the high- 4 Montréal Quebec Canada
est GDP of all the Latin American locations in 5 Houston Texas US
the study. 6 Chicago Illinois US
Seattle climbs one spot to be named fDi’s
7 Boston Massachusetts US
Large American City of the Future and tops the
8 Los Angeles California US
corresponding Economic Potential and Busi-
9 Palo Alto California US
ness Friendliness categories. Almost of half of
10 Seattle Washington US
the FDI the city attracted between 2014 and
2018 was in the software and IT services cate- TOP 10 OVERALL LATIN AMERICAN CITIES OF THE FUTURE 2019/20
gory, bolstering its claim to be ‘San Francisco RANK CITY STATE COUNTRY
North’. Thanks to a thriving talent pool led by 1 Mexico City Federal District Mexico
homegrown Amazon and Microsoft, the city is 2 São Paulo São Paulo Brazil
evolving into an attractive tech hub. Ireland-
3 Bogotá Capital District Colombia
based technology services firm Accenture estab-
4 Santiago Metropolitan Region Chile
lished an innovation hub in the city in Novem-
5 Monterrey Nuevo León Mexico
ber 2018, with plans to create 300 new jobs by
6 San José San José Costa Rica
the end of 2020.
7 Querétaro Queretaro Mexico
Mississauga’s mid-sized success 8 Silao Guanajuato Mexico
Mississauga in Ontario, Canada, holds on to its 9 Tres Ríos Cartago Costa Rica
title of fDi’s Mid-Sized American City of the 10 Guadalajara Jalisco Mexico
Future and comes first in the division’s Busi-
ness Friendliness category. About 60% of the
city’s total inward FDI between 2014 and 2018
was derived from the US, followed by Germany
(15.9%) and Japan (6.8%).
Cambridge, Massachusetts, tops the Small
Cities classification. A noted biotech hub, the
city boasts a robust population of start-ups,
well-established pharmaceutical companies,
incubator sites and research institutions.
Almost two-thirds of inward FDI between 2014
and 2018 was in the biotech and pharmaceuti-
cals sectors. Cambridge also benefits from a
large network of scientists due to the area’s
many universities, which include Harvard and
the Massachusetts Institute of Technology.
A new addition to this year’s ranking is
Palo Alto in California. The city comes first in
the Micro City classification and 10th in the
overall ranking. It also tops the Micro Cities
Economic Potential category. Located in the
heart of the Silicon Valley, Palo Alto made a
record 58 outward FDI investments in 2018,
almost 60% of which were in the software and
IT services sector. Many prominent businesses
reside in the city’s renowned Stanford
Research Park, including Hewlett-Packard
and Tesla. ■

June/July 2019 www.fDiIntelligence.com 41


REGIONS
AMERICAN CITIES OF THE FUTURE

“We’re honoured to be MAJOR AMERICAN CITIES OF THE FUTURE


recognised at the top TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2019/20 –
of fDi’s rankings and OVERALL
are excited to further RANK CITY STATE COUNTRY

our successful efforts 1


2
New York
San Francisco
New York
California
US
US
in bolstering economic 3 Toronto Ontario Canada
growth opportunities 4
5
Montréal
Houston
Quebec
Texas
Canada
US
of today, while 6 Chicago Illinois US
supporting the 7 Boston Massachusetts US
emerging sectors 8
9
Los Angeles
Mexico City
California
Federal District
US
Mexico
of tomorrow” 10 Miami Florida US
James Patchett, president and TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2019/20 –
CEO of the New York City ECONOMIC POTENTIAL
Economic Development RANK CITY STATE COUNTRY
Corporation 1 New York New York US
2 San Francisco California US
3 Toronto Ontario Canada
“Greater Montréal’s 4 Montréal Quebec Canada
attraction strategy 5
6
Mexico City
Los Angeles
Federal District
California
Mexico
US
focuses on promoting 7 Boston Massachusetts US
our leading-edge 8 São Paulo São Paulo Brazil
sectors boasting a 9
10
Houston
Chicago
Texas
Illinois
US
US
critical mass of highly
skilled talent, a high TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2019/20 –
HUMAN CAPITAL AND LIFESTYLE
concentration of global RANK CITY STATE COUNTRY

players, a booming 1
2
New York
Chicago
New York
Illinois
US
US
start-up community 3 Boston Massachusetts US
and specialised 4 Montréal Quebec Canada
R&D centres” 5
6
Atlanta
Puebla
Georgia
Puebla
US
Mexico
Valérie Plante, mayor of Montréal 7 Houston Texas US
8 Los Angeles California US
9 Austin Texas US
10 San Diego California US

TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2019/20 –


COST EFFECTIVENESS
RANK CITY STATE COUNTRY
1 Guatemala City Guatemala Guatemala
2 Panamá City Panama Panama
3 Guayaquil Guayas Ecuador
4 Quito Pichincha Ecuador
5 San Pedro Sula Cortés Honduras
6 Santiago Metropolitan Region Chile
7 Lima Lima Peru
8 Fortaleza Ceará Brazil
9 Columbus Ohio US
10 San Antonio Texas US

42 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2019/20 –


“Philadelphia’s CONNECTIVITY
momentum continues RANK CITY STATE COUNTRY

to build year after year, 1


2
New York
San Francisco
New York
California
US
US
and this recognition 3 Miami Florida US
proves that we have 4 Los Angeles California US

the assets needed for 5


6
Boston
Houston
Massachusetts
Texas
US
US
companies to thrive” 7 Toronto Ontario Canada
8 Philadelphia Pennsylvania US
Jim Kenney, mayor of 9 Washington, DC Washington, DC US
Philadelphia 10 Chicago Illinois US

“These results clearly TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2019/20 –
BUSINESS FRIENDLINESS
indicate that our RANK CITY STATE COUNTRY
economic development 1 Houston Texas US

efforts are paying great 2


3
New York
Toronto
New York
Ontario
US
Canada
dividends and we are 4 Montréal Quebec Canada
focused on welcoming 5 San Francisco California US

even more foreign 6


7
Dallas
Chicago
Texas
Illinois
US
US
direct investment to 8 Austin Texas US
Hamilton” 9
10
Atlanta
Mexico City
Georgia
Federal District
US
Mexico
Fred Eisenberger, mayor, Hamilton

LARGE AMERICAN CITIES OF THE FUTURE


TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2019/20 –
OVERALL
RANK CITY STATE COUNTRY
1 Seattle Washington US
2 Vancouver British Columbia Canada
3 San Jose California US
4 Orlando Florida US
5 Querétaro Querétaro Mexico
6 Cincinnati Ohio US
7 Portland Oregon US
8 St Louis Missouri US
9 Nashville Tennessee US
10 Denver Colorado US

TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2019/20 –


ECONOMIC POTENTIAL
RANK CITY STATE COUNTRY
1 Vancouver British Columbia Canada
2 San Jose California US
3 Vancouver British Columbia Canada
4 Querétaro Querétaro Mexico
5 San Luis Potosi San Luis Potosi Mexico
6 Ciudad Juárez Chihuahua Mexico
7 Aguascalientes Aguascalientes Mexico
8 Portland Oregon US
9 Denver Colorado US
10 Mexicali Baja California Mexico

44 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2019/20 –


HUMAN CAPITAL AND LIFESTYLE
“It’s an honour to be RANK CITY STATE COUNTRY
recognised as one of 1 St Louis Missouri US

fDi’s American Cities of 2


3
Minneapolis
Portland
Minnesota
Oregon
US
US
the Future for our 4 Pittsburgh Pennsylvania US
connectivity and 5 Orlando Florida US

human capital and 6


7
Edmonton
Denver
Alberta
Colorado
Canada
US
lifestyle. It’s an exciting 8 Seattle Washington US
time in Tampa” 9
10
Cincinnati
Tampa
Ohio
Florida
US
US
Jane Castor, mayor of Tampa
TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2019/20 –
COST EFFECTIVENESS
“Increasing global RANK CITY
1 Asunción
STATE
Gran Asunción
COUNTRY
Paraguay
connections for 2 La Paz La Paz Bolivia
Nashville companies 3 Sorocaba São Paulo Brazil

has been part of the 4


5
Guaralhos
Ribeirão Preto
São Paulo
São Paulo
Brazil
Brazil
city’s economic 6 Managua Managua Nicaragua
development strategy 7 Aguascalientes Aguascalientes Mexico

for decades. It’s an 8


9
Léon
Mexicali
Guanajuato
Baja California
Mexico
Mexico
honour to be 10 Ciudad Juárez Chihuahua Mexico
recognised by fDi for
our work on this priority” TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2019/20 –
CONNECTIVITY
RANK CITY STATE COUNTRY
David Briley, mayor of Nashville
1 San Jose California US
2 Seattle Washington US
3 Vancouver British Columbia Canada
4 Orlando Florida US
5 Tampa Florida US
6 Sacramento California US
7 Baltimore Maryland US
8 Pittsburgh Pennsylvania US
9 Jacksonville Florida US
10 San Juan Puerto Rico US

TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2019/20 –


BUSINESS FRIENDLINESS
RANK CITY STATE COUNTRY
1 Seattle Washington US
2 Cincinnati Ohio US
3 Las Vegas Nevada US
4 Vancouver British Columbia Canada
5 Louisville Kentucky US
6 Orlando Florida US
7 Denver Colorado US
8 St Louis Missouri US
9 Portland Oregon US
10 Edmonton Alberta Canada

June/July 2019 www.fDiIntelligence.com 45


REGIONS
AMERICAN CITIES OF THE FUTURE

“With shovel-ready MID-SIZED AMERICAN CITIES OF THE FUTURE


land and advanced TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2019/20 –
infrastructure, London OVERALL
has proven to be the RANK CITY
1 Mississauga
STATE
Ontario
COUNTRY
Canada
ideal place for business 2 San José San José Costa Rica
in the region” 3 Raleigh North Carolina US
4 Salt Lake City Utah US
Kapil Lakhotia, president and 5 Québec Québec Canada
CEO of the London Economic 6 Hamilton Ontario Canada
Development Corporation 7 Richmond Virginia US
8 Brampton Ontario Canada
9 Birmingham Alabama US
“A growing number 10 Surrey British Columbia Canada

of diverse and TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2019/20 –


ECONOMIC POTENTIAL
international companies RANK CITY STATE COUNTRY
have found a 1 Chihuahua Chihuahua Mexico
welcoming and 2 San José San José Costa Rica

profitable home in 3
4
Raleigh
Mississauga
North Carolina
Ontario
US
Canada
Spartanburg County, 5 Richmond Virginia US
renowned for its unique 6
7
Celaya
Irapuato
Guanajuato
Guanajuato
Mexico
Mexico
partnerships between 8 Québec Québec Canada
industry, community 9 Saltillo Coahuila Mexico
and workforce” 10 Apodaca Nuevo Léon Mexico

Allen Smith, president and CEO, TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2019/20 –
HUMAN CAPITAL AND LIFESTYLE
Spartanburg Area Chamber of RANK CITY STATE COUNTRY
Commerce 1 San José San José Costa Rica
2 Salt Lake City Utah US
3 Richmond Virginia US
4 Halifax Nova Scotia Canada
5 Raleigh North Carolina US
6 Québec Québec Canada
7 Buffalo New York US
8 London Ontario Canada
9 Birmingham Alabama US
10 Tucson Arizona US

TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2019/20 –


COST EFFECTIVENESS
RANK CITY STATE COUNTRY
1 San José San José Costa Rica
2 San Salvador San Salvador El Salvador
3 Jundiaí São Paulo Brazil
4 São José dos Campos São Paulo Brazil
5 Cancún Quintana Roo Mexico
6 Irapuato Guanajuato Mexico
7 Celaya Guanajuato Mexico
8 Reynosa Tamaulipas Mexico
9 Chihuahua Chihuahua Mexico
10 Saltillo Coahuila Mexico

46 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

“It’s clear – Mississauga TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2019/20 –
CONNECTIVITY
is a city in demand. I am RANK CITY STATE COUNTRY
absolutely thrilled that 1 Brampton Ontario Canada

our city has been 2


3
Hamilton
Mississauga
Ontario
Ontario
Canada
Canada
ranked number one by 4 Surrey British Columbia Canada
fDi for our commitment 5 Raleigh North Carolina US

to fostering a positive 6
7
Salt Lake City
Mesa
Utah
Arizona
US
US
business-friendly 8 Québec Québec Canada
environment where 9
10
Albuquerque
Birmingham
New Mexico
Alabama
US
US
companies cannot
only grow but thrive” TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2019/20 –
BUSINESS FRIENDLINESS
Bonnie Crombie, RANK CITY STATE COUNTRY
mayor of Mississauga 1 Mississauga Ontario Canada
2 Raleigh North Carolina US
3 Richmond Virginia US
“Our active digital and 4 Birmingham Alabama US

physical infrastructure 5
6
Québec
Salt Lake City
Québec
Utah
Canada
US
investments, coupled 7 Hamilton Ontario Canada
with our business- 8
9
London
Albuquerque
Ontario
New Mexico
Canada
US
friendly environment 10 Brampton Ontario Canada
and vibrant innovation
ecosystem, is creating SMALL AMERICAN CITIES OF THE FUTURE
an ideal location for TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2019/20 –
high-technology and OVERALL
Industry 4.0 companies RANK CITY STATE COUNTRY

to grow and thrive, 1


2
Cambridge
Santa Clara
Massachusetts
California
US
US
while staying 3 Sunnyvale California US
connected to 4
5
Bellevue
Irvine
Washington
California
US
US
global markets” 6 Charleston South Carolina US
7 Fort Lauderdale Florida US
Doug McCallum,
8 Plano Texas US
mayor of Surrey 9 Fremont California US
10 San Mateo California US

TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2019/20 –


ECONOMIC POTENTIAL
RANK CITY STATE COUNTRY
1 Sunnyvale California US
2 Santa Clara California US
3 Cambridge Massachusetts US
4 Bellevue Washington US
5 Fremont California US
6 Charleston South Carolina US
7 San Mateo California US
8 Cary North Carolina US
9 Irvine California US
10 Plano Texas US

48 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

“Our consistent ranking TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2019/20 –
HUMAN CAPITAL AND LIFESTYLE
by fDi as one of the RANK CITY STATE COUNTRY
top places in the US 1
2
Columbia
Cambridge
South Carolina
Massachusetts
US
US
for FDI cements our 3 St John New Brunswick Canada
region’s commitment 4
5
Boulder
Irvine
Colorado
California
US
US
for even more 6 Ann Arbor Michigan US

successful international 7
8
Charleston
Fort Lauderdale
South Carolina
Florida
US
US
expansions to the 9
10
Cambridge
Durham
Ontario
North Carolina
Canada
US
region”
TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2019/20 –
Leslie Haley, vice-chair of the COST EFFECTIVENESS
Greater Richmond Partnership RANK CITY STATE COUNTRY
1 Alajuela Alajuela Costa Rica
2 Heredia Heredia Costa Rica
“While our logistics 3
4
Cartago
Akron
Cartago
Ohio
Costa Rica
US
and infrastructure are 5 Ensenada Baja California Mexico

unparalleled, our team- 6


7
High Point
Spartanburg
North Carolina
South Carolina
US
US
oriented approach and 8 Ciudad Acuña Coahuila Mexico

business-friendly 9
10
Reno
Fort Wayne
Nevada
Indiana
US
US
policies are even more TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2019/20 –
impressive. I invite CONNECTIVITY
everyone to see RANK CITY
1 San Mateo
STATE
California
COUNTRY
US
why more than 50 2 Stamford Connecticut US
international businesses 3
4
Fremont
Fort Lauderdale
California
Florida
US
US
representing 19 5 Santa Clara California US
counties are 6
7
Sunnyvale
Pasadena
California
Texas
US
US
thriving here” 8
9
Cambridge
Irvine
Massachusetts
California
US
US
Bill Sisson, president, Mobile Area 10 Richmond British Columbia Canada
Chamber of Commerce
TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2019/20 –
BUSINESS FRIENDLINESS
RANK CITY STATE COUNTRY
1 Plano Texas US
2 Reno Nevada US
3 Irving Texas US
4 Pasadena Texas US
5 Bellevue Washington US
6 Akron Ohio US
7 Cambridge Ontario Canada
8 Charleston South Carolina US
9 Cary North Carolina US
10 Kitchener Ontario Canada

MICRO AMERICAN CITIES OF THE FUTURE


TOP 10 MICRO AMERICAN CITIES OF THE FUTURE 2019/20 –
OVERALL
RANK CITY STATE COUNTRY
1 Palo Alto California US
2 Mountain View California US
3 Plymouth Michigan US
4 Menlo Park California US
5 Auburn Hills Michigan US
6 Redwood California US
7 Lake Mary Florida US
8 Norcross Georgia US
9 Duncan South Carolina US
10 Waltham Massachusetts US

June/July 2019 www.fDiIntelligence.com 49


REGIONS
AMERICAN CITIES OF THE FUTURE

TOP 10 MICRO AMERICAN CITIES OF THE FUTURE 2019/20 –


“Business incentives, an ECONOMIC POTENTIAL
educated and young RANK CITY STATE COUNTRY

workforce, a low-risk 1
2
Wilmington
Mountain View
Delaware
California
US
US
location with 310 days 3 Menlo Park California US
of sunshine, a strong 4 Plymouth Michigan US

creative economy 5
6
Auburn Hills
Silao
Michigan
Guanajuato
US
Mexico
mixed with a rich and 7 Redwood California US
diverse culture, low 8
9
Duncan
Franklin
South Carolina
Kentucky
US
US
cost of living, and 10 Norcross Georgia US
excellent quality of life TOP 10 MICRO AMERICAN CITIES OF THE FUTURE 2019/20 –
HUMAN CAPITAL AND LIFESTYLE
makes Albuquerque RANK CITY STATE COUNTRY
one of America’s best 1 Waltham Massachusetts US
cities for business – 2 Greenville South Carolina US

that’s something to 3
4
San Miguel de Allende
Lake Mary
Guanajuato
Florida
Mexico
US
be proud of” 5 Doral Florida US
6 Guanajuato Guanajuato Mexico
Tim Keller, mayor of 7 Novi Michigan US
Albuquerque 8 Bowling Green Kentucky US
9 Norcross Georgia US
10 Greer South Carolina US
TOP 10 MICRO AMERICAN CITIES OF THE FUTURE 2019/20 –
COST EFFECTIVENESS
RANK CITY STATE COUNTRY
1 Belen Heredia Costa Rica
2 Tres Ríos Cartago Costa Rica
3 Escazu San José Costa Rica
4 Longview Texas US
5 Greenville South Carolina US
6 Silao Guanajuato Mexico
7 Apaseo el Grande Guanajuato Mexico
8 Guanajuato Guanajuato Mexico
9 San Miguel de Allende Guanajuato Mexico
10 Bowling Green Kentucky US
TOP 10 MICRO AMERICAN CITIES OF THE FUTURE 2019/20 –
CONNECTIVITY
RANK CITY STATE COUNTRY
1 Wilmington Delaware US
2 Redwood California US
3 Mountain View California US
4 Palo Alto California US
5 Menlo Park California US
6 Doral Florida US
7 Santa Monica California US
8 Waltham Massachusetts US
9 Beverly Hills California US
10 Woburn Massachusetts US
TOP 10 MICRO AMERICAN CITIES OF THE FUTURE 2019/20 –
BUSINESS FRIENDLINESS
RANK CITY STATE COUNTRY
1 Dublin Ohio US
2 Troy Michigan US
3 Longview Texas US
4 Auburn Hills Michigan US
5 Lake Mary Florida US
6 Duncan South Carolina US
7 Plymouth Michigan US
8 Norcross Georgia US
9 Alpharetta Georgia US
10 Greenville South Carolina US

50 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

FDI Strategy
A MORE DETAILED LOOK AT fDi’s JUDGES’ TOP FIVE AMERICAN CITIES
OF THE FUTURE 2019/20 FOR FDI STRATEGY. NAOMI DAVIES REPORTS

NEW YORK bilateral ties with the country and


Overall winner coincided with inward investments
New York is the overall winner in from several Japanese companies,
this year’s American Cities of the including construction equipment
Future FDI Strategy category. The maker Komatsu and aluminium
city’s investment promotion body, manufacturer UACJ.
New York City Economic Develop- WBC also works to drive growth
ment Corporation (NYCEDC), and opportunity in Chicago’s tech
employs a team of 525 staff and community through the ChicagoN-
works tirelessly to promote entrepre- ext initiative. Its council of technol-
neurship and economic diversifica- ogy leaders aims to promote digital,
tion across the city. clean technology and life sciences
The organisation established the with a focus on attracting venture
partnership team, a new department capital, tech talent and encouraging
to target FDI, in late 2017. Among its inclusive entrepreneurship. The city
many responsibilities, the team con- also hosts the Chicago Venture Sum-
Success story World Business Chicago has enjoyed
ducts outreach in growth cities, mit and its prominent tech hub 1871 a boost in funding since 2012
develops strategic financing and was named top university-affiliated
facilitates international participa- incubator in the world by UBI Global struction, tourism, textiles, health
tion in NYCEDC’s numerous industry in 2018. services and Industry 4.0, can enjoy
initiatives. These include LifeSciNYC, industry, commerce and property tax
a 10-year, $500m initiative to bring Montréal incentives. Moreover, in the city’s
New York to the forefront of the Montréal, third in this year’s rank- free-trade zones, companies benefit
global life sciences industry; and ing, is experiencing a surge in inward from a 20% discount on income tax
CyberNYC, a $100m scheme to grow FDI. Economic development agency and no customs taxes. Medellín is
the local cybersecurity sector. Montréal International (MI) sup- also committed to the development
The city enjoys growth across sev- ported 63 foreign companies in set- of film production in the locality and
eral sectors including technology, life ting up or expanding in the region in is Colombia’s only city to have a film
sciences, financial services and 2018, attracting $2.47bn in invest- commission, offering 15% additional
industrial manufacturing. New ment, a 22% increase on 2017 and a incentives to those offered by the
York’s blockchain ecosystem, for 147% increase on 2015. national government.
example, is experiencing explosive MI’s FDI strategy targets diverse
growth. In the past year alone, New sectors and geographies and its team Mobile
York-based blockchain start-ups focuses on obtaining face-to-face The Mobile Area Chamber is the lead
received more than $500m in ven- meetings with investors as well as economic developer for the city of
ture capital funding, up 500% from reaching out at major trade shows Mobile and Mobile County in Ala-
2017. The city continues to bolster and government missions. Govern- bama, and it comes fifth in the FDI
development in the sector through ment incentives are available to Strategy category. It is home to sev-
the recently opened NYC Blockchain inward investors in the form of tax eral high-growth sectors including a
Centre, the annual Blockchain Week credits and direct financial support. thriving aerospace cluster, and
around the Consensus event, and the MI also offers comprehensive after- Mobile Area Chamber attends a vari-
NYC BigApps Blockchain Challenge. care support to ensure investors ety of global air shows to promote the
remain and grow in the area: 50% of region alongside Team Mobile, a
Chicago its FDI investments in 2018 were group of local economic develop-
Chicago’s economic development expansions of foreign subsidiaries. ment partners.
organisation, World Business Chi- Mobile is also known for its exten-
cago (WBC), has enjoyed greatly Medellín sive transportation infrastructure,
increased funding since 2012 in Medellín ranks fourth for FDI Strat- including a deep-water port, two
order to pursue domestic and foreign egy in the list. The Agency for Coop- major interstate connectors, five
inward investment and inclusive eration and Investment of Medellín class-one railroads and two Federal
growth. WBC consistently imple- (ACI Medellín) promotes and facili- Aviation Administration-certified air-
ments new initiatives to attract more tates the attraction of FDI to the city ports. Following a collaborative, city-
investment from various world and its metropolitan area, working wide effort, Mobile won a $14m grant
regions. In July 2018, Chicago mayor closely with the different chambers from the US Department of Transpor-
Rahm Emanuel signed the first eco- of commerce and the government tation in mid-2016. The funding will
nomic memorandum of understand- agency ProColombia. be used to renovate infrastructure,
ing between a US city and the Japa- Investors in the creative indus- connect citizens to jobs and revitalise
nese government, which bolstered tries, as well as infrastructure, con- historic neighbourhoods. ■

52 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

National leader: Montréal is ranked Canada’s top city for FDI Strategy

TOP 25 AMERICAN CITIES OF THE FUTURE 2019/20 –


FDI STRATEGY
RANK CITY STATE COUNTRY
1 New York New York US
2 Chicago Illinois US
3 Greater Montréal Québec Canada
4 Medellín Antioquia Colombia
5 Mobile Alabama US
6 Calgary Alberta Canada
7 Barranquilla Atlántico Colombia
8 Nashville Tennessee US
9 Québec Québec Canada
10 Mississauga Ontario Canada
11 Toronto Region Ontario Canada
12 Bogotá Bogotá Capital District Colombia
13 Philadelphia Pennsylvania US
14 Houston Texas US
15 Orlando Florida US
16 Cali Valle del Cauca Mexico
17 Santa Clarita California US
18 Hamilton Ontario Canada
19 San Salvador San Salvador El Salvador
20 Fredericton New Brunswick Canada
21 Miami-Dade County Florida US
22 São Paulo São Paulo Brazil
23 Burlington Ontario Canada
24 Cartagena Bolívar Colombia
25 Montevideo Montevideo Uruguay

54 www.fDiIntelligence.com June/July 2019


REGIONS
AMERICAN CITIES OF THE FUTURE

American Cities of the Future 2019/20


METHODOLOGY

To create a shortlist for mum of 10 points for each details about their strategy of more than 200,000 and a
fDi’s American Cities of datapoint, which were for promoting FDI, which wider larger urban zone
the Future 2019/20, the fDi weighted by importance to was then scored by fDi’s (LUZ) of more than 750,000,
Intelligence division of the the FDI decision-making judging panel. or an immediate city popu-
Financial Times collected process in order to compile Cities in the study were lation of more than
data using the specialist both the subcategory rank- categorised according to 350,000. There were 42
online tools fDi Markets ings as well as the overall population. Those loca- ‘Large’ locations, with
and fDi Benchmark. In ‘American Cities of the tions with immediate city immediate city popula-
total, 218 locations were Future 2019/20’ ranking. populations below 100,000 tions of more than 500,000
analysed for the study. In addition, surveys were categorised as ‘Micro and an LUZ population of
Data was then collected for were collected under a Cities’, of which there were more than 1 million, or an
these 218 locations under sixth category, FDI Strat- 46. ‘Small’ locations (num- LUZ of more than 2 million.
five categories: Economic egy. This category is the bering 46) had immediate ‘Major’ locations (51) had
Potential, Business Friend- only qualitative category, city populations between an immediate city popula-
liness, Human Capital and and does not feed into the 100,000 and 350,000. ‘Mid- tion of more than 750,000
Lifestyle, Cost Effectiveness overall result. For this cate- sized’ locations (of which and an LUZ of more than 2
and Connectivity. Loca- gory, there were 56 submis- there were 33) had an million, or an LUZ of more
tions scored up to a maxi- sions – locations submitted immediate city population than 4 million people. ■

LIST OF DATAPOINTS

ECONOMIC POTENTIAL • Number of higher education institutions warehouse value) BUSINESS FRIENDLINESS
• Population per 100,000 population • Cost of establishing a business (absolute • Total number of companies within
• Average annual population growth (% - • Number of top 500 universities 2018 value using GNI) advanced manufacturing sector 2019
2014-2018) • Number of top 500 universities per • Cost of establishing an electricity • Total number of companies within
• GDP (PPP current $m) 100,000 people connection (absolute value using GNI) hi-tech service sector 2019
• GDP per Capita (PPP current $) • Number of business schools in Global • Total tax rate, % of profit • Total number of companies within the
• Average annual growth in GDP 2014- MBA rankings 2017 • Corporation tax rate (%) knowledge-based sector 2019
2018 • Number of IB schools • Common indirect tax/VAT • Proportion of companies within
• Average annual forecasted GDP growth • Number of IB Schools per 100,000 • Country purchasing power parity/ advanced manufacturing sector 2019
(2019-2023) people exchange rate • Proportion of companies within hi-tech
• Inflation rate • Labour Force as % of population aged
service sector 2019
• Unemployment rate 15+ CONNECTIVITY
• Outward FDI (2014-2018) • Skillset of graduates • Proportion of companies within the
• Upload speed (kb/s) knowledge based sector 2019
• Outward FDI per 100,000 people (2014- • Ease of finding skilled employees • Download speed (kb/s)
2018) • Literacy rate (%) • Number of companies within advanced
• Percentage of people using the internet manufacturing sector 2019 (per 100,000
• Inward FDI (2014-2018) • Tertiary enrollment rate (%) (%)
• Inward FDI per 100,000 people (2014- • Third-level students as % of population people)
• ICT Development Index
2018) • Number of physicians per 1000 people • Number of companies within hi-tech
• Number of airports within 80km of city
• FDI in R&D and DDT (2014-2018) • Life expectancy service sector 2019 (per 100,000 people)
• Number of international destinations
• FDI in advanced manufacturing (2014- • Education expenditure (% of GNI) • Number of companies within the
served
2018) • Social Progress Index 2018 knowledge based sector 2019 (per
• Number of ports (medium) within
• Number of mega projects by capex 100,000 people)
100km
(over $100m) inc ests (2014-2018) COST EFFECTIVENESS • Number of jobs created by all inward FDI
• Number of mega projects by capex • Average annual salary for an unskilled • Number of ports (large) within 100km
• Number of ports (very large) within (2014-2018)
(over $100m) per 100,000 people inc ests worker ($) • Number of jobs created by all inward FDI
(2014-2018) • Average annual salary for an semi-skilled 100km
• Number of ports (medium +) within per 100,000 people (2014-2018)
• Number of mega projects by jobs (over worker ($) • Number of expansion/co-location
1000 jobs) inc ests (2014-2018) • Average annual salary for a skilled 100km
• Logistics Performance Index 2018 projects (2014-2018)
• Number of mega projects by jobs (over worker ($)
• Networked Readiness Index 2018 • Top 1000 World Banks 2018
1000 jobs) per 100,000 people inc ests • Annual rent for prime grade A office
• Environmental Performance Index 2018 • Corporation tax rate (%)
(2014-2018) space ($ per sq m)
• Capital expenditure on R&D and DDT • Annual rent for prime grade A industrial • Liner shipping connectivity index 2018 • Days taken to start a business
Projects ($) (2014-2018) space ($ per sq m) • Mobile phone subscribers (2017) per • Firing costs
• Number of patents 2003-2018 • Petrol prices ($ per litre) 100 • Ease of Doing Business Rank 2017
• Number of patents per 100,000 people • Electricity ($ per kwH) • Companies in the transportation sector • Index of Economic Freedom 2017
2003-2018 • 4*/5* hotel in city centre ($ per night) per 100,000 people • Corruption perception Index 2018
• Minimum wage ($ per hour) • Distance to nearest international airport • Strength of Investor Protection Index
HUMAN CAPITAL AND LIFESTYLE • Cost of registering a property (absolute (km) • Credit rating (S&P)
• Number of students value using GNI) • % increase in mobile phone subscribers • Fragile States Index 2018
• Number of higher education institutions • Cost of construction permits (% of • Quality of overall infrastructure • Country risk score

56 www.fDiIntelligence.com June/July 2019