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Cities Research Center | 2015
Wuhan - An Emerging World City Building an Innovation-Oriented Economy
Cities Research Center2
Précis
Wuhan is still amongst the world’s most dynamic urban economies. Raw demographic and economic energy will continue to propel the city forward, but longer term success will be
dependent on the speed of innovation, the speed of adaptation and the creating of cutting-edge new businesses – i.e. creating an innovation-oriented economy. Real estate is the heartbeat of an innovation-oriented economy by providing the infrastructure and environment for productive activity that facilitates creativity, innovation and entrepreneurship, while at the same time fostering a sense of community and well-being for its citizens in a sutainable urban model.
Wuhan – An Emerging World City Building an Innovation-Oriented Economy
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Contents1. Wuhan’s International Competitive Position2. Wuhan’s National Competitive Position3. Macro-drivers of Wuhan’s Urban Future4. Real Estate and the Innovation-Oriented City5. Global Case Studies of Innovation-Oriented Cities
i) Emerging World Cities (Shenzhen, Bangalore)ii) New World Cities (Santiago, Barcelona, Tel Aviv, Seoul)iii) Established World Cities (London, New York)
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One of the world’s most dynamics urban economiesWuhan is still amongst the world’s most dynamic urban economies. The city was ranked 5th and 8th respectively in the 2014 and 2015 editions of the JLL’s City Momentum Index; an index that track the speed of change of the economies and commercial real estate markets covering 120 major cities across the globe (Figure 1). The 2014 report cites that “Wuhan has built robust momentum as it realises its potential as the hub of Central China. An industrial powerhouse of global scale, the city is climbing the value chain, helped by one of the country’s strongest education infrastructures.”
Based on 120 cities Source: JLL, 2015
EconomyConnectivityCorporate ActivityConstruction
Property PricesReal Estate Investment
Technology Environment
EducationR&D
16 Melbourne17 Singapore18 New York19 Tianjin20 Nanjing21 Austin22 Tokyo23 Guangzhou24 Jakarta25 Kuala Lumpur26 Seoul27 Shenyang28 Munich29 Chengdu30 San Diego
1 London2 San Jose3 Beijing4 Shenzhen5 Shanghai6 Ho Chi Minh City7 Boston8 Wuhan9 San Francisco
10 Chongqing11 Sydney12 Bangalore13 Dubai14 Dublin15 Nairobi
Figure 1: JLL City Momentum Index, 2015 – Global Top 30 The world’s most dynamic cities
Innovation is critical to sustainable momentumBut city momentum involves far more than just raw GDP growth – it is also about the speed of innovation, the speed of adaptation and the creation of cutting-edge new businesses. JLL’s City Momentum Index embraces these factors by capturing measures of ‘future proofing’ – whether a city has the essential ingredients (the ‘high-value incubators’) to ensure longer-term sustainable momentum in the smart, digitally-enabled knowledge economy. Innovation-rich cities feature strongly at the top of the Momentum Index – cities such as San Francisco, San Jose, Boston and London provide unrivalled reputations for innovation, venture capital and start-ups – and can offer valuable lessons for cities striving to build innovation-oriented economies.
1.Wuhan’s International Competitive Position
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Based on 120 cities Source: JLL, 2015
Creating an innovation-oriented economyOur City Momentum analysis draws attention to high-energy cities, typified by Wuhan, that are riding the wave of strong economic and real estate momentum. Raw demographic and economic energy will continue to propel cities such as Wuhan forward, but to ensure longer-term success the city will need to continue to
Amsterdam, Paris
Copenhagen, Chicago
Berlin, Stockholm
Seattle, Zurich, Vienna
New York, Sydney
Los Angeles, Seoul
Tokyo, Munich
Melbourne, Hong Kong
London, San Francisco, Bay
Boston, Singapore
Beijing, Shanghai
Shenzhen, Bangalore
Dubai
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Figure 2: JLL City Momentum Index, 2015 – Short versus Long Term Momentum Short versus Long Term Momentum
build the foundations of the new economy in terms of innovation, infrastructure and connectivity. High-energy cities such as Dubai, Bangalore and Shenzhen, are already reaping the benefits of a concerted effort to move up the value-chain and improve their global connectivity (Figure 2).
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Wuhan as an ‘Emerging World City’Globalisation, urbanisation and technological advancement is leading to a shake up the global urban hierarchy and driving new types of city. Among the most dynamic category are an elite group of ‘Emerging World Cities’ – these are fast-growing, large cities economies that are positioning to become key gateways and economic engines (Figure 3). These Emerging World Cities are embracing new opportunities and the most advanced of these cities, Shanghai and Beijing, are rapidly gaining the attributes of major ‘Established World Cities’. They have set the bar in terms of urban management (as single municipal provinces) and capacity to invest in city systems.
Wuhan sits among a sub-category of agile higher-quality ‘Emerging World Cities’ such Bangalore and Dubai that have relatively attractive business environments, extensive development opportunities and comparatively well-educated populations that are allowing them to find niches in global supply chains. Typically these cities are actively building international functions within the wider knowledge economy. Chinese cities such as Shenzhen, Guangzhou and Chengdu are also in this sub-category.
Illustrative cities have been selected for each category Source: The Business of Cities, JLL, 2015
Nearly Emerged Competitive Megacities
Agile High-Quality
Emerging
High Potential / Weakly Governed Lagging Megacities
ShanghaiBeijing
IstanbulKuala Lumpur
TaipeiMexico City
MumbaiManilaJakarta
DhakaLagos
Karachi
SantiagoBangaloreShenzhenChengduWuhan
Established World Cities New World Cities Emerging World Cities
New YorkTokyoLondon
MunichBerlinVancouver
ParisHong KongSingapore
AustinMelbourneBrisbane
Figure 3: Wuhan in the New World Order of Cities
These ‘Emerging World Cities’ have challenges relating to low-income housing and transport, but fewer of the sprawling slum problems of larger mega-cities such as Manila, Jakarta and Mumbai. The ability of ‘Emerging World Cities’, such as Wuhan, to occupy more lucrative roles in global value chains depends on their capacity to develop and attract talent. Innovation and skills are essential to building durable clusters.
The challenges for ‘Emerging World Cities’The rise of Emerging World Cities is already uneven and will become even more so, as each prepares differently for the next cycle of growth. Many face the dilemmas that established world cities first tried to address 50 years ago - car-dependence, demographic strain, infrastructure deficits and environmental imbalances. But given their size and demographics, the challenges is one of pace and scale; whether in upgrading housing supply, core utilities, or transport systems. The success of emerging world cities seems closely linked to clear, bold and durable leadership structures.
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Wuhan in China’s evolving network of citiesOver the past decade Wuhan has re-emerged has one of the premier cities in China’s fast-evolving and increasingly competitive urban landscape. JLL’s China60 study (2015), which assesses the economic and real estate landscape beyond China’s Alpha cities (i.e. Shanghai, Beijing), identifies Wuhan as one of an elite
WUHAN
Guangzhou
Shenzhen
Tianjin
Nanjing
Suzhou Hangzhou
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Cities are positioned on our City Evolution Curve based on a combination of Economic and Property Indicators: Economy: Economic size and growth; population; wealth; infrastructure; exports; FDI and fixed investment; education; business environment. Property: Real estate investment volumes; office, retail and logistics stock; developer activity; corporate presence; retailer presence; internationally-branded hotels. Source: JLL China 60, 2015
2.Wuhan’s National Competitive Position
Figure 4: China’s City Network – JLL Evolution Curve, 2015
group of nine Tier 1.5 cities that are cementing their positions as thriving commercial powerhouses serving huge regional catchments of businesses and consumers. In recent years, Tier 1.5 cities such as Wuhan have widened their lead over China’s Tier 2 cities (Figure 4).
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Wuhan – A ‘late bloomer’Among the Tier 1.5 cities, Wuhan has shown among the largest advancement in economic and real estate maturity over the past three years. In this regard, the city may be considered a ‘late bloomer’, advancing at greater speed up the city evolution curve than other Tier 1.5 cities. This is in contrast to cities such as Chengdu, for example, which saw its fastest advancement between 2009 and 2012 (Figure 5). As a result, Wuhan has
2007 2009 2012 2015
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Source: JLL, China 60, 2015
Figure 5: The ‘Shape’ of Economic and Property Market EvolutionWuhan versus Chengdu
steadily moved up the China60 hierarchy from seventh in 2012 to fourth position today, as looks set to overtake cities such as Suzhou in the near future (Figure 6). With the implementation of the ‘Rise of Central China’ policy and the general rebalancing of the Chinese economy away from the coastal regions, Wuhan is in a strong position to boost its economic weight and influence further.
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Jinan
Wuxi
Xiamen
Zhengzhou
Dalian
Ningbo
Changsha
Qingdao
Xi’an
Nanjing
Shenyang
Hangzhou
Chongqing
Wuhan
Suzhou
Chengdu
Tianjin
Shenzhen
Guangzhou
Beijing
Shanghai
Alpha/Tier 1
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Figure 6: The Roll-call of China’s Cities, 2015
Based on 47 economic and property market indicators Source: JLL China 60, 2015
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A high-value commercial office centre in the makingWithin the commercial office property sector, Wuhan is moving up the hierarchy as the balance of commercial office market activity has continued to shift steadily from coastal cities towards the inland regional powerhouses.
Beijing, ShanghaiGuangzhou, Shenzhen
Chengdu, Wuhan, Tianjin, Hangzhou,Chongqing, Nanjing
Xi’an, Qingdao, Shenyang, Xiamen, Suzhou, Dalian
Changsha, Zhengzhou, Fuzhou, Ningbo, Jinan,Kunming, Harbin
WUHAN
Corporate Concentration based on: presence of banks; high-tech firms; property services; accounting firms Source: China60, JLL, 2015
Figure 7: Re-ordering of the Office Market HierarchyCorporate concentration for office-based functions
Based on the presence of high-value services, Wuhan (along with Nanjing and Chongqing) has joined Chengdu, Hangzhou and Tianjin among the top-tier China60 office property markets since 2012 (Figure 7).
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2 3 4 5 6 7 8 9
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1 ShanghaiBeijingGuangzhouShenzhenWuhanChengduHangzhouTianjinNanjingChongqingXi’anShenyang
Securing Positions as Global Office Hubs
Maintaining their Lead over Tier 1.5 cities
Primary Service Hubs for Central and West China
Benefiting from Strong Connectivity in Mega City-Regions
Regional Hubs for Upper Yangtze, Northwest and Northeast
Ranking based on: financial and business services value and growth; corporate presence and momentum; occupied office stock; tertiary GDP; GDP growth; education; business environment; hub status. Source: JLL China60, 2015
Figure 8: China’s Top 12 Cities for Potential Office Demand
Wuhan moving up the office property market hierarchyFurther advancement is in prospect as Wuhan consolidates its position as the powerhouse of Central China, overtaking the coastal cities of Tianjin and Hangzhou (Figure 8). Growth is underpinned by strengthening corporate activity, an expanding volume
of middle-class households, more business-friendly environments, access to well-educated skills and the immediate availability of affordable, high quality office accommodation.
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Tier 1 Core
Tier 1.5 Transitional
Tier 2 Growth
Tier 3 Emerging
Tier 3 Early Adopter
TAIWAN
HAINAN
JIL IN
HEILONGJIANG
LIAONINGHEBEI
INNER MONGOLIA
HEBEI
SHANXI
J IANGSU
ZHEJIANG
FUJIAN
ANHUI
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HENAN
CHONGQING
NINGXIA
QINGHAI
XINJIANG
TIBET
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JIANGXI
GUANGXIYUNNAN
GANSU
SHANDONG
TianjinBeijing Dalian
SuzhouShanghaiNanjing
Wuhan
Xi’an
HangzhouChengdu
Shenzhen
Guangzhou
Source: JLL China60, 2015
Wuhan – an evolving technology hubSignificantly, Wuhan (alongside Xi’an, Nanjing and Hangzhou) has emerged as front-runners as one of China’s technology hubs, due to their robust education infrastructure and R&D functions. Educational excellence will be critical to Wuhan’s future success. The availability of talent is a clear priority as China’s cities move up the value chain, builds its innovation and entrepreneurial capabilities, and nurtures the professional skills necessary for vibrant service-based economies (Figure 9).
Figure 9: China’s Technology ClustersMainland China’s top 12 tech hubs
High Tech Corporate Presence
Beijing
Shanghai
Shenzhen
Xi’an
Hangzhou
Tianjin
Wuhan
Chengdu
Nanjing
Guangzhou
Suzhou
Dalian
High Tech Score
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Quantity Index: based on number of tertiary education institutions; tertiary students; higher education instructors; secondary schools Quality Index: based on presence of top universities; enrolment in tertiary education; higher education instructor/student ratio; presence of top secondary schools Source: JLL China60, 2015
Figure 10: China60 City Competitiveness – Educational AttainmentQuality versus quantity
XI’AN
NANJING
Changsha
Harbin GuangzhouNanchangChengdu JinanChangchun
TianjinZhengzhou
TaiyuanHefeiKunming
Shenyang
ShijiazhuangChongqing
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Wuhan – an education cluster of truly global scaleWuhan’s educational infrastructure provides the foundations for longer-term success, as it lays a claim to having one of the world’s largest populations of students – with nearly one million students enrolled in higher education. This is nearly as many as the Greater New York and Greater Los Angeles (1.3 million and 1.1 million respectively) – two of the world’s leading education clusters. Wuhan University is one
of the world’s top 500 universities, as is the Huazhong University of Science and Technology (HUST). According to the UBI Index 2014, HUST Science Park ranked as the world’s 14th best incubator globally. Beijing and Shanghai are well ahead in terms of educational excellence, but of the China60 cities, Wuhan, Xi’an and Nanjing excel in terms of the quality and quantity of their education infrastructure (Figure 10).
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3.Macro-drivers of Wuhan’s Urban Future
The language of ‘city competitiveness’ revolves around an ever-growing set of attributes, from liveability to sustainability, and transparency to business friendliness. These largely intangible, and often unquantifiable, factors are increasingly important to making cities attractive to investors, talent and corporations; as well as fostering innovation and entrepreneurship.JLL’s analysis of China’s urban network (China60, 2015) highlights several themes that will drive the evolution of China’s cities and determine Wuhan’s future position in the national and global network of cities:
i. A new era of city competitionChina’s cities are entering a new era of city competitiveness. Market forces will play a much greater role in the distribution of future resources, which will have major implications for the success or failure of China’s cities like Wuhan. Success will be far less dependent on top-down, state-directed development and more upon innovation, the presence of robust industry clusters, talent retention and a city’s business operating environment.
ii. The rise of mega-cities We are seeing the emergence of ‘systems of cities’ and the rise of the mega-city region. In China, increasingly complex systems of cities are developing, often clustered around regional powerhouses and united by dense webs of infrastructure and symbiotic economic relationships. The trend is most advanced in the Yangtze River Delta (centred on Shanghai) and the Pearl River Delta (centred on Hong Kong, Shenzhen and Guangzhou).
Beyond China’s coastal megacities, the biggest beneficiaries will be the large regional powerhouses and, among those, the largest Tier 1.5 cities which are farthest along in developing their city-regions, as typified by notably Wuhan’s 1+8 plan. Better integration with the hinterland will boost Wuhan’s own roles and will expand the markets for its rapidly-developing service sectors.
Wuhan will find it easier to fill new office clusters when it is surrounded by a readily defined and accessible city-region. The Tier 1.5 metropolises will also expand catchments for their retail offerings – supporting local shopping mall clusters – and enhance their roles as regional distribution centres, providing a further boost to their warehouse sectors.
iii. In search of differentiationThe lack of variation between most of China’s cities remains striking. China’s cities will need to forge their own path to success, by identifying and nurturing their unique competitive advantages and developing their cultural expression and architectural identity. With intense global competition for business and talent, Wuhan will need to differentiate itself from the huge number of emerging cities across the globe. Wuhan must not merely attempt to copy or compete with the likes of Shanghai and other developed coastal cities, but must leapfrog them and forge its own path.
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iv. Developing a global brand and identityChina’s Tier 1.5 cities, such as Wuhan, are now on the international radar, but they will need to continue to build their global brands and reputations. Those cities with a world view, striving to engage globally and also present a compelling global identity will be best placed to secure a positive future. Many New World Cities are leveraging their natural and inherited assets in order to build global profile. This will have a significant impact on a city’s attraction for footloose talent, businesses, students and tourists.
v. Liveability is the watch wordCity success is no longer purely about production and GDP growth, but about managing a city’s liveability, sustainability and resilience in order to retain and attract talent. Cities need a cosmopolitan ‘buzz’ and an aesthetic appeal if they are to be truly successful. There are an increasing number of examples in the developed world of companies making location choices on the basis of a city’s resilience, smartness, infrastructure quality, international connectivity, its governance and crucially its liveability and the well-being of the workforce. Wuhan has the potential to be at the vanguard in China of this new growth blueprint for sustainable urban growth
vi. Indigenous innovation We are seeing a new spatial geography of innovation both between and within urban locations. On a global scale, we can see the success of ‘tech-rich cities’ where technology and innovation are driving strong economic growth. These cities tend to be mid-sized and high quality of life cities that have developed impressive technology eco-systems that encourage indigenous innovation.
Cities which combine good access to talent and the correct conditions for research and innovation development can act as perfect incubators for start-up companies. San Francisco Bay, Seattle and Austin exemplify this, but we can also look at Stockholm, Munich, Boston, Austin and Copenhagen for insight. But of greater relevance to Wuhan, we also see emerging cities carving out their own technological niches – Bangalore, Shenzhen and Hangzhou, for example, are creating a new breed of globally-competitive technology companies.
vii. The urbanisation of innovationA new spatial geography of innovation is developing due to the shift from suburban science parks towards a new inner-city urban model - the heightened clustering of anchor institutions, companies, and start-ups in small geographic areas of central cities. These new mixed-use, compact, well-connected neighbourhoods, often centred on a range of higher education and research institutions, promote connectivity, co-production and open innovation. This has led to the success of the technology sectors in cities such as London (Silicon Roundabout), New York (Silicon Alley) and Berlin (Silicon Allee); cities that have not traditionally been associated with robust high-tech industries. They are thriving around their ability to incubate and commercialise new ideas.
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4.Real Estate and the Innovation-Oriented City
Real estate is the heartbeat of an innovation-oriented economyThe current cycle of globalisation, urbanisation and technological advancement are creating sweeping changes to urban form, to urban living and to urban challenges. Real estate is the very heartbeat of a city and has a crucial role to play in making cities smarter, greener and safer. Our mantra at JLL is that real estate is a contributor, rather just a consequence of a successful, innovation-oriented city. Spectacular new skylines are transforming cities with bold architecture and innovative design, as city stakeholders use iconic real estate as part of their armoury to gain global attention. While such lofty real estate ambitions can contribute positively to a city’s personality and global brand, the true value of real estate is in providing the infrastructure and environment for productive activity that facilitates creativity, innovation and entrepreneurship, while at the same time fostering a sense of community and well-being for its citizens in a sustainable urban model.
i. Smart and productive commercial real estateThe role of real estate has shifted from one of just housing business to being a firm attractor of business and talent. Emerging World Cities, such as Wuhan, need to ensure that its built environment is sufficiently attractive for business by delivering the kind of smart and productive commercial buildings that corporations, capital and talent are now demanding. There is a constant stream of innovative smart building products and processes that are being launched as the work on sensors, artificial intelligence, robotics and automation continue to help buildings be a positive and vital contributor to city competitiveness. This necessitated the adoption of best practices in construction and property management.
While a large commercial property supply pipeline feels inherently uncomfortable for many city stakeholders in both the public and private sector, from a competitive perspective, a generous supply of high-quality, affordable non-strata title commercial space provides a city with flexibility, with the bandwidth to grow and provides a crucial competitive advantage.
ii. Creating a sense of spaceThere is an imperative for city stakeholders to activate their physical real estate assets in ways that create a strong sense of place, vibrancy and buzz. Buildings and their surrounding streetscape need to be designed and organized to stimulate new and higher levels of connectivity, collaboration and innovation – that encourages serendipitous interaction, meetings, networking and brainstorming. Physical real estate assets are a key component of any innovation ecosystem – the synergistic relationship between people, firms and place that facilitates idea-generation and advances commercialisation. Locations with strong sense of place entice residents and workers to remain in the area off-hours, extending the opportunities for collaboration. Oftentimes, a ‘sense of space’ develops organically, but it can be facilitated by thoughtful design and innovations in planning policy on multiple-use space that encourages entrepreneurial communities.
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iii. Fostering the commercialisation of innovationMany cities have the talent and a history of innovation to succeed as an innovation-oriented economy, but lack the infrastructure for rapid commercialisation. Real estate can provide the bridge between education and industry by building networks and links between the two groups of stakeholders. World cities, such as London and New York, are investing heavily into developing new business-university ecosystems in mixed-use, inner-city development. Examples include Cornell (New York) and Imperial (London), which have demonstrated the role of real estate development in creating true ‘eco-systems’ of innovation (see Section 5 - Global Case Studies).
iv. Improving liveabilityReal estate, by its very essence, plays a crucial role in a city’s ‘liveability’ by maximising the potential for creating lively communities in which residents and workers feel invested and, vitally, by providing the kind of affordable and accessible housing that is the modern hallmark of cities that work, attract talent and business. Liveability is an essential ingredient to a successful innovation eco-system.
v. The sustainability agendaThe imperative for healthier and carbon neutral environments is rising. Real estate is moving from being a contributor to environmental challenges through emissions, to being a solution for them with zero carbon buildings, through progress on re-use and recycling of materials and offering innovative urban solutions such as solar energy and vertical farms. Tools to track energy-efficiency of buildings and to measure the financial performance of sustainable buildings are increasing rapidly.
vi. Real estate transparencyA strong culture of innovation thrives in locations with a favourable and transparent business operating environment. Real estate transparency is an important ingredient of this process. For cities to grow indigenous business, attract new corporations and secure investment, it is essential that they put in place transparent and even-handed systems backed by proportionate planning and regulation, which offers appropriate comfort to investors and corporations on land use and other rights. City governments are increasingly acknowledging that poor real estate transparency not only hampers investment flows, but it affects corporate decision-making and the quality of life of its citizens
The data capture, management and analysis of all elements of a city’s the real estate market (in terms of demand, supply and price) boost transparency and facilitates corporate decision-making. Cities are gaining competitive advantage from public-private initiatives to track real estate activity, building performance and footfall using latest technologies. For example, Helsinki has embraced the concept of ‘open data’, promoting transparency, efficiency and innovative data usage. In Rio de Janeiro, a central operations centre has been established, encouraging the smart and inter-connected use of data in the everyday running of the city.
5.Global Case Studies of Innovation-Oriented Cities
Emerging World Cities
Shenzhen
Bangalore
Shenzhen is emerging as one of China’s key innovation hub, especially in terms of hardware start-ups – with around 7,000 patent applications each year (compared to Wuhan’s 100). This is up from 651 just 10 years previously. Shenzhen benefits from its position near Hong Kong and from being in the densely populated Pearl River Delta mega-region. It excels despite a lack of educational strength – but is a centre for venture capital, incubators (including the HAX Accelerator) and entrepreneurialism. The city offers a manufacturing ecosystem unlike anywhere in the world. The story of Shenzhen highlights how Chinese cities can develop specialisations and global standing incredibly rapidly, making their mark on the world stage.
Bangalore is succeeding in establishing itself as the ‘Silicon Valley of India’, thanks to the strength of its scientific infrastructure. Its mix of laboratories, research institutes and higher education establishments has facilitated the creation of a strong IT cluster, with a focus on computer engineering. A total of 40% of India’s IT industry is located in the city, with spill-over from international IT giants driving entrepreneurial growth. The city’s development has been built upon the 332-acre Electronics City (1978) and India’s liberalisation in the 1990s.
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New World Cities
Santiago
Tel Aviv
Santiago is developing as a strong tech hub – nicknamed ‘Chilecon Valley’. Santiago offers stability, a booming economy, low levels of corruption and good infrastructure. Santiago is attempting to exploit one of Silicon Valley’s weaknesses – the American immigration system – by welcoming entrepreneurs from across the globe. One notable programme is the ‘Start-Up Chile’ scheme which selects promising young firms, giving them $40,000 and a year’s visa with few long-term obligations. Santiago’s risk-free, transparent and attractive environment is allowing it to attract and harness global talent.
Since 2010, Tel Aviv has been attempting to improve its global positioning with the ‘Tel Aviv Global’ – promoting the city as a leading, innovative, international business centre. The city benefits from free city-wide WiFi and a variety of co-working spaces. The city has a strong innovation eco-system – with venture capital, start-ups, multi-national companies, research institutions. According the Startup Genome Project, it has more start-ups per capita than anywhere in the world. A culture of co-operation, a strong emphasis on higher education and strong R&D support back this up.
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New World Cities
Barcelona
Seoul
Barcelona has successfully utilised urban redevelopment in order to promote itself as an innovative city on the world stage. The city has undertaken comprehensive redevelopment of the previously industrial area of Poblenou. The area, now known as 22@, has been well planned to promote and foster innovation – a compact, mixed-use neighbourhood attracting knowledge-based industries. This has succeeded thanks to a mix of a high quality of life, a concentration of universities and research institutions and focused industrial clusters.
Seoul could offer a positive vision for Wuhan’s future, as one of the world’s largest and most innovative cities – having developed at a rapid rate over the past three decades. Seoul has developed strongly through large investments in infrastructure – it has one of the world’s most extensive metro systems; public transport is affordable; high speed trains; bike-sharing programmes – and through promoting high density living around public transport hubs. It has also seen massive urban development, in the form of Songdo and around Ilsan. Following the 1997 Asian Financial Crisis, and the subsequent collapse of a number of large corporations, the government attempted to change the culture to one of risk-taking and entrepreneurialism – improving the tax system, changing entrepreneurialism and introducing high-speed broadband. Seoul is building a US$35 billion ‘smart’ city on 600 hectares of reclaimed land near Incheon Airport, working with Cisco to create a template for new smarter cities.
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Established World Cities
London
New York
London’s growth as a ‘tech city’ has been a largely bottom up approach – with a strong cluster forming in East London (‘Tech City’/’Silicon Roundabout’). The cluster emerged organically – driven by proximity to the city centre, relatively cheap space, availability of talent in a global city and high density. These industries work closely with London’s creative and financial services – with a critical mass of economic activity. This is now being built upon – with a more top-down approach – including the redevelopment of Stratford’s Olympic Park which includes the Here East complex and with a number of universities planning campuses. A new £1 billion campus for Imperial College London in White City is being planned as London’s first major research quarter.
In New York, a new graduate school for applied science is being established by Cornell University and Israel’s Technion on Manhattan’s Roosevelt Island, acting as a major real estate development for the city, as it attempts to move away from the dominance of financial services. Investment into the US$2 billion scheme included US$100 million from city government – and support also includes first of its kind links to the Department of Commerce and US Patent Office, as it seeks to commercialise its research strengths.
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Authors
Jie Li Head of Strategic Consulting, China Managing Director, Wuhan JLL +86 27 5959 2188 [email protected]
Jeremy Kelly Global Research Programmes JLL +44 20 3147 1199 [email protected]
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Nanjing8/F Asia Pacific Tower 2 Hanzhong Road Gulou District, Nanjing 210005 Jiangsu, Chinatel +86 25 6610 2688 fax +86 25 6610 2257 QingdaoUnit 2302 COSCO Plaza 61 Hong Kong Middle Road Shinan District, Qingdao 266071 Shandong, Chinatel +86 532 8579 5800 fax +86 532 8579 5801Shanghai25/F Plaza 66, Tower 2 1366 Nanjing Road West Shanghai 200040, Chinatel +86 21 6393 3333 fax +86 21 6393 3080Shenyang1808 Office Tower, L’Avenue 10 Huigong Street, Shenhe District Shenyang 110013 Liaoning, Chinatel +86 24 3109 1300 fax +86 24 3109 1330
ShenzhenRoom 2801-02, 28/F Tower Three, Kerry Plaza 1 Zhongxinsi Road, Futian District Shenzhen 518048 Guangdong, Chinatel +86 755 2210 0888 fax +86 755 2388 7600TianjinUnit 3509 The Exchange Tower 1 189 Nanjing Road Tianjin 300051, Chinatel +86 22 8319 2233 fax +86 22 8319 2230WuhanUnit 3202-03 Ping An Finance Center 1628 Zhongshan Avenue Jiang’an District Wuhan 430014, Hubei, Chinatel +86 27 5959 2100 fax +86 27 5959 2144Xi’anUnit 2202-03 CapitaMall Office No.64 West Section of South 2nd Ring Road Yanta District, Xi’an 710065 Shaanxi, Chinatel +86 29 8932 9800 fax +86 29 8932 9801
Hong Kong6/F Three Pacific Place 1 Queen’s Road East Hong Kongtel +852 2846 5000 fax +852 2845 9117 www.joneslanglasalle.com.hkMacauUnit H, 16/F Finance and IT Center of Macau Nam Van Lake Quarteirao 5 Lote A Macautel +853 2871 8822 fax +853 2871 8800 www.joneslanglasalle.com.moTaiwan20/F-1 TAIPEI 101 TOWER No 7 Xinyi Road Section 5 Taipei 11049, Taiwantel +886 2 8758 9898 fax +886 2 8758 9899 www.joneslanglasalle.com.tw
JLL Regional Headquarters:London22 Hanover SquareLondon W1S 1JAUnited Kingdomtel +44 20 7493 6040
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