Milan and Turin: Competitiveness of Italy s great northern cities. ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018

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1 Milan and Turin: Competitiveness of Italy s great northern cities ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018

2 Context: re-urbanisation of everything Source: Global Cities Business Alliance 2

3 Crucial factor attracting talent Location criteria are changing % of very important answers Talent 70% Urban environment 47% Global influence 46% 43% Business opportunities Costs Offices 35% 14% 0 3

4 Milan and Turin: ULI research 4

5 Research focus In what ways are Milan and Turin able to be competitive cities? Which risks threaten the competitiveness of the two cities? How can Milan and Turin adapt to become more competitive? 5

6 What is city competitiveness? Key ingredients Productivity coordination promotion liveability sustainability Competitiveness Make a great city and people will come. -David Malmuth, I.D.E.A. Partners 6

7 ULI s city competitiveness framework Governance framework Competitive climate Agglomeration Attractiveness to talent Vision, strategy, and coordination Costs and business investment Size and scale of internal market Human capital, liveability, and opportunity Land use, planning system, and density Infrastructure and services Tax and regulatory framework Geopolitical risks Clustered specialisations Institutional engagement Innovation, technology, and enterprise Brand, identity, and destination 7

8 Italian city competitiveness 8

9 Milan and Turin competitiveness 0 50 Hamburg London Paris Munich Stuttgart Frankfurt Global rank Glasgow Madrid MILAN Bilbao Berlin Warsaw Bologna Barcelona Rome Lyon TURIN Marseille Nice Birmingham Leeds Manchester Valencia Lille Wroclaw Poznan Seville Krakow Naples GDP per capita of Italy s metropolitan areas, compared with the five largest metropolitan areas of the five largest European nations, Relative population change of Milan and Turin vs broader metropolitan areas, 1971 to 2017 Source: JLL, Global 300 Map, Source: ISTAT 9

10 Milan different spatial scales MILAN Verona Venice Turin Piacenza Parma Source: The Business of Cities Genoa Bologna Core City of Milan Metropolitan City of Milan OECD Functional Urban Area Definition Grande Milano metropolitan area Politecnico di Milano Urban Region Definition The Northern Italy Powerhouse 10

11 Milan assessment Milan vs Peers Amsterdam Berlin Stockholm Madrid Barcelona Vienna Frankfurt Brussels Rome GOVERNANCE FRAMEWORK Milan vs Peers Amsterdam Berlin Stockholm Madrid Barcelona Vienna Frankfurt Brussels Rome Size and scale of internal market Infrastructure and services Land use, planning system and density Vision, strategy and coordination Political risks Tax and regulatory framework Costs and business investment Brand, identity and destination COMPETITIVE CLIMATE Milan region performance Clustered specialisations AGGLOMERATION Institutional engagement Human capital, liveability and opportunity Innovation, techology and enterprise ATTRACTIVENESS TO TALENT 11

12 Milan - Governance framework Citizen political behaviour in Milan has become less tribal and more pragmatic. Milan is now leading the development of the region with catalytic urban projects. - Research participant 12

13 Milan - Competitive climate Figure 6: Comparison of Milan s performance with European peers across all global and Europe-wide indexes between and Amsterdam Berlin Vienna Stockholm Frankfurt Barcelona Madrid Brussels Milan Rome Milan s relative improvement in indexes performance vs. peers since Source: The Business of Cities 13

14 Milan - Agglomeration E X E CU T I V E S U M M A R Y 14

15 Milan - Attractiveness to talent 15

16 Milan recommendations Governance framework City s business leaders to prioritise softer governance solutions, e.g. PPPs, catalytic projects, brand management and strategic planning A single locus of business and civic leadership that promotes a clear and consistent message about how best to manage and optimise agglomeration Competitive climate Differentiate its business climate from Italy s less favourable brand Improve level of transparency Agglomeration Collaborate with other cities in the region to pursue the emergence of northern Italy and Alpine region as an increasingly integrated economic unit Expland collaboration and joint positioning with Turin while retaining strong individual identity Demonstrate how transition to a smart city may improve urban productivity and ability to accommodate entrepreneurship Attractiveness to talent Tell its story of transformation to a richly diverse post-industrial region Collect better data to underpin a clearer and richer story Promote how Milan plans to become the city it wants to be in 20 years 16

17 Turin assessment Turin vs Peers Rotterdam Glasgow Stuttgart Lyon Lille Liverpool Bilbao Malmö Newcastle GOVERNANCE FRAMEWORK Turin vs Peers Rotterdam Glasgow Stuttgart Lyon Lille Liverpool Bilbao Malmö Newcastle Size and scale of internal market Infrastructure and services Land use, planning system and density Vision, strategy and coordination Political risks Tax and regulatory framework Costs and business investment Brand, identity and destination COMPETITIVE CLIMATE Clustered specialisations AGGLOMERATION Institutional engagement Human capital, liveability and opportunity Innovation, techology and enterprise ATTRACTIVENESS TO TALENT 17

18 Turin - Governance framework We need a new cultural mindset that substitutes the narrative of Torino with that of Gran Torino.... We need projects, initiatives, and actors that increase the awareness of Gran Torino among citizens. The metropolitan area is still an obscure entity without any operative tools or structures, [which is] a real obstacle in the game among European cities. -Valentino Castellani, former Mayor of Turin 18

19 Turin - Competitive climate Figure 5: Comparison of Turin s performance against its European peers across all global and Europe-wide indexes, vs Lyon Glasgow Stuttgart Liverpool Rotterdam Malmo Bilbao Turin Lille Newcastle, UK Turin s relative decline in indexes performance vs. peers since Note: Data are derived from a sample of 300 indexes, calculated using a CODOGO TM algorithm based on the common ELO ratings system. 19

20 Turin- Agglomeration We need real co-operation with Milan. Collaboration is the new competition. A new alliance is needed. The integration of the Politecnicos would create a truly world-class university and send an important message. -Research participant 20

21 Turin - Attractiveness to talent Turin has huge geographic advantages in terms of its hinterland, its mountains, wine, the sea, its familyfriendliness. It is one of the best locations in Europe. This is not adequately exploited and marketed. - Research participant 21

22 Turin recommendations Governance framework Civic and business leadership to create a new positive story about the city and its future Proceed with sustainable infrastructure initiatives Competitive climate Build on the promise of its social innovation ecosystem to address local challenges Expand access to opportunity across the whole income and skills spectrum Agglomeration Smarter co-operation with Milan with a competitive mindset, to play a clearer set of role complementary to Milan Become a leader and innovator in automated vehicles, battery storage, integrated transport technology and IT systems, by expanding its role in advanced mobility technology Attractiveness to talent A clearer offer to entrepreneurs and growth firms and a value proposition for venture capital to retain more talent Reinventing the city as an enjoyable and well serviced location Enhance quality of life Need to align with social priorities of current city administration Use well-located, reusable and affordable industrial space to accommodate creative and innovative activities 22

23 Conclusions Cities are at the centre of attention Vision and leadership are key Collaborate to compete! 23

24 Thank you 24