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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Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
Milan and Turin:
Competitiveness of Italy’s great northern cities
                 ULI Italy Annual Conference
              Lisette van Doorn, CEO, ULI Europe
                        19 April 2018
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
Context: “re-urbanisation of everything”

                            Source: Global Cities Business Alliance
                                                            2
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
Crucial factor – attracting talent

Location criteria are changing

                         % of “very important” answers
                Talent                        70%
   Urban environment                 47%
      Global influence               46%
Business opportunities              43%
                Costs            35%
               Offices    14%
                                                         0

                                                             3
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
Milan and Turin: ULI research

                                4
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
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
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
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
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
ULI’s city competitiveness framework

Figure ES-1: Competitiveness Framework

 Governance framework           Competitive climate   Agglomeration                Attractiveness to talent

 Vision, strategy, and          Costs and business    Size and scale of internal   Human capital, liveability, and
 coordination                   investment            market                       opportunity

 Land use, planning system,     Tax and regulatory    Clustered specialisations    Innovation, technology,
 and density                    framework                                          and enterprise
                                                      Institutional engagement
 Infrastructure and services    Geopolitical risks                                 Brand, identity, and destination

                                                                                                          7
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
Italian city competitiveness

                               8
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
Milan and Turin competitiveness
           0    Hamburg
                   London
                         Paris
          50   Munich
                  Stuttgart    Frankfurt

         100
                       Glasgow
                          Madrid        MILAN
         150                  Bilbao
Global                             Berlin    Warsaw
                                   Bologna
  rank
         200
                                               Barcelona
                                            Rome
                                                                                      Relative population change of Milan and Turin vs broader
                                                Lyon TURIN
                                                          Nice                        metropolitan areas, 1971 to 2017
                                                Marseille   Birmingham
         250
                                                                 Leeds
                                                    Manchester
                                                            Valencia Lille
         300                                                    Wroclaw
                                                                   Poznan Seville
         350
                                                                       Krakow
                                                                             Naples
         400

           GDP per capita of Italy’s metropolitan areas,
           compared with the five largest metropolitan areas of
           the five largest European nations, 2017.

           Source: JLL, Global 300 Map, 2017.

                                                                                      Source: ISTAT
                                                                                                                                                 9
Milan and Turin: Competitiveness of Italy's great northern cities - ULI Italy Annual Conference Lisette van Doorn, CEO, ULI Europe 19 April 2018
Milan – different spatial scales

                                  MILAN                      Verona
                                                                                  Venice

                                          Piacenza
                          Turin
                                                     Parma

                                                                 Bologna
                                  Genoa
                                                             Core City of Milan
                                                             Metropolitan City of Milan
Source: The Business of Cities                               OECD Functional Urban Area Definition
                                                             Grande Milano metropolitan area
                                                             Politecnico di Milano Urban Region Definition
                                                             The ‘Northern Italy Powerhouse’

                                                                                                             10
Milan assessment
                 GOVERNANCE                                                                                                            COMPETITIVE
                 FRAMEWORK                                                   Vision and
                                                                                        ,
                                                                                                  Polit
                                                                                                                                          CLIMATE
                                                                                    g y
                                                                           strate ination               ica
                                                                                                  risks l
Milan vs Peers                                                             c o o r d
                                                              e, m
                                                            us yste y
Amsterdam                                                nd s it

                                                                                                               Ta gula ewo
                                                       La ning ens

                                                                                                                r e am
                                                                                                                  x a to rk
                                                                                                                   fr
                 Milan vs Peers
Berlin                                                        d

                                                                                                                      nd r y
                                                        an d
                 Amsterdam                            pl an                                                                                    Milan region
Stockholm        Berlin
                                                                                                                                               performance

Madrid

                                                  e
                                     and structur
                 Stockholm

                                             ices

                                                                                                                           Costs ess
                                                                                                                           inves
Barcelona

                                                                                                                            businment
                 Madrid

                                         serv
                                     Infra

                                                                                                                                t
                 Barcelona

                                                                                                                                 and
Vienna           Vienna
Frankfurt        Frankfurt
Brussels         Brussels
                                  Size ernal
                                     of int rket

                                                                                                                               desti ity and
Rome             Rome

                                                                                                                                          n
                                                                                                                               ident and,
                                       and s

                                                                                                                                    natio
                                        ma

                                                                                                                                  Br
                                              cale
                                              sp

                                                                                                                   rp y a ,
                                              Cl iali

                                                                                                                 te og ion
                                                                                                                        e d
                                                ec

                                                                                                                     ris n
                                                 us sa

                                                                                                               en hol vat
                                                   te tio
                                                     re n

                                                                                                                 c o
                                                                                                               te Inn
                                                       d s

                                                                         Inst
                                                                        engaitutiona
                                                                              gem l            m an
                                                                                            Hu bility an
                                                                                                          l,
                                                                                                    capita d                   ATTRACTIVENESS
                                                                                  ent        livea ortunity
                 AGGLOMERATION                                                                  opp                                 TO TALENT
                                                                                                                                                              11
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
Milan’s Competitiveness

                                                      Milan - Competitive climate
ysis of Milan’s performance against that        Figure 6: Comparison of Milan’s performance with European peers across all global and Europe-wide
  European peers across every publicly          indexes between 2012–2014 and 2015–2017
able index since 2012 shows that Milan
 nues to underperform compared with cities      Amsterdam
 n functional size are smaller. This partly
                                                      Berlin
cts the aforementioned issue of
surement at the city scale, but also reflects        Vienna
act that several of Milan’s key strengths –      Stockholm
 ivity, culture, design, and innovation –
                                                  Frankfurt
 ot easily captured in comparative and
ctive terms.                                      Barcelona         Milan’s relative
                                                                    improvement
                                                     Madrid         in indexes
                                                                    performance vs.
 so, this analysis shows that of these ten
                                                   Brussels         peers since 2014
 , Milan has recorded the largest relative
 ase in overall city performance between              Milan                                                                    2012-2014
2 and 2017 (see Figure 6). Even though                                                                                         2015-2017
                                                      Rome
 enchmarks underestimate Milan’s size,
                                                               -1                                     0                                        1
 do capture its recent progress and
ovement.
                                                Source: The Business of Cities

e 2016, Milan has performed well in                                                                                                                 13
xes measuring human capital, destination        Figure 7: Five areas where Milan outperforms and underperforms compared with its European peers
Milan - Agglomeration
  E X E CU T I V E S U M M A R Y

                                   14
Milan - Attractiveness to talent

                                   15
Milan recommendations
Governance framework                                      Competitive climate
• City’s business leaders to prioritise ‘softer’          • Differentiate its business climate from Italy’s less
  governance solutions, e.g. PPPs, catalytic projects,      favourable brand
  brand management and strategic planning                 • Improve level of transparency
• A single locus of business and civic leadership that
  promotes a clear and consistent message about
  how best to manage and optimise agglomeration

Agglomeration                                             Attractiveness to talent
• Collaborate with other cities in the region to pursue   • Tell its story of transformation to a richly diverse
  the emergence of northern Italy and Alpine region         post-industrial region
  as an increasingly integrated economic unit             • Collect better data to underpin a clearer and
• Expland collaboration and joint positioning with          richer story
  Turin while retaining strong individual identity        • Promote how Milan plans to become the city it
• Demonstrate how transition to a smart city may            wants to be in 20 years
  improve urban productivity and ability to
  accommodate entrepreneurship

                                                                                                          16
Turin assessment
                 GOVERNANCE                                                                                                           COMPETITIVE
                 FRAMEWORK                                                    Vision and
                                                                                        ,
                                                                                                   Polit
                                                                                                                                         CLIMATE
                                                                                t e g y                  ica
                                                                            stra ination           risks l
                                                                            coord
                                                               e, m
Turin vs Peers                                             d
                                                             us yste y
                                                          n s it

                                                                                                                   Ta gula ewo
                                                        La ning ens

                                                                                                                    re am
                                                                                                                     x a to r k
Rotterdam

                                                                                                                      fr
                 Turin vs Peers                                d

                                                                                                                         n d ry
                                                         an d
                 Rotterdam                             pl an
Glasgow          Glasgow
Stuttgart

                                                   e
                                     and structur
                 Stuttgart

                                              ices

                                                                                                                              Costs ess
Lyon

                                                                                                                              inves
                                                                                                                               businment
                 Lyon

                                         serv
                                     Infra
Lille

                                                                                                                                    t
                 Lille

                                                                                                                                     and
                 Liverpool
Liverpool        Bilbao
Bilbao           Malmö

                                  Size ernal
                                     of int rket

                                                                                                                                  desti ity and
Malmö            Newcastle

                                                                                                                                             n
                                                                                                                                  ident and,
                                       and s

                                                                                                                                       natio
                                        ma
Newcastle

                                                                                                                                     Br
                                              cale
                                              sp

                                                                                                                       rp y a ,
                                              Cl iali

                                                                                                                     te og ion
                                                                                                                            e d
                                                ec

                                                                                                                         ris n
                                                 us sa

                                                                                                                   en hol vat
                                                   te tio
                                                     re n

                                                                                                                     c o
                                                                                                                   te Inn
                                                       d s

                                                                          Inst
                                                                         engaitutiona
                                                                               gem l        H u m a
                                                                                                           ital,
                                                                                                    n cap and               ATTRACTIVENESS
                                                                                   ent               ility
                                                                                             liveabortunity
                 AGGLOMERATION                                                                  opp                              TO TALENT

                                                                                                                                                    17
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
urin’s Competitiveness

                                                      Turin - Competitive climate

peripheral development began to reverse,        Figure 5: Comparison of Turin’s performance against its European peers across all global and
Torinese workers and families returning         Europe-wide indexes, 2012–2014 vs. 2015–2017
e city centre, served by a more integrated
opolitan rail service.
                                                           Lyon
                                                       Glasgow
n today and its performance in global
chmarks                                               Stuttgart

y, Turin hosts a diversified economy with             Liverpool
ally competitive firms in aerospace,                Rotterdam
motive, design, information technology,                  Malmo
 ife sciences, underpinned by strong                      Bilbao         Turin’s relative decline
rammes to boost research and                                             in indexes performance
                                                           Turin         vs. peers since 2014
lopment, and entrepreneurship. The city’s                                                                                                          2012-2014
                                                            Lille
 omic size and gross domestic product                                                                                                              2015-2017
 apita place it in a peer group of third-tier   Newcastle, UK
pean cities in transition from an industrial                        -1                                               0                                           1
 omy to an innovation economy – a group         Note: Data are derived from a sample of 300 indexes, calculated using a CODOGOTM algorithm based on the common
 ncludes Rotterdam, Glasgow, Lyon,              ELO ratings system.
Bilbao.
                                                                                                                                                                     19
                                                Figure 6: Five areas of strength and challenge for Turin in global benchmarks, 2016 to 2017
pared with its European peers, Turin is
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
Turin - Attractiveness to talent

                           “Turin has huge geographic
                           advantages – in terms of its
                           hinterland, its mountains,
                           wine, the sea, its family-
                           friendliness. It is one of the
                           best locations in Europe. This
                           is not adequately exploited
                           and marketed.”
                                      - Research participant

                                                      21
Turin recommendations
Governance framework                                Competitive climate
• Civic and business leadership to create a new     • Build on the promise of its social innovation
  positive story about the city and its future        ecosystem to address local challenges
• Proceed with sustainable infrastructure           • Expand access to opportunity across the whole
  initiatives                                         income and skills spectrum

Agglomeration                                       Attractiveness to talent
• Smarter co-operation with Milan with a            • A clearer offer to entrepreneurs and growth firms
  competitive mindset, to play a clearer set of       and a value proposition for venture capital to
  role complementary to Milan                         retain more talent
• Become a leader and innovator in automated        • Reinventing the city as an enjoyable and well
  vehicles, battery storage, integrated transport     serviced location
  technology and IT systems, by expanding its       • Enhance quality of life
  role in advanced mobility technology              • 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
Conclusions

        • Cities are at the centre of
         attention

        • Vision and leadership are key

        • Collaborate to compete!

                                          23
Thank you

http://europe.uli.org/research/

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