Economic Development

New York’s talent as a competitive edge

March 06, 2012

Global

March 06, 2012

Global
Our Editors

The Economist Intelligence Unit

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New York tops our Index as the most competitive city globally

New York tops our Index as the most competitive city globally, which is perhaps unsurprising given its strong performance across a diverse array of categories. But Michael Bloomberg, its mayor, is particularly focussed on the city’s diversity of career opportunities, excellent quality of life and a job market driven by intellectual capital. “We are the world’s most diverse city, and that diversity breeds new ideas and new innovations,” he says. “And the fact is, talented people want to live in places that not only offer the best career opportunities, but also the best cultural attractions and highest quality of life.”

New York’s economy is driven by a range of sources, from the media, arts and fashion, to technology and finance. This generates a range of opportunities, from entry-level tourism jobs to highly-paid Wall Street careers. In 2010, the city was second only to Silicon Valley as a source of venture capital funding in the US. But supplying the demands of a talent-driven market continues to be a challenge. Overall, its ranking for human capital was one of its lowest performances—at joint 18th. Part of this lies out of the city’s control: Mr Bloomberg cites inflexible federal immigrations policies as a major roadblock for skilled professionals from around the world who want to migrate to the US.

Nevertheless, New York has a range of initiatives underway to help maintain its competitiveness. For example, it is currently creating a new applied science and engineering campus in partnership with Cornell University and The Technion-Israel Institute of Technology, aimed at expanding its capacity in the applied sciences and to attract more scientists and engineers. This is expected to generate US$6bn in economic activity, draw in over US$1bn in private capital, while creating thousands of temporary and permanent jobs. “[It’s] designed to help us attract even more talent,” says Mr Bloomberg, “and to ensure that more of the companies that grow out of laboratories start right here.”

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