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Criteria

We chose the following four critical measures of competitiveness:

Assets are a city’s physical and intellectual infrastructure. This includes its global connectivity, its critical infrastructure capacity (data centres, air and seaports), and the share of renewable energy sources as part of their overall energy mix. As the world continues to digitalise, a city’s AI capabilities and readiness becomes a critical factor in competitiveness.

Investor Attractiveness is a measure of the costs and ease of doing business and includes factors an investor may use to evaluate cities for potential investment. This includes the costs of renting or purchasing land for business or industrial purposes, the presence of global firms as well as MSMEs, and the strength of a city’s brand internationally. It also includes how exposed the city is to certain risks.

Liveability assesses how suitable and comfortable a city is for its residents. This includes traditional metrics like affordability, mobility, vibrancy and safety. Additionally, residents are placing greater emphasis on factors such as public health, work-life-balance and inclusiveness.

Urban Management and Governance tell us how well a city operates based on its enablers. This includes access to necessities (water, clean air), measures of efficiency (land area, electricity consumption), progress towards green goals, and strength of governance.

We used thirty-seven indicators across these four categories:

Investor Attractiveness

Number of Global 500 companies
How many Fortune Global 500 corporations are headquartered in the city.

Ease of doing business
How conducive the regulatory environment is to start and operating a company.

Cost of land
Composite of the price of procuring industrial land and the cost of rent for office space.

Macroeconomic stability
A composite of inflation, fiscal deficit, public debt, and unemployment.

City brand
Brand Finance City Index scores of a city brand based on how it is perceived.

Flood risk
The share of people living in high flood risk zones, coastal and riverine.

Senior dependency ratio
The old-age (>65) to working-age (20-64) demographic ratio. Represents an aging demographic.

Thermal comfort
Measures how much time over a year the city’s weather is within the UTCI thermal comfort range, representing the climatic conditions of a city and inherent heat or cold stress.

Smart City Index

IMD Smart City Index ‘Technology’ scores to measure how digitally enabled and optimized city activities and processes are.

Startup ecosystem
Startup Blink Best Cities for Startup Index scores.

Assets

Share of renewable energy
Share of renewable energy in the total energy mix. Key enabler for green growth.

Data centre volume

Total data centre capacity in the city. Key enabler for digital growth.

Internet penetration rate

Percentage of the population that uses the internet.

Infrastructure project pipeline
Number of infrastructure projects in the pipeline before project completion or operational stage. Represents infrastructure development focus.

Digital security

Economist Safe Cities Index - Digital score. Key enabler for digital growth.

Skilled workforce

Tertiary education enrolment rate.

Top university ranking

Global ranking of the highest-ranking university in the city. Represents quality of education and knowledge creation.

Patents
Number of patents filed by the top university in that city. Represents innovation capacity.

Port cargo capacity

Total cargo capacity of sea and airports within a 50 km radius of the city. Key enabler for trade.

Flight connectivity

How well connected a city is by direct flights to other cities.

Governance & Urban Management

Electricity consumption

Electricity consumed per year in kWh per capita.

Recycling rate

The proportion of waste that is recycled.

Access to basic necessities
Composite of access to safely managed sanitation, electricity, and water services.

Land efficiency

Ratio of land consumption growth rate to population growth rate. Represents efficient land management.

Green area

Percentage of green area per person. Represents open and green area provision and access.

Climate action
Composite of availability of a city climate/resilience plan, national disaster centre, chief sustainability or resilience officer, and renewable energy targets.

Governance
Composite of control of corruption, regulatory quality, and government effectiveness.

Workers' rights
Global Rights Index score to compare the strength of labour-related legislation and protection of human resources.

Liveability

Cost of living

Economic Intelligence Unit Worldwide Cost of Living Index.

Mobility
Composite of walkability and access to transit stops.

Average travel time

Average time taken to drive 10 km. Represents congestion levels.

Safety
Economist Safe Cities Index - Health and Personal Safety.

Vibrancy

A composite of cultural amenities and land use mix.

Air Quality

Average AQI over a year.

Work intensity

Based on vacation time offered and parental leave policies to assess how a city meets the needs and priorities of young and skilled talent.

Equality & inclusivity

A composite of the Gini coefficient, LGBTQ friendliness, disability rights, and the gender gap index.