US Cities in the 'World City Network'
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Metropolitan Policy Program U.S. Cities in the ‘World City Network’ Peter J. Taylor and Robert E. Lang1 “The rise of Findings An examination of economic connections among cities’ global advanced service firms finds that: transnational ■ While New York, Chicago, and Los non-U.S. cities than U.S. cities in its top Angeles are the U.S. leaders in global ten list of strongest global connections. interactions connectivity, San Francisco, Miami, Only three non-U.S. cities make Atlanta, and Washington are also Miami’s top 10 list, for example, while important nodes in the world city Pittsburgh’s list contains none. has produced a network. A mixture of regional capi- tals—such as Boston and Seattle—and ■ Even the most globally-connected specialist cities—such as Houston, the U.S. cities are more locally oriented new economic world’s energy capital—are found in the than cities in the EU. New York and next tier. Somewhat surprisingly, Miami are the least locally oriented of dynamic and growing Phoenix and San U.S. cities, but even they are far more globalization Jose have relatively low connectivities. U.S.-centric in their connections than most European cities are EU-centric. A ■ U.S. cities overall—and particularly much larger number of EU cities boast in which cities non-coastal cities—are generally less strong connections to Latin America globally connected than their Euro- and Pacific Asia than cities in the U.S. pean Union and Pacific Asian and their counterparts. Sixteen EU cities and 11 ■ Beyond localism, functional linkages Pacific Asian cities rank among the top among firms are more important 50 most globally-connected cities, while determinants of connectedness than regions are the only seven U.S. cities make the cut. geography alone. While Europe has no Chicago is the only high ranking U.S. American Pacific Coast city linkages, city not located in a coastal state. for example, it has many international prime nodes.” financial centers with strong connec- ■ While important service connections tions to the rising banking and finance exist among certain U.S. cities and hubs of Pacific Asia. Many of these particular global regions, U.S. cities cities, as well as New York, are much are more strongly linked to other U.S. more oriented to the Pacific Rim cities than to cities around the globe. than San Francisco, Seattle, or even New York is the only U.S. city with more Los Angeles. As cities aim to position themselves better economically, they must remember that they operate in a global marketplace. Cities able to grow and attract globally-connected, high- value service firms can access, and benefit from, a worldwide array of customers, workers, and contracted services, ultimately boosting quality growth at home. February 2005 • The Brookings Institution • Survey Series 1 Introduction but in reality it shares its economic immigrants can have strong global dominance with other global cities, connections due to the ebb and flow ust about anyone with even a notably London and possibly Tokyo of both people and money back to casual interest in the geography and Paris. And other “global” U.S. countries of origin. of the global economy could cities are still far more locally oriented This paper focuses on one type of Jguess that New York, Los Angeles, than their European counterparts. Put economic connection—those between and Chicago are major world cities, simply, the clear supremacy of the advanced producer services firms— with strong ties to other cities and U.S. in international relations and important because of the high value regions worldwide. But what about military power does not translate into they provide to places. This approach other U.S. cities? How do places like a similar position for American world is an extension of the usual under- Houston and Detroit—or even Port- cities within the world city network. standing of world cities and therefore land and Cincinnati—connect to the The findings from this report high- requires some exposition. rest of the world? What is their place light these shifting dynamics, and in the “world city network?” And why suggest multiple implications for Cities, hierarchies, and networks does it matter? elected officials, policymakers, urban World cities studies suffer from a Until recently there were no real planners, and others who are theoretical legacy that assumes all answers to these questions. Most concerned with regional development inter-city relations are necessarily hier- studies on the connections between and competitiveness. How a city plugs archical.3 A product of the national global entities use nations—not into the world economy of advanced urban systems school of research that cities—as their unit of analysis, and/or producer services could impact local flourished in the 1960s and 1970s, tend to focus on political, as opposed growth patterns, for example, and this theory of inter-city hierarchical to economic, relationships. Those that offer opportunity for development of relations views cities as rivals, strug- have focused on world cities have its downtown. It could influence a gling against each other to “reach the failed to provide adequate measures of city’s economic prospects by deter- top.”4 With the advent of globalization, inter-city relations. By contrast, this mining how many high-paying service the competition is now thought to be paper introduces a new approach to jobs are locally created. And it could even more cut-throat, and a large network analysis that allows us to help shape what types of households a “cities competition” urban policy liter- better understand the relative connec- city attracts and retains. In short, ature has emerged as a result.5 These tivity of cities in the world economy. global connectivity has become studies of worldwide inter-city rela- Using this method, we track the global another urban barometer—a new tions offer little or no interrogation of distribution of 100 leading advanced statistic that helps reveal the health how cities actually relate to one services firms to determine one impor- and strength of cities and regions. another in a global space-economy, tant aspect of cities’ economic however. And so we ask: Must cities connectedness to other world cities always form a hierarchy? and the patterns of these linkages Background In a rare exception to the near- across the globe. ubiquitous hierarchical premise, Jane The importance of these relation- his study treats world cities as Jacobs, in her classic Cities and the ships is becoming increasingly the global service centers of Wealth of Nations, developed an apparent. The conditions of contem- the world economy. As such, economic growth theory based upon porary globalization have, in fact, the network of flows between “dynamic cities” whose relations with spurred a renaissance of major cities Tcities described here provides a other cities are primarily mutual across the world, and a new economic skeletal spatial organization of rather than competitive.6 Cities configuration is emerging based upon contemporary globalization. This generate local economic growth by cities.2 This is not to say that states are approach is an extension of the usual replacing imports from other cities in no longer significant in their interna- understanding of world cities and a process that, rather than being a tional relations, but the rise of therefore requires some exposition. zero-sum game, stimulates new growth transnational interactions has However, there are many ways cities in the city losing the exports. A hypo- produced a new economic globaliza- are connected globally that are beyond thetical example might be cities losing tion in which cities and their regions the scope of this paper. Bentonville, a particular manufacturing production are the prime nodes of a nascent AR, headquarters to Wal-Mart and its (e.g. cotton textiles) compensating by network society. In this new context vast supply chain, certainly is very providing the machine tools (e.g. U.S. domination can no longer be globally connected, as may be a large machinery for producing cotton taken for granted. Yes, New York can agribusiness in Iowa. Additionally, textiles) for the new production in the claim to be “capital city of the world,” cities with large concentrations of new cities. The result is a complex and February 2005 • The Brookings Institution • Survey Series 2 interdependent network of cities corporations—have become a cutting- understand this new scale of inter-city rather than a simple hierarchical edge industry in the new globalizing relations, confirmed by the fact that structure, with cities cooperating in economy. A key feature of firms none of the above examples are in any economic development, not just providing these services is their sense formally specified. Thus we competing for a share of the spoils. concentration in major cities, espe- cannot be sure that these labels are This project adopts the Jacobs cially their downtowns.12 Advanced trying to describe the same phenom- model of synergistic inter-city rela- producer service firms utilize the enon or whether they are suggesting tions. In our interpretation, we adhere knowledge-rich environs of these cities different types of relations. In to the theoretical distinction between while themselves contributing to contrast, we treat the world city hierarchical/competitive processes and downtown development through their network as a formally specified, empir- network/cooperative processes but business practices. ically-based model that measures the understand that in practice the “real For Sassen, major service cities thus interlocking network of global world” is somewhat messier, and become “global cities,” the “strategic advanced service firms.21 “hybrid processes” are the norm.7 But places” of economic globalization. As while we recognize that a world city the locales for production, develop- Data production network can include hierarchical ment, and marketing of advanced The increasing relevance of a city- tendencies, we believe the latter are to services, global cities are contempo- based perspective on worldwide be searched for empirically within a rary manifestations of Jacobs’ dynamic developments has not yet led to an network model.8 cities.