Global Cities Investment Monitor 2010

Greater Paris Investment Agency
Global Cities
Investment Monitor 2010
The New Rankings, Trends and Criteria
why this monitor?

The Greater Paris Investment Agency
The Greater Paris Investment Agency has been
established as a non-profit organisation twenty
years ago by the Paris Chamber of Commerce and
Industry. With over a hundred major French and
international firms, its membership guarantees
its independence. Its missions include promoting
Greater Paris abroad and lobbying political and
economic decision-makers.
The Monitor is conceived as a synthetic instrument

to provide objective arguments during the roadshows organised by the Greater Paris Investment
Agency in Brazil, United States, Japon, Korea,
the Gulf Countries, India, China to explain to
international decision-makers why invest in the
Greater Paris region.
It is also a reliable tool to advice local, national

Since fifteen years it conducts studies and surveys and international policy-makers on measures
designed to benchmark among other Global supporting the attractiveness of the Paris region.
Cities and European metropolises the Greater
Paris present and future attractiveness, real and The Greater Paris Investment Agency has notably
played a leading role in the development of
perceived.
innovative clusters and in framing the new Grand
The Monitor analyses in depth the international Paris Project.
investors perceptions of the Global Cities image
and attractiveness. It also measures the real
Greenfield Investments which build up the
economic potential of a city. Joint Ventures are
included when they result in job creation. Mergers
and acquisitions, privatisations and alliances are
not included.
Global Cities Investment Monitor 2010 by the greater paris investment agency and kpmg
Key Points
1. The crisis has inverted the hierarchy in investment criteria.

Political stability and juridical security have become key criteria when
investors choose locations, ahead of economic growth.
2. Major Asian cities figure prominently despite the crisis:
while Shanghai, Beijing and Mumbai have suffered from the downturn,
Hong Kong strengthens its position. Furthermore, all four are now top competitors
on strategic functions and not anymore mere manpower sources.
3. American cities are absent from the top rankings
because no single city, not even New York, attracts a large share of foreign investments.
However, the American hierarchy is changing, with So Paulo gaining steadily ground.
4. Europe is the first source of international investments and their first destination
in the world. Reflecting this, only London and Paris figure in the top five rankings,
with few serious challengers. In the meantime, the other major European Cities seem outpaced.
5. Paris has a very stable position over the last five years.
Its market share increases in strategic functions and research centers.
The French Capital stays a major place for investors in consumers goods
and the software industry.
Methodology
A scientific approach based on a representative sample
Perception
Europe
Germany........................ 25
France............................ 22
United Kingdom............. 19
Italy................................ 24
Spain.............................. 22
Netherlands................... 13
Turkey............................. 9
Belgium........................... 9
Switzerland................... 34
Sweden.......................... 10
Austria............................. 8
Total............................ 195
Northern America
United States................. 58
Canada........................... 23
Mexico........................... 14
Total.............................. 95
BRIC
China............................. 16
Hong Kong..................... 16
Russia............................ 16
India............................... 23
Brazil............................. 17
Total.............................. 88
50%
Asia
6%
Gulf
Countries
1%
Financial
er
/Manag
Director
/
r
g / Sales
Marketin irector / Manage
nD
io
at
ic
n
u
mm
Co
38%
America
The innovative research compagny
Representative sample of
512 companies with international
business settlements
25 countries
3
criteria:
- Headquarter location
- Industry
- Turnover
Gulf Countries
Saudi Arabia.................. 15
United Arab Emirates.... 13
Koweit and Qatar........... 16
Total.............................. 44
position of the interviewee
Greater
Europe
5%
opinionway
Phone interviews with global business leaders

(CEO, managing director, administrative and financial
manager, sales manager, head of international
investment)
From December 2009 to January 2010
Companies by country of origin
BRIC
A poll conducted by
Asia
Japan............................. 34
South Korea................... 28
Singapore...................... 28
Total.............................. 90
turnover (in euros)
40%
12%
6%
6%
Less than
500 millions
35%
39%
/
anaging
sident / M
or
CEO / Pre/ Executive Direct
Director
ge of
er in char
r /Manag ment
ce
ffi
O
st
Head
ent / Inve
developm
Other
business activity
NR
2%
Between
500 millions
and 5 billions
Services
34%
27%
36%
More than 5 billions
Heavy
Industry
24%
IT
24%
18%
Consumer
Goods
Methodology
An objective focus on the latest investments
Reality
22 Global Cities
Stockholm
London
Montrea
Madrid
isco
c
San Fran
New York
am nkfurt
Fra
Amsterd
Combined selection criteria :
Moscow
Beijing
rlin
Paris Brussels Be
a
Barcelon
Istanbul
Seoul
i
Shangha
Mumbai
Mexico
1. GDP (the study selects only the largest cities in terms

of GDP).
Tokyo
ng
Hong Ko
2. Attractiveness (among the largest cities in terms

of GDP, only those largely open to international
investments are considered).
Inversely, very open but relatively modest economies
like Singapore or Dubai are not considered, like
relatively large but closed ones, like Buenos Aires.
The cities are distributed among the continents
according to the zones relative weight in international
investments.
So Paulo
Database :
fDI Markets Financial
Times, from January 2003
65 000 international investment projects
28 000 business all over the world
8 000 information sources: newspapers,
magazines, associations, websites
The annual period begins with the fourth trimester:
2009
4th trimester
2008
1rst trimester
2009
2nd trimester
2009
3rd trimester
2009
summary
The Greater Paris Investment Agency........................................................................................................................................................................................................................................................................................................................... P2
Key points............................................................................................................................................................................................................................................................................................................................................................................................................. P3
Methodology: a scientific approach based on a representative sample................................................................................................................................................................................................................... P4
Methodology: an objective focus on the latest investments........................................................................................................................................................................................................................................................ P5
Summary..................................................................................................................................................................................................................................................................................................................................................................................................................... P6
Perceptions benchmarks........................................................................................................................................................................................................................................................................................................................................... P7
Paris in top 3.......................................................................................................................................................................................................................................................................................................................................................................................................... P8
Image: a global consensus on top cities..................................................................................................................................................................................................................................................................................................................... P9
Attractiveness: the rise of new Asian actors.....................................................................................................................................................................................................................................................................................................P10
Attractiveness: widely different regional perceptions.......................................................................................................................................................................................................................................................................P11
Investment criteria turned upside-down by the crisis.......................................................................................................................................................................................................................................................................P12
Investors seek stability in mature economies, growth in emerging countries............................................................................................................................................................................................P13
A trend towards Asian cities........................................................................................................................................................................................................................................................................................................................................................P14
Reality benchmarks...............................................................................................................................................................................................................................................................................................................................................................P15
Europe: the leading investor in the world regions...................................................................................................................................................................................................................................................................................P16
Europe: the main investor in the Global Cities...............................................................................................................................................................................................................................................................................................P17
Europe: the most attractive continent in the world................................................................................................................................................................................................................................................................................P18
Advantage to economic concentration.........................................................................................................................................................................................................................................................................................................................P19
The 5 New Leaders. ...................................................................................................................................................................................................................................................................................................................................................................................P20
3 Chinese cities join the top competitors................................................................................................................................................................................................................................................................................................................P21
Investors seek refuge values.....................................................................................................................................................................................................................................................................................................................................................P22
Paris versus China in the R&D competition. ....................................................................................................................................................................................................................... P23
A diversified economy: advantage to Paris.........................................................................................................................................................................................................................................................................................................P24
Paris at the top with Shanghai for manufacturing investments..........................................................................................................................................................................................................................................P25
Impact of the crisis.....................................................................................................................................................................................................................................................................................................................................................................................P26
Report 2005 / 2009: real top global cities.................................................................................................................................................................................................................................................................P27

A new global ranking..............................................................................................................................................................................................................................................................................................................................................................................P28
China and Europe compete for leadership............................................................................................................................................................................................................................................................................................................P29
Global Cities: a competition more open than ever....................................................................................................................................................................................................................................................................................P30
The Greater Paris Investment Agency. Our membership: global & major companies.....................................................................................................................................................................P31
Bank of China
(226m)
World Financial
Center
(492m)
Chrysler Building
(318m)
Shanghai
Hong Kong
Gherkin Tower
(180m)
London
La Dfense
Burj al Arab
(111m)
(321m)
Paris
Dubai
New York
perceptions benchmarks
Global cities investment monitor 2010
Paris in top 3
Cities Global Image

According to you, which 3 cities or major world capitals have the best overall image?
42
The image is probably the asset that is built over the

longest time-span. Paris, London and New York are
traditional leaders. They embody at best what a global
city should be.
41
14
35
Shangha
London
Beijing
New York
12
12
Paris
9
Tokyo
ng
Hong Ko
Mumbai
But the situation is rapidly changing in Asia, where

Tokyo and Singapore are now facing strong competition
from main Chinese and Indian metropolises.
If a city joins the trio in the next decade, it will be in that
zone. Other European and American cities are now
seriously distanced.
11
Singapore
42%
41%
Sydney
35%
ich
3%
Zur
sco
w
3%
Mo
rea
l
3%
Mo
nt
fur
3%
Fra
nk
cag
o
5%
Chi
na
5%
Bar
cel
o
id
5%
Ma
dr
bai
6%
Du
ele
lin
6%
Ang
Ber
ey
6%
Los
top 10
7%
Syd
n
jing
8%
Bei
9%
Tok
yo
ore
ai
gap
mb
11%
Sin
12%
Mu
Kon
ng
hai
12%
Ho
Par
is
Sha
ng
Lon
don
Ne
wY
ork
14%
China is seen today as a sexy place for

investment.
Indian Energy Group, Dubai
Image: a global consensus
on top cities
Cities Regional Image

According to you, which 3 cities or major world capitals have the best overall image?
Operating a regional breakdown allows a more precise

analysis.
europe
Top 5
London
Paris
AMERICA
Top 5
New York
i
Shangha
g
n
Hong Ko
New York
London
Paris
Mumbai
asia
Top 5
New York
London
Tokyo
i
Shangha
Singapore
Shangha
First-rank Global Cities have a global image.

They are identified as leading metropolises where
resources meet opportunities in all parts of the world.
The traditional leaders are present in the top 5 cities
mentioned by investors from America, Europe and
BRIC countries.
Shanghai is clearly very well placed to join the handful
of traditional leaders, replacing Tokyo. Next among
Asian cities come Hong Kong and Mumbai.
Some cities have a very strong image regionally which
is not equally perceived in other regions: Dubai, Abu
Dhabi or Tokyo.
untries
gulf cTo
op 5
bric
Top 5
ng
Hong Ko
n
Londo
Paris
New York
Dubai
London
Mumbai
i
Abu Dhab
Singapore
Shangha
Attractiveness:
the rise of new Asian actors
Cities Global Attractiveness

According to you, which 2 cities or major world capitals are currently the most attractive location
for setting up business generally (either your business or other businesses)?
18
26
18
11
7
Chicago
London
New York
8
Paris
6
Berlin
15
Shangha
Beijing
8
ng
Mumbai
The citys image is a strong component of its perceived

attractiveness, which explains the top rankings of New
York, London and Paris. Clearly, anticipated growth
also enters into calculations, which allows Shanghai,
Mumbai or Beijings attractiveness to be better ranked
than their image.
Hong Ko
6
Bangkok
New York is seen internationally as the access

door for the United States markets.
Commercial Bank, Madrid
In the general perception, Mumbai is just
standing for the Indian market.
Automobile supplier, New York
In Paris, people speak French.
top 10
New York..................................................26%
London.......................................................18%
Shanghai...................................................18%
Mumbai......................................................15%
Beijing........................................................11%
Paris. ..............................................................8%
Hong Kong..................................................8%
Chicago.........................................................7%
Bangkok.......................................................6%
Berlin.............................................................6%
11-17
Moscow.........................................................5%
Barcelona....................................................5%
New Delhi. ..................................................5%
Los Angeles...............................................5%
Singapore. ..................................................5%
Barcelona....................................................5%
Tokyo..............................................................5%
10
18-21
Abu Dhabi. ..................................................4%

Dubai..............................................................4%
Toronto..........................................................3%
Frankfurt.....................................................3%
Attractiveness:
widely different regional perceptions
According to you, which 2 cities or major world capitals are currently the most attractive location
for setting up business generally (either your business or other businesses)?
Regional breakdowns tend to underline slightly
different understanding of what attractiveness is
composed of.
europe
Top 5
New York
London
AMERICA
Top 5
asia
Top 5
Shangha
Mumbai
New York
London
i
Shangha
New York
Beijing
Shangha
Mumbai
Tokyo
Beijing
By comparison with the global ranking, it appears that

Asia, like the Gulf and the BRIC Countries tend to view
growth potential as a more important component of
attractiveness, which reflects their actual experience
of attractiveness.
Europe is the continent that is the most open to other
point of views, which reflects its leadership in foreign
investments.
Mumbai
Chicago
untries
gulf cTo
op 5
Mumbai
Dubai
bric
Top 5
i
Shangha
Mumbai
ng
Hong Ko
n
Londo
Beijing
i
Abu Dhab
New York
i
Shangha
In my opinion, Indian investment will be more

diverse than just Mumbai, in the near future.
Commercial Bank, Frankfurt
India is more accessible due to linguistic
constraints
Web agency, France
Mumbai is very attractive for outsourcing
because of the availability of high-quality
workforce at a low cost, and because of the time
offset: while sleeping in New York, people are
working in Mumbai.
Human Resource Consultancy, Montreal
11
Investment criteria
turned upside-down by the crisis
According to you, which of the following investment criteria

are the most important when choosing your locations?
Political and economic

context, infrastructure
and markets
are essential
92%
89%
89%
89%
quality of life and

research are
important, but in
the background
Workforce
and cost criteria
resist strongly
86%
83%
79%
75%
65%
64%
Investment criteria have evolved during the crisis.

Investors are now much more aware of risks associated
by political regulation and interference in the legal
processes.
As investment criteria, stability and predictability of the
institutional settings, which are superior in mature,
traditional markets, together with infrastructures and
accessibility to the markets, balance economic growth,
favourable to new economic powers, like the BRIC
countries.
The same can be observed in second-rank criterias,
where quality and education of workforce balance
labour and other business costs.
12
inn
ova Qua
tion lity
res and
ear
ch
ife
of l
ity
Qu
al
Av
of s ailab
kill ility
ed
Ch
HR
arg
es,
and wage
lev cos
el o ts
f ta
Qu
x
alit
yo
f ed
uca
tion
pro
per Avail
ty b abi
usi lity
nes and
sc
ost
andAcces
ma sibi
rke lity
t si
ze
row
th
ic g
nom
Eco
and Polit
jur ical
idic sta
al s bili
ecu ty
rity
Inf
ras
tru
ctu
re
The market is the main driver of investments,

which explains Chinas success.
Construction Group, Paris
The more you invest, the more you have to
look at the political context, and not only at the
economic context.
Human Resource Consultancy, Netherlands
Investors seek stability
in mature economies, growth in emerging countries
Perception of cities attractiveness, by investment criterion

According to you, regarding every investment criterion, which city is generally
the most attractive for business and company location?
1
Political stability
London
2
New York
3
Paris
4
Berlin
5
Mumbai
London
New York
Mumbai
Shanghai
Paris
Economic growth
Shanghai
Beijing
Mumbai
New York
London
Market accessibility and size
Shanghai
New York
London
Mumbai
Beijing
Mumbai
New York
Shanghai
London
Hong Kong
Infrastructure
Availability of skilled HR
Living costs
Mumbai
Shanghai
Abu Dhabi
New York
Beijing
Quality of education
London
New York
Paris
Mumbai
Berlin
Availability
Quality of life
Quality of research
Total
Mumbai
Berlin
London
New York
Shanghai
Paris
New York
London
Barcelona
Stockholm
New York
London
Mumbai
Tokyo
Hong Kong
London
Mumbai
New York
Shanghai
Paris
Paris and London have the image of typical mature

markets, where quality matters more than costs.
Inversely, Mumbai and Shanghai are now head to head
in that emerging category. Interestingly, New York and
Berlin are somehow positioned in between.
The political stability criterion is not in favour

of China. Political hurdles are too big. They
discourage investors.
Auction House, London
London is central both geographically and
regarding infrastructures. It is halfway between
New York and Europe, and very well connected to
the world.
London benefits from simplier recruiting
procedures, a more flexible labour code and staff
managementthan in other European countries.
Investment Bank, Qatar
13
A trend towards Asian cities
Perception of cities attractiveness evolution 2010-2012

According to you, which city will the most increase attractiveness in the next 3 years?
Asian cities still attract thanks to their economic

growth and relatively cheap workforce.
17
4
London
13
4
3
Paris
Berlin
Shangha
2
Istanbul
Beijing
9
3
Mumbai
Dubai
Paris is seen as the head of a very mature

market.
4
Singapore
4
So Paulo
cities attractiveness evolution factors 2010-2012

Economic
top 3
Shanghai....................................................... 17
Beijing............................................................ 13
Mumbai............................................................. 9
potential
55%
rces
an resou
Hum
cation
15%
raphic lo
and geog
Strategic
14%
lation
opu
12% P
sports
events or
Cultural
%
7
ation
litical situ
7% Po
gies
nolo
ation, tech
nov
3% In
ronment
1% Envi
14
International events also play a major role: Londons

attractiveness is partly due to the 2012 Olympic Games,
Rio and So Paulos to the 2016 Olympic Games, Berlin
to the celebrations of the 20th anniversary of the fall
of the wall. Shanghai probably took advantage of the
universal exposition this year to rank first.
The place of Berlin in this ranking shows the

misperception of Berlin by foreign investors that
do not know Germany. Berlin is a political centre,
not an economic one. Munich should be at the
place were Berlin is.
Commercial Bank, Germany
Compared to Shanghai or Beijing, Mumbais
infrastructures are not up to speed yet, but they
will be soon.
Global Indian Group based in India
To conclude, it remains hard to invest anywhere.
The most important is to find skilled workforce,
a well-protected environment, and to have an
office in the centre of gravity.
Human Resource Consultancy, Toronto
1250 Boulevard
Ren-Lvesque
(226m)
Montreal
Transamerica
Pyramid
(260m)
San Francisco
Torre Agbar
(145m)
Barcelona
La Dfense
(111m)
Paris
Reality Benchmarks
Global cities investment monitor
Imperial I et II
(249m)
Mumbai
Sapphire Tower
(261m)
Istanbul
Europe: the leading investor
in the world regions
Origins of greenfield investments, by world regions

Europe is the often unknown global leader of international Greenfield Investments.
Europe is also increasingly the first investor in Europe

itself. The investments from North America remain
stable at 31%. The BRIC countries are not yet key actors
in Europe, their investments remain at a low fraction of
the global number of projects.
Europe
55%
+ 5 pts
North
America
25%
+ 5 pts
5-28p%
ts
1-21p%
ts
9-1%
pt
3-11p%
t
BRIC*
4-1%
pt
The primary source of Greenfield Investments in Asian

cities has its origin in other continents, which could
explain the recent volatility of these cities.
4+32p%
ts
MiddleEast
2-1%
pt
BRIC*
Asia
19%
3-34p%
ts
- 1 pt
BRIC*
5+1%
pt
The number one market for a

European business is Europe.
Asian companies import technologies
but have no outsourcing culture,
which contributes to their rising power.
5-1%
pt
*Brazil, Russia, India, China
Source : FDI Markets, Financial Times Ltd
16
Europe: the main investor
in the Global Cities
Origins of greenfield investments, in selected cities

London
48%
Europe is the first investor in five selected Global Cities

out of six. Only London does not attract a majority of
European investments.
35%
9% 4%
4%
Paris
28%
78%
Shangha
3%
13%
2%
35%
3% 14%
Mumbai
53%
51%
33%
5%
11%
39%
2%
24%
2%
So Paulo
No big surprise as access to European

markets is a key strategic point still for national
companies within Europe
Commercial bank, Madrid
56%
New York
28%
1%
10% 8%
There is a clear movement to invest in India,

but it remains easier to settle in China, as
infrastructure are still underdeveloped in
Mumbai.
Industrial Group, Canada
Europe
America
Asia
ast
Middle E
Others
17
Europe: the most attractive
continent in the world
Greenfield investments destinations, by world regions
26%
+12%
13%
12%
-30%
-4%
+15%
7%
+13%
6%
Two regions are particularly attractive: Europe with

39% of all Greenfield Investments (26% for Western
Europe and 13% for Eastern Europe) and Asia, which
represents 29% of the global investments.
The crisis caused an 8% decrease in the Greenfield
Investment in the world with contrasted outcomes
among the areas.
29%
In Western Europe investments remain stable. The

investments in the Americas and Middle-East are
increasing. On the contrary, after several years of
growth, the investments in Asia and Eastern Europe are
plummeting.
-16%
5%
-1%
2%
-8%
There is quite a big gap between perception

and reality, but it seems to make sense as I do
think that a good public relation work for some of
these cities enhances their image.
Business Tourism Agency, Hong Kong
World: -8%
18
Advantage to concentration
Cities Weight in National Incoming Investments

Moscow
am
Amsterd
London
25%
Paris
13%
49%
35%
27%
34%
al
13% Montre
8%
5%
cisco
San Fran
New York
The Global Cities weight in their national economy

varies considerably.
t
Frankfur
n
10% Berli
The United States, India and Germany, federal states,

display relatively dispersed foreign investments.
Brussels
Madrid
22%
25%
Stockholm
China, Brazil, Russia, Turkey, as well as Spain,

Belgium and the United Kingdom, show intermediary
concentration: one city attracts approximately one
quarter of all foreign investments.
Istanbul
22%
a
Barcelon
27%
eoul
42% S
yo
55% Tok
%
Beijing 13
anghai
24% Sh
16%
10%
Mexico
Mumbai
ng
g Ko
17% Hon
Lastly, Tokyo, Seoul, Amsterdam, and to a lesser

degree Stockholm and Paris, account among the
highest concentrations.
London and Paris stand for their country.

On the contrary, countries like Germany or the
United States have many economic centres.
26%
Sao Paulo
>40%
0%
30% to 4
0%
20% to 3
<20%
19
The 5 New Leaders
Greenfield Investments, by City

270
242
191
149
231
Moscow
ondon
87 L
87
hanghai
Paris
86
Madrid
New York
The top 5 cities capture 51% of all projects.

They are remarkably concentrated geographically:
Paris and London are the two main metropolises of
Western Europe while Beijing, Shanghai and Hong
Kong are all located on the Chinese coastline. These
two regions polarise global investments. Three out
of the next five cities are located nearby, in Western
Europe in the case of Madrid and Barcelona, and close
to the Chinese seas with Tokyo. Among the top 10 cities,
only Moscow and New York do not belong to these two
regions.
108
95
Beijing
a
Barcelon
Tokyo
ng
Hong Ko
Asian cities are very attractive in terms of

globalization, as they are vibrant economic
centres and economically stable.
Business Tourism Agency, Hong Kong
270
242
231
The global economic gravity centre

is still sliding towards Asia.
191
149
San
20
Sto
rea
l
33
Mo
nt
lm
33
cko
33
sse
l
ul
36
Bru
39
Seo
44
lin
49
Ber
51
Me
xic
o
Ista
nbu
l
53
isc
o
Am
ste
rda
m
fur
53
Fra
nc
Pau
lo
ai
61
So
top 10
78
Fra
nk
86
mb
87
Mu
87
Tok
yo
Ne
wY
ork
95
ng
Mo
sco
w
Bar
cel
ona
Ma
dri
d
Bei
ji
Par
i
g
Kon
ai
ngh
Ho
ng
Sha
Lon
don
108
3 Chinese Cities
join the top competitors
Greenfield investments in strategic functions, by city

117
96
81
Strategic functions* are concentrated in the top cities

and tend to lead other investments.
46
73
London
35
47
i
Shangha
36 Paris
cisco
San Fran
44
Mumbai
The international division of labour between high-tech

decision-making Western Cities and assembly-line low
cost Asian Cities is clearly disappearing.
Tokyo
Beijing
Barcelon
In fourth position Paris is once again very well ranked.
114
Moscow
ng
Hong Ko
Because of its English history as part of the

Commonwealth, Hong Kong has great
infrastructure and is a central place, a
multicultural and multilangual centre.
Hong Kong is a dynamic market, growing fast
thanks to Chinese economics and investments.
top 10
Shanghai.................................................... 117
Hong Kong................................................ 114
London........................................................... 96
Paris. ............................................................... 81
Beijing............................................................ 73
Tokyo............................................................... 47
Moscow.......................................................... 46
Mumbai.......................................................... 44
Barcelona..................................................... 36
San Francisco........................................... 35
11-16
So Paulo..................................................... 29
New York...................................................... 27
Madrid............................................................ 25
Amsterdam................................................. 24
Mexico............................................................ 22
Stockholm................................................... 18
17-22
Seoul. .............................................................. 18
Brussels. ...................................................... 16
Istanbul......................................................... 16
Frankfurt...................................................... 15
Montreal....................................................... 11
Berlin................................................................. 9
*Strategic business activities :
Customer contact centre, Design, Development & testing,
Education and training, Headquarters, Research and development,
Sales, Marketing & support, Shared services centre
21
Investors seek refuge values
Greenfield investments in headquarters, by city
17
30
18
In spite of the crisis, global establishments in

headquarters have actually neatly accelerated in 2009
(+36%).
am
Amsterd
11
Hong Kong takes a lead over Shanghai, due probably to

its image as a stable business location.
5
London
5
10
Brussels
Paris
Shangha
Paris experiences the strongest growth in headquarters

implants over the last year.
ng
Asia is a concentration of production and

investment. Headquarters enable to manage
production closely.
Business Service Company, Qatar
Madrid
cisco
San Fran
a
Barcelon
Hong Ko
30
Hong Kong is the gateway to the Chinese market.

18
So Paulo
Hong Kong stands apart as a liberal island

close to the big Chinese marketplaces.
17
11
City
10
top 10
Ista
nbu
Mo
nt
rea
l
Ber
Tok
yo
sco
w
Ne
wY
ork
Mo
Me
xico
jing
cko
lm
Bei
bai
urt
Sto
Mu
m
Fra
nkf
Par
is
Bar
cel
ona
San
Fra
nci
sco
Bru
sse
ls
Ma
dri
d
So
Pau
lo
Am
ste
rda
m
don
Lon
gha
Sha
n
Hon
gK
ong
lin
Hong Kong
Shanghai
London
Paris
Barcelona
San Francisco
Brussels
Madrid
So Paulo
Projects
evolution (%)
30
18
17
11
10
7
5
5
5
150%
38%
-15%
175%
43%
75%
25%
-29%
N.D.
22
Paris versus china
In the R&D competition
Greenfield investments in research centres, by city

8
Research centres are the rarest type of Greenfield

Investment and, therefore, the most valuable ones,
especially with a global drop in 2009 (-18%).
Shanghai and Beijings lead emphasizes

departure from assembly-line economics.
Moscow
Paris
cisco
San Fran
Barcelon
Shangha
Beijing
Mumbai
ng
Hong Ko
Mexico
So Paulo
Shanghai.......................................................... 8
Beijing............................................................... 5
Paris. .................................................................. 4
Hong Kong...................................................... 3
Mumbai............................................................. 3
So Paulo........................................................ 3
Barcelona........................................................ 2
Mexico............................................................... 2
Moscow............................................................. 2
San Francisco.............................................. 2
Paris achieves a remarkable result and positions

itself at the first rank in the Western sphere.
This is a consequence of its attractiveness, of
its outstanding research clusters, business and
engineering schools and of the high-tech orientation
of its economic system, which is well supported by a
specific net of credit-tax for R&D: up to 50% of spending
are reimbursed.
The very good performance of So Paulo must be
underscored.
top 10
their
11-15
Madrid............................................................... 1
Frankfurt......................................................... 1
London.............................................................. 1
Stockholm...................................................... 1
Montreal.......................................................... 1
16-21
Berlin................................................................. 0
Brussels. ......................................................... 0
Istanbul............................................................ 0
New York......................................................... 0
Amsterdam.................................................... 0
Seoul. ................................................................. 0
Beijing is catching up fast. I am surprised

it is already that high, but it is moving as
expected.
23
A diversified economy:
advantage to Paris
Greenfield Investments by sectors, in selected cities
Paris, London and New York stand as mature markets,

where investments in consumer products and services
(like textile, food, tourism or entertainment) account
for a large share compared with more recent markets
where industrial (automobile, aerospace, chemistry)
dominate. Shanghai is positioned intermediary,
while Paris stands as the strongest industrial and IT
destination among mature markets.
London
24%
35%
4%
37%
New York
11%
13%
Shangha
Paris
45%
25%
20%
31%
22%
31%
s,
e Service
& Financ
s
s
e
in
s
u
B
te
Real Esta
20%
30%
21%
39%
39%
35%
Mumbai
So Paulo
26%
8%
13%
r
Consume & Services
Products
33%
31%
on
municati
IT & Com
6%
ipment
& Equ
, Energy
Industry
24
Paris at the top with Shanghai
for manufacturing investments
Greenfield Investments by functions, in selected cities
Fast-growing cities like Shanghai, So Paulo and,

particularly, Mumbai attract a larger share of
strategic investments. However, cities with a balanced
economy, where manufacturing accounts for a large
share of international projects alongside services are
well placed to remain attractive to those strategic
investments on the long term. This magic mix
explains why Paris has a higher proportion of both
strategic functions and manufacturing investments
than London or New York: its diversified economy
makes it stronger.
London
59%
5%
36%
Shangha
New York
Paris
66%
2%
1%
12%
25%
45%
27%
48%
43%
31%
So Paulo
9%
31%
46%
7%
30%
47%
nctions
fu
Strategic
Mumbai
Services
Energy &
Utilities
struction
ing & Con
tur
Manufac
25
Impact of the Crisis
Greenfield investments evolution, by city, 2008 to 2009
am
Amsterd
London
-2%
-14%
%
,5
Paris -0
Madrid
Montreal
cisco
San Fran
-7%
-33%
-7%
Moscow
-8%
The crisis caused a 10.5% drop in Greenfield Investment

between 2008 and 2009 in the 22 cities studied.
-10%
Stockholm
Few are safe confidence-inspiring places.
t
Frankfur
lin
-15% Ber
The American cities are more stable, with a strong

increase in Mexico City, probably caused by outsourcing
from the United States.
-15%
Brussels
celona
+15% Bar
-23%
In Asia, the investments in Hong Kong increase strongly

in contrast with the general decline in Indian, Chinese
and Japanese cities. Hong Kong appears like a refuge
value in difficult times.
Istanbul
eoul
+9% S
yo
-19% Tok
1%
Beijing -3
nghai
-27% Sha
+6%
+0%
New York
+26%
-27%
Mexico
Mumbai
g Kong
+35% Hon
Paris defies the global decline with a mere -0.5%,

confirming the high measure of confidence by investors
shown in the February 2009 survey conducted by the
Greater Paris Investment Agency.
ecline
Strong d
cline
Minor de
Stable
-6%
Increase
Sao Paulo
World: -8%
26
Torre Mayor
(225m)
Mexico
Torre Caja
(250m)
Madrid
Mirante do Vale
(170m)
So Paulo
La Dfense
Kista Science
Tower
(111m)
(123m)
Paris
Stockholm
Report 2005 / 2009

Real Top Global Cities
Westend Strasse 1
(208m)
Frankfurt
A New Global Ranking
Last 5 years global results, 2005 to 2009

1561
1219
595
956
874
Moscow
London
837
Paris
438
411
386
Madrid
Beijing
Mumbai
a
Barcelon
444
Shangha
Tokyo
ng
Hong Ko
Paris is seen as the head of a very mature

market.
1219
956
874
837
top 10
240
224
194
190
173
28
182
165
161
154
Me
xico
257
ntr
eal
259
Mo
327
Ber
386
Seo
u
411
Ne
wY
ork
So
Pau
lo
Fra
nkf
urt
Am
ste
rda
m
San
Fra
nci
sco
Sto
cko
lm
Ista
nbu
l
Bru
sse
ls
438
Tok
yo
Ma
dri
d
Mu
mb
ai
Bar
cel
ona
sco
w
Mo
Kon
jing
Hon
g
Bei
Par
is
Lon
don
444
lin
595
ai
It is possible that the crisis encouraged investors to

look for safe places, which would also explain why New
York is in the top 10 in 2009 while sliding out of it in the
last five years.
Nowadays, a company that does not invest in

Asia cannot survive on the long term.
Indutrial Group, France
1561
Sha
ngh
The results for 2009 confirm the general trend in

the last five years. Two main regions now dominate
the Greenfield Investments in the Global Cities:
Eastern Asia, particularly the three main Chinese
metropolises, and Europe, which is still the first
region to attract international investments. In 2009,
European cities, Paris especially, have resisted better
than the Chinese cities, with the notable exception of
Hong Kong.
The surprisingly high ranking of London may be

due to long term investments: companies that
have started investing there will go through with
it despite the crisis. But I think that if we look
forward in the next few years, the investments in
London will decrease.
Automobile supplier, New York
China and europe
compete for global leadership
Top 5 cities evolution, 2005 to 2009

Number of projects
350
365
300
337
333
250
284
270
251
200
233
215
150
189
198
169
192
180
174
100
201
160
161
171
157
Chinese cities are still a majority in the top 5 Global

Cities, even if Shanghai has lost its first position.
London
276
242
231
191
149
Shangha
ng
Hong Ko
Paris
Beijing
118
2005/06
2006/07
2007/08
2008/09
Focus on BRIC cities (except China), 2005 to 2009

Number of projects
140
Paris is the most stable city during the period.

From 164 projects it grew to 191 (10%). Is it equipped
enough to face the competitors and the development of
other more dynamic areas?
Each one of the 3 next cities, Moscow, Mumbai and So
Paulo, have suffered from the crisis, but the Brazilian
city to a lesser degree.
50
2004/05
Hong Kong experienced a remarkable growth over the

past years.
Over a 5-year period time, So Paulo proves its

economic dynamism and development through a
strong and continuous increase in the number of
projects received.
136
130
120
120
111
110
120
107
108
Moscow
78
Mumbai
61
So Paulo
100
88
90
86
80
70
60
65
52
The Indian market is less attractive than the

Chinese market. Business proves more difficult
in India.
Navigation systems supplier, Paris
51
50
40
With the World Fair, Shanghai displays gigantic

buildings which could well prove a hindrance in
the future.
Media agency, Paris
39
2004/05
43
2005/06
2006/07
2007/08
2008/09
29
Global Cities:
a competition more open than ever
The Global Cities Investment Monitor is a unique

survey exclusively by the Greater Paris Investment
Agency in partnership with KPMG. It ranks the
attractiveness of the top cities which compete at
global level.
While the Greater Paris Investment Agency has

conducted for more than 15 years studies to compare
and rank European cities, worldwide surveys have
remained occasional until this year.
Even with a much more open competition, very few
cities can hope to count among the top global ones. As
the Monitor shows, either the perceptions of investors
or the real investments tend to focus on a handful of
cities and concentrate there.
There is no strict definition for a Global City, but all

have in common to set a stimulating environment
where financial and business innovation meets
top decision-makers. They are focal points whose
influences reach all continents, both densely linked
with one another and intensely competing to define What can a long-standing Global City like Paris
expect from the Monitor? It demonstrate that Paris
the best economic, urban and political standards.
enjoys a remarkable image and attractiveness.
Competition among Global Cities is more open than It shows that Paris is very well placed in terms of real
ever before. For most of the twentieth century, Paris, investments too, even better than its image suggests.
London, New York were the top triad. Berlin was However, competition is intense. As a result, the
sidelined in the course of world wars. Moscow stood Monitor is a unique instrument for the Greater Paris
in the Soviet bloc apart from economic competition. Investment Agency to advocate and support worldclass investments in infrastructure, architecture and
Tokyo was probably the first strong challenger.
clusters in the Greater Paris, so as to make it one of
The Global Cities Investment Monitor fully the world-class business capitals of the twenty-first
acknowledges the changing global hierarchy.
century.
30
THE GREATER PARIS INVESTMENT AGENCY
Our membership: Global&Major Companies

Aroports de Paris, Air France KLM, Altran technologies, Bal du Moulin Rouge, Banque
Audi Saradar, BNP Paribas, Bouygues Btiment Ile-de-France, Cabinet Caillau Dedouit &
associs, Cabinet Fidal International, Caisses des Dpts et Consignation Ile-de-France,
Chambre de commerce et dindustrie de Paris, Chambre de commerce et dindustrie de
Versailles, Val dOise/Yvelines, Chambre rgionale de commerce et dindustrie Paris Ile-deFrance, Clifford Chance, Colas S.A., Colony Capital Europe, Comexposium, Commissariat
lnergie atomique (CEA), Credit Agricole CIB (Calyon), Deloitte&Touche, Ecole Normale de
Musique de Paris, EDF, EPAMARNE Marne-la-Valle, Ernst&Young, Etablissement public
pour lamnagement de La Dfense (EPAD), Fdration nationale des travaux publics,
Fdration rgionale des travaux publics, FNAIM Paris et Ile-de-France, France Amriques,
France Tlcom, G7 Entreprises, Galeries Lafayette, GDF Suez, Generali, Gide Loyrette
Nouel, GMC Services, Herms, ICADE, JC Decaux SA, Klepierre, KPMG, La Poste, LG, Mazars,
McKinsey & Company Inc., Medef Ile-de-France, Medef Paris, Pernod Ricard, Port Autonome
de Paris, Prsence, PricewaterhouseCoopers, RATP, SILIC, SNCF, Stehlin et Associs, Total,
Unibail-Rodamco, Vinci Construction France - Ile-de-France, Viparis, Wipro Technologies
31
KPMG S.A. is the leading audit, accounting and advisory

firm in France*, employing 7 400 professionals located in
214 cities. In 2009, the turnover of KPMG S.A. was e790m.
Greater Paris Investment Agency is a non-profit

organisation founded over twenty years ago by the Paris
Chamber of Commerce and Industry to attract new
international investors in Greater Paris and to bolster its
attractiveness.
KPMG is a member of KPMG International Cooperative,

a global network of professional firms providing Audit,
Tax and Advisory services with a presence in 144 countries
and over 700 cities across the world. KPMG counts 140,000
professionals and generated $20.11 billion in sales.
The network is structured in three regions: Americas,
Asia-Pacific, and EMA (Europe Middle East Africa).
It is comprised of more than one hundred major French

and multinational companies; they guarantee a total
independence and provide with support in fulfilling the
Associations main missions.
As Greater Paris business Ambassador, our Agency
is your privileged partner and advisor: bridging both
governmental decision-makers and our prestigious
business partners network.
(*Source: La Profession comptable 2010)
Chiara Corazza
Managing Director
www.kpmg.fr
7, rue Balzac - 75008 Paris

+33 (0) 1 55 65 74 80
www.greater-paris-investment-agency.com
design vu intgral (Paris) PRINTED BY RIP (Paris) ISBN 2-914687-10-9 EAN 9782914687102
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Greater Paris Investment Agency

why this monitor?

The Monitor is conceived as a synthetic instrument

It is also a reliable tool to advice local, national

Greater Paris Investment Agency

Greater Paris Investment Agency

1. The crisis has inverted the hierarchy in investment criteria.

A scientific approach based on a representative sample

Greater Paris Investment Agency

The innovative research compagny

position of the interviewee

Phone interviews with global business leaders

From December 2009 to January 2010

Companies by country of origin

turnover (in euros)

An objective focus on the latest investments

Greater Paris Investment Agency

Combined selection criteria :

1. GDP (the study selects only the largest cities in terms

2. Attractiveness (among the largest cities in terms

The annual period begins with the fourth trimester:

Greater Paris Investment Agency

Greater Paris Investment Agency

Greater Paris Investment Agency

Cities Global Image

The image is probably the asset that is built over the

But the situation is rapidly changing in Asia, where

China is seen today as a sexy place for

Image: a global consensus

Greater Paris Investment Agency

Cities Regional Image

Operating a regional breakdown allows a more precise

First-rank Global Cities have a global image.

the rise of new Asian actors

Greater Paris Investment Agency

Cities Global Attractiveness

The citys image is a strong component of its perceived

New York is seen internationally as the access

Abu Dhabi. ..................................................4%

widely different regional perceptions

Greater Paris Investment Agency

By comparison with the global ranking, it appears that

In my opinion, Indian investment will be more

turned upside-down by the crisis

Greater Paris Investment Agency

According to you, which of the following investment criteria

Political and economic

quality of life and

Investment criteria have evolved during the crisis.

The market is the main driver of investments,

Investors seek stability

in mature economies, growth in emerging countries

Greater Paris Investment Agency

Perception of cities attractiveness, by investment criterion

Market accessibility and size

Paris and London have the image of typical mature

The political stability criterion is not in favour

A trend towards Asian cities

Greater Paris Investment Agency

Perception of cities attractiveness evolution 2010-2012

Asian cities still attract thanks to their economic

Paris is seen as the head of a very mature

cities attractiveness evolution factors 2010-2012

International events also play a major role: Londons

1. The crisis has inverted the hierarchy in investment criteria.

Phone interviews with global business leaders

From December 2009 to January 2010