The Competitive City-State in the Global Economy: The Evolving Role of the University

City-State Citystate — n. — A region consisting of one or more historic central cities surrounded by cities and towns which have a shared identification, function as a single zone for trade, commerce and communication, and are characterized by social, economic and environmental interdependence. “Across America and across the globe, citistates are emerging as the critical focus of economic activity, of governance, of social organization— now and for the century to come” – Citistates, by Neal R. Pierce, Curtis W. Johnson & John Stuart Hall

In Demand: Massive Shift to Urban Areas The world’s urban population is now growing by 60 million persons per year, about three times the increase in the rural population. The world’s urban population could double from 2.6 billion in 1995 to 5.2 billion in 2025.

World Urbanization Trends The urban share of the world’s population has grown from 30% in 1950 to an estimated 47% in 2000

Megacities Growing regional competition is based on Growing urban competition Roughly 36 cities around the world will have over 8 million inhabitants by 2015, and most of them will be in developing countries Urban-led growth on national and international scales

City-States: The Key Economic Unit Key economic unit throughout much of human history City-States are organic and they evolve: –A labor market –A commute-shed –A broadcast area –A communication hub –An economic unit

Megacities - MegaClusters Clusters of innovation – geographically close groups of interconnected companies and associated institutions in a particular field, linked by common technologies and skills. -Innovation- Productivity Growth -Networks- Spillovers - Co-location- Geographic concentration – Clusters of Innovation, by Michael E. Porter

Economic Drivers Knowledge production Creativity Innovation Science and Technology

Capital in the Evolving City-State Creative Capital Knowledge Capital Human Capital Social Capital Financial Capital Natural Capital

Winner-Take-All Competition: Global City-States Global trade + Global capital flows + Global talent flows = Global competition

Universities Provide for the Core of the City-State University discoveries underpin many of the major knowledge-based industries over the past two centuries Universities anchor clusters of innovation Generate creative capital Generate knowledge capital Train human capital Build social capital Attract financial capital Preserve natural capital

Universities Drive Innovation Spur the creation, or ‘spin-off’ of new firms based on the R&D activities at the university Enable ‘social networks’ that encourage technical graduates to stay in the region, and that generate increasingly more high-tech entrepreneurial activity within the region

The Evolving University The University Must Embrace its Cultural, Socioeconomic, and Physical Setting The University Must Become a Force, and Not Only a Place The University as Entrepreneur Pasteur’s Principle Intellectual Fusion Social Embeddedness Global Engagement

City-States: Global Competition and the Role of the University Universities Provide Leadership for the City-State: » Conceptual » Human Capital

City-States: Global Competition and the Role of the University Major actors in the global city-state network: Local networks Global networks Competition – Cooperation

City-States: Global Competition and the Role of the University Universities must ask the tough questions and provide tomorrow’s answers: What will the City-State of the future look like?