London has topped an influential Europe-wide study of top-performing cities - with the UK claiming three spots in the top 10 and five out of the top 20.
The research by the Milken Institute used detailed data on job creation, wage growth and gross added value of hi-tech services and manufacturing industries to compile the rankings.
Inner London-East, with its dynamic economy, flourishing information and communication technology sectors, and skilled international workforce is Europe’s Best-Performing City, according to the Milken Institute’s inaugural Best-Performing Cities Europe Index.
In fact, three of London’s component regions classified by Eurostat’s Nomenclature of Territorial Units for Statistics ranked among the top tier of 279 regions evaluated in the report.
Stockholm, with its thriving tech community and advanced manufacturing sector, ranked a close second, while Budapest, which has been creating new jobs at an unparalleled pace, came in third. Overall, five U.K. cities/regions ranked in the top-20 while four were in Poland.
Ten best performing cities in Europe:
- Inner London-East, United Kingdom
- Stockholm, Sweden
- Budapest, Hungary
- Pomorskie, Poland (includes Gdańsk)
- Nord-Vest, Romania
- Dolnoslaskie, Poland (includes Wrocław)
- Berkshire, Buckinghamshire, and Oxfordshire, United Kingdom
- Oberbayern, Germany (includes Munich)
- Outer London-West and North West, United Kingdom
- Yugozapaden, Bulgaria (includes Sofia)
Minoli Ratnatunga, Milken Institute director of regional economic research and co-author of the study, said: “Inner London-East is among the most dynamic economies in Europe, leading all large metro areas in job growth over the last five years.
“We trace its economic rejuvenation to a combination of direct policy implementation—including the Big Bang that aided financial services and related growth in Canary Wharf—and organic entrepreneurial-led growth in a variety of digital content and technology areas.”
Ratnatunga noted that the majority of the data was drawn prior to the Brexit vote and the economic impact of that upcoming transition is yet to be fully assessed.
Jasmine Whitbread, CEO of London First, said: “Being recognised as the best performing city in Europe by the Milken Institute is testament to London’s economic dynamism, diversity, and position as a global investment hub.
“East London’s particular success shows how political will can underpin entrepreneurial zeal to create growth, investment, and jobs across a number of major sectors.
But, as we navigate Brexit, we will have to work hard to keep our capital at the top—and that means Government delivering the right policies for continued access to talented people and building the homes and transport links they need. Not just in London, but across the whole of the U.K.”
The Milken Institute’s Best-Performing Cities (BPC) Europe index provides an objective benchmark for examining which regional strategies are succeeding.
Based on the Milken Institute’s long-standing evaluation of U.S. metropolitan areas, BPC Europe uses outcomes-based metrics including job creation, wage gains, manufacturing, and skilled service industry concentration to evaluate the relative performance of European regions.
Kevin Klowden, executive director of the Milken Institute’s Center for Regional Economics, said: “While global politics and business cycles are key external forces acting on regional economies, top performing regions invest in strategies that capitalize on competitive advantages and weather challenges better than their peers.
“Our goal is to help businesses, investors, industry associations, development agencies, government officials, academics, and public-policy groups monitor and evaluate how well their region is adapting to and planning for both current and future economic trends.”