Hong Kong’s competitiveness fades with record home prices, while New York keeps its allure

New York is the most competitive city on earth, taking into account its technological innovation, housing cost, global connectivity, productivity with its population size, according to a collaborative report by the United Nations (UN) with China’ foremost think tank.

Five of the world’s 10 most competitive cities are in the United States, according to the UN’s survey of 1,007 cities with the Chinese Academy of Social Sciences (CASS). The highest-placed Chinese city is Shenzhen at sixth spot, while Hong Kong’s ranking fell six places to 12th, undermined by its record property prices.

The UN-CASS survey, using a broader measure than conventional business competitiveness studies, underscores the challenges that Asian cities must confront – especially in building the infrastructure and environment for technological innovation to take root – to attract investments.

“Technology development influences a city’s economic output and its competitiveness, “ said Ni Pengfei, director of the Centre for City & Competitiveness at CASS, and a co-author of the report. “Half of the most competitive cities are American, which shows how far ahead the US is in terms of science and technology.”

The survey comes on the heels of the think tank establishing its first offshore branch, known as the Chinese Institute of Hong Kong, to promote research on a range of subjects relevant to the city, from border disputes to Hong Kong literature to urban studies and global trade.