Roland Berger seeks out the hot spots in Central and Eastern Europe
The infrastructure works, people are highly educated, they're innovative, have an international flair, a high quality of life and a broad range of culture on offer: that's what make cities attractive to international managements and companies. Roland Berger Strategy Consultants has rated ten Central and Eastern European capitals according to these criteria, and discovered which are the hot spots in the region. At the top of the CEE City Rankings 2009 is Vienna, with 89.9 points out of a possible 100, followed by Prague (70.8) and Budapest (52.3). Ukrainian capital scores 9th out of 10 cities, leading the field on only one count – it is the greenest in the region.
"Twenty years since the Iron Curtain came down, the capitals of Central and Eastern Europe have been catching up massively. With this study, we aim to show how attractive these cities actually are, internationally speaking," explains Dr. Uwe Kumm, Managing Partner in CIS and Head of the Kyiv office. Vienna came out on top, as expected, but the others are catching up. "Central and Eastern European cities are already ahead on two out of six aspects. But the smaller capitals in the region must establish themselves internationally and sharpen their profile," the expert says.
Infrastructure
When it comes to infrastructure, Vienna (82.1 points) is out in front, ahead of Prague (61.2) and Budapest (45.7), while Kyiv brings up the rear. This is based on how many direct flights a city has, how big the public transport system is, how much magnetic resonance equipment it has per capita and how many households have broadband. When it comes to flight connections, Moscow Domodedovo leads with 222 destinations, ahead of Vienna Schwechat and Prague Ruzyně. Kyiv Boryspil is sixth with 85 destinations. In public transport, Prague is top, followed by Budapest and Bratislava. Vienna has the best medical infrastructure, followed by Bratislava and Ljubljana. The Austrian capital also comes out on top in broadband penetration: 61% of Viennese households had fixed network broadband in 2008, with Ljubljana (51%) and Moscow (50%) second and third. The lowest broadband penetration is in Kyiv.
Education
In education, again, the same cities are in top-3 – Vienna (77.5), Prague (64.5) and Budapest (62.2) – while Kyiv is 7th (39.8) measured by the number of pupils/students per teacher, what proportion of the population has completed secondary/tertiary education and how many of the top 500 universities they have. The smallest class sizes are found in Vienna. Prague leads, ahead of Bratislava and Vienna in terms of secondary school graduates (ISCED 3-4a). Bucharest has more university graduates (ISCED 4c-5b) than anywhere else in the region, at 31%, followed by Moscow, Budapest and Kyiv. In terms of universities, Prague, Warsaw and Vienna have two of the top 500 in the QS World University Rankings each, Budapest, Ljubljana and Moscow one.
Innovation
Ljubljana leads in innovation, with 71.4 points, followed by Budapest (69.1) and Prague (53.4). Kyiv is 8th with 20.7 points. The survey counted how many new companies were founded, how many people worked in the creative industries, how many national patents there were and how much cities spent on research and development. Budapest is a real boom town for new companies: nearly 25,000 were founded here in 2007, putting the city ahead of Prague and Bucharest, with 18 startups per 1,000 residents, compared with 13 and 12. But the Hungarian capital also has the highest proportion of people working in creative occupations like architecture, the media, design, music and the creative arts. In terms of national patents, Moscow tops the list, while Ljubljana leads on R&D spend.
Internationalism
Vienna scores a grand slam here, with a maximum 100 points, followed by Prague in second place, with 36.2, and Ljubljana and Bratislava jointly holding third, with 23.8 eachm while Kyiv is the least international city. The survey looked at how many international headquarters the capitals had, how many foreign students, how many foreigners per capita and how many mixed-nationality marriages. Forty-one major international groups are based in Vienna, most of them managing their activities in Central and Eastern Europe from here. Thirty-three have their headquarters in Moscow, putting it in second place. In terms of total population, the picture changes completely: Vienna is still in first place, but now followed by Ljubljana and Warsaw. In numbers of foreign students, Vienna leads with 22%, ahead of Prague (10%) and Moscow (7%). The Austrian capital also has far more foreign residents and mixed-nationality marriages than anywhere else.
Living standards
In terms of living standards, Vienna comes out ahead again, with 90.8 points, followed by Prague with 78.4 and Ljubljana with 63.6. Kyiv is 7th with 49.0 points. This is based on UBS's Big Mac index, average rent per apartment, the Mercer Safety Index and the proportion of green spaces and recreational areas. In Vienna, a worker needs to work 16 minutes on average to buy a Big Mac, putting it ahead of Moscow (25 minutes) and Ljubljana (35). In terms of monthly rental, Ljubljana is ahead of Vienna and Prague. Vienna is the safest city in the region, followed by Ljubljana and Prague. The greenest city in Central and Eastern Europe is Kyiv, ahead of Prague and Vienna.
Culture & tourism
Prague wins on culture: the Czech capital scored 88.8 points, with Vienna second, with 70.7 and Moscow third, with 48.5. Kyiv is 7th again (14.6). The survey looked at how many concerts there were by international rock bands and pop stars, how many theaters and museums the cities has and how many tourists visit. In international rock concerts, Vienna came ahead of Prague, with Budapest and Bratislava a joint third. In theaters, Moscow is ahead of Prague and Vienna, with 93; in museums, Budapest beats Prague and Vienna. In terms of visitor hotel bookings per capita, Prague is in first place, followed by Vienna and Budapest.
What about Kyiv?
Kyiv came out 9th of ten Central and Eastern European cities analyzed. The Ukrainian capital led the field on only one count: It has the largest percentage of open spaces relative to the size of the city. "Kyiv is the greenest city in CEE, but there is a potential for improvement when it comes to other indicators", – says Olga Andrienko-Bentz, Senior project manager at Roland Berger's Kyiv office and one of the study's authors.
First, developing the transport infrastructure should be done both in the city itself (roads, engineering/environmental issues, public transport system) and in the wider region (Kyiv's airport as the main gateway to Ukraine). It would make traveling to and around the city easier and faster, protect the environment and improve the quality of life.
Another important element of city attraction is creating a customer service culture, which is needed primarily in hotels and restaurants, but also in shops, etc., to bring Kyiv more into line with international standards and cultivate a customer-friendly atmosphere throughout the whole city. Also, museums, parks, theaters, sports facilities and recreational centers are all in need of attention and modernization.
To develop successfully, eliminating bureaucratic red tape is necessary on all levels – in the city council and in all public and governmental institutions – to streamline official procedures both for businesses and private individuals.
The last, but not the least, raising a positive awareness of Kyiv is another important factor. A local and international focused long-term communication policy should position Kyiv as an attractive place to live, work and do business.
"Twenty years since the Iron Curtain came down, the capitals of Central and Eastern Europe have been catching up massively. With this study, we aim to show how attractive these cities actually are, internationally speaking," explains Dr. Uwe Kumm, Managing Partner in CIS and Head of the Kyiv office. Vienna came out on top, as expected, but the others are catching up. "Central and Eastern European cities are already ahead on two out of six aspects. But the smaller capitals in the region must establish themselves internationally and sharpen their profile," the expert says.
Infrastructure
When it comes to infrastructure, Vienna (82.1 points) is out in front, ahead of Prague (61.2) and Budapest (45.7), while Kyiv brings up the rear. This is based on how many direct flights a city has, how big the public transport system is, how much magnetic resonance equipment it has per capita and how many households have broadband. When it comes to flight connections, Moscow Domodedovo leads with 222 destinations, ahead of Vienna Schwechat and Prague Ruzyně. Kyiv Boryspil is sixth with 85 destinations. In public transport, Prague is top, followed by Budapest and Bratislava. Vienna has the best medical infrastructure, followed by Bratislava and Ljubljana. The Austrian capital also comes out on top in broadband penetration: 61% of Viennese households had fixed network broadband in 2008, with Ljubljana (51%) and Moscow (50%) second and third. The lowest broadband penetration is in Kyiv.
Education
In education, again, the same cities are in top-3 – Vienna (77.5), Prague (64.5) and Budapest (62.2) – while Kyiv is 7th (39.8) measured by the number of pupils/students per teacher, what proportion of the population has completed secondary/tertiary education and how many of the top 500 universities they have. The smallest class sizes are found in Vienna. Prague leads, ahead of Bratislava and Vienna in terms of secondary school graduates (ISCED 3-4a). Bucharest has more university graduates (ISCED 4c-5b) than anywhere else in the region, at 31%, followed by Moscow, Budapest and Kyiv. In terms of universities, Prague, Warsaw and Vienna have two of the top 500 in the QS World University Rankings each, Budapest, Ljubljana and Moscow one.
Innovation
Ljubljana leads in innovation, with 71.4 points, followed by Budapest (69.1) and Prague (53.4). Kyiv is 8th with 20.7 points. The survey counted how many new companies were founded, how many people worked in the creative industries, how many national patents there were and how much cities spent on research and development. Budapest is a real boom town for new companies: nearly 25,000 were founded here in 2007, putting the city ahead of Prague and Bucharest, with 18 startups per 1,000 residents, compared with 13 and 12. But the Hungarian capital also has the highest proportion of people working in creative occupations like architecture, the media, design, music and the creative arts. In terms of national patents, Moscow tops the list, while Ljubljana leads on R&D spend.
Internationalism
Vienna scores a grand slam here, with a maximum 100 points, followed by Prague in second place, with 36.2, and Ljubljana and Bratislava jointly holding third, with 23.8 eachm while Kyiv is the least international city. The survey looked at how many international headquarters the capitals had, how many foreign students, how many foreigners per capita and how many mixed-nationality marriages. Forty-one major international groups are based in Vienna, most of them managing their activities in Central and Eastern Europe from here. Thirty-three have their headquarters in Moscow, putting it in second place. In terms of total population, the picture changes completely: Vienna is still in first place, but now followed by Ljubljana and Warsaw. In numbers of foreign students, Vienna leads with 22%, ahead of Prague (10%) and Moscow (7%). The Austrian capital also has far more foreign residents and mixed-nationality marriages than anywhere else.
Living standards
In terms of living standards, Vienna comes out ahead again, with 90.8 points, followed by Prague with 78.4 and Ljubljana with 63.6. Kyiv is 7th with 49.0 points. This is based on UBS's Big Mac index, average rent per apartment, the Mercer Safety Index and the proportion of green spaces and recreational areas. In Vienna, a worker needs to work 16 minutes on average to buy a Big Mac, putting it ahead of Moscow (25 minutes) and Ljubljana (35). In terms of monthly rental, Ljubljana is ahead of Vienna and Prague. Vienna is the safest city in the region, followed by Ljubljana and Prague. The greenest city in Central and Eastern Europe is Kyiv, ahead of Prague and Vienna.
Culture & tourism
Prague wins on culture: the Czech capital scored 88.8 points, with Vienna second, with 70.7 and Moscow third, with 48.5. Kyiv is 7th again (14.6). The survey looked at how many concerts there were by international rock bands and pop stars, how many theaters and museums the cities has and how many tourists visit. In international rock concerts, Vienna came ahead of Prague, with Budapest and Bratislava a joint third. In theaters, Moscow is ahead of Prague and Vienna, with 93; in museums, Budapest beats Prague and Vienna. In terms of visitor hotel bookings per capita, Prague is in first place, followed by Vienna and Budapest.
What about Kyiv?
Kyiv came out 9th of ten Central and Eastern European cities analyzed. The Ukrainian capital led the field on only one count: It has the largest percentage of open spaces relative to the size of the city. "Kyiv is the greenest city in CEE, but there is a potential for improvement when it comes to other indicators", – says Olga Andrienko-Bentz, Senior project manager at Roland Berger's Kyiv office and one of the study's authors.
First, developing the transport infrastructure should be done both in the city itself (roads, engineering/environmental issues, public transport system) and in the wider region (Kyiv's airport as the main gateway to Ukraine). It would make traveling to and around the city easier and faster, protect the environment and improve the quality of life.
Another important element of city attraction is creating a customer service culture, which is needed primarily in hotels and restaurants, but also in shops, etc., to bring Kyiv more into line with international standards and cultivate a customer-friendly atmosphere throughout the whole city. Also, museums, parks, theaters, sports facilities and recreational centers are all in need of attention and modernization.
To develop successfully, eliminating bureaucratic red tape is necessary on all levels – in the city council and in all public and governmental institutions – to streamline official procedures both for businesses and private individuals.
The last, but not the least, raising a positive awareness of Kyiv is another important factor. A local and international focused long-term communication policy should position Kyiv as an attractive place to live, work and do business.
