esade mba city monitor 2015

1

MBA CITY MONITOR

Ivan BofarullDirector, Global Intelligence

Barcelona, Oct 2015

2

Aknowledgment

• I want to thankDr. Xavier Mendoza (ESADE), who published“Business Schools and attracting talent to Barcelona” in 2008 (Paradigmesmagazines, issue #1, Dec.08).

• TheMBA City Monitor, although consideringa methodologywithsignificant variations, has been inspiredbyhis vision.

3

Sources of data

• Financial Times MBA rankings 2013, 2014, 2015• Bloomberg Business Week MBA rankings, 2014• Financial Times ranking of “top MBA programs for entrepreneurship”, 2015• Economist Intelligence Unit (EIU) “Hotspots 2025” city report, 2013• Global Talent Risk report, Boston Consulting Group (BCG)and World Economic Forum, 2011

• The 4 global forces … , McKinsey Global Institute (MGI), 2015• “The Second Machine Age”, E.Brynjfolsson & A.McAfee (MIT), 2014• “The Economic case for welcoming immigrant entrepreneurs”, KauffmanFoundation, 2015

• Google maps• LinkedIn

4

Cities, talent attraction&

MBAs

5

Cities and talent attraction

• “The global talent risk is growing. Soon staggering talent gaps will appearin large parts of theworld threateningeconomicgrowth. Economieswillstruggle”. (BCG)

• “The roots of talent scarcity in theWestern hemisphere are no mystery: populations are ageing rapidly and educational standards are insufficient.” (BCG)

• We will see competition for talent on an unprecedented scale. Human capital is replacing financial capital as the engine of economic prosperity.” (BCG)

• On top of that, In the Second Machine Age, competition for highly-‐skilledtalentwill intensify (Brynjfolsson& McAfee, MIT)

• “The US will need to add 25 million+ workers to its talent base by 2030 tosustain economicgrowth. Western Europe: 45 million+.” (BCG)

6

Cities and talent attraction

• 50%+ of the world’s population lives in cities, which generate 80% of theGDP worldwide. (EIU)

• Urbanization, a major disruptive force (McKinsey Global Institute)• Global hubs increasingly influential: decisionsmade from a city-‐

perspective (for instance, the case of the City of London, Hong Kong, Singapore,…) rather than a country or regional perspective. (EIU)

• New highly-‐skilled, creative, global class– Increasingly urban (Martin Prosperity Institute, U.Toronto)– increasinglymobile, which increases city’s competition for talent attraction and

retention. (BCG)

• As much as American cities capitalized talentmobility in thewake of theSecond WorldWar, a question looms today: which citieswill capitalize onthe global talentmobility flows after the Great Recession and the Dawn of the SecondMachine Age? (EIU)

7

The MBA City Monitor

• Is there any tool or actionable metric that we can provide for cities to measure their ability to attract global, highly skilled talent?

8

The MBA City Monitor

• Location & MBAs have a lot to do with eachother à Location is a major driver prospectivestudents consider before applying toMBA programs.

• MBA students & alumni are key for cities within a context of “global talent risk”*: top MBAs are a unique talent platform cities can tap for theireconomic growth.

• Why not predicting a city’s appeal for talent witha single metric?:

How many top international students are doing anMBA in your city at any time of the year?

9

The MBA City Monitor. Inputs.

When it comes to considerMBA students/alumnia talent platform for cities, we shouldmake two previous considerations:

• Sample “Curation”– MBAs have to be a reliable, “high-‐quality” source of talent for the city. We have taken

the Financial Times MBA ranking as a signal of this qualityà only programs ranked by FT have been considered as a base for our calculations.

• Size and network effects– Volume is relevant to produce network effects. An extra effort has been put in the

calculations to include not only MBAs within specific city limits but in a metro area and beyond ,as long as the city is within a 2 hr. driving distance.

10

The MBA City Monitor. Inputs

Definition of the universe and methodology for the purpose of the MBA City Monitor:

Criteria that have to do with “sample curation”• TheMBA programhas been ranked by the Financial Times in at least one

of the last three editions of theMBA ranking• Full Time general management program (not part time, evening,

specialized, and other variations)• International students (internationalmobility presumes a higher level of

commitmentwith a specific destination)

11

The MBA City Monitor. Inputs

Definition of the universe and methodology for the purpose of the MBA City Monitor:

Criteria that have to do with “size / network effects”• Enrollments, not intakes (BloombergBusiness Week school profiles)

– Intakes would over-‐represent cities with one-‐Year MBA programs.

• Urban areas, not strictly city limits (for instance: Oxford and Cambridge add to London)– Max. 2h driving distance according to Google Maps (without traffic)

12

The MBA City Monitor. Outputs

• City ranking by total international enrolled students• City ranking by total international enrolled students (per 1 million citizens)

– When it comes to enrollments per 1M people, only cities/metro areas larger than 1Mhave been considered

• Country ranking by total internationalenrolledstudents

13

The rankings

14

The Top 10 CitiesBy international enrollment

15

#10. Raleigh-Durham, NC

International enrollment: 630Total enrollment: 1,454

International enrollment per 1M: 370

-2

16

#9. Singapore

International enrollment: 677Total enrollment: 742


=

17

#8. Barcelona



*BCN has dropped 3 spots in the ranking because Eada, one of the top three b-schools in the city, has not been ranked among the top100 by the FT in the last 3 years

-3

18

#7. San Francisco –San Jose



+3

19

#6. Toronto



+1

20

#5. Paris



+1

21

#4. London



-1

22

#3. Chicago

International enrollment: 1,124Total enrollment: 2,661


+1

23

#2. New York



=

24

#1. Boston



=

25

Rank City International MBA enrollment

1 Boston 1637

2 NY 1167

3 Chicago 1124

4 Toronto 808

5 SF / Silicon Valley 804

6 Raleigh-‐Durham, NC 630

7 Philadelphia 572

The top in North America

*Only urban areas with:- 500+ intl’ MBA students

26


1 London 938

2 Paris 860

3 Barcelona 771

4 Madrid 531

The top in Europe

*Only urban areas with:- 500+ intl’ MBA students

27

The Top 10 CitiesBy international enrollment

per 1M population

28


Int’ enrollmentper 1M

1 Boston 1637 363

2 Raleigh-‐Durham, NC 630 315

3 Toronto 808 145

4 Barcelona 771 143

5 Singapore 677 128

6 SF-‐Silicon Valley 804 125

7 Chicago 1124 117

8 Philadelphia 572 95

9 Paris 860 83

9= Madrid 531 83

The top 10 citiesby international

enrollment per 1M*

*Only urban areas with:- 1M+ pop.- 500+ intl’ MBA students

29

Rank City International MBA enrollment x 1M

1 Boston 363

2 Raleigh-‐Durham, NC 315

3 Toronto 145

4 SF / Silicon Valley 125

5 Chicago 117

The top in North America (x 1M)


30

Rank City International MBA enrollment x 1M

1 Barcelona 143

2 Paris 83

2= Madrid 83

4 London 63

The top in Europe(x 1M)


31

Top countries

32

Rank Country International MBA enrollment

1 US 10,202

2 UK 1,400

3 Canada 1,211

4 Spain 1,003

5 France 887

6 Singapore 677

7 China 527

Top countries

33

Takeaways

• The US is still the dominant country in theworld when it comes toattractinga global top-‐notchMBA population (close to 60% of total).

• In particular, the East Coast attracts 1/3 of the global top MBA population, and the Ivy League corridor accounts for almost 20%!

• However, the San Francisco -‐ Silicon Valley area has experienced thehighest growth in the last 3 years. A plausible explanation is thatMBAsincreasingly considerworking in start-‐ups a main career option.

• Outside of the US, theUK, Canada, Spain and France are the leadingcountries, while Toronto, London, Paris and Barcelona/Madrid their keyhub cities.

• Emerging hubs in Asia still struggle to have a relevant population of thistype of international students (in this program format).

• For both cities and countries, the global MBA population in top programs, should be one of the targets of specific policy initiatives that help to address the “talent risk” in the decades to come (see Appendix)

34

Appendix (1)

• In 2015, Kauffman Foundation released a major research on the impact of immigrants into theAmerican entrepreneurial ecosystem:– 24 out of the top 50 venture-‐backed startups had at least a foreign-‐born co-‐founder– 40% out of the Fortune 500 founders were foreign-‐born or son/daughter of immigrant.

• MBAs are not a majority amongco-‐founders (Inc. Magazine) but are instrumental in making start-‐ups successful (hired for management team).– In top MBA programs, between 80% and 100% of startups are still operating three years

after (Financial Times “top MBA programs for entrepreneurship”).

• In Barcelona:– 40% out of Wired Magazine’s hottest startups (2014) have a foreign-‐born founder.– 10% of top MBAs start up new businesses.– 80%+ are foreign-‐born.– 80%+ are still operating after three years.

35

Appendix (2)

• International students in top MBA programs can be instrumental in theconfigurationof a healthy and robust entrepreneurialecosystem.– Foreign-‐born citizens seem to have incentives to give the “extra mile” when it comes to

entrepreneurship or simply put, are more creative because of the “out-‐of-‐the-‐comfort-‐zone” context where they develop.

– Top MBA students have specific abilities instrumental for the success of startups and forentrepreneurial ecosystems to thrive.

– Local governments should address specific policies to tap into this talent base and facilitate this virtuous cycle to happen.

36

@ivanbofarull

esade mba city monitor 2015

Education