1

Capturing Opportunities for Innovation in Asia’s Metropolitan RegionsEdward LemanPresident, Chreod Ltd.27 March 2013

Share of World’s Gross Domestic Product (2012, 2030)

22.5

16.5

17.8

6.8

1.6

4.2

1.9

17.8

11.7

27.9

11.1

0.0 5.0 10.0 15.0 20.0 25.0 30.0

Canada

France

Germany

J apan

Korea

United Kingdom

United States

Euro area (15…

Brazil

China

India

Indonesia

Russian Federation

% of World's GDP 2030 2012

Source: OECD (2013)

India’s and China’s GDP will more than quadruple by 2030

47.9

48.4

26.0

25.1

60.8

45.9

55.8

40.6

106.7

208.3

220.7

150.5

73.9

0.0 50.0 100.0 150.0 200.0 250.0

Canada

France

Germany

J apan

Korea

United Kingdom

United States

Euro area (15 countries)

Brazil

China

India

Indonesia

Russian Federation

% change in GDP, 2012-2030

Source: OECD (2013)

4Asia’s economic growth will not happen in the countryside…

5Cities will be where Asian economies grow…

6Urbanizing Asia, 2012

7Asia’s Metropolitan Regions (> 1 mn), 2010

182 of World’s 454 metropolitan

regions are in Asia (41%)

Source: Chreod Global Metropolitan Database

Population of Asia’s Metropolitan Regions

Source: Chreod Global Metropolitan Database

World’s Most Populous Metropolitan Regions, 2010

0 10 20 30 40

TokyoSeoul

ShanghaiMumbai

Sao PauloMexico City

New York-NewarkBeijing

DelhiHongkong-Shenzhen

KolkotaDhaka

Guangzhou-FoshanChengdu

Buenos AiresKarachi

Los Angeles-Long Beach-Santa AnaChangsha

CairoLondon

Rio de J aneiroChongqing

IstanbulMetro ManilaOsaka-Kobe

WuhanParisXian

J akarta (DKI)Lagos

MoscowHangzhou

NanjingShantouXiamenChicago

ShenyangKinshasa

J inanTianjinHefei

ShijiazhuangDongguan

LimaSanta Fé de Bogotá

TehranChangchun

Fuzhou, FujianBangalore

Ho Chi Minh City

population millions

35 of the world’s largest metropolitan regions are in Asia; 21 are in China

Source: Chreod Global Metropolitan Database

10Shanghai Pudong

1988

2012

Not IF but HOW to engage with Asia’s metropolitan regions

Canada’s engagement must be demand driven…and go beyond oil, gas and minerals. We need to better understand market demands.

What is needed?• lots of sustainable

infrastructure• lots of sustainable

buildings• huge mobility (transport)

improvements within and between cities

• lots of investment• innovative financing

Growing middle class demanding:• better environmental

quality• safer cities (natural

disasters)• smarter cities (energy)• affordable cities.

Asia’s metropolitan regions need to be hugely innovative if they are to become environmentally, socially, and financially sustainable.

Canada’s innovators need to engage with Asian metropolitan regions:• companies• design professions • city governments• public agencies• universities.

Federal government should take on a coordinative and supportive role in Canada’s engagement with Asia’s metropolitan regions.

18

two parting ideason moving forward…

1. EDC and CPP Investment Board spearheading a $1 bn innovative urban investment fund to support Canadian innovators in Asia’s metropolitan regions

2. NRC, SSHRC, IDRC, companies to capitalize a $100 mn Urban Innovation Fund to support commercial and academic R+D on sustainable development of Asia’s metropolitan regions.

Sorry I couldn’t make it to today’s session. Best wishes from Beijing for a productive discussion!

Edward Leman