Smart Cities as Innovation Ecosystems Sustained by the Future Internet

Living Labs Summer School 2012, Helsinki

Hans SchaffersVisiting professor Aalto University School of Business, CKIR

ESoCE NetScientific Coordinator of FIREBALL

www.fireball4smartcities.eu

FIREBALL White Paper May 2012Download from www.fireball4smartcities.eu

www.esoce.netwww.urenio.orgwww.ami-communities.eu

The “Smart City” concept

We often consider – based on rankings - the Smart City as a reality

Smart City: not a reality but an urban development strategy, and a mostly technology driven future vision

Smart City is about how citizens are shaping the city, and how citizens are empowered to contribute to urban development

Smart City is an urban laboratory, an urban “innovation ecology”, an accelerator and agent of change

We are witnessing promising developments towards smarter cities

What is the DNA of the Smart City?

The FIREBALL Project

Cities increasingly transform into what can be called “urban innovation ecosystems“

Cities start experimenting the opportunities of the (Future) Internet through “living labs” approaches for engaging end-users in the innovation process

FIREBALL aims to bring together Cities, Living Labs and Future Internet stakeholders to explore models and practices of how open innovation and user participation supports the experimentation and uptake of the Future Internet

FIREBALL Results

Smart city vision, landscape

Cases of “smart(er) cities”

Smart city Future Internet - enabled “innovation ecosystems”

Smart Cities roadmap and cities action plans

Community building ,creation of a Connected Smart Cities network

Portal and web 2.0 tools

Barcelona smart city developmentLeading role of City Hall

• Cibernarium• Citilab Cornella

• Municipal Police• New incidents tools• Intel environments

• 22@net• Barc activa• Tech park• Urban Lab• Strategic plan

• Kiosks• Internal gov• Open data• 3D projects SMART

GOVERNANCE

SMART ECONOMY

SMART PEOPLE

SMART LIVING

Smart city model: Three pillarsUbiquitous infrastructuresInformation from sensors, open data, and citizensHuman capital, actors, communities

Smart city StrategySmart Districts: 22@Barcelona; triple helix collaborationsLiving Lab initiatives: 22@Urban Lab, Live, Bdigital, i2Cat, Fablab, CornellaInfrastructure building: traditional and new. Integration of ICT. From fibre optic to Wi-Fi.New services to citizens: gov, quality of life, professionalOpen data: sensors, open standard, and city platform

SC ManagementCreation of networks of actors, organisations, departmentsBroadband network and sensor data managementCreation of proof of concepts for systems and applications

ChallengesDemand for human capital and skillsVC funding for innovationLow global connectivityDevelopment of triple helix alliancesCollaboration between government departments

Thessaloniki smart city development ICT transforming city activities and ecosystems

Broadband networksby large companies

ADSL: 24/1 MbFibre optic net: 2,5 Gb3G-HSDPA: 42 MbWireless: free (municipal nets)

Apps and e-services: Bottom-up initiatives

City representation City sectorsCity districtsCitizens. Aggregation / collective content City administration and social servicesLocation-based servicesCity infrastructure and utilitiesCity management

Planning for Smart districtDevelopment of wired and wireless networksFree Internet to users and business. Smart environments based on sensors e-services suitable for the community of each district Training services for involvement of end-users

Governance challenges: Three gaps to address(1)Digital skills gap - TRAINING(2)Creativity gap – LIVING LABS(3)Entrepreneurship gap – BUSINESS MODELS

Manchester smart city developmentDigital strategies and smart environments for urban renewal

Urban regenerationSince mid-1980s the City Council embarked on city regeneration

Drive economic change through technology

Focus on neighborhood focused action, creative city, and innovationIn 1990s Manchester telematics Partnership Currently, e-services to address inequalities and digital democracy Balance of top-down and bottom-up actions

Digital StrategyStarted in 2008 and review

in 2011 with respect to EU Digital Agenda and consulting with local stakeholders. Main objectives:Digital inclusion, generate skills and tackle the dividesDigital industries, new employment, cluster of digital and creative businessesDigital innovation: working with the future Internet research community to support Manchester as Smart City

Toward Smart CityFlagship initiatives

East Manchester: a regeneration challengeEastserve: first Living LabCorridor Living lab NGA projectNext generation open access fibre optic network

Principles for Smart CitiesNeighbourhood regeneration as starting point for a smart cityDigital collaborations through Living LabsPutting people at the heart of the agendaAn inclusive and sustainable approach to digital development Exemplar projects

Helsinki smart city developmentLiving Labs and new clusters for smart city strategy

A Porterian cluster in mobile technology is emerging in Helsinki. Clustering strengthens motivation, incentives, innovation, and enables externalities .The mobile applications cluster is sustaining Helsinki ‘s Smart City strategy

Factor conditions: Broadband, telecoms, NOKIA, skilled workforce, start-ups

Demand conditions: Government demand, banking , transportation, etc

Firm strategy: Companies within SMOPEC, global markets, intense local competition

Supporting industries:Broadband infrastructure, 3G nets, specialized service providers

Competitions for Open Data apps as strategy for cluster development

The Helsinki Regions made available public transportation data

Apps4Finland makes data available related to environment and spatial information

Competitions and Living Labs as drivers for the M-cluster development

Empowerment Examples Thessaloniki: emergence of

developer communities: e-services and applications e.g. mobility services

Oulu: PATIO (test user community tool): empower ordinary people to experiment new services

Manchester: Digital City Test-Bed (as a vision)

Barcelona: 22@Urban Lab: city as urban lab, pilot programs, use of public spaces, e.g. Open data

Helsinki: competitions for innovative applications e.g. Apps4Finland; Innovative City program; Open Data business development initiatives

Smart citizens and Open Data – Helsinki examples

Smart city – service organisation in an innovative environment

Exploiting available information

Idea incubators use city data – Apps4Finland competition

Open interfaces are an important step in the development of the City’s systems

Tell-on-the-Map – map-based Commentary tool, enabling a dialogue between citizens and city

Apps4Finland competition – Helsinki Public Transport Visualised

Service Map: open information channel about offices and services

Smart city strategies implementation prospects and bottlenecks: SWOT

Strengths Opportunities

• Cultural heritage, attractiveness • Development strategies, planning• Broadband network deployment• Major development initiatives

• Competitiveness of local clusters• Exploiting service innovation opportunities towards new business• Opportunities for local ICT sectors and entrepreneurship• Introducing participatory city planning

Weaknesses Threats

• Top down orientation to planning• Lacking attention to concrete needs of citizens and SMEs• Digital gaps• Lacking orientation on entrepreneurship• Weak policy and funding instruments• Impact and benefits measurement

• Economic crisis, lack of resources• Vulnerable business models for sustainability of public sector initiatives• Low level of private investment in R&D and innovation• Weak institutional environments for technology and innovation

Comparing the smart(er) city cases

Helsinki Thessaloniki Manchester Oulu Barcelona

Concept Smart City cluster, Mobile

Intelligent Cities Urban regeneration

City of Innovation

Social and urban growth

Strategies Knowledge intensive cluster building

Building smart districtsAgglomeration of Apps

Tackling skills and dividesPro-active approach

TechnologyUbiquitous Oulu

Smart districts, Urban Living Lab

Drivers Strengthen the region

ICT and infrastructure deployment

Economic development

Policy and strategies of Oulu

Policies of city hall; triple helix

Challenges Human capital base

Digital skills gapsCreativity gapEntrepreneurship gap

Common digital agenda

Adapt policy instruments to create business

Enhancing collaboration; human capital / skills, funding

Innovation ecosystem

Public private partnershipsCompetition for innovation

Innovation clustersTechnology districts

Living labs and local action

Strong PPP programmes, triple helix, urban lab

City hall leadership; Triple Helix models

Smart Cities cases - lessons learned Smart city is more an urban strategy than an urban reality. Smart cities will

appear through numerous bottom-up initiatives besides some strategic planning, and infrastructure development.

Top-down planning and bottom-up initiatives should complement each other. City hall is sometimes dominant. Dilemmas of citizen engagement.

Widespread use of pilots is preparing cities for initiative, experiment and learning

Districts, neighborhoods, and clusters are fundamental elements of smart city strategy, because the city is a system of systems, and cities co-exist within cities.

A smart city strategy involves all actors, organizations, communities, R&D, NGOs, clusters, and authorities. The partnership strategy should achieve a common vision, flagship projects, collaboration and synergy.

Major challenges for successful smart city strategies deal with skills, creativities, user-driven innovation, entrepreneurship, VC funding, and management of intra-government rivalries.

Lack of evidence on impact and effectiveness of smart city strategies.

Smart city innovation ecosystems enabled by “common assets”

Future Internet testbeds as technology platforms

Smart cities: policies, application pull, public data, citizens initiatives

Living lab: User-driven playground for co-creating and validating innovative scenarios and services

Examples of evolving smart city “innovation ecosystems”

Bretagne: ImaginLab testbed explores advanced applications in living lab setting, offering wide range of services, enabled by advanced infrastructure, based on partnership business model

Oulu: Octopus network, Innovation Kitchen, Open Web Lab, LearnLab, Ubiquitous Oulu and many more

Barcelona: a diverse set of network infrastructures, facilities, initiatives (22@UrbanLab), living labs, projects, planning activities, partnerships

Manchester: advanced infrastructure of open access fibre to premises; support creation of ; co-ownership approaches

ImaginLab

Manchester

Simple models for concurrent use of testbed and living labs facilities

Challenges for next years

Networks of Future Internet testbed facilities and living labs within and across smart cities and regions may become the backbone of European innovation ecologies and value networks – Horizon 2020

Capabilities and resources, including experiment facilities , user oriented methodologies, service offerings and collaboration models enabling access and use of facilities and services should evolve

Smart Cities are environments to experiment technologies and applications, however the potential for business creation and entrepreneurship should be stimulated (e.g. DAIR, Canada)

Open innovation and citizen empowerment requires finding new balances between top-down steering and bottom-up initiative

Assessment of the impact and benefits of “smarter cities” in terms of value created for citizens. There is a lack of evidence showing impact, how can we achieve and measure the impact and value added of smart city initiatives?

White PaperDownload from www.fireball4smartcities.eu

Special Issue on Smart Applications for Smart Cities: New Approaches to Innovation

Journal of Theoretical and Applied Electronic Commerce Research

Guest Editors: Hans Schaffers, Carlo Ratti and Nicos Komninos

Publishing date: December 2012Information: www.jtaer.com

Research challenges Smart Cities, Living Labs, Innovation, Urban development

From PR, hype and buzz to facts and observations, critical analysis, case study research, theories end methods grounded in empirical research

Some of the key research topics: Innovation studies: how does it work, how can we explain successes

and failures Effectiveness of urban development strategies or interventions Comparative research into different approaches to become smarter

cities Action research approaches, socio-technical systems change

perspectives Design and engineering practice studies in living lab contexts