The European-wide and Worldwide Smart Cities Initiatives:

Should Philippines Cities Join the Bandwagon?

Alejandro P. Melchor III

Deputy Executive Director for ICT Industry Development

Information and Communications Technology Office

Department of Science & Technology

INTRODUCTION

Smart Cities is the hottest trend in technology today. Smart Cities

is Europe’s strategy for a flourishing Digital Economy by 2020. For China, Smart Cities has become a premier economic development and poverty alleviation strategy. Entire countries are branding themselves as “Smart.”

In order to help Philippine cities decide whether to join the worldwide Smart Cities bandwagon, we present a case study on Barcelona’s Smart City strategy, as well as its results. We elaborate Europe’s Smart City Benchmarking System.

The Philippines is widely viewed as having one of the brightest economic prospects in the world. A Philippine Smart Cities (or Smarter Cities) Initiative would enable the country to truly take off.

Agenda I. The European-wide and Worldwide Smart

Cities Initiatives

II. Case Study: Barcelona’s Smart City Strategy

III. Results of Barcelona’s Smart City Strategy

IV. The European Smart City Benchmarking System

V. What is a Smart City?

VI. Should Philippines Cities join the Worldwide Smart Cities/ Smarter Cities Bandwagon?

I. The European-wide and Worldwide Smart Cities Initiatives

The European-wide Smart Cities Initiative: The Digital Agenda of the European Commission promotes Smart Cities

as Europe’s strategy for a flourishing Digital Economy by 2020

http://www.smartcities.info/europe-presents-digital-agenda

The European-wide Smart Cities Initiative: The European Commission launched the Smart Cities and

Communities Initiative (SCC) on July 10, 2012

• 81M Euros in 2012 and 365M Euros in 2013 budgeted to develop smart

technologies for the sustainable development of European cities, in the areas

of energy, transport and ICT.

Website of the European Commission’s Smart Cities and Communities

Stakeholder Platform: http://eu-smartcities.eu/

India plans to spend $130 Billion developing 7 Smart Cities along the Delhi-Mumbai Industrial Corridor

http://articles.timesofindia.indiatimes.com/2011-01-

15/india/28364347_1_delhi-mumbai-industrial-corridor-

dmic-development-corporation-industrial-hubs

http://www.2degreesnetwork.com/groups/smart-

cities/resources/india-spend-130-billion-creating-

smart-cities_2/

• The Indian initiative is 80% PPP. In

Smart City initiatives worldwide, the

private sector are full partners and co-

investors with the public sector.

For China, Smart Cities has become a premier economic development and anti-poverty strategy

• Poverty is largely a rural phenomenon.

• Smart Cities become giant urban employment hubs, attracting rural workers to the cities. They get jobs and lift themselves out of poverty.

• As of March, China was reported to have at least 54 Smart Cities projects totaling $153 Billion (RMB 1 trillion)

https://portal.luxresearchinc.com/research/report_

excerpt/10069

Many leading US cities have adopted Smart City strategies…

http://econewsnetwork.org/2012/03/top-ten-united-states-smart-cities/

…including Boston, San Diego, Seattle, Chicago, Washington, D.C., San Francisco and New York City…

United Nations Global Compact Cities Programme Cities may sign a compact with the UN to become a Smart City/

Innovative City in a specific area, and network with other members

http://www.unglobalcompact.org/HowToPar

ticipate/cities.html

• Highest city

authority sends a

letter to UN making a

formal commitment

• “Innovative City” is

highest of 3 levels of

commitment

• Commits to multi-

year program to

address seemingly

intractable problems

• Receives technical

assistance from UN

Secretariat and

shares best practices

with other members

Berlin committed to UN to become an Innovative City for Healthcare

http://metropolis.org/sites/default/files/meetings/1st-

commission-2-meeting-new-delhi-3-5-

december/presentation_un_global_compact.pdf

More and more countries are investing in master-planning Smart Cities from ground up

Putrajaya, Malaysia New Songdo City, South

Korea

King Abdullah Economic City,

Saudi Arabia

Wuxi Huishan, China Dubai Central, UAR Living PlanIT Valley, Portugal

Entire countries are now branding themselves as “Smart” or “Intelligent”

Singapore’s Intelligent Nation 2015

Malta: The Smart Island National IT Strategy

Armenia is projecting itself as a “Smart

Country for Smart People,” and Armenians

as world-class knowledge workers.

The “Smart City” as a brand is an investment magnet The Smart City/ Smarter City brand magnetizes private sector co-investment

http://www.smartplanet.com/blog/smart-takes/-8216smart-city-tech-investment-to-

total-108-billion-by-2020/19541

In response to Singapore’s iN2015

Masterplan, tech giant IBM announced

a $38M investment in an Asia Pacific

cloud computing data center

http://www.asiacloudforum.com/content/ibm-builds-

us38m-cloud-computing-data-center-singapore

II. Case Study: Barcelona’s Smart City Strategy

Barcelona’s Metropolitan Area

1860-1960: Barcelona, an Industrial Powerhouse

1960-1990: Barcelona in Obsolescence and Deterioration

Today: Barcelona, the Smart, Innovative City

Smart Cities have 6 main dimensions

(also called axes or characteristics),

which work together to produce a

holistic synergy.

Barcelona focused mainly on 4

dimensions to build its Smart City

strategy, action plans and programs.

The idea is to attain excellence in all

chosen dimensions.

Underpinnings of Barcelona’s Smart City Strategy: Selecting the focus areas for the Smart City Strategy

Underpinnings of Barcelona’s Smart City Strategy: Strong sponsorship from Barcelona’s Local Government Unit— Ajuntament de Barcelona, the City Council

http://w110.bcn.cat/portal/site/Ajuntament?lang=en_GB

Underpinnings of Barcelona’s Smart City Strategy: The Special Infrastructures Plan: the Backbone of a Smart City

Underpinnings of Barcelona’s Smart City Strategy: Investment in Human Capital and Social Capital

Autonomous University of Barcelona University of Barcelona Citilab—center for digital and social

innovation

Cibernarium—IT skills training by

Barcelona City Government

Barcelona Mobile World Capital Caixa Forum, Barcelona’s top social

and cultural center

Barcelona’s Smart People Strategy: Citilab—center for social and digital innovation

• A mix between a training

center, research center, and

incubator for social innovation.

• Based on the concept that

digital technologies enhance

citizen innovativeness and

entrepreneurship.

Social Media Lab Musiclab Robotics Tournament

http://citilab.eu/en

Barcelona’s Smart People Strategy: Cibernarium—IT Skills Training by the City Council

http://w144.bcn.cat/cibernarium/en/index.do

• training for

professional skills

acquisition

• wide variety of short

length activities (180)

• very practical, on

very specific topics

• publishes books,

video courses,

activity dossiers

• Holds conferences

aimed at IT diffusion

Barcelona Activa is the local

development agency of the City Council

Barcelona’s Smart People Strategy: Smart City Campus 22@

• A cluster of companies, universities,

entrepreneurs and R&D centers on

ICT, ecology and urban planning.

• Role is to educate, research,

develop and commercialize

technologies and solutions for Smart

Cities development.

• Located in

http://www.barcelonaeconomictriangle.cat/b/?p=3716&lang=en

Barcelona’s Smart Mobility Strategy:

Map of Barcelona’s Bicing stations Bicing- Barcelona’s bike sharing program

• Members may check out a bike from

one station and return it to another.

• Averts 9,000 tons of carbon pollution

per year.

• Lessens traffic congestion and

reduces traffic accidents.

• Healthier residents result in reduced

healthcare costs.

https://www.bicing.cat/

LIVE- Barcelona’s initiative to promote electric mobility within the city and to become a global innovation hub for electric vehicles

Barcelona’s Smart Mobility Strategy: http://w41.bcn.cat/web/guest;jsessionid=2A19E3E42918686FDDAC6DA4CB53CB87

http://www.bcn.cat/barcelonawifi/

en/

Barcelona’s Smart Mobility Strategy: Ubiquitous ICT Infrastructure: Internet, WiFi, Broadband Networks

Barcelona’s Smart Environment Strategy: Urban Green Spaces

Map of Barcelona’s parks and gardens

La Ciutadella, the “garden of Barcelona”—a 70-acre

park with boating lakes, museums, and the city zoo.

Park Guell Park Laberint

Parc de Cervantes Rose Garden Sagrera Linear Park

Barcelona’s Smart Environment Strategy: Sustainable electricity and water management

Solar energy. Solar Photovoltaic Canopy at the

Forum Esplanade, at the entrance of the new

Marina. This 4,500 square meter solar panel

produces 1,100 kwh. Barcelona has 36 solar

installations.

Green architecture. Barcelona’s new Flower Market

uses radiant heating and passive cooling to maintain

the temperature and humidity conditions required by

sensitive flowers.

Barcelona’s Smart Living Strategy: Tourism Hub

La Rambla

Barcelona Aquarium La Sagrada Familia Church

Picasso Museum

Magic Fountain of Montjuic

Barcelona’s Smart Living Strategy: Hi-Tech Policing (1)

The Police Eurocopter EC-225 can

carry 19 people and fly at speeds up

to 290 kph for quick and flexible

response and special operations.

Hi-tech policing Command Center

RadioConnect for integrated and

interoperable emergency management

Biometrics and Recognition

technologies

Crime Mapping Predictive Analytics

Website of Guardia Urbana, Barcelona’s Police Force:

http://w3.bcn.cat/XMLServeis/XMLHomeLinkPl/0,4022,241940448_242023090_3,00.html

Barcelona’s Smart Living Strategy: Hi-Tech Policing (2)

Mobile policing

Crime Data Warehouse and Data Mining Virtual Reality Police Training

Computer simulation training and preparedness

Barcelona’s Smart Economy Strategy: Smart Districts and Innovation Clusters

Barcelona’s Smart Economy Strategy:

http://www.22barcelona.com/index.php?option=com_frontpage&Itemid=83

Barcelona’s Smart Economy Strategy: Innovation Clusters: Media & ICT Cluster in

Barcelona’s Smart Economy Strategy: Barcelona Urban Lab: the City as a Test Lab

The city is made

available to

companies and

entrepreneurs with

innovative products to

test their products

and services in a real

world environment.

http://www.22barcelona.com/content/view/698/897/lang,en/

Barcelona’s Smart Government Strategy: ICT-Enabled Intelligent City Council for a Smart City

Website of Ajuntament de Barcelona, the City Council: http://www.bcn.cat/en/ihome.htm

Barcelona’s Smart Government Strategy: Municipal Network: High speed broadband links all municipal agencies

Barcelona identified high-

speed broadband as the

key technological

infrastructure to foster

economic development.

Website of Open DAI:

http://www.open-dai.eu/

Barcelona’s Smart Government Strategy: Open Data—public information accessible to all

http://w20.bcn.cat/opendata/default.aspx?lang=ANG

Open data is public sector

information that is made

available to everyone in

standard, open, digital

formats.

• Facilitates transparency;

• Provides an environment

for smart ideas;

• Enables the citizenry to

co-create improved public

services alongside the

government.

Barcelona’s Smart Government Strategy: An Open Sensor Network provides Open Data to all

• In a Knowledge Economy,

information is viewed as a

critical resource, the basis

of wealth creation.

• An Open Network of

sensors and actuators is

deployed city-wide.

• Analytics enables smart

decision-making.

• Information is accessible

for the citizens and public

and private institutions.

Barcelona’s Smart Government Strategy: iCity—Open Apps developed from Open Data

• The information gathered from

the Open Data Program is freely

shared with the private sector.

• Companies and entrepreneurs

are encouraged to create open

apps which will improve public

services.

• The Smart City system

provides a holistic framework for

e-Government to work in

partnership with the citizenry.

Sample open apps on local government solutions

developed for the Blackberry Smartphone:

http://uk.blackberry.com/business/industry/public-sector/

Barcelona’s Smart Government Strategy: Open Cities—Open Innovation in the Public Sector

• The public sector is not normally

geared for innovation, efficiency,

transparency, and successful Smart

City Management.

• Fiber Optic Networks, Open

Sensor Networks, Open Data,

Crowdsourcing, iCity, and Urban

Labs combine to create Open

Innovation in the Public Sector.

• This is the holistic environment

where e-Government works.

Open Cities Website:

http://www.opencities.net/node/13

http://www.urenio.org/wp-

content/uploads/2011/12/Barcelona_Smart_City_Tour.pdf

This 37-page booklet presents 14 key points of interest in

22@Barcelona, the city’s Innovation District. The booklet shows

why Barcelona is a Smarter Cities pioneer, leading in innovative

and sustainable initiatives for a better quality of life, which have

also made Barcelona into a top tourist destination.

III. Results of Barcelona’s Smart City Strategy

Results of Barcelona’s Smart City Strategy

Barcelona #1 in Quality of Life Barcelona #6 in Best cities to locate a business today

Cushman & Wakefield’s 2011 European Cities Monitor

Results of Barcelona’s Smart City Strategy: Barcelona: a Global Tourist Hub

World’s top urban tourist destination in 2003.

Europe’s #1 port of call for cruise liners.

The quality of life a Smart City creates is attractive not only to its residents, but to tourists.

Results of Barcelona’s Smart City Strategy: Job creation and economic growth

www.22barcelona.com/content/view/887/90/lang,en/

Results of Barcelona’s Smart City Strategy: Magnet for Knowledge Workers and the “Creative Class”

Knowledge workers and creative talents are attracted to Smart Cities, which offer a combination of employment opportunities and lifestyle.

http://acre.socsci.uva.nl/results/documents/wp5.2_barcelona.pdf

“The Creative Class lifestyle comes down to a passionate quest for experience…a creative life packed full of intense, high-quality multidimensional experiences…They like indigenous street-level culture—a teeming blend of cafes, sidewalk musicians, and small galleries and bistros, where it is hard to draw the line between participant and observer and between creativity and its creators.”

IV. The European Smart City Benchmarking System

The European Smart City Benchmarking System enables each city to assess its strengths and uncover systemic weaknesses hindering its growth. Undergoing the assessment then arms each city with strategic insight to create its Smart City Road Map, action plans and programs.

Smart Cities are measured based on

6 dimensions, 31 factors and 74 indicators http://smart-cities.org/model.html

The six dimensions (also called characteristics or axes)

The 6 dimensions of a Smart City and their Factors

Smart Economy: Factors & Indicators

Smart People: Factors & Indicators

Smart Governance: Factors & Indicators

Smart Mobility: Factors & Indicators

Smart Environment: Factors & Indicators

Smart Living: Factors & Indicators

http://smart-cities.eu/download/results_indicators.pdf

Ranking of 70 Medium-size European Smarter Cities http://smart-cities.org/ranking.html

Resources on the Smarter Cities Benchmarking System

http://smart-cities.org/download/smart_cities_final_report.pdf http://smart-cities.org/download/results_indicators.pdf

List of Factors and Indicators European SmartCities website

http://smart-cities.org/index2.html

Final Report on Ranking of European

Medium-sized Smart Cities

V. What is a Smart City?

New York City: rated #4 Smart City in Fast Company’s

The Top 10 Smart Cities on the Planet.

A developed urban area that creates sustainable

economic development and high quality of life by

excelling in multiple key areas; economy, mobility,

environment, people, living, and government. Excelling

in these key areas can be done so through strong

human capital, social capital, and/or ICT infrastructure.

- Business Dictionary

What is a Smart City?

Background: Vienna, rated #1 Smart City in Fast Company’s The Top 10 Smart Cities on the Planet. Vienna was the only city that finished in the top 10 in every category surveyed: innovation city (#5), regional green city (#4), quality of life (#1), and digital governance (#8). http://www.fastcoexist.com/1679127/the-top-10-smart-cities-on-the-planet

What is a Smart City?

A city can be defined as “smart” when investments in human and social capital and traditional (transport) and modern (ICT) communications infrastructure fuel sustainable economic development and a high quality of life, with wise management of natural resources, through participatory governance. - Wikipedia

Toronto, ranked the world’s #2 Smart City by Fast Company. Toronto is a member of the Clinton 40 megacities, which seek to transition to a low carbon economy. The private sector spearheaded the Smart Commute Toronto program. Toronto recently began using natural gas from landfills to power the city’s garbage trucks.

Smart cities use information and communication

technologies (ICT) to be more intelligent and efficient in

the use of resources, resulting in cost and energy

savings, improved service delivery and quality of life,

and reduced environmental footprint--all supporting

innovation and the low-carbon economy.

- Boyd Cohen, The Top 10 Smart Cities on the Planet, Fast Company

Paris, Fast Company’s #3-rated Smart City. Paris drew world acclaim for its successful bike sharing program, Velib. Recently, Paris launched a similar program for small Electric Vehicles, called Autolib.

What is a Smart City?

VI. Should Philippine Cities Join the Worldwide Smart Cities/ Smarter Cities Bandwagon?

Philippines has one of the brightest outlooks in the world

Highlights

Strongest performing stock

market in Asia, 2011

Booming real estate market

Positive GDP growth for 52

consecutive quarters since 1999

#1 in call centers, #2 in BPO

worldwide

Low inflation and interest rate

environment

Stable banking system

Philippines a net creditor to IMF

Positive GDP growth rate for 52

consecutive quarters since 1999

Nearly $80M Gross Int’l Reserves +

consumption based economy = resistance

to external shocks

Performance of IT-BPO Industry has helped open the eyes of the world to the Philippine value proposition

Source: Business Processing Association of the Philippines (BPAP)

101

163

236

300

372

442

525

643

0

100

200

300

400

500

600

700

2004 2005 2006 2007 2008 2009 2010 2011

$1.3

$2.2

$3.3

$4.9

$6.1

$7.1

$8.9

$11.0

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

2004 2005 2006 2007 2008 2009 2010 2011

Total Employees (000s) Annual Revenue (US$B)

Information Technology Investments are Booming A Smart Cities Initiative would boost IT investments further

Smart Cities is all about positioning for the Knowledge Economy…

A Smart City is Phase 1 of the city’s shift to a 21st century Knowledge Economy and Knowledge Society.

…All signs indicate the Philippines is “built for success” in the Global Knowledge Economy

Philippines: #2 globally after India in IT-BPO

Source: Aon Hewitt, 2011

Building Smart Systems will enable our cities to handle outsourced work in multiple global industries

The Smart City system provides a holistic, tested and proven framework to realize our aspirations as a nation

Booming tourism industry

$25B IT-BPO revenues by 2016

Transparent, effective, accountable

governance

Successful Filipino entrepreneurs

Globally competitive companies 21st century knowledge

workers

Decongest Metro Manila traffic

Safer cities & communities

Reduce poverty from 26% to 16% by 2016

Reduce vulnerability to climate

change

Mechanisms are in place to carry out a Smart Cities/ Smarter Cities initiative

The Next Wave Cities Program is building ICT hubs all over the Philippines

Mechanisms are in place…

Smart Cities is about Global Competitiveness

The National Competitiveness Council has been instrumental in Philippines’ leapfrogging 20 places in the WEF Competitiveness Report in the 2 years of the Aquino Administration.

Mechanisms are in place…

Smart Cities is about PPP for Innovation Filipinnovation set the gold standard for PPP for Innovation

Mechanisms are in place…

Smart Cities is about developing the entire country

NICP leaders Jocelle

Batapa-Sigue and

George Sorio sign

MOA on

e-Government Awards

with the late DILG

Sec. Jesse Robredo,

June 2, 2012 in Naga

City.

DILG Undersecretary

Austere Panadero

launching the

e-Government Awards

Program at the Cebu

ICT & BPO

Conference

The National ICT Councils of the Philippines have been working effectively with Government to build a Smarter Countryside for a Smarter Philippines

A Smart Cities/ Smarter Cities Initiative would fuel the Philippine Breakout to a new “BRIC” status

BREAKOUT

NATIONS: The new

“BRICs” in Asia are

Thailand, Indonesia,

Philippines (TIP).

GOLDMAN SACHS:

PH one of the “Next

11”—the next BRICs,

who may rival the G7 in

economic power.

This study is our tribute to the late Sec. Jesse Robredo…

…who worked tirelessly to develop Naga City into a Smart City.

God willing, may his legacy be a network of Smart Cities all around the

country fueling the Philippines to its rightful place in the family of nations.

Department of Science and Technology- Information and Communications Technology Office

Thank You

budmelchor@yahoo.com