Smart cities as platforms for building innovation hubs

BIT's 1st Annual International Conference of

Emerging Industry -2013 November 6-7, 2013, Shenzhen, China""

Antti Hautamäki"Research professor"

Director"Agora Center"

University of Jyväskylä"FINLAND"

antti.hautamaki@kolumbus.fi""

Content"

" Global innovation economy"" Knowledge hubs – global creative nodes"" Silicon Valley and innovation ecosystems"" Smart specialization in regional development"" Smart cities and innovation hubs"" Case: Structural change of City of Jyväskylä in

Central Finland "" A new model to build innovation hubs"

Global networking in value creation"

" The driving forces of global economy are global collaboration and concentration of resources"

" Value chains are becoming specialized and distributed all over the world"

" Human and intellectual resources are concentrating into certain innovation (or knowledge) hubs situated in metropolitan regions like San Francisco Bay Area, Boston (USA), Cambridge (GB), Shanghai, Shenzhen, Singapore etc. "

" Innovation hubs produce a majority of all innovations (e.g. patents)"

""

Characteristics of innovation hubs"

" Innovation hubs are local, creative centers in the global economy. Their characteristics are: "–  Strong belief in success of the region"–  Culture of creativity and openness"–  Attractive conditions for people/talents,

entrepreneurs and investments (quality of life)"–  Globally recognizable knowledge and businesses

based on it"–  Dynamic innovation ecosystem to support

innovation and continuous renewing of business""

Hautamäki&Oksanen 2012

Silicon Valley ecosystem"

" Although Silicon Valley is one of the most successful innovation hubs in the world, it is not a general model to imitate everywhere"

" The success of Silicon Valley is based on its dynamic ecosystem consisting of "

–  venture capitalists,"–  a global talent pool of knowledge professionals,"–  top universities and research institutes,"–  a sophisticated service structure (accounting, design,

law firms, marketing, technologies…),"– many customers, lead-users, and early adopters of

new technologies,"–  flexible recycling of professionals, ideas, and

knowledge"

Bahrami&Evans 2000, Hautamäki 2010

Skilled labor

Knowledge intensive

business services

Funding (VC)

R&D Universities

Innovation culture Infrastructure

Networking and collaboration of small firms

and large corporations

Recycling Collaboration

Innovative markets

Customers Global

collaboration

Elements of an innovation ecosystem"

Hautamäki 2010

Smart specialization"

" EU has launched a new concept of smart specialization to enhance regional development in knowledge economy by investing in research and innovation"

" Smart specialization consists of the following elements:"–  Developing a vision"–  Identifying competitive advantage of the region and using

local resources"–  Setting strategic priorities"–  Building a strong partnership between businesses, public

entities and knowledge institutions"" The idea behind smart specialization is that new

competitive advantages can be created by R&I "

Smart cities"

" Building an innovation hub could be based on challenges and opportunities of cities "

" Cities face such wicked problems as growth, equality, security and sustainability"

" Smart cities try to solve their problems by application of information technology and by developing human and social capital"

" ICT is used to develop smart infrastructure for buildings, energy, healthcare, mobility, transportation, public administration, security etc."

Smart cities as platforms for innovation"

" Smart cities provide an ideal platform for innovation (test beds, living labs)"–  The problems faced are complex and touch many aspects of

society opening large scope of business opportunities"–  Solutions are knowledge-intensive, dependent on the

availability of human capital"–  Solutions must be develop with citizens and end-users

(NGO’s, social capital)"–  The contributions of firms, universities, public administration

are needed (partnership)"–  Public procurement is a strong instrument for enhancing

innovation"

Building an innovation hub by smart strategies"

Connecting to global networks

Solving wicked problems

Knowledge creation

Using local assets

Case study: structural change in Jyväskylä city region"

Jyväskylä Central Finland

A structural crises in Central Finland"

" Central Finland – a region of 260.000 inhabitants; the biggest city is Jyväskylä with a population of 130.000"

" Economy is based on pulp, paper and metal industries"" The region faced a structural crises in 2009, when Nokia closed

its Research Center (ca. 350 workers) and Metso Paper cut down its research activities (ca. 300 workers); together the region lost 1000 knowledge intensive jobs in a short time."

" Jyväskylä region was declared nationally as a structural change area "

" A special Structural Change Working Group was established in collaboration with the Ministry of Employment and the Economy of Finland"

A plan to recovery – creating a knowledge hub"

" The working group proposed as a major action for recovery developing the region towards an innovation hub"

" University of Jyväskylä got the task to develop a model for building innovation hub. Its elements are:"1.  Mobilizing the basic resources by collaboration between

universities, industry and government (Triple Helix)"2.  Creating a platform for intensive dialogue open to all

stakeholders (university, firms, public sector, NGO’s et al.)"3.  Conducting foresight and future studies which help to create

vision and make basic strategic choices"4.  Establishing the core organization to manage to process

and its funding "

Outcomes from the development process"

" During the years 2009–2011 the situation and the expertise of the region were analyzed, modeled and developed systematically"

" The 300 former Nokia employees were quickly recruited by other IT companies and SMEs of the region"

" By the end of 2009, 11 new companies were founded by the professionals that were released from Nokia "

" Practically all professionals fired in 2009 were employed by 2011, some of them working as researchers in university"

" The main urban development project “Kangas” emerged: to build a new generation living place and business center into old paper mill area - a case of smart city"

Kangas - The main urban development project of Jyväskylä

for next decades"

Citycenter

Kangas

•  Old paper mill area (30 ha) next to the city center

•  Property of the City of Jyväskylä

•  Total investment by 2025 in Kangas appr. 0,8 billion €

•  Cost of infrastructure: 50 M€ •  Income from the building sites:

65 M€ •  Profit to the city: 15 M€

University

17.11.2013"

In Kangas project, an ambitious urban planning and smart city infrastructure create unique ambience"

Target: 5000 inhabitants 2100 new jobs

New methods of collecting citizens' ideas and dreams are used in planning!

As a core High-speed Fiber-optic Network

"•  Built as part of infrastructure

simultaneously by the city

•  Fibers leased to the operators

•  Fibers also for research use •  Universities •  Companies •  Research and

development

•  True Living Lab ecosystem

•  Foresight and futures studies!

•  Open dialogue (including citizens and NGO’s)!

•  The core organization managing the process !

•  University, industry, government collaboration (Triple Helixl)!

Resources! Co-ordination!Implementation!

Strategic choices and

vision!

Concensus!and

committment!

A Jyväskylä Model for transition towards an innovation hub "

Hautamäki&Oksanen 2012

19"

Thank you for your attention!

Jyväskylä