A Nordic Story of Urban Innovation, Growth and Excellence


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Future Cities, The World Bank, Barcelona 2012

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  • Leveraging Eco-Innovations for Sustainable Urban Transformation in Developing CountriesThe 6th Urban Research and Knowledge Symposium (URKS6) on
  • Espoo is the second largest city in Finland and part of the HelsinkiMetropolitan Area, yet accounts for 50% of the Research and Developmentvalue for all of Finland. Furthermore, Espoo companies are responsible foraround 50% of the turnover in the Helsinki Stock Exchange
  • •The area around Espoo is a thrivingregion that covers Stockholm, St. Petersburgand Tallinn.•Its direct neighbours are the Finnishcapital Helsinki and the Airport cityof Vantaa..
  • in The Global Competitiveness Report 2012-2013 Finland is in third position. Moreover, Finland had earned the Eurozone’s best credit ratings (AAA))
  • “Innovations that lead to creating sustainable and green cities”“Espoo's transformation process; how the city is implementing its innovation strategy; “TheTriple Helix model -- the connections between academy, industry and government -- and their role in driving innovation”
  • Democratizing innovation (Von Hippel) at Open Smart Spaces for Joint Value Co-creation (Porter 2011)A Living LabLiving Labs quadify different stakeholders in cooperation, bringing together Enablers, Utilizers, Developers and Users. These co-creators include the public sector, business and science parks, incubators, universities, companies and, of course, the end-user communities, both non-professional and professional.In order to make the innovation to flourish, Public-Private-People partnership, multilevel governance and cross-sector co-operation is needed. Public pre-procurement, legislative changes, and financial support will help, however it is the individuals who are the sine qua non of any transformation. People centred innovation - It means that public policy can link people to opportunities, infrastructures, competencies and incentives. Then, through the flow of feedback among the different stakeholders and functions the ecosystem will get a change to continuously renew itself. As a consequence, major societal innovation may take place and new industries may emerge. This type of comprehensive approach is not easy, but it may be the best way to tackle the aging as a Grand Challenge or to perceive it as a “Major Opportunity”. That is what ENoLL is for, and the new PPPP initiative, driven by ENoLL is aiming at. - Give the “Butterfly Effect” a chance to change the world!City/regional innovation systems through planning, financing and infrastructure development, and by coordinating, facilitating and incentivizing interactions between innovators towards realizing ‘grand challenges’The Role of Universities in This:Scientific Excellence  More innovations out of researchMore focus on Grand Societal ChallengesThe strong role of universities is crucial: Knowledge Triangle i.e. synergy between research & education & innovationModernizing the Triple Helix cooperation: University – Industry – CitiesLiving labs & user-driven innovations: people & process development
  • Espoo is the safest of allmajor Finnish cities. In aEuropean comparison e.g.Espoo’s rate of domesticburglary is six times lowerthan the average of Euro -pean cities.We accompany you in life’s important phases:Childcare and education, social and health services, housing and environment, culture and sport, jobs and enterpriseEspoo is the safest major city within Finland and provides a safe environment for children to grow up. The well-being of our residents is our priority.Annual resident surveys on all municipal servicesInnovative online feedback servicesFlexible resident involvementCooperation with external service providers43 % of our operating costs for outsourcDecentralised day care: Small groups, always nearbyDay care in Finnish, Swedish, English and FrenchOECD: Finnish education is one of the best in the worldInstruction in one’s mother tongue for 30 language groupsPrimary and secondary education in EnglishInternational Baccalaureate (IB)
  • Espoo accounts for 50% of the Research and Developmentvalue for all of Finland. Espoo companies are responsible for around 50% of the turnover in the Helsinki Stock Exchange
  • Otaniemi and its ecosystem of companies, universities and technology centres account forapproximately 50% of the R&D value of Finland.16,000 students, 16,000 technology professionals and 5,000 researchers of 110 nationalities on 4 km2INNOVATION ENVIRONMENTits ecosystem of companies, universities and technology centres account forapproximately 50% of the R&D value of Finland.•Three institutions of higher education are located in Espoo: AaltoUniversity, Laurea University ofApplied Sciences and MetropoliaUniversity of Applied Sciences.Aalto University – Where Science and Art meet Technology and Business20,000 students, 340 professors, € 400M BudgetIndependent governance as foundation-based universityCooperation with e.g. Stanford University and Tongij University (CHN)Strategic partnerships with Microsoft, Nokia, PWC, Kone and othersAalto Center for Entrepreneurship•Aalto University is Finland’sleading university of science andtechnology, with 20,000 students,340 professors and a budget of €400million. It maintains co operation with,e.g. Stanford University and TongjiUniversity in Shanghai. Companypartners are among others Microsoft,Nokia, Kone. Aalto Design Factory,Aalto Centre for Entre -pre neur ship and eventslike Start-up Saunacreate the ideas fortomorrow.
  • WBthemes and questions that will help understand synergies and tradeoffs between urbanization and economic growth, social inclusion and environmental sustainability. 8.1. Economic Structure How to effectively confront the opportunities and threats of the systems of cities, and maximize cities ‟ comparative advantages in a positive sum game that contributes to local and national objectives of job creation, innovation and entrepreneurship; 8.2. Social Structure How to effectively address the social dimensions of cities in the face of uncertainty, and reduce persistent inefficiency, and social exclusion associated with demography, migration, social mobility, among others; 8.3. Physical Structure How to maximize national and local benefits of urbanization and mitigate its negative impacts in the context of a city‟s physical structure, considering elements such as urban planning (form, density, optimum size, etc.), transportation systems, energy and resource efficiency, among others. Two cross-cutting clusters: 8.4. Governance How to define the most effective and efficient allocation of functional responsibilities and partnerships among various levels of government and stakeholders in different political economies; how can metropolitan management be made more effective for sustainable urban development in the face of uncertainty; 8.5. Sustainability How to enable environmental sustainability, and effectively plan, develop and manage livable, productive and inclusive cities in the face of climate change and other unexpected challenges; and what are the key urban policies and lessons from cities that could help inform rapidly urbanizing cities in developing countries to achieve sustainability
  • The City of Espoo is highly active in engaging in major programs and investments that will see further enhancement to an already sound infrastructure. This includes extension of the Metro Network to Espoo by 2015 from Helsinki. The area of Tapiola, Keilaniemi and Otaniemi constitutes the T3Innovation Triangle, in which science, culture and business create new synergiesand increases the level of innovative initiatives within the City. Within ten years5 billion € will be invested in the T3 area. Cooper ation with universities,companies and residents is the central element in our approach: Contributingtogether.Loans per capita are significantly below the national average. The equity ratio is86.5%.
  • EU Committee of the Regions 2010: BIM to Regional and Urban Planning“CoR points out that management of the built environment and urban planning are sectors with a high impact on the local economy as well as on the quality of the living environment.” “New developments in information management can play a crucial role in achieving the goal of establishing an ambitious new climate regime.Building Information Modelling (BIM) is actively used in facility management to provide a digital representation of the physical and functional characteristics of a facility.”“The concepts of BIM should be extended to regional and urban planning. It could then serve as a shared knowledge resource for an area, forming a reliable basis for life-cycle analysis, user-driven business process development and value-creating decision-making.”
  • Garden city built in the 1950s, renewedby 2015Green, sustainableenvironment for the nextgeneration
  • A Nordic Story of Urban Innovation, Growth and Excellence

    1. 1. A Nordic Story ofUrban Innovation, Growth and Excellence Rethinking Cities: Framing the Future The World Bank, Barcelona, October 8 to 10, 2012 Director Tuija Hirvikoski, PhD; Laurea European Network of LivingLabs
    2. 2. How innovation policies can induce local firms to respond to the challenges?“As a Finn I am proud of our country’s “T3 Innovation Triangle developmentrecent achievements. International is based on the Strategy of thesurveys have attested that Finland is Helsinki Metropolitan Area:one of the most competitive, innovative, “Integrating Otaniemi Universitystable and least corrupt countries in the Campus & Tapiola Garden City &world.” Keilaniemi High Tech Business Tuula Antola, Director for Community.”Commercial and Business Development, City of Espoo tuula.antola@espoo.fi Markku Markku EU COR member Markku.markkula@AALTO.FI 20.10.2012 2
    3. 3. Based in a Thriving Region C
    4. 4. • Helsinki Metropolitan Region, which includes Espoo and Vantaa, is considered one of the most technologically dynamic and prosperous cities in the world • Becoming an innovative city is a process of institutional and industrial development and creating knowledge and social capital • This presentation will discuss the factors that have contributed to Espoo’s transformation process, and implications for other citiesA good place to live, learn, work and enterprise in. 20.10.2012 4
    5. 5. Conditions for Innovation • Located in an economically thriving region • Proactive and effective policies for sustainable urban transformation; supportive government macro-economic, innovation and financing policies • Strong scientific, technical and industrial base • Corporate culture oriented towards international competitiveness based on technological advantage • Triple helix model as a driver of innovation • Leveraging ICT and technology to create sustainable, green cities • “model enterprise connections between academy, 20.10.2012A good place to live, learn, work and-- the in. industry and government -- and their role in driving 5
    6. 6. An Astonishing CountryFinland is one of the – most competitive (World Economic Forum) – most innovative (Economist Intelligence Unit) – most stable (Fund for Peace, Failed States Index) – least corrupt (Transparency International)countries in the world.
    7. 7. HOW? Proactive and effective city-levelpolicymaking for sustainable urban transformation 20.10.2012 7
    8. 8. The vision for Helsinki Metropolitan Area “The area is a dynamic world- class centre for business and innovation. Its high-quality services, art and science, VANTAA creativity and adaptability promote the prosperity of its ESPOO citizens and bring benefits to all of Finland. KAUNIAINEN HELSINKI The Metropolitan Area is being developed as a unified region close to nature where it is good to live, learn, work andTekijätiedot ja/tai esityksen nimi do business”. 20.10.2012 8
    9. 9. From the Triple Helix Model to Regional Innovation Ecosystems Multinational /Global Innovation Environment National Innovation Environment Companies R&D talent Platforms Experts Piloting Know-how Academia Public sector Resources MARKET PULLUser-driven Co-creation “From Triple Helix to RIE”, Jukka Viitanen, Hubconcepts Ltd
    10. 10. Regional Living Labs are Self-renewal, Open and Human-driven Multi-stakeholder Ecosystems for Shared Value Creation“What is needed?” Service- multilevel governance providers Enablers MNS, Citizens SMES and users Education Public sector convergence of third sector science developers (RDI) cross- sector co- operation “What is possible?”  Science, technology, innovation (STI) 4% Origins of innovation  Doing, using, interacting (DUI) (96%) (Harmaakorpi) =>In fully open ecosystems where STI and DUI enrich each others => Where each and every one will learn to innovate
    11. 11. Shared Value (& New capitalism) M.E.Porter & M.R:Kramer• “The concept of shared value can be defined as policies and operating practices that enhance the competitiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates” – businesses approaching societal issues from a value perspective – governements and NGOs thinking more in value terms 20.10.2012 11
    12. 12. Regional Innovation Ecosystem Openness in Enterprises processes People, use Ideas Orchestrated rs ownershipStudents Local/Regional flavor The cooking pot (Living Labs) THE FIRE: Public – Private – Civic partnership Creative commons Precommercial Public Procurement Based on Bror Salmelin EU Commission DG Infso
    13. 13. “Espoos transformation process; how the city isimplementing its innovation strategy 13
    14. 14. Citizens Are The Drivers OfDevelopment
    15. 15. The people of Espoo are the driving force behind the positive activity that we see in the economy A Young and Fast Developing City • The population has increased tenfold in the last fifty years and by 2030 the population will grow by 24 % to 310,000. • 19,5 % of our residents are under 15 (EU 15,5 %). • 44 % of our residents over 15 have a university diploma (EU 23 %). – Population over 24 by education level:22%Basic education 27%Upper secondary 51%University level • Our international community will grow from 10 % to 17 % by 2030.A good place to live, learn, work and enterprise in. 20.10.2012 15
    16. 16. A Safe City to Live InDomestic Burglary / 100,000 Residents (2008) Car Thefts / 100,000 Residents (2008) *According to Eurostat’s available Urban Audit-data of 200 cities. 20.10.2012 16
    17. 17. A Financially Vital City Espoo FinlandAverage income per employee 2009 44,566 € 34,088 €Average unemployment rate 2011 5.5 % 9.1 %Municipal tax income per capita 2010 4,774 € 3,414 €Municipal loans per capita 12/2010 867 € 1,957 €Source: Statistics Finland, Ministry of Employment and the Economy.
    18. 18. A High-Tech Economy • Northern Europe’s largest high-tech hub in Otaniemi • Over 20 % of jobs in ICT • Biggest employers are the municipality, Nokia, Tieto, VTT Technical Research Centre of Finland and Aalto University • More than 50 % of turnover at Helsinki Stock Exchange (2011) • About 400 global companies and headquarters, including Nokia, Kone and RovioA good place to live, learn, work and enterprise in. 20.10.2012 18
    19. 19. A Unique Place for Science, Innovation and• Otaniemi Businesses – Northern Europe’s largest technology, innovation and business hub• 5,000 reseachers, 16,000 students, 16,000 technology professionals, 800 companies, 110 nationalities, 50 % of R&D value of Finland, 20 R&D centres – within 2x2 km – VTT Technical Research Center of Finland – European Institute of Information Technology – Nokia Research Center – Philips InnoHub
    20. 20. Otaniemi –A Nest for Ideas and Start-Ups http://www.oecd.org/edu/imhe/QT%20policies%20and%20practices.pdf http://www.laurea.fi/fi/tutkimus_ja_kehitys/julkaisut/Erilliset_julkaisut/Docu ments/LbD_Guide_04102011_ENG_lowres.pdf
    21. 21. Looking forward, thoughts on thefuture of innovative cities like EspooTransformation process and the future ofinnovative city• Physical, virtual and social environments• Grand challenges => shared value creation: • Future challenges of healthcare and wellbeing • Sustainable mobility & transportation• Suitable Infrastructure & Contributing together 20.10.2012 21
    22. 22. Physical, virtual and social environmentsImage Aaalto Suvi Nenonen. Helsinki Smart City Showcase 20.10.2012 http://vimeo.com/16424693 22
    23. 23. A good place to live, learn, work and enterprise in. 20.10.2012 23
    24. 24. Infrastructure, Renewal Capital & Contributing togetherThe area of Tapiola, Keilaniemi and Otaniemiconstitutes the T3 Innovation Triangle, inwhich science, culture and business createnew synergies and increases the level ofinnovative initiatives within the City. Within tenyears 5 billion € will be invested in the T3area. Cooperation with universities,companies and residents is the centralelement in our approach: Contributingtogether. 20.10.2012 24
    25. 25. Keilaniemi – Finland´s Business HubGlobal headquarters for Nokia, Kone, Fortum, Neste Oil, Huhtamaki, Tekla andRovio (Angry Birds)Local offices of Bayer, SAP, Microsoft, Huawei, DuPont, ZTE, Toshiba, Nissan, Konica Minolta and many moreWithin 15 min over 8,500 ICT cluster companies, over 12,000 Knowledge IntensiveBusiness Services companies and over 140,000 high value add jobs Keilaniemi towers 2021 Finland’s tallest residential buildingsKeilaranta tower 2016 Finland’s tallest office building
    26. 26. Otaniemi - Home for Science and Technology • Largest innovation and business hub in Northern Europe • Community of 16,000 students, 16,000 technology professionals and 5,000 researchers from 110 different countries • Host to Finland’s leading institutions in technology and science, Aalto University and the Technical Research Centre of Finland VTTA good place to live, learn, work and enterprise in. 20.10.2012 26
    27. 27. Tapiola – Centre for Culture, Sports and Shopping• Espoo Cultural Centre, Espoo Museum of Modern Art and WeeGee Exhibition Centre• Tapiola Sports Park, Barona Arena, Esport Center• Department stores and retail shops close by
    28. 28. Lessons and Areas for Future Research • Development of smart/innovative cities is the result of favorable macro and metropolitan level policies • Urban transformation need not take generations • Innovative cities - Are Human driven - Make most of STI and DUI enriching each others - Rely on shared vision and shared leadership - Create shared value and needed culture – modernized “Talkoot” or “UBUNTU”A good place to live, learn, work and enterprise in. 20.10.2012 28
    29. 29. Thank you!I would like to express mygratitude for each and everyonefor your global co-operation!Tuija.Hirvikoski@laurea.fi 29