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Smart cities as platforms for building
innovation hubs



BIT's 1st Annual International Conference of

Emerging Industry ...
Content"
" Global innovation economy"
" Knowledge hubs – global creative nodes"
" Silicon Valley and innovation ecosystems...
Global networking in value
creation"
" The driving forces of global economy are global
collaboration and concentration of ...
Characteristics of innovation hubs"
" Innovation hubs are local, creative centers in
the global economy. Their characteris...
Silicon Valley ecosystem"
" Although Silicon Valley is one of the most successful
innovation hubs in the world, it is not ...
Skilled
labor
Knowledge
intensive
business services
Funding
(VC)
R&D
Universities
Innovation culture
Infrastructure
Networ...
Smart specialization"
" EU has launched a new concept of smart
specialization to enhance regional development in
knowledge...
Smart cities"
" Building an innovation hub could be based on
challenges and opportunities of cities "
" Cities face such w...
Smart cities as platforms for 

innovation"
" Smart cities provide an ideal platform for
innovation (test beds, living lab...
Building an innovation hub by
smart strategies"
Connecting
to global
networks
Solving
wicked
problems
Knowledge
creation
U...
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...
A plan to recovery – creating a
knowledge hub"
" The working group proposed as a major action for
recovery developing the ...
Outcomes from the development
process"
" During the years 2009–2011 the situation and the expertise of
the region were ana...
Kangas - The main urban
development project of Jyväskylä
for next decades"
Citycenter
Kangas
•  Old paper mill area (30 ha...
17.11.2013"
In Kangas project, an ambitious urban planning and
smart city infrastructure create unique ambience"
Target:
5...
As a core High-speed Fiber-
optic Network 

"
•  Built as part of infrastructure
simultaneously by the city
•  Fibers leas...
•  Foresight and
futures studies!
•  Open dialogue
(including
citizens and
NGO’s)!
•  The core
organization
managing the
p...
19"
Thank you for your attention!
Jyväskylä
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Smart cities as platforms for building innovation hubs

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The slide is about smart cities and how to use them as platforms for innovation ecosystems and knowledge hubs. A special case is from the city of Jyväskylä, where an old paper industry district ("Kankaan alue") is under reconstruction by city. The theoretical background is presented in the book Sustainable Innovation (Sitra 2010).

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Smart cities as platforms for building innovation hubs

  1. 1. 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" "
  2. 2. 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"
  3. 3. 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)" "
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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 "
  8. 8. 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."
  9. 9. 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"
  10. 10. Building an innovation hub by smart strategies" Connecting to global networks Solving wicked problems Knowledge creation Using local assets
  11. 11. Case study: structural change in Jyväskylä city region" Jyväskylä Central Finland
  12. 12. 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"
  13. 13. 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 "
  14. 14. 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"
  15. 15. 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
  16. 16. 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!
  17. 17. 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
  18. 18. •  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. 19. 19" Thank you for your attention! Jyväskylä

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