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Innovation Capacity in Cities



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The OECD Champion Mayors for Inclusive Growth Initiative and Bloomberg Philanthropies believe that cities are fertile grounds for innovation. Nevertheless, innovation is as much about culture, people, leadership and engagement as it is about technology and data. Both organisations have joined forces to assess how cities around the world are developing their capacity to innovate and to what extent such innovation improves resident outcomes. This webinar shared key findings from the forthcoming OECD/Bloomberg Enhancing Cities Innovation Capacity report based on responses to the joint Survey on Innovation Capacity to more than 80 cities from around the world.

Innovation Capacity in Cities

  1. 1. ACCELERATING CITIES’ INNOVATION CAPACITY OECD Champion Mayors for Inclusive Growth Initiative
  2. 2. ‘We believe in a bottom-up approach to municipal innovation strategy. Each councilor, each department director and each public official knows very well their specific areas of work and can deliver very precise and accurate solutions to citizens’ needs. We believe in creating a big picture and political leadership at the highest level is essential, but always taking into account this close-to-the- citizen approach in everything we do’ BILBAO, SPAIN ‘One of the ways Philadelphia defines innovation is rigorously testing new programs and prototypes through the use of evidence- based methods. These methods include behavioral science, human-centered design and trauma-informed care’ PHILADELPHIA, PENNSYLVANIA ‘Our Innovation Office works as an internal consultant to other departments. When you have complex problem that you’ve tried different solutions for but can’t move the needle, that’s when we come in. We focus on unpacking the problem so that the stakeholders and decision makers might see it differently and see new opportunities for solutions. We then support an iterative process to understand the problem and prototype solutions to it’ AUSTIN, TEXAS ‘In Ljubljana we are putting innovation and live laboratory into practice. We are testing new concepts and reacting to initiatives from different stakeholder groups’ LJUBLJANA, SLOVENIA INNOVATION CAPACITY: A COMPLEX DEFINITION • capability to innovate • motivation to innovate • opportunity to innovate 3 factors may explain public sector innovation
  3. 3. SURVEY STRUCTURE Funding DataStaffing & Structure OutcomesDefinition, Goals & Approaches Drivers – Enablers – Obstacles - Results
  4. 4. Cities surveyed Are mid-sized cities of 200 000-499 000 inhabitants Of cities from USA/Canada WHO RESPONDED? 1/3 89 64%
  5. 5. Organisational arrangements Openness to partnership Data management capability ANALYTICAL FRAMEWORK Endogenous factors Exogenous factors Leadership Innovation team Dedicated funding Capacity to collect data Capacity to analyse data Access to technology Citizen interactionPartnerships
  6. 6. Address the impacts of global megatrends Improve service delivery portfolio Spur economic growth WHAT IS DRIVING INNOVATION IN CITIES? Digitalisation and automatisation Climate change & resource scarcity Demographic changes Attraction of business & qualify professionals Cost reduction of public service delivery Economic resiliency
  7. 7. INNOVATION TEAMS AT A GLANCE 82% 60% 56% 56% 48% 34% 28% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% All cities surveyed US/Canada only Project Manager Community Engagement Staff Designer Data / Computer Scientist Communications / Marketing Engineer Sociologist • The majority of cities have fewer than 10 staff dedicated to innovation • Only 21% of innovation teams have existed for more than 5 years • Around half of innovation teams sit in the Mayor’s or City Manager’s office
  8. 8. -5 10 25 40 55 70 Culture Social inclusion/equity Labour markets Social welfare/services Tourism Digital governance Economic Development Education Health Housing Environment/climate change Blight Land use/zoning Mobility Waste/sewage Built environment Water Policing/law enforcement POLICY AREAS & DATA -5 10 25 40 55 70 Culture Social inclusion/equity Labour markets Social welfare/services Tourism Digital governance Economic Development Education Health Housing Environment/climat e change Blight Land use/zoning Mobility Waste/sewage Built environment Water Policing/law enforcement Sufficient data Insufficient data
  9. 9. FUNDING More than 90% of all cities have funding from their municipal budget MUNICIPAL BUDGET A larger share of cities outside US/Canada receive funding from the national government, 36% vs 11% NATIONAL GOVERNMENT Non-public funding is more prevalent in US/Canada: of this, 93% of non- public funding comes from philanthropy NON-PUBLIC FUNDING 77% of cities have dedicated funding to support innovation capacity
  10. 10. ARE CITIES ACHIEVING THEIR INNOVATION GOALS? Going well 33% Going so-so 21% Too early / Can’t yet say 31% Other 34% of cities conduct a comprehensive & systematic evaluation of the impacts of their innovation strategy 16%
  13. 13. Spotlight : Stockholm (Sweden) Gunnar Björkman, Director of Innovation City of Stockholm (Sweden)
  14. 14. Gunnar Björkman Innovationsdirektör Stockholms stad Västerås stad 24 augusti 2017 Innovationsarbetet i Stockholms stad Stockholms main challenges County of Stockholm City of Stockholm Population 2,500,000 2,000,000 1,500,000 1,000,000 50,000 0 1990 2000 2010 2020 2030 Growing population Globalization Climate change The geography Inhabitants ???
  15. 15. Vision: Stockholm - the smartest city in the world
  16. 16. Digital Demo Stockholm Digital Demo Stockholm (DDS) is an example one regional collaboration between the public sector, business communities and the higher education of Stockholm. • Should demonstrate that digital technology can generate attractive solutions to support the needs of a society and it’s residents. • The public sector will define its future challenges that need to be resolved
  17. 17. Fundings Public procurement law Other legislation and policies (e.g. GDPR) Municipal law Intellectual Patent Rights IPR Technical platforms Challenges and barriers for the city to fully realise its innovation capacity Culture and leadership
  18. 18. Advice …
  19. 19. Spotlight : New York City (USA) Carson C. Hicks Deputy Executive Director Mayor’s Office for Economic Opportunity City of New York (USA)
  20. 20. 20 Innovation work occurs throughout NYC government and also within a dedicated municipal innovation lab – the Mayor’s Office for Economic Opportunity. Innovation in New York City The People of the City of New York New York City is made up of a diverse population of 8.6 million residents. Office of Mayor Bill de Blasio The Mayor’s Office for Economic Opportunity (NYC Opportunity) is an innovation lab embedded centrally in the Mayor’s Office of Operations. City Agencies Over 40 City agencies responsible for delivering services to the public report to the Mayor.
  21. 21. 21 Using Evidence & Innovation to Reduce Poverty & Promote Equity NYC Opportunity advances research, data and design in the City’s program and policy development, service delivery, and budget decisions. We recognize that innovation is fundamentally about getting better results, and demands a commitment to assess outcomes rigorously, capture and respond to lessons, and accept the risk that some efforts will fail.
  22. 22. 22 NYC Opportunity Capacities Design Develop solutions rooted in insights about the experiences of those affected by public services and facilitate collaboration with stakeholders. Data Integration Facilitate inter-agency data sharing and integration through established enterprise technologies, data standards and legal frameworks. Research Produce annual reports measuring poverty and inequality: NYCgov Poverty Measure and Social Indicators Report. Conduct rapid research on a variety of topics to drive evidence-based policy making. Evaluation Manage 8 backdrop contracts used to conduct a variety of evaluation activities from focus groups to randomized control trials. Program Management Design, implement and manage performance and fiscal monitoring for over 70 programs designed to reduce poverty and meet the needs of low-income New Yorkers programs. Digital Products Develop and manage best in class digital products that are beautiful, easy-to-use, and work on any device. In the de Blasio Administration, NYC Opportunity supports Citywide initiatives with expertise in evaluation, design, research, data integration, technology and performance management.
  23. 23. 23 Supporting the de Blasio administration’s priority to make equity a core governing principle across all agencies Roles in Building a Strong & Fair City We have helped to shape OneNYC, the City’s long-range planning document, which includes a strong focus on equity and an ambitious goal to reduce poverty.
  24. 24. 24 Producing research that helps NYC better understand and respond to issues of poverty, economic mobility & equity within the city Roles in Building a Strong & Fair City We have created our own NYC-specific poverty measure and we calculate it every year, including for a range of demographic groups, providing important data for the city’s anti- poverty work.
  25. 25. 25 Building evidence about what works to reduce poverty so the City can allocate resources to more effective strategies Roles in Building a Strong & Fair City We worked collaboratively with partners to design, implement, and rigorously evaluate a program for community college students – and then to scale the approach based on its proven success improving graduation rates.
  26. 26. 26 Applying data, technology and service design to facilitate more holistic, effective service delivery Roles in Building a Strong & Fair City Our ACCESS NYC initiative has made government benefits far more transparent to low-income New Yorkers and made it easier for them to receive the help they are entitled to.
  27. 27. 27 In more than 10 years of operation, we have learned a lot about fostering and supporting innovation within City government. Lessons Learned Some of our key lessons include: – Innovation and Evidence-Building Go Hand-in-Hand – Strong Leadership is Critical – A Lot Can be Learned from Failure – Innovation Requires Human and Financial Resources – Collaboration is Key – Design Should be Human-Centered
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  29. 29. Spotlight : Syracuse (USA) Adria Finch Director of Innovation City of Syracuse (USA)
  30. 30. Innovation Data Accountability Performance
  31. 31. Spotlight: Montreal (Canada) Stéphane Guidoin, Director Laboratory of Urban Innovation City of Montreal (Canada)
  32. 32. Enhancing innovation for Montréal Laboratoire d’innovation urbaine
  33. 33. 42Laboratoire d’innovation urbaine About Montréal Montréal City ● Pop: ~1.8M ● 19 boroughs ● Highly decentralized Montréal island ● Pop: ~2M, 12 cities Montréal metro area ● Pop: ~4M, 82 cities
  34. 34. Recent innovation activities ● 2014: Creation of the Smart city office ○ Montréal Smart and digital action plan 2015-2017 ● 2017: Action plan evaluation - need for a real innovation approach ● 2018: The smart city office become an innovation lab with 3 pillars ○ Citizen engagement ○ Data ○ Innovation processes 43Laboratoire d’innovation urbaine
  35. 35. Smart city challenge ● Launched by the federal government in nov. 2017 ● Montréal selected as finalist in june 2018 ● Montréal, winner in the 50M$ category in may 2019 ● Main projects: ○ Smart and local mobility ○ Access to food for vulnerable people ○ Data trusts ○ Governance and regulatory experiments 44Laboratoire d’innovation urbaine
  36. 36. The (not so) secret ingredients ● Work local with the communities: call for projects, combination of city-lead and external projects, support communities ○ Hybrid projects (internal/external) ● Iterative processes supported by short cycle feedback loops ● The best metrics are not usually the most obvious… and might change. 45Laboratoire d’innovation urbaine
  37. 37. Discussant Stephanie Wade Government Innovation Bloomberg Philanthropies
  38. 38. Q&A