Hans Schaffers

1. www.fireball4smartcities.eu
Smart Cities as Innovation Ecosystems
Sustained by the Future Internet -
Landscape, cases, policies
Mechelen, 22.05.2012
Hans Schaffers
ESoCE Net & Aalto University School of Economics, CKIR
Scientific Coordinator of FIREBALL

2. The “Smart City” concept
 We often consider – based on rankings - the Smart City as a
reality
 Smart City: not a reality but an urban development strategy,
and a mostly technology driven future vision
 Smart City is about how citizens are shaping the city, and how
citizens are empowered to contribute to urban development
 Smart City is an urban laboratory, an urban “innovation
ecology”, an accelerator and agent of change
 We are witnessing promising developments towards smarter
cities
 What is the DNA of the Smart City?

3. The FIREBALL Project
 Cities increasingly transform into what can be called “urban
innovation ecosystems“
 Cities start experimenting the opportunities of the (Future)
Internet through “living labs” approaches for engaging end-
users in the innovation process
 FIREBALL aims to bring together Cities, Living Labs and Future
Internet stakeholders to explore models and practices of how
open innovation and user participation supports the
experimentation and uptake of the Future Internet

4. FIREBALL
Results
 Smart city vision, landscape
 Cases of “smart(er) cities” 

 Smart city Future Internet -

enabled “innovation 

ecosystems” 


 Smart Cities roadmap
and cities action plans
 Community building ,
creation of a Connected
Smart Cities network
 Portal and web 2.0 tools

5. Smarter Cities Cases Intel Industry
i-Transport
hubs
Smart
clusters and Housing Districts
sectors
 Thessaloniki: Technology districts and
Smart
Port district Intel CBD
broadband deployment, relatively i-University
uncoordinated. Governance i-Science
challenges of digital cities, combining
Parks and
Incubators
bottom-up and top-down planning;
gaps in digital skills, creativity,
entrepreneurship
 Oulu: Careful ecosystem building and
nurturing (triple helix) , supported by
diverse ICT systems, may support
urban development.
 Amsterdam: Enabled by advanced
infrastructure, partnerships and co-
funded programs lie at the basis of
formulating joint smart city
strategies and shared innovation

6. Smarter Cities Cases
 Helsinki: innovation cluster policy,
emphasis on open innovation and
citizen participation. Instruments:
competitions for innovations,
innovation within pre-commercial
procurement, living labs pilots, Open
Data, public-private partnerships.
 Manchester: Neighborhood
regeneration as starting point; digital
infrastructure, citizen engagement,
creation of “virtuous cycles”
 Barcelona: urban development policy,
main components of the Smart City
strategy include Smart districts, living
labs initiatives, e-Services,
Infrastructures and Open Data.

7. Barcelona smart city development
Leading role of City Hall
Smart city Strategy SC Management
• Kiosks • 22@net
• Barc activa
• Internal gov • Tech park
• Open data • Urban Lab
• 3D projects SMART
GOVERNA
SMART
• Strategic plan
• Smart Districts: Creation of networks of
NCE
ECONOMY
22@Barcelona; triple actors, organisations,
helix collaborations departments
SMART
LIVING
SMART
PEOPLE
• Living Lab initiatives: Broadband network and
• Municipal Police • Cibernarium
22@Urban Lab, Live, sensor data management
• New incidents tools
• Intel environments
• Citilab Cornella
Bdigital, i2Cat, Fablab, Creation of proof of
Cornella concepts for systems and
Smart city model: • Infrastructure building: applications
traditional and new.
Three pillars Integration of ICT. From Challenges
• Ubiquitous fibre optic to Wi-Fi. Demand for human
• New services to capital and skills
infrastructures
citizens: gov, quality of VC funding for innovation
• Information from life, professional
Low global connectivity
sensors, open data, • Open data: sensors,
open standard, and city Development of triple
and citizens
platform helix alliances
• Human capital, actors, Collaboration between
communities government departments

8. Thessaloniki smart city development
ICT transforming city activities and ecosystems
Broadband networks Apps and e-services: Planning for Smart
by large companies Bottom-up initiatives district
ADSL: 24/1 Mb City representation Development of wired
City sectors and wireless networks
Fibre optic net: 2,5 Gb City districts Free Internet to users
3G-HSDPA: 42 Mb Citizens. Aggregation / and business.
collective content
Wireless: free Smart environments
City administration and
(municipal nets) social services based on sensors
Location-based services e-services suitable for
City infrastructure and the community of each
utilities district
City management Training services for
involvement of end-users
Governance challenges:
Three gaps to address
(3)Digital skills gap - TRAINING
(4)Creativity gap – LIVING LABS
(5)Entrepreneurship gap –
BUSINESS MODELS

9. Manchester smart city development
Digital strategies and smart environments for urban renewal
Urban regeneration Digital Strategy Toward Smart City
Flagship initiatives
Since mid-1980s the Started in 2008 and review East Manchester: a
City Council embarked in 2011 with respect to regeneration challenge
EU Digital Agenda and Eastserve: first Living Lab
on city regeneration consulting with local Corridor Living lab NGA
 Drive economic change stakeholders. Main project
through technology objectives: Next generation open
 Focus on neighborhood • Digital inclusion, access fibre optic
generate skills and network
focused action, creative tackle the divides Principles for Smart Cities
city, and innovation • Digital industries, new Neighbourhood
In 1990s Manchester employment, cluster of regeneration as starting
point for a smart city
telematics Partnership digital and creative Digital collaborations
businesses through Living Labs
Currently, e-services to
address inequalities
• Digital innovation: Putting people at the
working with the future heart of the agenda
and digital democracy Internet research An inclusive and
Balance of top-down community to support sustainable approach to
Manchester as Smart digital development
and bottom-up actions
City Exemplar projects

10. Helsinki smart city development
Living Labs and new clusters for smart city strategy
A Porterian cluster in mobile technology is
emerging in Helsinki.
Clustering strengthens motivation,
incentives, innovation, and enables
externalities .
The mobile applications cluster is
sustaining Helsinki ‘s Smart City strategy
Factor conditions: Demand conditions: Firm strategy: Supporting industries:
Broadband, telecoms, Government demand, Companies within Broadband infrastructure,
NOKIA, skilled banking , SMOPEC, global 3G nets, specialized
workforce, start-ups transportation, etc markets, intense local service providers
competition
Competitions for Open Data apps as strategy for cluster development
The Helsinki Regions made available public transportation data
Apps4Finland makes data available related to environment and spatial information
Competitions and Living Labs as drivers for the M-cluster development

11. Empowerment Examples
 Thessaloniki: emergence of
developer communities: e-services
and applications e.g. mobility services
 Oulu: PATIO (test user community
tool): empower ordinary people to
experiment new services
 Manchester: Digital City Test-Bed (as
a vision)
 Barcelona: 22@Urban Lab: city as
urban lab, pilot programs, use of
public spaces, e.g. Open data
 Helsinki: competitions for innovative
applications e.g. Apps4Finland;
Innovative City program; Open Data
business development initiatives

12. Smart citizens and Open Data –
Helsinki examples
Tell-on-the-Map
 Smart city – service – map-based
organisation in an Commentary
tool, enabling a
innovative dialogue
environment between citizens
and city
 Exploiting available
information Apps4Finland
competition –
 Idea incubators use city Helsinki
Public
data – Apps4Finland Transport
competition Visualised
 Open interfaces are an Service Map:
important step in the open information
channel about
development of offices and
the City’s systems services

13. Smart city strategies implementation
prospects and bottlenecks: SWOT
Strengths Opportunities
• Cultural heritage, attractiveness • Competitiveness of local clusters
• Development strategies, planning • Exploiting service innovation
• Broadband network deployment opportunities towards new business
• Major development initiatives • Opportunities for local ICT sectors and
entrepreneurship
• Introducing participatory city planning
Weaknesses Threats
• Top down orientation to planning • Economic crisis, lack of resources
• Lacking attention to concrete needs of • Vulnerable business models for
citizens and SMEs sustainability of public sector initiatives
• Digital gaps • Low level of private investment in R&D
• Lacking orientation on entrepreneurship and innovation
• Weak policy and funding instruments • Weak institutional environments for
• Impact and benefits measurement technology and innovation

14. Comparing the smart(er) city cases
Helsinki Thessaloniki Manchester Oulu Barcelona
Concept Smart City Intelligent Cities Urban City of Social and
cluster, Mobile regeneration Innovation urban growth
Strategies Knowledge Building smart Tackling skills Technology Smart
intensive districts and divides Ubiquitous districts,
cluster building Agglomeration of Pro-active Oulu Urban Living
Apps approach Lab
Drivers Strengthen the ICT and Economic Policy and Policies of city
region infrastructure development strategies of hall; triple
deployment Oulu helix
Challenges Human capital Digital skills gaps Common Adapt policy Enhancing
base Creativity gap digital agenda instruments collaboration;
Entrepreneurship to create human capital
gap business / skills,
funding
Innovation Public private Innovation Living labs and Strong PPP City hall
ecosystem partnerships clusters local action programmes, leadership;
Competition for Technology triple helix, Triple Helix
innovation districts urban lab models

15. Smart Cities cases - lessons learned
 Smart city is more an urban strategy than an urban reality. Smart cities
will appear through numerous bottom-up initiatives besides some
strategic planning, and infrastructure development.
 Top-down planning and bottom-up initiatives should complement each
other. City hall is sometimes dominant. Dilemmas of citizen engagement.
 Widespread use of pilots is preparing cities for initiative, experiment and
learning
 Districts, neighborhoods, and clusters are fundamental elements of smart
city strategy, because the city is a system of systems, and cities co-exist
within cities.
 A smart city strategy involves all actors, organizations, communities, R&D,
NGOs, clusters, and authorities. The partnership strategy should achieve
a common vision, flagship projects, collaboration and synergy.
 Major challenges for successful smart city strategies deal with skills,
creativities, user-driven innovation, entrepreneurship, VC funding, and
management of intra-government rivalries.
 Lack of evidence on impact and effectiveness of smart city strategies.

16. Smart city innovation ecologies
enabled by “common assets”
 Future Internet
testbeds as technology
platforms
 Smart cities: policies,
application pull, public
data, citizens initiatives
 Living lab: User-driven
playground for co-
creating and validating
innovative scenarios
and services

17. Examples of evolving smart city
“innovation ecologies”
 Bretagne: ImaginLab testbed explores
advanced applications in living lab
setting, offering wide range of
services, enabled by advanced
infrastructure, based on partnership
business model
 Oulu: Octopus network, Innovation
ImaginLab
Kitchen, Open Web Lab, LearnLab,
Ubiquitous Oulu and many more
 Barcelona: a diverse set of network
infrastructures, facilities, initiatives
(22@UrbanLab), living labs, projects,
planning activities, partnerships
 Manchester: advanced infrastructure of
open access fibre to premises; support
creation of ; co-ownership approaches Manchester

18. Simple models for concurrent use
of testbed and living labs facilities

19. Developing into a smart city
requires “systemic change”
 An innovation roadmap is a tool for creating consensus and understanding
about potential futures and about the pathways towards these futures
Present Short term Mid term Long term
Urban
development
Policies and
strategies
ICT-based
solutions
Technology
development
Understanding smart city dynamic development as “systemic change”
requires understanding of interplays and co-evolution regarding
technology developments, human behaviours, policies and strategies
Living Labs, policy experiments may act as “niches”
where opportunities are provided for limited scale innovation and learning
(introduction, use, evaluation, modification -> wider scale adoption)

20. Changes and developments
 Increasing deployment of broadband infrastructure and creation of open
networks and open data repositories
 Many cities are developing Smart City strategies, in the context of urban
development, sustainable growth, revitalisation, and innovation districts
 Increasing participation and empowerment of citizens in societal issues,
using social media and open data on a wider scale
 Increasing interest for wider scale testing of services and solutions e.g.
energy efficiency, healthcare, environment monitoring, mobility
 Diversity of technologies for smart city applications is becoming rapidly
available (mobile broadband, cloud computing, open data, smart devices,
content management, Web 2.0)
 User driven open innovation in cities (e.g. Crowd sourcing services based
on sensor data) is gaining more attention
 All kinds of city managed data could become publicly available to promote
crowdsourced services and bottom-up innovation (may also be misused)

21. Technologies for smart(er) cities
Technology area Main developments in relation to smart cities
Cloud computing Urban clouds reducing IT costs and providing platforms for small
business applications and e-services
Virtualization of physical spaces
Standardisation of platforms and applications for smart cities
Real-world user IoT sensor networks in combination with Web 2.0, social media,
interfaces, RFID crowdsourcing providing opportunities for collective intelligence
Urban IoT platforms offering common framework for ambient
sensor networks
Semantic web, Open Data from various sources offer opportunities for advanced
Linked data, intelligence e.g. Detect patterns, generate alerts, visualize
Ontologies information, predict trends
Semantic Web enhances opportunity to merge different categories
of data
Enables content and context fusion, immersove multi-sensory
environments, location based context aware content
Enhanced opportunities for user involvement and user generate
content

22. Innovation roadmap for smart cities
REGIME
& Future Internet
Short term (2014) Medium term (2017) Long term (2022)
Technological change -CLOUD: Virtualisation -CLOUD: Web platform -CLOUD: PaaS for smart cities
(Dominant designs, emerging -CLOUD: IaaS for smart cities -CLOUD: SaaS for smart cities -CLOUD: Service integration
technologies, interoperability) - Content-context fusion
-IoT: RFID -IoT: Multimodal sensors -IoT: Urban IoT platforms
-IoT: Speech recognition -IoT: Location aware apps, -IoT: Cloud based ontologies
-IoT: Open data apps -Content-centric networks
Industrial change -CLOUD: Large companies clouds, -CLOUD: Large cities clouds -CLOUD: Standardisation of smart city
(Networks of technology developers, Google, MS, Amazon global clouds applications / services
lobbying, standardisation) -IoT: Sensors into utilities and energy -IoT: Alliances of large companies and -IoT: Large scale applications
networks major cities companies
Social change -CLOUD: Reduction of IT costs -CLOUD: Security issues raised -CLOUD: Continuity of service
(Behaviour, routines, values, -CLOUD: Disaster management -CLOUD: Learning curve
preferences, demand, end-users) addressed
- IoT: Experimental facilities -IoT: Multiple city pilots -IoT: Large scale demand for sensor-
-IoT: A few city pilots based city infrastructure
Policy change -CLOUD: Transition white papers -CLOUD: Pilots at city levels -CLOUD: Whole smart cities on the
(Regulations, economic instruments, -CLOUD: Preparing to the cloud -CLOUD: Legal and regulatory reform Cloud
governance, agreements)
NICHES of Short term (2014) Medium term (2017) Long term (2022)
radical novelties
Technological change -CLOUD: SaaS -CLOUD: PaaS
-CLOUD: IaaS
-IoT: Experimental facilities -IoT: M2M in city environments
-IoT: Open / linked data
Industrial change -CLOUD: Private and hybrid clouds -CLOUD: SaaS and PaaS in the main
-CLOUD: Hosting of G city services domains of cities
-IoT: IPv6 and HTML5 -IoT: Smart gird / smart meters in cities
Social change -CLOUD: Pilot city applications in city -CLOUD: Large scale demand of smart
utilities, districts, and gov city applications and services
-IoT: Sensors for city environment -IoT: Embedded city intelligence proof of -IoT: Extended demand for sensor over
alert concept city networks
Policy change -CLOUD: Government roadmaps to G -CLOUD: Standards development and
services adoption
-CLOUD: US reform of IT management
-IoT: China encouraging technologies -IoT: FP8 IoT PPP
for IoT -IoT: Harmonisation of frequency bands

23. Implementing the development
process towards local digital
Major issues
Phases
agendas
1. Inception: 2. Definition 3. Operation 4. Sustainability
Infrastructure Identify availability
User requirements Implementation plan Plan for future
and resources: and access defined and agreed; agreed and operation agreed with
access and requirements infrastructure operational; user infrastructure and
availability accessible and groups established resource owners
agreements in place and working
Collaboration Identify partners Analyse benefits vs Collaboration Evaluation of benefits,
and business and conditions for costs and agree processes monitored costs and risks together
models collaboration justification and and supported during with lessons learned
arrangements for the experimentation and plans for future
collaboration operation based on this
Innovation and Agree aims, Innovation should be Management plan Identify results and
project objectives, benefits clearly defined, agreed with benefits for partners
definition of innovation prepared and monitoring and and stakeholders
planned planned results
Involvement and Identify partners Roles of partners and Co-creation evolving in Commitment for future
support and stakeholders stakeholders agreed practice participation
Stakeholder Agree process for Matching of needs User groups Co-production potential
engagement engagement together with established linked to identified and agreed
experience and/or partners and between users,
expertise stakeholders partners and
stakeholders

24. Summary roadmap towards a
smarter city, example Manchester
Developments and changes Future vision Challenges and gaps Future solutions and
innovation needs
Digital infrastructure: Connected cities: Sustainable business cases: Ubiquitous smart city
Corridor digitisation fibre •Extending fibre and wireless •Implementing new mutuals infrastructures:
project across the city region & social enterprises •Infinite bandwidth, zero
Low Carbon Open Data •Developing new mutual •Co-production of services latency (IBZL)
(LoDaNet) project and business models •Everyone, everything,
wireless roll-out everywhere
Smart City strategy: Collective intelligence: Innovation economy: Innovation culture:
•Innovation legacy from •Capacity building •Investment in digital •Inspiration & aspiration
Knowledge Capital •Access to skills infrastructure •Convergence of digital,
Innovation Boardroom •Matching skills to jobs •Internet Hub creative and technical
•Digital inclusion initiatives •Open data networks •Incubation of new start-ups •Mutual aid
•Green & Digital
Citizens engagement: Co-production: Digital inclusion: Open and participative
•Smart Citizens in Smart •Test-beds for new services •Barriers to access innovation systems:
Cities – SMARTiP project •Developing new delivery •Trust & privacy issues •Co-creating and sharing of
•Peoples Voice Media & models •Incentives for engagement new assets
community reporters •Support for new skills & •Sustaining commitment •People as sources of
training interactive data and services
Innovation test-bed: Common assets: Technology push: New partnerships:
•Manchester Living Lab •Open data and services •Dangers of “smart city in a •Four P’s: public, private,
•Corridor projects •Accessible and affordable box” people partnerships
•Manchester Digital connectivity •Corporate resistance to •Smart open systems
•Sharp project change •Co-production
•Legacy systems

25. Challenges for next years
 Networks of Future Internet testbed facilities and living labs within and
across smart cities and regions may become the backbone of European
innovation ecologies and value networks – Horizon 2020
 Capabilities and resources, including experiment facilities , user oriented
methodologies, service offerings and collaboration models enabling access
and use of facilities and services should evolve
 Smart Cities are environments to experiment technologies and applications,
however the potential for business creation and entrepreneurship should be
stimulated (e.g. DAIR, Canada)
 Open innovation and citizen empowerment requires finding new balances
between top-down steering and bottom-up initiative
 Assessment of the impact and benefits of “smarter cities” in terms of value
created for citizens. There is a lack of evidence showing impact, how can we
achieve and measure the impact and value added of smart city initiatives?

26. Here you find more
Download from www.fireball4smartcities.eu

27. Call for Papers: Smart Applications for Smart Cities: New
Approaches to Innovation
Special issue of the Journal of Theoretical and Applied
Electronic Commerce Research
Guest Editors: Hans Schaffers, Carlo Ratti and Nicos Komninos
Full paper submission: May 2012
Publishing: December 2012
Information: www.jtaer.com

28. Thank you !
Discussion
Contact:
hschaffers@esoce.net