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PLATFORMS FOR SMART ECONOMIC GROWTH
CREATING SMART INNOVATION ENVIRONMENTS
TO HARNESS GLOBAL FLOWS IN A DIGITAL AGE
HEADING GLOBAL CONFERENCE 2016 --- 14-15 NOVEMBER 2016,
KUWAITAdjunct Professor Dr. Ari-Veikko Anttiroiko
University of Tampere, School of Management,
Finland
PLATFORMS FOR SMART ECONOMIC GROWTHKEY TOPICS•GROWTH, FLOWS AND LOCALITIES• TOWARDS INCLUSIVE SMART CITY• PARTICIPATORY INNOVATION
PLATFORMS
Global flows of values
Global networking
Attraction Export
Participatory innovation platform as a smart innovation environment
Engaging people
Growth
Innovation
Smartness
Platforms
People
Context
Urban community as a dissipative structure
SmartCity
FACTORS AFFECTING ECONOMIC GROWTH• Urban land as a historical starting point • Exogenous growth theory and export-base theory (exogenous export demand)• Endogenous growth theory: novel perspective on unique factors of spatial milieu• The role of technology: beyond the increase in the labour and capital in production -> technology• Soft factors of growth: knowledge, social, human and creative capital, institutions, culture, etc.
Urban land
Physical and monetary capital
Technology
Soft forms of capital
Systemic smartness?
Agrarian, industrial and informational mode of development (Castells)
GLOBAL FLOWS OF VALUES
Source: Manyika et al. 2014. Global flows in a digital age. McKinsey Global Institute (MGI).
Business
Public Civic
Frictional human and material flows
Frictionless flows
Local attraction and value-generation processes (city as a dissipative structure)
Production sphere Consumption sphere
Cultural values
Knowledge Innovation
Technology Know-how
Capital FDIs
BUSINESS
CONSUMERS SOFT FACTORS
HARD FACTORS
Global markets
CITY Natural resources Technology Capital Labour
Knowledge Creativity Entrepreneurship Social capital
Shopping Fashion Sports Culture Tourism Education
Innovation milieux Business services Fairs Logistics
P C
Irreducible services
Online services
Goods and materials
Enterpreneurs Business travelers Professionals
Public authorities
Tourists
Hybrid services
Productive actor and institution
flows
Talent
Labor
Raw materials
Intermediate goods
Exports Imports
Client flows
Firms
Students
Immigration
Local leadership / Governance / Policies
Community characteristics
Urban design
Logistics Fairs
• Declined transport and communication costs -> global trade, mobility and communication
• Digital economic transformation: digital goods and services, digital ”wrappers” and digital platforms -> money and data
• Flows of goods, services and finance have grown steadily for decades, reaching 36% of global GDP in 2012.
• Knowledge-intensive flows are growing faster than capital-intensive or labour-intensive flows. They generate more economic value than the global goods trade.
=> RISE OF GLOBAL KNOWLEDGE ECONOMY
LOCALITY AS A DISSIPATIVE STRUCTURE• Dissipative structure (Ilya Prigogine):
exchange of energy and matter between entity and its environment
• Uurban structure is sustained through flows to and from the outside
• Neighbourhood revitalisation• City attraction hypothesis• Export-base theory• Global innovation networking
1
3
2
4
Internal processes External processes
Smart local restructuring
Locality
Community asset development and utilization
Exporting local products and services
Attraction strategy
Global networking and knowledge sharing
Global context: global markets and production and innovation ecologies
Relational processes
Local context: local history, economy and community characteristics
SMART URBAN RESPONSETO THE CHALLENGES OF A DIGITAL AGE• World is ’spiky’ in terms of productive smartness (Florida).• Metropolitan revolution: we need smartness to fix a fragile
economy and to restore our confidence in economic growth.• Traditional ”business engineering” view: smart solutions,
systems and industries as drivers of smart economy.• Hard and soft smartness supports competitiveness:
smartness helps a city to be attractive and competitive and ICTs have a role to play in gaining such competitive advantage.
• Smartness is also about social intelligence and the wisdom of the crowd applied to complex social processes, including innovation processes.
Smart city is about hard and soft smartness
SMART CITY AS A LOCUS OF ECONOMIC DEVELOPMENT
E.g. the case of Barcelona
• Smart city is a framework for promoting the utilisation of technological advancements for urban development
• ICTs as a catalyst of development are embedded in socio-economic context
• Inclusive smart city -> Citizen involvement and inclusion in the making of smart cities
• Playable smart city -> residents are able to hack the city and use open data and new ICTs for their own purposes and applications (Anton Nijholt).
Facilitation of smartness = platformisation
EMERGENCE OF LOCAL PLATFORMSFOR FACILITATING THE SMARTENING UP OF COLLECTIVE CAPABILITIES
1. Platforms for local asset utilisation, e.g. local associations, BIDs, incubators, Living Labs
2. Platforms for attracting external resources, e.g. InnovationXchange, magnet institutions, talent attraction schemes
3. Platforms for export promotion, e.g. export processing zones, accelerators, Go Global programme (Stockholm)
4. Platforms for knowledge sharing and networking, e.g. city networks, PLATFORMA (CEMR), ENoLL
1
3
2
4
Internal processes External processes
Smart local restructuring
Locality
Community asset development and utilization
Exporting local products and services
Attraction strategy
Global networking and knowledge sharing
Global context: global markets and production and innovation ecologies
Relational processes
Local context: local history, economy and community characteristics
Citizens’ have key roles in local asset utilisation and knowledge sharing
PARTICIPATORY INNOVATION PLATFORMSParticipatory = inviting, inclusive, open, appreciative, democratic, fair
• Examples: Quadruple Helix, PPPP, Crowdsourcing, Citizensourcing, Living Labs, open and user innovation and innovation events
• Participatory platforms match business, academia and government with citizens
• Platform offer structured and enabling environment for citizen engagement• Platform functions: access, creativity, sharing and integration
Access
Sharing
Integration
Creativity
Innovation platform
CITIZEN PARTICIPATION• Local people are much more than just
users or customers serving firms’ product development
• Local people can participate in innovation processes in various roles:
• Users and customers• Lead users and enthusiasts• Activists and hactivists• Inhabitants• Community members (”citizens”)
• Culture and societal conditions significantly affect citizen engagement
Local people’s roles in
innovation
processes
CitizenCommunity
member
Inhabitant
CustomerUser
Co-designer
Co-creator
InnovatorCivic
entrepreneur
HackerActivist
Enthusiast
FORMS OF PARTICIPATION• NOMINAL PARTICIPATION
• Display needed for legitimation
• INSTRUMENTAL PARTICIPATION• Users in pre-decided setting
• REPRESENTATIVE PARTICIPATION• Community members are given a voice
• TRANSFORMATIVE PARTICIPATION• Self-organisation and empowerment
Informing
Public hearing
Crowdsourcing
Co-design
BarCamp
Integration with official planning system
Degree of freedom
and creativity
Strong Weak
Low
High Urban hactivism
Self-organized
urban planning
Collaborative
urban planning
Technocratic urban planning
The above-mentioned four-fold typology of citizen participation is developed by Sarah C. White
THE CULTURE OF OPENNESSAS A BACKBONE OF PARTICIPATORY INNOVATION PLATFORM
Elitist innovation culture Open innovation cultureInnovation system System of privileged institutions Open innovation ecosystemApproach to innovation Closed OpenGovernance model Elitist, top-down Inclusive, bottom-upRole of citizens Subordinates, users Empowered citizens
The full utilisation of citizens’ potential requires an open innovation culture, which is built on transparency, non-hierarchical structures, democratic sentiment, social inclusion and the idea of sharing.
Essential in citizen involvement is to utilise citizens’ experience, knowledge, commitment and diversity, rather than their expertise on some particular issue. In short, diversity trumps expertise.
DIGITAL SMARTNESS• ICTs enable new ways of tapping into the collective intelligence• Most of the crowdsourcing excercises today are web-based or
computer-assisted processes• Digital tools can be used to support ’soft smartness’ associated
with complex knowledge processes, such as innovation process• Interfaces between digital and innovation systems
(Komninos): [1] digital disruption in industries, [2] digital platforms (living labs, virtual marketplaces etc.), and [3] co-design and co-creation with lead users, customers, crowds and user communities.
Communicative intelligence
Content intelligence
Collaborative intelligence
Collective intelligence
Aggregating
Interacting Analyzing
Communicating
Aspects of digital
smartness
4Cs of social
intelligence
DIGITAL DISRUPTION• Current developments include interferences between public
governance, activism, social networking and business
• Self-organised and decentralised networking and hacking are becoming a norm in business and social interaction:
• Hackers undermine the conventions of business life• Terminological changes: e.g. growth hacking in marketing• The rise of non-elite stakeholder groups• Dissolving the fixities of roles in Quadruple Helix
• Hacker ethic: access, openness, freedom of information, sharing
• From physical/local to virtual or cyber-physical platforms Anarchism and distrust of authorities
SMART INNOVATION ENVIRONMENTS IN LOCAL COMMUNITIES
Global flows of values
Global networking
Attraction Export
Participatory innovation platform as a smart innovation environment
Engaging people
Growth
Innovation
Smartness
Platforms
People
Context
Urban community as a dissipative structure
SmartCity
• Knowledge-intensive global flows, platformisation and the democratisation of innovation give impetus to the creation of participatory innovation platforms.
• Local value creation processes take place at the intersection of business, policy-making, urban activism and digital living.
• Cities are keen on creating innovation environments of various scales to facilitate global-local interaction.
• People have different roles in local innovation platforms, which reflect the cultural and societal context within which they operate.
Participatory innovation platforms contribute to the utilisation of the innovation potential of urban community and related pursuit of smart, inclusive and sustainable economic growth.