Local Government: Challenges, Reforms and Futures European Local Government: Challenges, Reforms and Futures Markku Markkula President of the European Committee of the Regions CoR markku.markkula@cor.europa.eu

COMMITTEE OF THE REGIONS PRIORITIES 2016-2020 1. A FRESH START FOR THE EUROPEAN ECONOMY Creating jobs and sustainable growth in cities and regions to provide a better quality of life for citizens 2. THE TERRITORIAL DIMENSION OF EU LEGISLATION MATTERS Working in the interest of citizens, no matter where they chose to live and work 3. A SIMPLER, MORE CONNECTED EUROPE Reconnecting citizens and businesses at local and regional level 4. STABILITY AND COOPERATION WITHIN AND OUTSIDE OF THE EUROPEAN UNION Supporting our neighbors on their path towards European values 5. EUROPE OF THE CITIZENS IS EUROPE OF THE FUTURE Enhancing forward-looking partnerships between the European Union and its people

Instrument to Integrate Policy Objectives and Policy-Relevant Indicators: Regional Well-Being Measurement Cycle Citizen Engagement Identify Expected Results Source: OECD (2014), How's Life in Your Region?

Elected Politicians & Civil Servants Civil Society & Citizens & NGOs Stakeholders Involved in Implementing Local/Regional Well-Being Initiatives Elected Politicians & Civil Servants Scientific Community Civil Society & Citizens & NGOs Private Sector Source: OECD (2014), How's Life in Your Region?

We need to react on the changing innovation landscape. Erkki Ormala, Professor Aalto University, Former Vice-President, Business Environment, Nokia

Blueprint as the Product of a Tripartite EU High Level Expert Group 2014: Inspiring and Completing European Innovation Ecosystems “The basis for open innovation is Quadruple Helix where Government, Academia, Industry and Citizens collaborate to drive structural changes far beyond the scope any one organization could achieve on its own.” “At the moment, EU governance is excessively focused on regulation and not enough on mentoring, collaboration, stewardship and peer review.” ”Between the traditional Community Method and the Open Method of Coordination, it requires new instruments for innovative Collaborative Governance.” ”Setting coherent and compelling criteria for making the EU Innovation Ecosystems flourish.” ”Public procurement needs urgent and full application of the new rules in order to make use of its inherent innovative potential.” www.highlevelgroup.eu

Targeted orchestration of major transformation operations. Regions and Cities Are the Key Actors: Build More on the Process Nature of Transformation All-permeating development activities should be targeted in the following critical success factors of the transformation process: Network centric working culture focusing especially on desired attitude and mindset change. Targeted orchestration of major transformation operations. Creating new collaborative value creation methods, processes and models. Planning and implementing the activities to co-create regional innovation ecosystem architecture based on virtual reality. Making strategic choices to start potential breakthrough mega-level initiatives focusing on joint-research topics and by the help of them on societal innovations to create new solutions. Sustainable development a cornerstone for all. Markku Markkula CoR & Aalto University

CoR & Commissioners Co-creating a Joint Action Agenda Commissioner Carlos Moedas: "Power is shifting from nations to cities” on July 9, 2015, at CoR Plenary. “New path for European research and innovation policy for a world is open, digital and global”. Three strategic priorities in his ERA of Innovation conference speech on June 22, 2015: 'Open innovation, Open Science and Open to the World’. ---- How to implement this? Cities and regions are the enablers  regional innovation ecosystems You can download the book, see the front page of www.urbanmill.org

Espoo Innovation Garden Espoo is the 2nd largest city in Finland, the western part of the Helsinki Metropolitan Area VANTAA ESPOO HELSINKI

Markku Markkula, Aalto University & EU Committee of the Regions 11 June 2012 Espoo Innovation Garden & Aalto University Campus 2020 Microsoft Aalto University Rovio Tapiola Garden City EIT ICT Lab Laurea Young entrepreneurial mindset According to the plans, in 2015-25, there will be new investments of 4-5 billion €: metro, tunnel construction of ring road, other infra, housing, office and business buildings, public services, university buildings, sports and cultural facilities…

From Bench-marking to Bench-learning The European Committee of the Regions is the EU's Assembly of 350 regional and local representatives from all 28 Member States. In order to overcome its current challenges, Europe must establish a culture of co- creation and break its boundaries by moving towards entrepreneurial discovery, open innovation, experimentation and action. This publication seeks to stimulate bench- learning between regions and cities, sparking new ideas and fundamentally stirring economic development. Presenting some of the most inspiring projects across the EU, this book offers readers an opportunity to understand and explore how Europe's cities and regions are breaking new ground in regional development. Download the CoR Guide: http://cor.europa.eu/regional-innovative-ecosystems

Critical Success Factors for Pioneering Cities and Regions Policy model Collaboration model Partnering model Innovative instruments Outcomes & Impact Resources Actors Physical & digital spaces VISION A city or region should be able to address all of the requirements described in the figure; otherwise the regional innovation ecosystem is not yet well established. Especially the elements on yellow are the ones which make the difference between normal and pioneering regions. The more detailed text is written to give guidance for potential content of the success factors.

CoR focus on pioneering cities & regions: Developing Regional Innovation Ecosystems Digitisation and globalisation drive change, and convergence towards digital services is speeding up. Regions and cities need to encourage regional innovation ecosystem development. The activities feature the following characteristics: Innovation communities operate as ecosystems through systemic value networking in a world without borders. Innovation strategies focus on catalysing open innovation and encouraging individuals and communities towards an entrepreneurial mindset and effective use and creation of new digitalised services. Innovation is often based on experimenting and implementing demonstration projects by partnerships, using the best international knowledge and creating new innovative concepts. Creative processes can show what is the European Value Added and how to reach that through the bottom-up movements. Download the CoR Guide: http://cor.europa.eu/regional-innovative-ecosystems

Open Innovation  the Commission’s 3 Pillars of Action is a broad term, which encompasses several different nuances and approaches. Two main elements underpin the most recent conceptions of Open Innovation, for which academics have coined the term Open Innovation 2.0.”

Collaborative projects and strategic development Smart Specialisation (RIS3) in the Helsinki Region: The On-Going Process as an Economic Transformation Agenda Regional development RIS3 – Strategy Futures scenarios Collaborative projects and strategic development Research & Innovation Partnerships & Projects

The Future Review of Helsinki-Uusimaa Region Contingency plan 1 Possible development paths Contingency plan 2 Operating environment of the Helsinki-Uusimaa Region 2016 Vision for Helsinki-Uusimaa’s future 2050 Operating environment of the Helsinki-Uusimaa Region 2050 Necessary measures, independent of scenarios Contingency plan 3 When building scenarios we must try to identify the are of uncertainty in the operating environment and form 4-5 scenarios that entail this uncertainty. Contingency plan 4 Contingency plan 5

Crystallisation of scenarios We crystallize the scenarios to show their characteristics and that they are different from each other.

How? Innovation policies & funding Innovation platforms Spearhead industries Enabling knowledge & technologies SMART SPECIALISATION SMART VALUE SMART PLATFORMS SMART SUPPORT Invest in strengths New combinations Strategic change management Co-creation approach INTERFACES INTERFACES RIS3 - SPEARHEADS Urban Cleantech Human Health Tech Digitalising Industry Welfare City Smart Citizen All Permeating Drivers of Change: Digitalization & Open Innovation Platform

The Six City Strategy: Open Innovation Platforms, Open Data and Interfaces, and Open Participation The six largest cities in Finland run a joint RDI programme worth about 100 m€ in 2014-2020. It will focus on open data, open innovation platforms and open inclusiveness in order to speed up the innovation development. An open innovation platform consists of infrastructure, physical and virtual elements, productized processes and community members that form a strong value added environment. Offer a structured platform for digitalization of municipality services, involve the companies and community members in creating new innovative ways to implement services and thus utilize all available local resources. The role of the city will evolve from service provider to service creation enabler. Utilizing concept models and processes is in the core of development. This will in turn enable the scalability and multiplication of the benefits compared to independent platforms.

3D – Virtual City Development Platform 3D role in Urban Planning - City of Oulu 3D as a new business creation and innovation platform - universities and business community Architecture Bureau Architecture Bureau Engineering Bureau Accurate Data for planning purposes New Services and Business Basic 3D-model (LOD 1-2) Detailed 3D-model (LOD3-4) Data tuning OPEN INNOVATION PLATFORM 3D-model Accurate data for open Innovation Platform Basic 3D model creation based on location data Enabling Technology Accurate data for city development and monitoring Location Data Source (Locus, NIS, CIVIL) Maintaining The Data base maintenance needs, traffic data, citizen feedback Open Data Sources User Interface User Interface User Interface Construction, Land Use , Environment planning,

Case Espoo Innovation Garden: Technology linked with More focus on the Real Enablers for Systemic Change based on Smart Specialisation Systems Approcah Interpendent Variables Analytical Approach Independent Variables Social Model Biological Model Machine Model Nature of Inquiry Nature of Organization Markkula, M., Pirttivaara, M. & Miikki, L., 2009 & 2013. Developed using the ideas from: Gharajedaghi, J., 2006. Systems Thinkig: Managing Chaos and Complexity. Conceptualized Change Processes Traditional Organisation Specific Business Plan Success Factors: Ecosystem thinking - Co-creation - Entrepreneurial Discovery Effective use of KETs - Knowledge Triangle (synergy between R&E&I) Regional Innovation Test-Bed / Case Espoo Innovation Garden: Technology linked with Factories & Living Labs & Start-ups

Cities in the Spotlight: Renewing and Strengthening EU’s Urban Agenda Source: Lambert van Nistelrooij, MEP Cities and urban areas are becoming more important as engines of economic growth and employment, as breeding grounds for art, culture and creativity and as the place for innovation and start-ups. Nearly ¾ of 500 million EU citizens live in urban areas. But also problems and societal challenges often accumulate in cities.

The New Role of Cities as a Systems Innovators Richard Tuffs, ERRIN

Barcelona EU innovation Capital 2015

Accelerating the Digital Transformation: Blueprint Recommendations Accelerating the uptake of big data and establishing competitive digital platforms in Europe Reskilling the workforce: digital skills for industry Toolkit for decision makers to become ambassadors for digital transformation Cities and regions as launch pads for digital transformation DG Grow, May 2016

http://www.espooinnovationgarden.fi/en Metro extension to the west from downtown Helsinki will open in the fall 2016

Location of Metro Zone Test Areas 1 2 3 4 6 8 7 5 A B Grey field planning test areas Green field planning test areas C Temporary area / temporary use test beds Energy test areas Aalto Camp for Societal Innovation 2015 Challenge team 2 / Urban planning

OI2 Conference & ACSI Innovation Camp Espoo June 2015 …. Markku Markkula CoR

ACSI 2015 co-created new activities in tackling this challenge Aalto Camp for Societal Innovation

Espoo Action Process 8 Action Fronts for Realising Open Innovation 2 Espoo Action Process 8 Action Fronts for Realising Open Innovation 2.0 in Practice Energize Local and Regional Innovation Ecosystems Co-create Collaboration Platforms Promote Activities for Citizens as Innovators Engage New Professionals: Bridgers and Curators Pioneer the next phase of Smart Cities & the Urban Agenda Boost regional Quadruple Helix Innovation & Entrepreneurship Encourage Experiments in Public Sector Innovation Write and Speak about Open Innovation in the Language that People Relate to Markku Markkula CoR

Emergent solution dialogue The Concept in Increasing Renewal Capital GOVERNANCE LEVEL Societal engagement to tackle Grand Societal Challenges Operational excellence OUTCOMES & IMPACT Innovative solutions Enabling Systemic Renewal EU Emergent solution dialogue Innovation platforms Knowledge Sharing and Co-creation Process Culture Regions and Cities Orchestration of operations Collaborative value creation Knowledge Triangle Practices Hundreds of projects Local Innovation Ecosystem Based on the article by M. Markkula, Knowledge Triangle book 2013

Platform = Orchestrating Regional Innovation Ecosystems Focus on Regional Innovation Ecosystems A society emphasizing knowledge Expanding value constellations More power to knowledge workers RIS3 Digitalized Innovation Platform RIS3 Platform … implies an increased need for learning… Information acquisition Problem solving Co-experiencing Insight acquisition …and shifts in capability requirements From resources to capabilities To transformative concepts To relations and interactions To integrated value co-creation is the value co-creation instrument in the regional innovation ecosystem For RIS3 implementation to be successful the policy activities need to be orchestrated by the help of region’s RIS3 Platform as a on-going process & an economic transformation agenda This is enabled through orchestration: Architects & Bridgers & Curators & Conductors Markkula, Kune & Tukiainen, Based on ACSI Espoo 2016, Source also Johan Wallin, Business Orchestration, 2006