Markku Markkula Towards Smart Regions and Cities Pioneering EU Smart Regions, Dipoli Espoo 26 April 2013 Markku Markkula EU Committee of the Regions CoR, Rapporteur on “Horizon 2020” and Rapporteur of “Closing the Innovation Divide” Committee of the Regions: Towards Smart Regions and Cities There is a huge gap between the latest research knowledge and real life practice. What do we need to do to fill it? CoR has defined the following guidelines: Europe needs pioneering regions to be forerunners in implementing the EU2020 and through that to invent the desired future. Lifelong learning and the full use of ICT are cornerstones for this change of mindset towards entrepreneurship and innovation. We need the dynamic understanding of regional innovation ecosystems where public, private and third sector learn to operate together. Modernize Triple Helix. We need methodologies to mobilize public private partnerships and encourage especially people participations: user-driven open innovation & living labs. We need to speed up the change by scalability & implementation. Source: CoR Opinions 2011-2012

Markku Markkula, Aalto University & EU Committee of the Regions 11 June 2012 Regional Innovation Ecosystem Aalto University Campus 2020 Nokia Aalto University Rovio Tapiola Garden City EIT ICT Lab Laurea Young entrepreneurial mindset According to the plans, by 2020, 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…

Aalto City Integrating Real and Virtual Worlds Aalto University campus with its surrounding business and residence areas is the innovation hub of the Helsinki Region. This picture is based on the Energizing Urban Ecosystems research program. The program with its € 20 million multidisciplinary research integrates new science, art and business developments to working  in a virtual environment. Regional Information Modeling is the breakthrough dimension in this research. 

Regional Information Modeling Building Information Modelling (BIM) is used in controlling single construction process in order to record physical and activity based features in a digital form. The resulting building information models become shared knowledge resources to support decision-making about a facility from earliest conceptual stages, through design and construction through its operational life and eventual demolition. Regional Information Model can be considered as a similar presentation of a larger area of built environment, that can be further used e.g. for virtual city planning. Regional Information Model could be a reliable and trustworthy basis for lifetime engineering supporting new value adding activities and decision making.

Towards Regional Information Modeling (CdR CdR 104/2010 fin) “Committee of the Regions (CoR) points out that management of the built environment and urban planning are sectors with a high impact on the local economy as well as on the quality of the living environment. New developments in information management can play a crucial role in achieving the goal of establishing an ambitious new climate regime. Building Information Modelling (BIM) is actively used in facility management to provide a digital representation of the physical and functional characteristics of a facility. The concepts of BIM should be extended to regional and urban planning. It could then serve as a shared knowledge resource for an area, forming a reliable basis for life-cycle analysis, user-driven business process development and value‑creating decision-making.” OPINION of the Committee of the Regions on the DIGITAL AGENDA FOR EUROPE, approved by the CoR Plenary on 6 October 2010

The Frame for Implementing Knowledge Triangle (Synergy between Research, Education and Innovation) Source: Markku Markkula, article in the Knowledge Triangle book, 2013

The Hubconcepts™ - Innovation Hub Framework Company and forum driven activities Public-private partnerships Public policy “Smart Handover” National /Regional Innovation Policy Research & Development Activities Education (elementary to university) Physical Infrastructure and Service Structures Cluster Policies & Programs Start-ups Living Labs / Test-Beds Incubation Environments Anchors Growth SMEs First-class master plans & Innovation Hub concepts complete each other Technology Innovation Area Biotech & Pharma Phase I Residential Zone Semiconductor Phase II Semiconductor Phase I Biotech & Pharma Phase II Scientific Research and Education Zone Copyright and all rights reserved. 7

The Development Path of the Regional Innovation Ecosystem (RIE) Development of National or Regional Innovation System Public support Stage 2: Initiating transformation towards RIE Stage 3: Orchestration for global business Stage 1: Creating pre-conditions Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013 8

The Development Path in More Detail Stage 1 Regional pre-conditions: Potential of existing regional/international innovation system (=audits) 2. Willingness to utilise this potential (=active participation) Stage 2 Creating the innovation hub: 1. Joint R&D 2. Joint innovation capacity 3. Joint commercialization 4. Joint platforms Stage 3 Orchestrating RIE: Mindset change Implementing Knowledge Triangle Integrating innovation activities with research programs Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013

PICNIC Smart City & Living Labs Markku Markkula Have a look at: www.aaltodesignfactory.fi 14 September2011 Amsterdam Mindset Situation when Aalto started in 2010 EU Calls for Transformation: Europe needs pioneering regions, as pathfinders and rapid prototypes. Helsinki Region has forerunner instruments in use: Aalto Design Factory Aalto Venture Garage Aalto Camp for Societal Innovation and many more … Markku Markkula CoR & Aalto University

ACSI 2011: We Cannot Reach the Target by Incremental Small Steps Inventing the future: Working and learning together Today: Separate projects and silos Gardening to enable uniqueness The upside-down tree metaphor originates 1992 by Leif Edvinsson Fruits of global pioneering to the use of all We need to create “Joint Regional Innovation Ecosystems” The picture is based on the results of the Aalto Camp for Societal Innovation 2011: Markku Markkula

Aalto Camp for Societal Innovation ACSI Integrating Real World & Virtual World

Finnish Way to Knowledge Society: Regional Level = The Learning City Espoo = The Learning City Preconditions of Learning Learning Services Learning Environments Culture of Learning Concept of Learning Learning Methods Learning Organisations Innovations, Development Values, Goals and Strategies Physical Environment Virtual Environment Spiritual Environment Time Variation Structure of Economic Life Accessibility of Services Knowledge- and Citizens’ Society Inclusion and Impowerment International Activities Resources Learning Facilities and Supportive Measures Cooperation Between Providers of Education Infrastructure of Lifelong Learning City of Espoo – Cluster of Learning Services Espoo has defined the following features and activities to be essential for the Learning City concept: - Creates a network of educators and other actors - Is responsible for the preconditions of learning - Acts itself as a learning organization - Recognizes the importance of knowledge and encourages and stimulates learning The Cluster of Learning Services aims at connecting the knowledge and resources of different actors to a self-steering network to benefit both learning providers and companies as well as the public sector. The objective is to use the new information and communication technologies efficiently in learning environments and to find the added value of the new technologies to support the learning process. Pilot projects:1) Master of Mathematics, special advanced mathematics course for upper secondary schools 2) Young Net Entrepreneur – course 3) Basics of programming. The basic principle of the activities of the cluster is mutuality. Partners focus on their core competence, e.g. pedagogics, technology, business or other learning contents. The network is based on personal relations and efficient information. Same contents can be tailored to meet different learning needs and different learning phases. The cluster operates through meetings, exchange of know-how and learning contents, testing the pedagogical models, intranetwork training projects, producing and marketing services and tailored company projects. The projects are open to all schools, and in practice to others as well in Espoo. New projects will be approved on the basis of criteria determined in the action plan.

Espoo & European Year of Lifelong Learning 1996 This picture was done already close to 20 years ago: This Has Been and Still Is a Long Process Espoo = The Learning City Preconditions of Learning Learning Services Learning Environments Culture of Learning Concept of Learning Learning Methods Learning Organisations Innovations, Development Values, Goals and Strategies Physical Environment Virtual Environment Spiritual Environment Time Variation Structure of Economic Life Accessibility of Services Knowledge- and Citizens’ Society Inclusion and Impowerment International Activities Resources Learning Facilities and Supportive Measures Cooperation Between Providers of Education Infrastructure of Lifelong Learning Espoo & European Year of Lifelong Learning 1996 City of Espoo – Cluster of Learning Services Espoo has defined the following features and activities to be essential for the Learning City concept: - Creates a network of educators and other actors - Is responsible for the preconditions of learning - Acts itself as a learning organization - Recognizes the importance of knowledge and encourages and stimulates learning The Cluster of Learning Services aims at connecting the knowledge and resources of different actors to a self-steering network to benefit both learning providers and companies as well as the public sector. The objective is to use the new information and communication technologies efficiently in learning environments and to find the added value of the new technologies to support the learning process. Pilot projects:1) Master of Mathematics, special advanced mathematics course for upper secondary schools 2) Young Net Entrepreneur – course 3) Basics of programming. The basic principle of the activities of the cluster is mutuality. Partners focus on their core competence, e.g. pedagogics, technology, business or other learning contents. The network is based on personal relations and efficient information. Same contents can be tailored to meet different learning needs and different learning phases. The cluster operates through meetings, exchange of know-how and learning contents, testing the pedagogical models, intranetwork training projects, producing and marketing services and tailored company projects. The projects are open to all schools, and in practice to others as well in Espoo. New projects will be approved on the basis of criteria determined in the action plan.

We need real life feedback  indicators  bench-learning www.elli.org ELLI- Internet Platform ELLI-Studies & Publications ELLI-Index Europe ELLI – Learning Community Report www Regional UNESCO‘s four learning dimensions CoR Presentation by Markkula on 21 Feb 2011: This ELLI is excellent material and instruments. This can lead to a real societal innovation.

How to Speed up and Scale up EU 2020 Implementation Horizon 2020 Frame for Research and Innovation: How to Speed up and Scale up EU 2020 Implementation More Societal Innovations Digitalized Real Life Test-beds Open Innovation & Digital Entrepreneurship Regional Innovation Ecosystems Pioneering EU2020 Urban Design Solutions SMART SPECIALISATION Scientific Excellence & Industrial Leadership Markku Markkula, markku.markkula@aalto.fi Chair CoR-EPP Task Force on Europe 2020, Aalto University, Finland

Incremental innovations Semi-radical innovations Transformation: the levers for the 3 types on innovation (In the past: the focus on innovations has been on business and technology. Now: also the cultural levers are the drivers of change) Business Model Levers Technology Levers Value Proposition Value Chain Target Customer Product and Service Process Technology Enabling Technology Cultural Levers Regional Innovation Ecosystem Space (Ba & Flow) Design Mindset Learning Incremental innovations Semi-radical innovations Radical innovations Markkula M & Pirttivaara M, (2013). Adding the Cultural Levers. Developed from Davila T, Epstein MJ and Shelton RD, (2013), Making Innovation Work, FT Press, New Jersey.

Applying Experiences from Industrial Systems  Interacting Learning & Research & Innovation Activities Three Steps to Understand the System: Identify Societal / Market Needs & define system requirements & barriers Integrate Fundamental Research & Innovation Knowledge into Enabling Technologies Develop Useful Insights from Fundamental Knowledge Professor Sir Mike Gregory, 13 Feb 2013 (E O’Sullivan: Adapted from NSF ERC Strategy Framework)

Globalisation  Need for Smart Specialisation Work in Progress April 4, 2017 Globalisation  Need for Smart Specialisation Understanding the dynamics of global industries Mapping and managing global value chains Configuring production and supply Understanding national industrial policies ‘Making the right things in the right places’ Professor Sir Mike Gregory, 13 Feb 2013

Energizing Urban Ecosystems Aalto University & other researchers & industry & cities: Energizing Urban Ecosystems 20 million euro research program for 2012 -2015 Regional Information Modeling in Urban Planning for the Built Environment 1. Scientific breakthroughs 2. Application breakthroughs 3. Breakthrough in mindsets 4. Breakthroughs in art & design 5. Breakthroughs in business models This ppt-set (short version of the set made for EUE in August 2012) gives an evidence that the real life breakthrough can be made.

Participants produced inputs which were uploaded to the Virtual Environment and further developed by the facilitators for voting. All this happened during the workshop. Overview of the workspace used in the EU Open Days 10A16 Workshop In Brussels Oct 10 2012 2012 Juho-Pekka Virtanen, Tommi Hollström, Lars Miikki, Markku Markkula Based on research on Regional Information Modelling by: Juho-Pekka Virtanen, Hannu Hyyppä, Marika Ahlavuo, Juha Hyyppä

CoR Draft Opinion on “Closing the Innovation Divide”  Making the Transformation to Happen Addressing new innovative solutions on major societal challenges at regional level Smart specialisation – what does that mean in practice Smart cities and smart regions – concepts and implementation Regional innovation ecosystems as laboratories for entrepreneurial discovery Synergistic cooperation (= Knowledge Triangle & European Partnerships) during the new programming period 2014-2020