1. Local Government: Challenges, Reforms and Futures
European
Local Government: Challenges, Reforms and Futures
Markku Markkula
President of the European Committee of the Regions CoR

2. 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

3. 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?

4. 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?

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

6. 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.”

7. 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

8. 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

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

10. 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 , 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…

11. 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:

12. 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.

13. 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:

14. 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.”

15. 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

16. 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

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

18. 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

19. 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 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.

20. 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,

21. 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 & Developed using the ideas from: Gharajedaghi, J., 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

22. 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.

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

24. Barcelona EU innovation Capital 2015

25. 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

26.
Metro extension to the west from downtown Helsinki will open in the fall 2016

27. Location of Metro Zone Test Areas1 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

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

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

30. 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

31. 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

32. 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