The slide is about smart cities and how to use them as platforms for innovation ecosystems and knowledge hubs. A special case is from the city of Jyväskylä, where an old paper industry district ("Kankaan alue") is under reconstruction by city. The theoretical background is presented in the book Sustainable Innovation (Sitra 2010).

1. Smart cities as platforms for building
innovation hubs
BIT's 1st Annual International Conference of
Emerging Industry -2013
November 6-7, 2013, Shenzhen, China""
Antti Hautamäki"
Research professor"
Director"
Agora Center"
University of Jyväskylä"
FINLAND"
antti.hautamaki@kolumbus.fi"
"

2. Content"
" Global innovation economy"
" Knowledge hubs – global creative nodes"
" Silicon Valley and innovation ecosystems"
" Smart specialization in regional development"
" Smart cities and innovation hubs"
" Case: Structural change of City of Jyväskylä in
Central Finland "
" A new model to build innovation hubs"

3. Global networking in value
creation"
" The driving forces of global economy are global
collaboration and concentration of resources"
" Value chains are becoming specialized and
distributed all over the world"
" Human and intellectual resources are concentrating
into certain innovation (or knowledge) hubs situated in
metropolitan regions like San Francisco Bay Area,
Boston (USA), Cambridge (GB), Shanghai, Shenzhen,
Singapore etc. "
" Innovation hubs produce a majority of all innovations
(e.g. patents)"
"

4. Characteristics of innovation hubs"
" Innovation hubs are local, creative centers in
the global economy. Their characteristics are: "
– Strong belief in success of the region"
– Culture of creativity and openness"
– Attractive conditions for people/talents,
entrepreneurs and investments (quality of life)"
– Globally recognizable knowledge and businesses
based on it"
– Dynamic innovation ecosystem to support
innovation and continuous renewing of business"
"
Hautamäki&Oksanen 2012

5. Silicon Valley ecosystem"
" Although Silicon Valley is one of the most successful
innovation hubs in the world, it is not a general model
to imitate everywhere"
" The success of Silicon Valley is based on its dynamic
ecosystem consisting of "
– venture capitalists,"
– a global talent pool of knowledge professionals,"
– top universities and research institutes,"
– a sophisticated service structure (accounting, design,
law firms, marketing, technologies…),"
– many customers, lead-users, and early adopters of
new technologies,"
– flexible recycling of professionals, ideas, and
knowledge"
Bahrami&Evans 2000, Hautamäki 2010

6. Skilled
labor
Knowledge
intensive
business services
Funding
(VC)
R&D
Universities
Innovation culture
Infrastructure
Networking and collaboration
of small firms
and large corporations
Recycling
Collaboration
Innovative
markets
Customers
Global
collaboration
Elements of an innovation
ecosystem"
Hautamäki 2010

7. Smart specialization"
" EU has launched a new concept of smart
specialization to enhance regional development in
knowledge economy by investing in research and
innovation"
" Smart specialization consists of the following
elements:"
– Developing a vision"
– Identifying competitive advantage of the region and using
local resources"
– Setting strategic priorities"
– Building a strong partnership between businesses, public
entities and knowledge institutions"
" The idea behind smart specialization is that new
competitive advantages can be created by R&I "

8. Smart cities"
" Building an innovation hub could be based on
challenges and opportunities of cities "
" Cities face such wicked problems as growth,
equality, security and sustainability"
" Smart cities try to solve their problems by
application of information technology and by
developing human and social capital"
" ICT is used to develop smart infrastructure for
buildings, energy, healthcare, mobility,
transportation, public administration, security
etc."

9. Smart cities as platforms for
innovation"
" Smart cities provide an ideal platform for
innovation (test beds, living labs)"
– The problems faced are complex and touch many aspects of
society opening large scope of business opportunities"
– Solutions are knowledge-intensive, dependent on the
availability of human capital"
– Solutions must be develop with citizens and end-users
(NGO’s, social capital)"
– The contributions of firms, universities, public administration
are needed (partnership)"
– Public procurement is a strong instrument for enhancing
innovation"

10. Building an innovation hub by
smart strategies"
Connecting
to global
networks
Solving
wicked
problems
Knowledge
creation
Using
local
assets

11. Case study: structural change in
Jyväskylä city region"
Jyväskylä
Central Finland

12. A structural crises in Central
Finland"
" Central Finland – a region of 260.000 inhabitants; the biggest city
is Jyväskylä with a population of 130.000"
" Economy is based on pulp, paper and metal industries"
" The region faced a structural crises in 2009, when Nokia closed
its Research Center (ca. 350 workers) and Metso Paper cut
down its research activities (ca. 300 workers); together the
region lost 1000 knowledge intensive jobs in a short time."
" Jyväskylä region was declared nationally as a structural change
area "
" A special Structural Change Working Group was established in
collaboration with the Ministry of Employment and the Economy
of Finland"

13. A plan to recovery – creating a
knowledge hub"
" The working group proposed as a major action for
recovery developing the region towards an innovation
hub"
" University of Jyväskylä got the task to develop a
model for building innovation hub. Its elements are:"
1. Mobilizing the basic resources by collaboration between
universities, industry and government (Triple Helix)"
2. Creating a platform for intensive dialogue open to all
stakeholders (university, firms, public sector, NGO’s et al.)"
3. Conducting foresight and future studies which help to create
vision and make basic strategic choices"
4. Establishing the core organization to manage to process
and its funding "

14. Outcomes from the development
process"
" During the years 2009–2011 the situation and the expertise of
the region were analyzed, modeled and developed
systematically"
" The 300 former Nokia employees were quickly recruited by other
IT companies and SMEs of the region"
" By the end of 2009, 11 new companies were founded by the
professionals that were released from Nokia "
" Practically all professionals fired in 2009 were employed by
2011, some of them working as researchers in university"
" The main urban development project “Kangas” emerged: to build
a new generation living place and business center into old paper
mill area - a case of smart city"

15. Kangas - The main urban
development project of Jyväskylä
for next decades"
Citycenter
Kangas
• Old paper mill area (30 ha)
next to the city center
• Property of the City of
Jyväskylä
• Total investment by 2025 in
Kangas appr. 0,8 billion €
• Cost of infrastructure: 50 M€
• Income from the building sites:
65 M€
• Profit to the city: 15 M€
University

16. 17.11.2013"
In Kangas project, an ambitious urban planning and
smart city infrastructure create unique ambience"
Target:
5000 inhabitants
2100 new jobs
New methods of collecting citizens' ideas
and dreams are used in planning!

17. As a core High-speed Fiber-
optic Network
"
• Built as part of infrastructure
simultaneously by the city
• Fibers leased to the
operators
• Fibers also for research use
• Universities
• Companies
• Research and
development
• True Living Lab ecosystem

18. • Foresight and
futures studies!
• Open dialogue
(including
citizens and
NGO’s)!
• The core
organization
managing the
process !
• University,
industry,
government
collaboration
(Triple Helixl)!
Resources!
Co-ordination!
Implementation!
Strategic
choices and
vision!
Concensus!
and
committment!
A Jyväskylä Model for transition
towards an innovation hub"
Hautamäki&Oksanen 2012

19. 19"
Thank you for your attention!
Jyväskylä