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About this book

The present book highlights studies that show how smart cities promote urban economic development. The book surveys the state of the art of Smart City Economic Development through a literature survey. The book uses 13 in depth city research case studies in 10 countries such as the North America, Europe, Africa and Asia to explain how a smart economy changes the urban spatial system and vice versa. This book focuses on exploratory city studies in different countries, which investigate how urban spatial systems adapt to the specific needs of smart urban economy. The theory of smart city economic development is not yet entirely understood and applied in metropolitan regional plans. Smart urban economies are largely the result of the influence of ICT applications on all aspects of urban economy, which in turn changes the land-use system. It points out that the dynamics of smart city GDP creation takes ‘different paths,’ which need further empirical study, hypothesis testing and mathematical modelling. Although there are hypotheses on how smart cities generate wealth and social benefits for nations, there are no significant empirical studies available on how they generate urban economic development through urban spatial adaptation. This book with 13 cities research studies is one attempt to fill in the gap in knowledge base.

Table of Contents

Frontmatter

Introduction

Frontmatter

Chapter 1. Smart Economy in Smart Cities

Emerging patterns of urbanization world over show differing scenarios in different continents, requiring diverse approaches, policies, and strategies. Amazing democratization of ICT around the world leads to a discussion on sustainable, resource-conserving, and resilient smart cities, and smart city economic development appropriate to different cities, countries, and continents. It can be possible that each city in a particular country and continent may possess differing challenges to smart city economic development. When ancient rural economy gives way to urban economy, which contributes a major share of national domestic product, the emerging question is what constitutes smart city economic development. How is it different from conventional urban economy? Is the theory and practice of conventional urban economy valid in a smart city economy or is it necessary to investigate newer theory and practice of smart city economic development? What is a food shed in a smart city economy in smart cities? What a smart city industry looks like? What constitutes smart city commerce services, transportation, and communication, and how they impact on smart city economy? How do smart cities fit in the urban dynamism and policy dialogue at the global, regional, and national levels? Can smart cities and smart economy be socially inclusive? How to strategize social inclusion in smart city development? What sort of governance and institutional support would smart cities require to fulfil their role with regard to smart economy? What may constitute a Sustainable Model of smart cities economic development, and what may be Smart Cities Standards? These are some of the questions addressed in this chapter.

T. M. Vinod Kumar, Bharat Dahiya

Canada-Ottwa

Frontmatter

Chapter 2. Ottawa: Rise of a Smart Community

The need to communicate forced Canada to invent the tools of the modern Communications Age, which are now being used worldwide. Ottawa in particular became a hotbed of communications technology development, as it was home to government Research and Development Laboratories. It also had a heritage of innovation from local inventors who pioneered many of the electronic aids used in households today. Innovation, therefore, was given a springboard for growth in Ottawa’s culture. Innovation is the driver of the Smart Economy today, responsible for three-quarters of all economic growth in the USA since World War II. It is triggered by associations of ideas are intuitive; it arises from hunches and that vague hard-to-describe sense that there is an interesting solution to a problem that has not yet been addressed. The number of innovations in a centre is directly tied to the number of linkages in a centre: the higher the linkages between people, the greater the momentum of the innovation. To be effective as an economic force, a second ingredient is needed: the ability to find the commercial value of the innovation. This value-adding characteristic has thus far been difficult to assess due to the tentative nature of innovations in their early stages. In Ottawa, a new assessment tool is being used that can detect the overall intensity of the “Smart City” environment, based on hundreds of factors. Another new tool drills down to the organizational level and assesses the efficiency of the organization’s ability to commercialize innovation. These tools can be used by any city wishing to obtain a Smart Economy.

Barry Gander, Bruce Lazenby, Charles Duffett, Greg Richards, Mark Hoddenbagh, Mark Kristmanson, Ritch Dusome, Sarah Linkletter, Sorin Cohn

Chapter 3. Ottawa: Rewards for a Smart City in a Global Innovation Economy

Ottawa has risen to lead global organizations like the G7, because its intense Innovation Economy has provided it with advantages in almost every area of economic and social life. Because of the need to excel in a knowledge-based world, Ottawa has developed educational systems in its universities, colleges, laboratories, and research institutions that have made it—literally—the most educated city in the world. Smart Community author Richard Florida ranks Ottawa as Canada’s number one city based on the three Ts of economic development: Technology, Talent, and Tolerance. Ottawa leads all cities in Canada in knowledge occupations—that is, occupations characterized by their use of high technology, computing, knowledge intensive processes, and creative activity. More than one in four workers are employed in the knowledge field, and 61 % of the workforce have a post-secondary degree. Factors that are forcing the rise of the smart community movement continue to shape the direction of Ottawa’s growth. This has created an environment where some 2000 highly innovative companies give birth to “offspring,” and have spurred the highest value of Initial Public Offerings (IPOs) of any city in Canada. Cities following Ottawa’s pattern can expect the same high levels of achievement.

Barry Gander, Bruce Lazenby, Charles Duffett, Greg Richards, Mark Hoddenbagh, Mark Kristmanson, Ritch Dusome, Sarah Linkletter, Sorin Cohn

Chapter 4. Ottawa: Leaders’ Views on Innovation and the Smart Community

Eight CEOs of leading Ottawa companies were surveyed for their views on the ingredients that are most helpful in creating a commercially strong innovative company. All the leaders defined innovation in commercial terms: the addition of value to new or existing ideas, to redefine, improve, and create new opportunities. The key factors involved in success were identified as allocation of investment and resources, time, acceptance of calculated risk and failure, a clear and concise vision that is communicated, and the “right” people to create value. In addition to education and skill, these people needed initiative, judgment, creativity, curiosity, and the ability to apply and build upon knowledge and experiences. Ottawa’s leaders were unanimous in stating that innovation is not only affordable, but that it is impossible to move forward without being innovative.

Barry Gander, Bruce Lazenby, Charles Duffett, Greg Richards, Mark Hoddenbagh, Mark Kristmanson, Ritch Dusome, Sarah Linkletter, Sorin Cohn

Chapter 5. Seizing the Initiative

The most difficult barrier to creating a Smart City is finding the right way to take the first step. Based on its experience as an award-winning Smart City, with knowledge of developments around the world, the example of Ottawa can be used to help provide a play-book for Smart City movements. The first and critical step is to establish the Governance of the Smart City project, the framework that aligns leaders from many sectors to fulfil the Smart City mission. Once established, a status-check is useful in determining the city’s current position along the Smart City continuum. This involves assessing how each sector of the community views its progress. Each sector is then challenged to provide a vision of where they would like to be in 3–5 years time, assuming that they had adequate broadband infrastructure to support their goals. The visions are linked, a final plan is drawn up, and a network map is created. The network is the final stage, for in the last analysis, the creation of a Smart Community is 90 % social, and only 10 % technological. The job for social leaders is to tame this and create for citizens an “intentional future”—a framework that puts them in control of their lives in a time of unparalleled turbulence.

Barry Gander, Bruce Lazenby, Charles Duffett, Greg Richards, Mark Hoddenbagh, Mark Kristmanson, Ritch Dusome, Sarah Linkletter, Sorin Cohn

China-Hong Kong Hksar

Frontmatter

Chapter 6. Introduction to Hong Kong’s Development

Hong Kong is a unique city state that, partly due to its strategic location in South-east Asia, has grown into one of the top-ranked global cities in terms of per capita GDP. Its mountainous terrain and limited supply of buildable land resulted early on in urban areas with extreme population densities. The compact urban form was further stimulated by using mass transit as the backbone of urban development. Different urban rail systems were integrated, and smart technology was introduced early on to stimulate its use. Today, Hong Kong has one of the highest public transport modal splits in the world. Hong Kong has developed high-density transit-oriented developments, but these TODs are not always well integrated into their urban contexts, creating barriers for pedestrians. Hong Kong also has a relatively high rate of telecommunication connectivity, which has facilitated the growth of the economy and enabled the population and businesses to be fully connected to the global economy.

Sujata S. Govada, Widemar Spruijt, Timothy Rodgers

Chapter 7. Smart City Concept and Framework

Existing Smart City models are briefly analysed and a different approach is proposed which places a central focus on People, Place and Planet by highlighting the importance of Smart Thinking, Smart Planning and Smart Design. Technology is seen as an enabling force to help develop smart and sustainable cities. The model uses six Elements (Smart Economy, Smart Governance, Smart Mobility, Smart Infrastructure, Smart Environment, and Smart Living) to categorise different smart city initiatives.

Sujata S. Govada, Widemar Spruijt, Timothy Rodgers

Chapter 8. Assessing Hong Kong as a Smart City

The growth and development of Hong Kong from an industrial manufacturing centre into an international finance hub has advanced in many aspects of the society. The Government has encouraged and facilitated the advancement of the city’s transportation, telecommunications and technology sectors through effective public policy, incentives and collaboration. This chapter identifies the areas that Hong Kong both excels in and lacks at with regard to the six Smart City elements established in Chap. 7. Hong Kong does well with certain aspects of Smart Mobility, Smart Economy and Smart Infrastructure but has room for improvement with most aspects of Smart Living, Smart Governance and Smart Environment.

Sujata S. Govada, Widemar Spruijt, Timothy Rodgers

Chapter 9. Kowloon East: Hong Kong’s New Smart CBD

Kowloon East is an area undergoing rapid transformation and comprises of Kwun Tong, Kowloon Bay and Kai Tak Development. The government planned Kowloon East area was developed and grew substantially as a manufacturing and logistics centre throughout the second half of the twentieth century. Changing economic and social circumstances at the end of the twentieth century pushed Hong Kong to reposition itself and its strengths in order to maintain its competitiveness in the global economy. A shift of the economy away from industrial manufacturing towards more commercial and financial services and through policy initiatives rezoning and favourable incentives attracted developers to the area. This effort resulted in the redevelopment and revitalization of the old industrial areas with the current transformation underway in Kowloon East. Long-term goals for the area are for Kowloon East to become the second central business district for Hong Kong, providing much needed new commercial space and office supply, with high-quality open spaces, and the promotion of the arts and cultural activities to ensure the continued growth and competitiveness of Hong Kong’s service-based economy. More recently, Kowloon East is also an area where Government started Smart City initiatives to ensure that the Kowloon East area is transformed in a smart and sustainable manner.

Sujata S. Govada, Widemar Spruijt, Timothy Rodgers

Chapter 10. Way Forward and Conclusions

Conclusions are drawn from preceding chapters regarding the capacity of Hong Kong to become a Smart City. A lack of a holistic and comprehensive approach to tackling unsustainability within the city will restrict the ability of Hong Kong to become a truly Smart City in all six elements. Some Smart City initiatives are implemented in one area, but coordination is lacking to implement the measures city-wide. With smart thinking and a focus on People, Place and Planet with planning and design as important drivers and technology as an enabler smart and sustainable cities and communities will become a reality in both existing and new development areas. Positive experiences from the regeneration of Kowloon East could be used to the benefit of the development of Hong Kong as a Smart City, although lessons can also be drawn to further improve implementation of Smart City initiatives in Hong Kong.

Sujata S. Govada, Widemar Spruijt, Timothy Rodgers

Germany-Stuttgart

Frontmatter

Chapter 11. Morgenstadt—A German View of the City of the Future

Cities which are considered as one of the largest future markets in the world continue to develop innovative technologies and intelligent concepts leading to sustainable development. Urbanization, climate change, growing online culture, ageing populations all call for an innovative solution. Researcher communities all over the world are constantly drafting various concepts and recommendations for smart cities which have solutions to such problems. Cities in Germany are making significant efforts to develop smart and innovative administrative, cultural, educational, and infrastructural practices through connected technologies. Fraunhofer Institute for Industrial Engineering (IAO) initiated the Innovation Network “Morgenstadt” which means City of the future. Morgenstadt serves as a neutral knowledge platform for the integration of various approaches to find solution to such complex dynamics. A consortium of twelve Fraunhofer Institutes spread across Germany contributing to their technical expertise for the joint processing of arguments for the “city of the future”. The synthesis of above-mentioned aspects which deal with Urban manufacturing, visual communication and shared economy-based approach have a potential to lend the city a unique profile which is vitally important for the city’s future economic development. These constitute the framework within which future economic profile of a city regions are determined.

Satyendra Singh

Chapter 12. Economic Impact of Ultraefficient Urban Manufacturing

Cities are adopting urban manufacturing practices by producing the goods close to conglomerates of humans and their living areas. Production takes place in city areas with optimize production processes. The burden on resources is minimised by creating production networks and optimizing capacity balancing. This practice is seen as reducing burden on resources, boosting innovation and offering a better quality of life. Ultraefficiency concept is introduced to achieve sustainability in efficiency and make processes economically better. Some cases taken from Stuttgart region provide further insight to implementation of this concept and the way the simulation and its long term evaluation is planned.

Satyendra Singh, Michael Hertwig, Joachim Lentes

Chapter 13. Holistic Value Model for Smart Cities

Smart technologies for cities require a fundamental shift in business model paradigms. Smart city solutions aim to link multiple technologies and multiple public and private stakeholders by an ICT-based connector. Digitalization and the Internet of Things (loT) practices require a new organizational and economic model for connected clean and efficient technologies. Companies and cities thus need to start thinking beyond efficiency and policy based models and understand themselves as part of a larger value model that delivers value-added services to cities and citizens. The smart city value model is thus a new economic approach to link the value creation of integrated socio-technical systems to a set of different beneficiaries and types of benefits, which builds on the conceptual work of positive externalities and external benefits. It is intrinsically linked to smart cities and districts places where the positive effects of a connected solution reach many different beneficiaries and are able to create different kinds of value through the interaction of many systems and people. The lighthouse project Triangulum thus serves as a test case to develop a modular framework that helps to systematise the factors that lead to a successful design and implementation of smart districts and prove the distributed benefits of smart and sustainable technologies in cities. This framework shall consist of a range of “smart city modules” that can be described as system solutions for smart cities. They represent core technologies that are organised around a business model and pursue a specific goal for cities and citizens. A set of smart city indicators will help distinguish between individual local factors and generic smart city success factors. Connected solutions can be broken down into some core categories leading to a finite number of connected solutions with specific characteristics.

Alanus von Radecki, Satyendra Singh

Chapter 14. Visualization for Decision-Making in Smart Cities

Sustainable building construction encompasses ecological, economic, and social aspects. Economic and Social sustainability of large construction projects where a large number of people are affected is becoming increasingly critical without public participation. This is particularly relevant for development and redevelopment of city centres and urban areas. VisB+ Project led by Fraunhofer IAO explores the role of Visualization, BIM and Virtual reality to find sustainable and publically supported solutions and ensure public participation. Under the scope an investigation into existing legal and regulatory framework is also included which points out to public participation. Suggested visualization techniques combined with good communication management are increasingly becoming a central requirement to ensure the success of large projects.

Satyendra Singh, Günter Wenzel, Frank Brettschneider

Chapter 15. Conclusion, Opportunities and Challenges

Smart and economic development of Stuttgart region is greatly dependent on adding innovation and improving governance structure. Concept of urban manufacturing with ultra-efficient production processes, understanding of diverse economic value models and its implications are some of the key aspects which lead to sustainable development. Use of visualizations techniques supported by communication management in development of urban areas is another innovative approach which is studied in this framework. Enormous opportunities are present and of course challenges are foreseen to create conditions conducive to the scaling and extension of the most promising smart city approaches.

Satyendra Singh

India-Calicut (Kozhikode)

Frontmatter

Chapter 16. Transforming Economy of Calicut to Smart Economy

Calicut City had a glorious history dating back to twelfth century with a vibrant trade base due to an established trade route connecting Europe and the South Asia thus making it once an internationally acclaimed city. Thus, the city was ruled by many rulers across the globe until India’s independence. Of late, the city lost its global stature due to many reasons, though it still has much aspirations and potential to become one such city. Calicut is fortunate enough to have a reasonably good economic base with mostly employment in tertiary sectors along with service- and IT-based industries. The city is also a destination with a remarkable presence in the international tourist map. The city can boast about being the center for some of the best educational institutes in India. A good portion of the revenue comes from the remittance of expatriate nonresident Keralites along with income from industries, trade and commerce though other sectors like fisheries, and health tourism contributes reasonably well to the economic development of the region. The city and its surroundings have got some of the best socioeconomic profiles with high literacy rates, better female work participation and overall a high HDI, which is comparable with some of the well-developed countries of the world. Further, an analysis is performed based on the six key building blocks of smart city namely smart people, smart economy, smart mobility, smart environment, smart living and smart governance. Based on this analysis, it can be said that Calicut can truly aspire and has all the potentials to become a future smart city.

C. Mohammed Firoz, T. M. Vinod Kumar

Chapter 17. Marketing and Branding of Calicut as a Smart City Destination

Branding is the process of creating and communicating a unique position in the minds of the target customers. This holds good for branding destinations as smart cities too. Place branding thus suggests that places, cities, regions or countries could be considered as brands, as long as it is perceived so. There are lot much challenges in place branding. Due to the changes in the economical, cultural and social changes in the global landscape, there exists a fierce competition among multiple destinations for resources, business relocation, foreign investment and visitors and even for migrants and residents. Based on the prevailing definition of marketing from American Marketing Association, this chapter attempts to use the basic formwork of creating value, communicating value and delivering value in explaining the marketing process of Calicut as a smart city destination. Four elements that are unique to the cultural and geographic aspects of Calicut are identified, which include Calicut cuisine, Uru (traditional vessel), Kalaripayattu (traditional martial art form) and Calicut trade hub. These elements have different value propositions and thus cater to different target customers refer as stakeholders. Using Aaker’s model of brand equity, a detailed study about these elements is conducted and a set of brand elements are identified. Subsequently, other aspects of the brand charter including the brand promise, colour and typology are also identified. Finally, the way of delivering the value to stakeholders through e-marketing and social media platforms is also discussed for all the four elements.

Deepak S. Kumar, Lakshmi Manohar, Priyanka Singh

Chapter 18. e-Design of Umami by Smart People for Smart Economy

The economy is the heart of any Smart City. As the world progresses to third industrial revolution, the economy focus is expected to shift from large-scale production industries to industries with cultural and ethnic uniqueness. Urban form of a city is its biggest brand image of its culture. A Smart City needs to maintain its urban form to highlight its cultural and ethnic uniqueness and evolve a branding for its products. This chapter like many other chapters in this book is the outcome of an academic project conducted by Department of Architecture and Planning at NIT, Calicut. The project is to develop a Smart City within the premises of Calicut City, with a smart economy at the core. Malabari food production is the core economy of Umami. This chapter proposes a systematic approach for derivation execution and management of the city’s urban form to function it as brand image. It is necessary to turn to the collective wisdom of various classes of people to ensure unique solutions. Bringing people to participate in every stage of urban design is a challenge. All stages of urban design in this chapter use e-Design, which relies on various digital communication techniques to bring in unique solutions from a large number of stakeholders and arrives at an acceptable-to-all solution. A modified Hybrid Form-Based Coding Regulation is used for structuring urban design process and its implementation. The process addresses issues from a broader perspective starting with a Zonal Plan and goes into minute details like signage, architectural features, and landscaping. It also proposes various smart technologies required in Smart Mobility, smart environment, smart governance, etc.

T. M. Vinod Kumar, P. Bimal, C. Mohammed Firoz

Chapter 19. E-Urban Land Management as Business for Umami

An organised and efficient e-land management ensures full participation of citizen and various governmental agencies in the activity of urban land management and can play a large role in making a smart economy. Umami is a ‘smart city’ created within Kozhikode with a smart economy that markets the foods of Kozhikode. The spatial location of Umami mainly comprises of a food processing zone and allied living areas. The idea of e-land management is practiced and found successful in many cities worldwide, but such an idea is conceptualised for the first time in Kerala through this chapter. Little management beyond acquisitions and few not so successful land pooling and readjustment are seen in Kozhikode. Master planning approach and lack of transparency and hence inefficiency and corruption are the cause of failed land management in the city. The Kerala Town and Country Planning Act 2016 is a welcome gesture to the unused potential of land markets in Kozhikode. Recognising the strengths of urban land, it welcomes a variety of land management practices found successful in other states of India, yet to be applied in Kerala. It is realised through the successful and failed land management cases in the history of the state that public participation and transparency are two buzzwords for a success story. E-land management through a website opens up the land market for the participation of citizen and ensures transparency in the process. Opening up of the land market implies that a website provides information and opportunity to all citizens to financially benefit by opting land management of their holdings. This is illustrated in this chapter by an exploratory study of the smart city of Umami in Kozhikode. Firstly, a zonal plan is prepared for Umami considering the principles and needs of a smart city. E-land management is the method to achieve that zonal plan. The various land management tools permitted in Kerala are identified and studied. Depending on the tools, areas are identified for each tool. The opportunity for public participation is created through the website. Monetary benefit of taking part in e-land management is informed to the public, hence giving them the freedom to decide, but also in a way moulding public decision to the interest of the zonal plan. This ensures that no decision is forced on the public, but what public decides for them happens in a way the zonal plan expects and hence direct towards a smart economy. The objective of this chapter is to showcase the e-land management website which makes land management market-driven and successful, hence a process in a ‘smart economy’.

Suzana Jacob, T. M. Vinod Kumar

India-New Delhi

Frontmatter

Chapter 20. Making Delhi a Smart City: Economic Buoyancy with Spatial Justice

With the case of Delhi, the core argument of this chapter is that the Smart Cities Mission appears to present a disjuncture and a severance between the actually existing needs of Indian cities and citizens including the primary goal of creating wealth by embedding advanced technologies in the built environment without first addressing the basic city problems. Acceptance of New Delhi Municipal Council area as one of the selected 20 smart cities for central funding is puzzling because it further highlights the disjuncture between ground actuality and smart city policy utopia. In order to present these fissures, this chapter first presents five challenges of urbanization facing the city of Delhi. These are the challenges of infrastructure with a specific focus on sanitation, the challenge of mobility, the challenge of environment, the challenge of slums, and the challenge of governance. Separately, these challenges have been discussed, but this is the first attempt when urban development challenges are being discussed in the context of the Smart Cities Mission. These challenges are also selected because they form critical elements of the smart cities generally and the Smart Cities Mission in India particularly. Examining these challenges leads us to explore whether the smart cities, as conceived and currently being built by Indian and global corporate builders, could face up to the challenges presented by the Indian urbanization. The case of Delhi is appropriate within the smart city discourse because it is counted among the top performing metropolitan cities of the country. Core argument of the chapter is that narrowing down the disjuncture between experienced city realities and policy perceptions is useful even for economic growth, the prime public policy goal at the present moment.

Ashok Kumar, Pradip Kumar Sarkar

India-Varanasi

Frontmatter

Chapter 21. Smart Economy in Smart Cities Varanasi India: Case of a Smart Traditional Economy of Knowledge-Based Institutional Services and Creative-Cultural Products

Next to ‘Sustainable City’ and ‘Resilient City’, ‘Smart City’ is apparently the new buzzword in the discourse on development of cities across the globe. This is particularly true for India with the Ministry of Urban Development, Govt. of India taking up the mission to develop a hundred smart cities to guide planned urbanization across the country. The concept of ‘smartness’ in cities has largely meant to be driven by modern advances in technology, particularly in Information and Communication sector (ICT), and its interface with functioning of cities. However, besides such reliance on modern technologies and its implication on smart growth, scholars and governments have tried to recognize the power of traditional economies, which have been able to sustain over centuries, and appropriate them to present scenarios. This chapter on Varanasi (India) presents cases from the city which exemplify its strength on traditional knowledge system as a driver of its economy; and thereby, a driver for urban development. Accordingly, the chapter is being split into three sections. The first section identifies the development potential based on ecological innovation, particularly, for the Greater Rajghat–Sarnath Region in the Varanasi City Region. The study indicates that innovation hubs tend to cluster and form a network of innovation zones. Under this ambit of innovation-led development, the understanding of clustering has further been noted in the study of clusters of few cultural industries from Varanasi City Region, as noted in the latter section. In the final section the possibility of ICT augmentation for smart economy and smart governance in the city of Varanasi has been explored. Thus, the city of Varanasi highlights the strength of its economy, which is partially driven by ecological innovation and creativity, with a promise to drive a smart growth.

Joy Sen, Mouli Majumdar, Deepanjan Saha, Abhik Chaudhuri

India-Vijayawada

Frontmatter

Chapter 22. From Smart Agriculture to Smart Economy: Case of Vijayawada City Region

Smart City, as this chapter proves, is the one that adapts to its dynamic structural changes in the economy within a shortest possible time without causing pitfalls. Vijayawada–Guntur–Mangalagiri–Tenali (VGTM) area, which has been identified as the capital region of the newly created state of Andhra Pradesh with its capital Amaravati in Guntur District, is fast adjusting to this structural change and plans to bring in technology to boost its economic dynamism. From that of a ‘rice bowl’, the region is transforming itself into a major service sector region, servicing not only the region, but is emerging as a major node in the eastern coast.

N. Sridharan, Raktim Ray, Aparna Soni

Italy-Bologna

Frontmatter

Chapter 23. Smart Cities, Local Community and Socioeconomic Development: The Case of Bologna

This chapter investigates the metropolitan area of Bologna, Italy, aiming at understanding how the enforcement of a smart economy affects smart cities, and brings to social and cultural development. We especially focus on such as smart economy key factors, inter-linkages between smart economy and social development, cultural preservation, heritage conservation, and ecological management. Data analysis shows that smart initiatives do not guarantee any economic growth, especially in a context of economic and financial crisis. A good digital infrastructure can facilitate the circulation of information and offer new opportunities to economy and society, but it is not enough. We have observed that the traditional, local social structure, funded on cooperation, may rather represent a very interesting starting point toward a new peer-to-peer organization of economy and society. Notwithstanding, traditional social structures badly need an infrastructural update in order to effectively enforce new socioeconomic strategies.

Antonio Caperna, Guglielmo Minervino, Stefano Serafini

Kenya-Nairobi

Frontmatter

Chapter 24. Smart City Foundation, the Core Pillar for Smart Economic Development in Nairobi

A smart city foundation is the collective of the core physical and policy components that a city is built upon, and without which it cannot function. The key elements of a smart city foundation include urban planning and design, basic infrastructure and policies. The degree of provision of these elements, their quality and their interlinkage defines how well a city functions, how much time its citizens spend on economically productive activities and in turn the city’s level of and potential for productivity. This chapter discusses the evolution of the various components of Nairobi’s city foundation and highlights how the existing and future patterns are defining the city’s prospects for smart growth. The key finding is that Nairobi’s rapid population and spatial growth have happened without adequate planning, which has greatly affected the basic services provision. The distribution of the services is also unequal, with better access and reliability being evidenced in the wealthier neighbourhoods and limited access coupled with unreliable supply witnessed in the poor settlements. These distribution patterns mean that the poor spend more time and resources accessing the services, thus limiting their productive hours and also reducing their disposable income that can be invested in income-generating and wealth-creating opportunities. The chapter also identifies that as a fast technology consumer, Nairobi can leverage on various emerging approaches to basic service provision, which have already been tried and proved to work in the poorest parts of the city, the slums. The integration of some of the emerging smart technologies in addition to more core investments in the development of various city foundation components will promote equitable growth for all residents, creating the required framework for smart economic growth.

Dennis Mwaniki

Chapter 25. Infrastructure Development in Nairobi: Widening the Path Towards a Smart City and Smart Economic Development

Empirical evidence from both developed and developing countries point to a positive correlation between development in the physical, social and policy and regulation aspects of infrastructure and economic development. The synergetic development of these components creates smart city systems which promote smart mobility, smart environments, smart living; sets the platform for smart people and smart governance; and ultimately results in smart economic growth. The emergent smart systems further promote inclusive growth, reduce natural disaster vulnerability and exposure, and improve resilience among the urban poor. Infrastructure development in Kenya, particularly investments in information communication technologies (ICTs), electricity, and transport infrastructure have been in rapid positive transition. These developments, which have been promoted by a friendly policy framework and hugely benefited from foreign assistance, have largely been beneficial for Nairobi, Kenya’s capital. In just under two decades, Nairobi has grown to near universal mobile phone penetration and Internet connectivity is above 60 %. The city is now one of the most important ICT innovation cities in Africa, with several incubation centres, a growing number of ICT professionals and a youthful population that is technology savvy. These developments have opened Nairobi to many economic growth opportunities. This chapter discusses the level of infrastructure development in Nairobi and Kenya in general, particularly developments in ICT, energy and transport and how these are giving the city a comparative advantage against other African cities for smart growth. The key findings are that, with the exception of ICT, growth in other infrastructure sectors has been slow and largely unequal. The chapter also identifies that adoption of ICTs has been working towards improving efficiency in the existing and although the progress is slow, the future prospects for high efficient ICT integrated systems are high.

Dennis Mwaniki

Chapter 26. Social Development and Security for Smart Economic Development

A city’s future sustainable growth and prosperity depends upon its investment in education, health, peace, security and other social capital stocks. Successful cities create a peaceful and secure environment for investment and encourage high human capital development through well-educated and healthy citizens; such cities report lower levels of inequalities and poverty. Advances in information and communication technologies in the past few decades have enabled globalization, which is itself associated with urban growth and development. Recent studies have, however, also noted that globalization is making cities vulnerable in new ways, especially by opening them up to destructive networks that undermine security and development. Therefore, smart cities must continuously make efforts to raise the competencies and quality of its citizens and thereby improving its competitiveness, increasing innovations and overcoming other challenges such as unemployment, insecurity and lawlessness. This chapter highlights the enormous efforts that Nairobi city has made in addressing and improving its safety and the social capital of its citizens through investments in technological advancements in health, education and security services as part of its developmental pathway to achieving a smart city status. The chapter discusses insights, challenges and opportunities presented by Nairobi’s demographic dividend, its growing human capital and improving security status alongside its emerging economic opportunities, which together are expected to turn the city into a globally competitive and smart city.

Robert Ndugwa, Romanus Opiyo, Dennis Mwaniki, Omondi Odhiambo

Chapter 27. Towards Smart Economic Development in Nairobi: Evaluating Smart City Economy Impacts and Opportunities and Challenges for Smart Growth

Kenya intends to transition into a middle-income economy by 2030. According to the 2008 Kenya Vision 2030 strategy, this goal would be achieved by growing the country’s gross domestic product (GDP) at an average rate of 10 % per annum between 2012 and 2030. Eight years after enactment of the vision 2030 strategy as the country’s long-term growth blueprint, the country’s economy is still dragging behind, with an average GDP growth rate that is about half the target rate. Recent reviews by the World Bank indicate that for Kenya to achieve middle-income country status by the end of the planning period, her gross national income per capita needs to triple from the $1290 recorded in 2014 to $4125 by 2030, and her GDP needs to grow at a rate of about 7 % until 2030. In a country where the productive sectors of the economy (manufacturing) are overshadowed by both agriculture and low-technology small-scale enterprises and informal activities, this goal seems far-fetched. Recent investments in infrastructure development, and particularly on information communication technologies (ICTs), have, however, opened a new growth trend, which when properly explored could trigger rapid economic growth and help the country achieve the 2030 goal. Rapid adoption of ICTs in various economic sectors, particularly the growth of e-commerce, e-finance and e-governance, coupled with friendly policies and a rapidly emerging middle class are already causing an economic revolution, particularly in Nairobi—the country’s capital city and commercial hub. This chapter explores Nairobi’s economic growth trajectory within the framework of Kenya’s long- and short-term economic goals. It identifies that an ICT-driven smart economic growth revolution has started in the city, in both the formal and informal sectors, and establishes that there are massive opportunities for sustained growth. These opportunities, which emanate from increasing investment in ICT infrastructure development, ICT education, an innovative population and suitable government policies, will greatly help shape the country’s economic growth in the next decade. The chapter also identifies that challenges such as cyber security, a thin manufacturing sector, slow adoption of e-commerce, a hugely informal economy and little research on innovative technologies and their adoption are limiting the city’s smart transition.

Dennis Mwaniki, Michael Kinyanjui, Romanus Opiyo

Nigeria-Lagos

Frontmatter

Chapter 28. Smart City Foundation for Smart Economy

A smart city is viewed as a sustainable, inclusive and prosperous city that promotes a people-centric approach based on three core components and seven dimensions, all of which integrate ICT into their architecture. The three core components are Smart City Foundation and Smart Institutions and Laws, which in turn are the pillars of the seven dimensions of a smart city: infrastructure development, environmental sustainability, social development, social inclusion, disasters exposure, resilience, peace and security. The three components together with the seven dimensions make a smart economy. A smart city foundation is composed of three elements: urban planning and design, land policies and basic infrastructure. For a city foundation to be smart, it must be inclusive at the onset of the urban planning and promote mixed neighbourhoods where social clustering is prevented.

Femi Olokesusi, Femi Ola Aiyegbajeje, Gora Mboup, Dennis Mwaniki

Chapter 29. Smart Infrastructure Developments for Smart Economy

Smart infrastructure development is an important measure of smart city’s economy. This chapter examined the key infrastructural indicators such as Information and Communication Technology (ICT) transportation, education, health and security. The chapter also assesses the infusion of ICT into other critical infrastructure in Lagos in a way to better understand the potentials and efforts made in making Lagos a smart city. The study, however, concluded that with the ongoing efforts of the government of Lagos State, the metropolis is fast growing in developing its smart city foundation and infrastructural growth.

Femi Olokesusi, Femi Ola Aiyegbajeje, Gora Mboup, Dennis Mwaniki

Senegal-Dakar

Frontmatter

Chapter 30. Smart City Foundation—Driver of Smart Cities

A smart city is viewed as a sustainable, inclusive and prosperous city that promotes a people-centric approach based on three core components and seven dimensions. The three core components are Smart City Foundation, ICT and Smart Institutions and Laws, which in turn are the pillars of the seven dimensions of a smart city: Infrastructure Development, Environmental Sustainability, Social Development, Social Inclusion, Disasters Exposure, Resilience, and Peace and Security. The three components together with the seven dimensions make a Smart Economy. A smart city foundation is composed of three elements: Urban Planning and Design, Land Policies and Basic Infrastructure. For a city foundation to be smart, it must be inclusive at the onset of the urban planning and promotes mixed neighborhoods where social clustering is discouraged. The chapter’s first section analyzes the planning of the city of Dakar, an agglomeration of 3.2 million people in 2015. During these past two centuries of growth of the agglomeration of Dakar, urban planning has served as a tool of social exclusion with poor living in unplanned wetland settlements characterized by lack of sufficient land allocated to streets and public spaces, and lack of security of tenure, the latter being the focus of the second section. These settlements are also characterized by insufficient coverage of basic infrastructure such as connection to piped water facilities, sewerage and drainage systems, energy source and solid management; this is analyzed in the third section. Building in unplanned wetlands without adequate drainage systems exposes the population of Dakar, particularly of the suburbs, to flooding that causes various material and financial damages and losses. The fourth section focuses on the flooding: occurrences, causes, consequences and responses. Today, national and local authorities are working together to make the city of Dakar a smart city through Urban and Territorial Development Programmes. Taking back the city of Dakar where it belongs, a green, smart city, will require transformative policies and actions including establishing new planned settlements and a re-planning of the city itself where agriculture activities and green spaces have their effective places. The Plan Directeur 2035 of Dakar as adopted in 2014 explores the foundations for sustainable urban development, with establishment of six new urban centers around the capital. The fifth section of this chapter focuses on analysis of several policies and programs initiated by national and local authorities under the ambitious program, the Senegal Emerging Plan “Plan Senegal Emergent,” aim to make a Dakar a smart city with a smart economy.

Gora Mboup, Momar Diongue, Samba Ndiaye

Chapter 31. Smart Infrastructure Development Makes Smart Cities—Promoting Smart Transport and ICT in Dakar

A smart city is viewed as a sustainable, inclusive and prosperous city that promotes a people-centric approach based on three core components and seven dimensions. The three core components are Smart City Foundation, Smart ICT and Smart Institutions and Laws, which in turn are the pillars of the seven dimensions of a smart city: Infrastructure Development, Environmental Sustainability, Social Development, Social Inclusion, Disasters Exposure, Resilience, and Peace and Security. The three components together with the seven dimensions make a Smart Economy. Infrastructure development has several elements across various social, economic and environmental dimensions. Here, our analysis focuses on those connecting people to several categories of services, particularly transport and ICT infrastructures. The first section analyses the classical option of connecting people to services through non-motorized means or motorized means of transport. The interaction between the development of urban spatial patterns and transport is thus a key factor shaping accessibility in cities both in physical and in socioeconomic terms. To access to services such as work, to the health centers, to the school or to the market among several other destinations, the share of motorized means is 40 % (public an private) compared to 60 % for the non-motorized means, mainly by walking. The public transport sector is predominantly informal (95 % against 5 % for the formal sector). Turning informal transport sector challenges to opportunities in the smart city making is a call along with the enhancement of the public sector with the introduction of Bus Rapid Transit (BRT) and other higher efficient means of public transport. In the absence of affordable, reliable public transport, the poor are no choice rather walking to access to services. It is urgent to make streets friendly to pedestrians with sufficient public spaces for social interactions. Today, it is recognized that the information and communication technology (ICT) development is an important enabler of accessing to services and must be integrated in the planning and management of transport systems. For these past 15 years, the Senegalese government has taken various steps to create an environment favorable to the development and use of ICT at all levels. It has created legal institutional framework to support regulatory mechanisms on the development and use of ICT and has also introduced ICT platforms such as E-Governance, E-Education, E-infrastructure and supports education and training on ICT. The second presents different forms of ICT infrastructures in the creation of smart, digital city.

Gora Mboup

Chapter 32. Smart Social Development Key for Smart Economy

A smart city is viewed as a sustainable, inclusive and prosperous city that promotes a people-centric approach based on three core components and seven dimensions. The three core components are Smart City Foundation, Smart ICT and Smart Institutions and Laws, which in turn are the pillars of the seven dimensions of a smart city: Infrastructure Development, Environmental Sustainability, Social Development, Social Inclusion, Disasters Exposure, Resilience and Peace and Security. The three components together with the seven dimensions make a Smart Economy. This chapter focuses on one of the dimensions of smart cities, the Social Development which is composed of elements of education, health, social inclusion, social capital, population dynamics and other variables. The first section of this chapter is on Education, which is critical to meeting the challenges of smart city, as it connects people to new approaches, solutions and technologies that enable them to identify, clarify and tackle local and global problems. The second section on health considering that healthy population is critical to realizing economic growth through increased productivity. Healthy workers are more productive, bringing greater income to families and higher levels of economic growth for nations, and then enhance. When education and health are combined, they contribute significantly to human development. In both dimensions, the agglomeration has Dakar as the rest of Senegal has made significant progress during these past twenty years. With the decline in fertility and mortality rates, the population of Dakar is marked by a massive youth population (with a median age of 23.2 years) that constitute a potential urban demographic dividend which is the focus of the third section. However, due to high unemployment rates, this demographic dividend has not been fully utilized; most young people are still depend to their parents, thanks to the high social capital in Dakar as in the rest of Senegal. The last section focuses on the social capital in Dakar expressed within the family as well as in the communities through public spaces and social media.

Gora Mboup

Chapter 33. Creating Digital, Smart Cities for Smart Economies: From Big Cities to Digital Urban Centers

This chapter presents the opportunities offered by the ICT revolution in the making of digitally connected cities, which manifests in the rise of urban centers—towns of less than 1 million people. It presents a new form of urbanization, the digital urbanization, where digitally connected towns offer urban advantages traditionally only found in big cities with high densities, such as economies of scale, agglomeration of economies, diffusion of ideas and innovation, and participation in political affairs. The digital urbanization is illustrated through the initiative of the Government of Senegal to create new urban centers to decongest the agglomeration of Dakar which are trapped in frequent flood disasters and continuous traffic congestion among many other urban issues.

Gora Mboup

South Africa-Cape Town

Frontmatter

Chapter 34. Transforming the City of Cape Town from an Apartheid City to an Inclusive Smart City

The Long March to a Sustainable, Inclusive and Prosperous City

A smart city is viewed as a sustainable, inclusive and prosperous city that promotes a people-centric approach based on three core components and seven dimensions. The three core components are Smart City Foundation, Smart ICT and Smart Institutions and Laws, which in turn are the pillars of the seven dimensions of a smart city: infrastructure development, environmental sustainability, social development, social inclusion, disasters exposure, resilience, and peace and security. The three components together with the seven dimensions make a smart economy. Infrastructure development has several elements across various social, economic and environmental dimensions. Cape Town’s historical apartheid growth has been characteristic of social, income and city foundation inequalities which have created uniquely distinct human settlements—rich suburbs with adequate services and opportunities, and poor and informal neighbourhoods with acute shortages in core urban services. Since the end of apartheid, Cape Town has however made deliberate and directed efforts to promote social inclusion through policy incentives, physical public and social space development, and promoting equitable access to basic services. The city has also invested heavily in smart growth alternatives which began with the formulation of a smart city strategy in 2000, and which has over the years entrenched smart growth aspects into most sectors of growth, and greatly enhanced efficiency and productivity of the urban system. Today, Cape Town is reaping on its massive investment in information and communication technologies, which have made it Africa’s premier international city supplying goods to many cities in the west and offering global business process outsourcing services. The city’s deliberate progression towards smart growth has opened huge economic activities for its residents, which will continue to reinforce its position as the Western Cape region’s economic powerhouse. This chapter discusses Cape Town’s growth as an apartheid city, its city foundation during and post-apartheid and the various targeted smart growth approaches adopted in the city over the last two decades as well as their outcome in creating an equitable and productive urban system.

Paida Mhangara, Naledzani Mudau, Gora Mboup, Dennis Mwaniki

USA-St. Louis

Frontmatter

Chapter 35. Profile of St. Louis as an Urban Entrepreneurial City

St. Louis has had a deep history of being a city of industry and entrepreneurial promise. As the “Gateway to the West,” St. Louis’ geographic location in the center of the USA made it a city of vital importance to trade and commerce for many decades of its history. However, due to a large exodus of corporate headquarters, starting in the 1980s and continuing to present day, St. Louis has struggled to retain talented young people, grow new, innovative business ventures, and deal with less than effective government policy. In addition, the region’s strained racial and socio-economic tensions have been ripped open in very public ways. It is in this backdrop that an emerging startup community has worked its way into existence and is beginning to thrive. Given St. Louis’ economic history and abundance of talent, a collaborative Smart City initiative that cuts across socio-economic boundaries could be truly transformative.

Jim Brasunas, Francis Chmelir

Chapter 36. Challenges and Lessons Learned in Developing Smart Cities

This chapter explores the growth of the start-up tech entrepreneurial sector in the St. Louis region from the early 2000s to present day, highlighting its success in spite of a great deal of adversity. This sector of business development effectively leveraged very little resources in terms of intentional funding and support to create a bright spot for the St. Louis economy today. The burgeoning asset of entrepreneurial start-up growth in St. Louis creates a valuable resource upon which to build a Smart Cities initiative for the region that would greatly benefit the start-up community.

Jim Brasunas, Francis Chmelir

Chapter 37. Smart City Leaders, Champions, and Entrepreneurs—The People Part of Vibrant Smart Cities

This chapter will provide definitions for four Smart City elements: (1) leaders, (2) champions, (3) entrepreneurs, and (4) ecosystem development activities. It will then offer thoughts on the evolution of Chattanooga, Tennessee, and Kansas City, Missouri/Kansas, two Central US Smart Cities. The relationship between the four elements is important to discovering the economic and social innovations that are possible with Smart Cities. The key to this innovation cycle is ecosystems that cause high-velocity, collaborative relationships between leaders, champions, and entrepreneurs.

Ken Harrington

Chapter 38. Connected Innovation Neighborhoods and Innovation Districts

The Smart City movement offers the potential for cities to utilize information and communications technology (ICT) to enhance their livability, workability and sustainability. However, Smart City initiatives often fail to gain traction because of their size and scale, the lack of leadership and well-understood socioeconomic value propositions and associated business models. To build the Smart City, the authors describe a holistic approach in which entrepreneurial and infrastructure ecosystems, and their associated socioeconomic business models, become integrated and connected, thereby creating an organic community foundation and entrepreneurial platform from which to support the long-term development of the Smart City.

David Sandel

Chapter 39. Estimating the Economic Impact of Smart City Innovation Neighborhoods

Capital investment projects use standard input–output modeling to estimate economic impact and justify decisions to move forward. In this chapter, I begin by breaking down the elements and inputs used in a standard economic impact analysis with some examples of how the “number” is used and misused. This is followed by an explanation of the traditional model for projecting economic impact. The subsequent chapter provides an introduction to a new Smart City model for determining the economic impact of ultra-high Internet deployment, especially in the innovation neighborhoods discussed in the previous chapter. The conclusion provides recommendations on how to improve this decision-making process and measure long-term economic impact for the Smart economy.

Patrick McKeehan

Chapter 40. Smart Cities Are 90 % Sociology and 10 % Infrastructure

Cities around the globe are not well prepared to become Smart Cities. Many of the challenges associated with getting Smart City projects going is currently related to traditional planning methodologies that make use of top-down master planning. Since Smart Cites are a relatively new and broad concept, it is necessary to engage the community at large and its entrepreneurial resources, to develop many of the aspects of community collaboration, business models, revenue and expense sharing agreements, and technologies that can be used to create real socioeconomic impact. As government observes the success of projects, it then becomes possible to plan on a larger scale across an entire metropolitan area. This section describes some of the key, overarching thoughts on leadership themes that surfaced and were developed during the course of this study and the development of this chapter.

David Sandel

Conclusion

Frontmatter

Chapter 41. International Collaborative Research “Smart Economy in Smart Cities” and Conclusions of Cities Case Studies

This chapter has two parts. In the first part, the organizational details of the international research project “Smart Economy in Smart Cities” are presented. In consultation with the team leaders of the city study, their general conclusions of the study are presented.

T. M. Vinod Kumar
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