Helsinki Smart Region: Pioneering for Europe 2020

Transcription

1 Helsinki Smart Region: Pioneering for Europe 2020 Second Edition, 2014 Authored by the EKA B project The purpose of this paper is to assist the Helsinki- Uusimaa Region in international cooperation across Europe. The paper will also serve as input to the upcoming conference Smart Specialisation Strategies: Implementing European Partnerships organised by the Committee of the Regions, the S3 Platform, the Helsinki- Uusimaa and Valencia regions and the Province of Utrecht, 18th June 2014 in Brussels. The paper describes the development of the Helsinki Regional Innovation Ecosystem, as well as several interesting regional initiatives. It then formulates the ambitions and objectives of the Region and provides an outlook for the next few years. The paper concludes with an overview of EU Strategy 2020 opportunities for Helsinki as a pioneering region. Publishing date: 4th June 2014

2 Helsinki Smart Region: Pioneering for Europe 2020 The 1 st edition of this paper was published in April This revised 2 nd edition provides further details on regional innovation initiatives as well as on opportunities in the context of the EU 2020 Strategy. The paper is the result of a collective effort of many regional stakeholders in the Helsinki- Uusimaa Region working together in the EKA project on the Helsinki Region as a Forerunner Area. We welcome feedback. EKA - Helsinki Region as a Forerunner Area EKA is an instrument assisting the regional actors in defining the necessary activities. EKA is a two- year project funded by the metropolitan cities Helsinki, Espoo and Vantaa, other regional actors, and the European Regional Development Fund. EKA means Forerunner Area. The target is to speed up the regional collaboration and pioneering activities as the leading engine of growth. List of contributors Atso Andersen, Aalto University Tuula Antola, City of Espoo Rogaciano Cavadas Kaipainen, Helsinki EU Office Christine Chang, Uusimaa Regional Council Kristiina Erkkilä, City of Espoo Juha Eskelinen, Uusimaa Regional Council Jarmo Eskelinen, Forum Virium Glenn Gassen, City of Espoo Heli Halla- aho, Uusimaa Regional Council Ilmari Halme, Vantaa Innovation Institute Olli- Pekka Hatanpää, Uusimaa Regional Council Kristiina Heiniemi- Pulkkinen, Uusimaa Regional Council Tuija Hirvikoski, Laurea University of Applied Sciences Ari Huczkowski, Otaniemi Marketing Ltd Hank Kune, Educore B.V. Markku Lappalainen, Aalto University Markku Markkula, CoR, Uusimaa Regional Council, City of Espoo, Aalto University Kari Mikkelä, Urban Mill, Järvelin Design Ltd Lars Miikki, EKA B Forerunner Helsinki Region, Culminatum Innovation Ltd Marja- Liisa Niinikoski, Culminatum Innovation Ltd Riikka Paasikivi, Culminatum Innovation Ltd Hans Schaffers, Aalto University, CKIR Riina Subra, Aalto University Taina Tukiainen, Digital Business Cluster, Culminatum Innovation Ltd Ville Valovirta, VTT Technical Research Centre of Finland Eero Venäläinen, Uusimaa Regional Council Jukka Viitanen, Hubconcepts Inc Pertti Vuorela, Culminatum Innovation Ltd Coordination Lars Mikki, E- mail: lars.miikki@kolumbus.fi Markku Markkula, E- mail: markku.markkula@aalto.fi Hans Schaffers, E- mail: hans.schaffers@aalto.fi 2

3 List of Acronyms 6AIKA : Project ( ) of Helsinki, Espoo, Vantaa, Tampere, Oulu and Turku, Open and smart services strategy for sustainable development, co- funded by ERDF CoR: Committee of the Regions EKA: Project Helsinki as a Forerunner Area ELY: Centres for Economic Development, Transport and the Environment in Finland ERDF: European Regional Development Fund ESF: European Social Fund ESIF: European Structural and Investment Funds EUE: Energizing Urban Ecosystems, RYM Ltd, SHOK research programme ( ) HSY: Helsinki Region Environmental Services Authority INKA: Innovative Cities, Finnish national programme PreCo: Pre- Commercial Procurement RDI: Research, development and innovation RIS3: Research and Innovation Strategies based on Smart Specialisation S3: Strategies for Smart Specialisation SHOK: Strategic Centers for Science, Technology and Innovation TEKES : Finnish Funding Agency for Innovation VTT: Technical Research Centre of Finland 3

4 Contents Summary Introduction and Overview Helsinki Smart Region Innovation Ecosystem Helsinki- Uusimaa Region Helsinki Cluster Policy Espoo Innovation Garden Helsinki Smart City and Smart Region as Living Lab Vantaa Innovation Environment Regional Entrepreneurship Model Helsinki- Uusimaa Region Policies, Assessment and Prospects Helsinki Smart Region Innovation Initiatives Helsinki Region as a Forerunner Area (EKA project) Innovative Cities (INKA programme ) Energizing Urban Ecosystems (EUE) Open and Smart Cities (6AIKA) Aalto Open Innovation Initiatives Digital Smart Services Initiatives Helsinki Smart Region Showcases EU Strategy 2020: Opportunities for Pioneering Regions European Strategic Frame for Europe 2020 Strategy and Regional Innovation Ecosystems Horizon 2020 Supporting Pioneering Cities and Regions Opportunities for Smart Regions under Cohesion Policy Ambitions and Objectives of Helsinki Smart Region Positioning Towards Enhancing the Helsinki Region Innovation Ecosystem Helsinki Smart Region and International Collaboration Conclusions and Follow- Up Appendix 1: Sources and References Appendix 2: Helsinki- Uusimaa Region Facts Appendix 3: Horizon 2020 and Cohesion Policy Opportunities

5 Summary The purpose of this paper is to assist stakeholders in the Helsinki- Uusimaa Region in international cooperation across Europe. The paper also serves as input to the upcoming conference on Smart Specialisation Strategies: Implementing European Partnerships, a bench- learning conference for pioneering innovation regions organised by the Committee of the Regions, the S3 Platform and the Helsinki- Uusimaa and Valencia regions and the Province of Utrecht, 18 th June 2014 in Brussels. Grand societal challenges are typically extremely complex by nature. Therefore, the key success factors in regional policy include continuous learning and reflection of new opportunities, as well as research and innovation in multi- dimensional co- creation teams and networks. Significant learning takes place as part of large innovation ecosystems. In the interfaces between universities, industry, public authorities and citizens, knowledge exploitation and capacity- building processes constitute important concepts, as do also exploration and knowledge co- creation. The regional innovation policy tackles these challenges. Its practices need to integrate top- down policy with bottom- up self- renewing activities, taking into account the characteristics described in this document. Smart Specialisation is one of the starting points and key principles reviewed in this document. Smart specialisation strategies (RIS3) provide a regional policy framework and basis for innovation- driven growth. The RIS3 is a process highlighting the "entrepreneurial discovery": an interactive and innovative process in which market forces and the private sector together with universities discover and produce information about new activities, and the government assesses the outcomes and empowers those players most capable of realising the potential. RIS3 strategies are much more bottom- up than traditional industrial policies. The present document describes the development of the Helsinki Regional Innovation Ecosystem, as well as several interesting regional initiatives. There is a need to create strong regional innovation ecosystems as platforms for collaboration, learning and co- creation, as well as testbeds for rapid prototyping of many types of user- driven innovations, based on transformative and scalable systems. The document formulates the ambitions and objectives of the region and provides an outlook for the next few years. It concludes with an overview of EU Strategy 2020 opportunities for Helsinki as a pioneering region in smart specialisation. This second edition of the report emphasizes the networking role of the collection of stakeholders brought together, the opportunities for interregional collaboration provided by European- level research and innovation programs, and the connection to existing European networks in urban and regional development and open innovation. 5

6 1. Introduction and Overview The objective of this paper is to discuss the opportunities and challenges for Helsinki- Uusimaa Region, and in particular the Espoo Innovation Garden area, in the context of European 2020 policies and initiatives aimed towards creating connected smart cities and regions. The diversity and strength of the Helsinki- Uusimaa Region innovation ecosystem makes it very well positioned as a pioneering region in implementing the Europe 2020 Strategy and as an attractive partner for collaboration with other cities and regions. The paper considers the position, ambitions and objectives of the Region against the background of such European strategic collaboration opportunities. This revised 2 nd edition will be input to the upcoming conference on Smart Specialisation Strategies: Implementing European Partnerships, a bench- learning conference for pioneering innovation regions organised by the Committee of the Regions, the S3 Platform and the Helsinki- Uusimaa, Province of Utrecht and Valencia regions, 18 th June 2014 in Brussels. However, the aims of the paper are wider; they reflect a dialogue during the past period among all Helsinki Region stakeholders concerned, and supports them in creating new collaboration opportunities, not only within the Region but also between the Helsinki Region and other regions in Europe. Partnering actors in the Region may benefit from this process to further collaborate on strengthening the Helsinki Smart Region concept, and to develop specific roadmaps and action plans for the Espoo Innovation Garden area and the other Helsinki- Uusimaa Region spearheads to pioneer urban and regional ecosystems collaboration in Europe Many activities are ongoing in the Helsinki- Uusimaa Region in preparing regional strategic plans and implementation activities. A special objective of this paper is to create a stronger link to the new Europe programme period, the Horizon 2020 programme, and the EU principles for regional innovation strategies for smart specialisation (RIS3). The Horizon 2020 programme provides interesting opportunities to support research and innovation on digital platforms as regards smart urban areas. As regards smart specialisation, the following policy dimensions are of special relevance, as defined in the EU RIS3 Guide 1 : Making innovation a policy priority for all regions: provide incentives to regions to invest more Structural Funds (SF) in strengthening their knowledge and competence base and in upgrading their innovation systems. Focusing investments and creating synergies: RIS3 to concentrate SF investments on areas of relative strength, economic opportunity, emerging trends and growth- enhancing measures. Improving the innovation strategy process: RIS3 to require smart, strategic choices and evidence- based policymaking: priority- setting on the basis of evidence/strategic intelligence about a region's capabilities, competences, competitive advantages and potential for excellence. Strengthening governance and stakeholder involvement: RIS3 to foster stakeholder engagement under a shared vision, link small, medium and large firms, encourage multi- level governance, and help build creative and social capital at the community level. The main points brought forward in this new edition include the following: Helsinki Smart Region brings together a diverse set of stakeholders with common objectives. With respect to Helsinki Smart Region activities for the future, this collaboration network could be strengthened in becoming a breeding ground for European- level joint project development. Expanding collaboration across Europe will be at the forefront. Such interregional collaboration may go beyond benchmarking and best practice exchanges towards concrete partnerships and collaborative projects on key themes in research, innovation and adoption. Helsinki Smart Region covers a rich spectrum of testbeds, living labs facilities, datasets, user environments, experts and other resources, which can be part of international collaboration. 1 EU Regional Policy, RIS3 Guide

7 2. Helsinki Smart Region Innovation Ecosystem 2.1 Helsinki- Uusimaa Region The Helsinki- Uusimaa Region forms the metropolitan area in Finland. Uusimaa Regional Council is the regional authority for the Region. The owners of the Council are the municipalities of the Region. The main tasks of the Council being a coordinator and consensus builder for the Region include regional development and land- use planning, as well as the promotion of local and regional interests, in general. The Regional Council articulates common regional needs, long- term development goals and conditions for sustainable development. To support sustained wellbeing and economic growth in the Region, the Regional Council works in close cooperation with member municipalities, the government, the business sector, universities and research institutions, as well as with civic organizations. Figure 1. Helsinki- Uusimaa Region (see also Annex 2 for details) The Helsinki- Uusimaa Region is the centre of Finland s economic activity. Its strengths stem from skilled people; a research and education environment of high international quality and a versatile business landscape and the basis it creates for innovations. There is a concentration of small- and medium- sized enterprises (SMEs) and large companies in the area both Finnish and international ones. The Region s industrial structure is extremely versatile and its population structure highly international. In fact, 55% of Finland's non- Finnish speakers reside in the Helsinki- Uusimaa Region. The Region is easily accessible both on the national and regional levels. It is, nevertheless, vital to ensure and develop connections to international markets. To this end, the Helsinki- Uusimaa Region has a fast rail link to Russia, good flight connections to Europe and Asia, and frequent maritime connections to Tallinn, Stockholm and St. Petersburg. The challenges that concern Finland's international competitiveness are especially relevant in this Region. Maintaining and enhancing economic competitiveness requires continuous economic investment and competence development, and the Helsinki- Uusimaa Region has good prerequisites to grow and to sustain the growth. The decisions taken in the Region are of vital importance for the future of the entire Finland. 7

8 The core of the Uusimaa vision and strategy for the year 2040 is crystallized in the Helsinki- Uusimaa Regional Programme (Vision and Strategy 2014; Strategic priorities ). The political vision of the Region is the idea that a strong capital area serves as an engine securing prerequisites for Finnish success. The Region is being developed as a growing metropolis by paying particular attention to expertise, innovation and well- functioning local structures. The vision and strategy 2040 has been concretized into strategic objectives, which will be implemented by means of strategic choices. The ongoing renewal of this plan is the product of an extensive consultation process involving all major stakeholders in the Region and in state administration. The new plan also demonstrates political commitment, since it has been approved by the Regional Council, which consists of representatives of all the 26 municipalities of the Region, totalling 1.5 million inhabitants. Figure 2 provides a simplified description of the Finnish regional planning system, which is currently in transformation. According to the law of Finland, Regional Councils are responsible for preparing regional development plans in cooperation with municipalities and other public and private actors. Figure 2. Regional planning system in Finland Political commitment and productive collaboration covering the entire Region are manifested through the strategies. Some essential political alignments of the recent strategy are as follows: The Helsinki- Uusimaa Region to become the most significant innovation concentration in the Baltic Sea Region. The innovation concentration aims to bolster SME prerequisites to identify and establish strategic partnerships. The Region will be developed into the most significant innovation cluster in the Baltic Sea Region with a customer- driven, open innovation environment benefiting from the strengths of the different regional areas. In particular, favourable conditions will be created for the integration of science- and research- driven and practically- oriented innovation activities. Collaborative platforms and interfaces are needed to form a stepping stone for innovations. Focus is on societal innovations where entrepreneurship and new forms of business and especially services are needed; similarly, the role of SMEs and new start- ups is accentuated. 8

9 Sustainable development promoted with innovation. Innovations in sustainable development help save non- renewable resources and reduce emissions. Such innovations face an extremely huge global demand as e.g. a substantial decrease in greenhouse gases without radical innovations poses great challenges. In these markets the Ris to have a dual role: (1) It adopts and benefits from innovations created elsewhere; and (2) It develops and industrializes innovations promoting sustainable development. The Helsinki- Uusimaa Region will be carbon- neutral in This was decided on in the Regional Council. To achieve this, the Council has made strategic choices to focus in particular on the following: (1) Increase in the use of renewable energy forms and development of sustainable development technologies, and (2) Creation of new practices in construction to promote sustainable lifecycle thinking. In summary, the vision of Uusimaa 2040 is to be at the top top in the Baltic Sea Region when it comes to creating and benefiting from economic and mental growth, enabling a practical everyday life for its inhabitants and arranging activities in an ecologically and economically sustainable way. The future development of the Helsinki- Uusimaa Region is shaped by spearhead growth triangles, notably innovation clusters in Meilahti, Viikki, Kumpula and Pasila in Helsinki, Espoo Innovation Garden, and the Aviapolis area in Vantaa, operating also with several smaller centres around in the Region. In turn, the Helsinki Region is part of a wider developing triangle of the Gulf of Finland consisting of the cities of Tallinn, Helsinki and St. Petersburg (Figure 3). Häme& Päijät< Häme& USA SWEDEN& STOCKHOLM& Western Uusimaa Espoo& InnovaFon& Garden& KUUMA municipalities Aviapolis& Tikkurila& Helsinki<& Uusimaa& Pasila& Viikki& MeilahF& Eastern Uusimaa Kymenlaakso& RUSSIA& ST.&PETERSBURG& AASIA EU ESTONIA& TALLINN& Figure 3. Triangles of Growth and Collaboration of Helsinki Region (Helsinki- Uusimaa Regional Programme) Three overarching Uusimaa strategic objectives for 2040 have been defined in the Helsinki- Uusimaa Region Programme in terms of making the Region: 1. A platform for intelligent growth: foundation in sustainable development and intelligent solutions. 2. Easy to reach, live and work in: emphasis on effortless transport, working and functioning, and an attractive living environment. 3. Clean and beautiful: sensible use of natural resources, maintenance of natural diversity and becoming carbon neutral. 9

10 HELSINKI- UUSIMAA REGION STRATEGIC CHOICES Growth opportunities Open development environments and intelligent services Regenerating business Environmental business clean tech Urban Food Services Growth from the East Practical everyday life Intelligent and smooth traffic Comfortable housing and living environment Good working life Immigration and Integration Localness, Local Democracy and Youth Participation Sustainable ecology Natural diversity and natural resources Improving the State of Waterways and the Baltic Sea Environmentally Smart Lifestyle Carbon Neutral Helsinki Region In terms of strategic choices , emphasis is on growth opportunities, practical everyday life, and sustainable ecology. In this context, smart specialization is considered a key framework for strategic choice, addressing technological solutions and services, wellness technology and services, clean tech, and intelligent services. Spearhead plans for the next years are summarized above. 2.)Prac0cal)Everyday)Life) 2.3.$Good$Work$ 2.4.$ImmigraDon$ and$integradon$ 2.5.$Localness,$ Local$Democracy$ and$young$ People s$ ParDcipaDon$ Technological)Solu0ons)and)Services) ) 2.1.$Intelligent$ and$smooth$ Traffic$ 2.2.$Comfortable$ Housing$and$Living$ Environment$ Focus)areas) 1.1.$Open$ Development$ Environments$and$ Intelligent$Services$ Regional$plan$ suppordng$innovadons$ 3.4.$Carbon$ Neutral$Uusimaa$ 6Aika$ $Open$and$ Smart$CiDes$Strategy$ 1.5.Growth$ from$the$east$ 1.)Opportuni0es)for)Growth) Enterprise$Ecosystem$ Wellness)Technology)and)Services) 1.2.RegeneraDng$ Business$ 1.4.$Urban$ Food$Services$ 3.2.$Improving$the$ State$of$Waterways$ and$the$baldc$sea$ 3.)Sustainable)Ecology) WatersU project$ 3.1.$Natural$ Diversity$and$ Natural$ Resources$ 3.3.$ Environmentally$ Smart$Lifestyle$ Cleantech) 1.3.Environmental$ Business$U$ Cleantech$ InnovaDon$Hub$ Intelligent)Services)(crosscu=ng)) Figure 4. Helsinki- Uusimaa Regional Programme and S3 strategic choices 10

11 Figure 4 connects the Helsinki- Uusimaa longer- term programme, the priorities in smart specialization, and the current S3 strategic choices, including those that have been started (purple). 2.2 Helsinki Cluster Policy 2 As the leading national expertise cluster, the Helsinki Region remains the strategic core of Finland s international competitiveness. The Region is the economic heart of the small and open Finnish economy. Helsinki Region is both a fairly loose cross- municipal organization and a vaguely defined area surrounding the capital region, consisting of the City of Helsinki and 13 other municipalities around it. These municipalities have a joint competitiveness programme, as well as different collaborative arrangements for water management and public transport and various informal networks as grounds for active co- operation. Increased collaboration between the municipalities is needed for the metropolitan region to function as an effective Smart Region. Helsinki, as a developing Smart City striving to foster a Smart Region, does not endorse limiting smart solutions to its municipal boundaries or to organizations that serve a single municipality. Removing boundaries between bureaucratic organizations is necessary within and across a competitive and agile smart region of the future. For the Helsinki Region to act effectively towards smart services it must provide platforms for innovation that are open to all municipal and regional parties with an interest in developing new products and services. The competition for applications and cases, as discussed below, offers evidence of this (cross- municipal) collaboration in setting up an innovation platform around open data aiming at smart services for citizens. Collaboration is of crucial interest, and the innovation strategies deployed in the Helsinki Region aim at establishing forms of collaboration that will more efficiently harness the huge innovation potential of the metropolitan area. The future competitive strength of the Region and its appeal as a strategic partner for the world s other leading knowledge hubs will depend on the Region s record of effective collaboration. In terms of Porter s concept of cluster, the Helsinki Region forms a strong innovation- oriented set of clusters around key technologies such as mobile, digital services, cleantech, wellbeing and other. These are strongly based on favourable factor determinants such as high- quality research and education institutions, a continuous demand for change and innovative services, a highly competitive business environment, and at the same time, strong innovation- driven networks of businesses and governmental actors. Cluster policy in Finland was facilitated by a fixed- term (from mid 1990 s to the end of 2013) special government- funded Centre of Expertise Programme aimed at focusing regional resources and activities on development areas of key national importance. The programme has promoted the utilisation of the highest international standard of knowledge and expertise in the different regions. All specialization fields have had their own defined focus areas and strategic partnerships and customers. The services offered by the clusters have been commercialized and there are several development projects linking different cluster competences, collectively involving thousands of companies and important innovation organizations, universities and research institutions. The cluster concept and cooperation environment in the Helsinki- Uusimaa Region as implemented during the last years and managed by Culminatum Innovation Ltd is presented in Figure 5. This landscape is currently in transformation, thanks to the emerging spearheads and several new colloborative initiatives (see Chapter 3). Although this cluster concept has been useful, the objectives of cooperation between clusters were difficult to achieve due to the financing system of the cluster policy. The thematic approach of the new INKA- program on Innovative Cities aiming to create internationally attractive local innovation hubs is planned to more effectively impact the multidisciplinary cooperation. 2 This and following sections use Helsinki Smart Cities case study materials developed by CKIR for the FIREBALL project ( as well as the Culminatum sources. 11

12 Figure 5. Cluster classification applied to the Helsinki- Uusimaa Region 2.3 Espoo Innovation Garden The Helsinki Region is transforming into a strong, regionally- based innovation ecosystem. Its most visible outcome is the Espoo regional innovation ecosystem. Espoo Innovation Garden is a concept that Espoo is using to spread the innovative mindset all over the City of Espoo and to all of its activities. The creations of this thinking and operating mode started within a 5 km2 area in Otaniemi- Keilaniemi- Tapiola which was previously called the T3 area, but is now extended wider. This initial area is the largest technology, innovation and business hub in Finland and Northern Europe: it consists of 800 companies, 20 R&D centres and a number of Centres of Excellence. It is a living community employing more than professionals representing 110 nationalities, and hosting research scientists and students. It is also a residence area for citizens, the number to grow by some during the next 10 years. Its ecosystem of companies, universities and technology centres accounts for 50 % of the R&D value in Finland, and generates start- ups a year. Stakeholders and partners include the City of Espoo, VTT Technical Research Centre of Finland, Aalto University, Laurea University of Applied Science, Metropolia University of Applied Science, Technopolis, KCL, Sitra and the Federation of Finnish Technology Industries. Finland's geographical location makes it a gateway for companies entering the Nordic, Russian and even the whole European market. Espoo is centrally located between Europe, Russia and Asia. The City of Espoo (Population: ) is the second largest city in Finland and is the innovation driver within the Helsinki Region. The city has gained international fame as a hub of know- how, research and development, at the heart of which stands the Aalto University campus. Espoo is also a centre of international company headquarters and high- technology businesses. The city has developed this position in effective interaction with various partners. Espoo s most important resources include its active inhabitants, educational institutions, communities and businesses. The goal is to make Espoo a pioneer in the municipal sector, as well as a good place to live, learn and work, and the place to engage in entrepreneurship. Espoo s core interest is to develop the ecosystem for Espoo Innovation Garden to become both an effective operating environment that energizes people, and a globally unique orchestrated innovation 12

13 ecosystem based on the mutual interaction between the university, the business community, the public sector and the third sector. Naturally, regions compete to attract experts and investments in a world characterized by rapid change and increasing globalization. The Espoo Innovation Garden proposal for the EU Innovation Capital Award Competition created many new avenues for the collaboration both locally and also globally. In 2014, Espoo ranked among the six finalists out of 60 candidates (as a result of the competition, the first EU Innovation Capital is Barcelona) and it was a great opportunity to present the innovation ambitions of Espoo and the entire Helsinki Region. The City of Espoo and its stakeholders and citizens will continue their activities with the target to make Espoo Innovation Garden a recognized forerunner among the world s most significant international innovation hubs and urban environments. The planned activities for the next years include: Projected investments linked to the Espoo Innovation Garden area of around 6 billion within the next ten years; Creation of a Societal Innovation Living Lab that will innovate to create an inspiring environment, smarter city, better public services and foster entrepreneurship (partnership Espoo Aalto University and other educational institutions around); New metro under construction improving connections between Helsinki downtown and other business and residents areas of the metropolitan region (to be opened in 2016); A new Aalto University core campus designed to accelerate collaborations between technology, business, arts and design. The role of Aalto University in the development of Espoo Innovation Garden is crucial. Human- driven built environments form one of Aalto University s strategic focus areas. The University s objective, supported by the creation of Design Factory, Media Factory and Service Factory as innovation platforms facilitating new forms of collaboration between academic teams and students with business and communities, is to develop its main campus and its neighbouring areas into a globally leading innovation hub. The ambitious goals support realizing the Aalto University s mission, which aims to change the world by means of internationally high- level research, pioneering education, boundary breaking,, and renewal. Espoo Innovation Garden embeds a rich innovation ecosystem that is closely linked to Aalto s entrepreneurship ecosystem, consisting of the operations of Aalto Start- up Center, EIT IC Labs, AppCampus, Startup Sauna, Aalto Center for Entrepreneurship, Aalto Ventures Program, to name the key new activities within the last few years. Additionally, Laurea University of Applied Sciences focuses on service innovation carrying out professional education, regional development and research and development activities following the Learning by Developing model, strongly focusing on the Knowledge Triangle for strengthening interaction and synergy between research, education and innovation and applying new mechanisms for collaboration among regional stakeholders such as Living Labs. VTT Technical Research Centre of Finland as the biggest multi- technological applied research organisation in Northern Europe provides a range of technology solutions and innovation services for industry and society. In transforming the Espoo Innovation Garden area, several challenges and opportunities are addressed. Laboratories for research and innovation are no longer traditional university facilities, but regional innovation ecosystems operating as testbeds for rapid prototyping of many types of user- driven innovations: new products, services, processes, structures and systems which need to be transformative and scalable. The new generation of innovation activities is a socially motivated and open innovation ecosystem, which is complex and global by nature and has emerged through the participation of all those in the online community. European regions should move towards open innovation, within a human- centred vision of partnerships between public- and private- sector actors, with universities playing a crucial role. This means modernizing the traditional Triple Helix model of 13

14 academia, industry and government. This way the area will further evolve as a regional innovation ecosystem serving its actors, activities, events and external stakeholders. Special emphasis is on how Espoo Innovation Garden can become a global pioneer as a societal innovation testbed. 2.4 Helsinki Smart City and Smart Region as Living Lab The prominent role of user- driven and open innovation (living labs) underlines the strength of the cluster. Actively supported by local and regional governments, as well as by governmental funding for research, development and innovation projects, Living Labs have been established in and around the Helsinki Region (e.g. Helsinki Living Lab, Arabianranta Living Lab, as well as several Living Labs operating around the educational institutions, i.e. Aalto, Laurea etc.). Their functions are diverse, but all are basing their activities on the principles of user- driven Innovation. There is a strong tradition of Living Lab research in Finland and various types of organizations universities, city- or region- owned development agencies (e.g. Forum Virium), companies and SMEs have established Living Labs in the Helsinki Region area. The municipalities use Living Labs for economic development and societal activation in energy issues, service provision in health care of the elderly, preventive care, and urban living. Several Universities of Applied Sciences conduct research in Living Labs at the edge of science and practice. Companies such as Microsoft, Philips and Nokia apply Living Labs as user- centred hubs for ideation and product development, and national research institutions use Living Labs as platforms for innovation. These living labs focus on bringing users with their knowledge, ideas, and experiences together with the developers of new services and products to increase the quality and usability of the services and products created. Collaboration with local small- and medium- sized companies is actively sought and managed, while entrepreneurship is enhanced at Service, Media and Design Factories through the collaboration models at Aalto University. Since 2007, a network of Living Labs has been providing test and experimentation environments where user communities can work with producers to co- create innovative smart city services in the Helsinki Metropolitan Area. A number of successful trials and commercial projects, such as a traffic information platform and Helsinki Region Infoshare, have been deployed in Helsinki, which has also run open data competitions, such as Apps4Finland, to inspire start- ups, citizens and established companies to employ open data resources. This network is overseen by Forum Virium Helsinki, a private non- profit organization owned by the City of Helsinki. Forum Virium s projects span six key areas - smart city, wellbeing, new forms of media, innovative public procurement, innovation communities, and growth services. While the role of Living Labs is only one aspect of Helsinki Smart City programme, it has a wide influence because of its emphasis on openness, user engagement and co- creation. Within the Helsinki cluster environment, it provides the powerful glue between the diverse elements of a strong innovation system. Since the 1990 s, a growing number of new developments have been based on mobile technology in the Helsinki Region. For the Helsinki Smart City strategy, the emergence of a mobile application cluster is an asset and the resulting competition within the cluster is equally essential. The proximity of the cluster members, both geographical and cultural, supports the constant drive to innovate in order to grow. This gives a push to the development of innovative ideas for the Smart City. The user demand and citizen s participation and demand provide a powerful pull. By becoming a centre of innovative and competitive firms, a cluster attracts new firms to the area, thus creating economic growth. Within the Region, this competitive- collaborative process is ongoing within IT, media, services, and particularly in the sector of mobile application development. The City of Helsinki has stimulated the development of a Mobile Application Cluster by organizing competitions for innovative applications. The Smart City services that are developed in competitions benefit both the Mobile Application Cluster and the citizens. The function of the competition mechanism was to encourage the development of new mobile applications utilizing Open Data. 14

15 Experience so far has shown how a Living Lab functions as an innovation intermediary where competition is instrumental in stimulating the development towards a smarter City. The University of Helsinki is the largest university in Finland with students spread across eleven major faculties. With over staff members, four open campuses within the city and collaboration with several hundred national and international institutions, it has grown into a strong international intellectual hub. It has an annual budget of over 600 million euros. The University is ranked as the 76th (Shanghai list) best of the world s universities. It is one of Europe s top multidisciplinary universities. The goal is to eventually rank among top 50. The University of Helsinki is especially strong in the fields of space science, atmospheric science, nanoscience, cancer research, genetics, diabetes research, teacher education, democracy and citizenship participation studies, welfare studies, russia studies, metapopulation biology, food research and environmental studies. The activities are located on four campuses. The Viikki Campus for Life Sciences is a major concentration in the field of biosciences, and it is often called the green campus. The Campus is home to four faculties, two independent research institutes of the University of Helsinki and the Viikki Science Library. It has more than students and teachers in such fields as environmental science, pharmacy, veterinary medicine, food research and economics, in addition to biosciences. The Campus attracts an increasing number of businesses to the Makery, which combines business development expertise and the food sector expertise of Viikki Food Centre. The Finnish Game and Fisheries Research Institute, the Finnish Food Safety Authority Evira and a part of the MTT Agrifood Research Finland are also situated in Viikki. The University is keen to improve links with private- sector companies. The Bioscience Campus in Viikki hosts a business and science park for start- up companies in the biosciences and biotechnology. The University also participates in several new strategic centers of science, technology and innovation. Meilahti Campus, the Academic Medical Center Helsinki, is a recognized international hub for research, training and translational medicine. It comprises the Faculty of Medicine of the University of Helsinki, the Helsinki University Central Hospital and the Institute for Molecular Medicine Finland (FIMM). The Campus is a nationally as well as internationally recognized center for medicine, health and well- being. Its strenght lies in bringing together professionals from various institutions universities, hospitals, research institutes and business organisations to reach shared goals. Specialist organisations based in the campus area collaborate globally with the best research institutions. The mission of the FIMM is to advance new fundamental understanding of the molecular, cellular and etiological basis of human diseases. This understanding will lead to improved means of diagnostics and the treatment and prevention of common health problems. Valuable Finnish clinical and epidemiological study materials will be adopted in the research. Biobanks are being developed, now turning into biodata banks and utilising advanced bioinformatics. Versatile expertise and top- level medical research on oncology, diabetes, neurological disorders, cardiac diseases and many other fields of rapidly transforming medical areas gravitate to the scientific community of the Meilahti Campus. Biomedicum Helsinki, a center for medical research and training, offers a unique environment for cooperation among the personnel involved in the University s medical education, research training, graduate studies, basic medical research, clinical research conducted by the Helsinki University Central Hospital, and business organisations. Besides the University of Helsinki and the Hospital District of Helsinki and Uusimaa, the research community comprises the National Institute of Health and Welfare, the Folkhälsan Research Center and many other foundation- based research institutes. 15

16 Biomedicum Helsinki perfectly demonstrates how important large and multidisciplinary operating environments are for the research and education. A high- quality research support ecosystem, with common facilities and shared imaging and DNA/RNA sequencing and analysis services has been established through such co- operation. A specialist providing expertise, solutions and networks is never far away. Figure 6. The main innovation hubs of the City of Helsinki The Kumpula Science Campus is some four kilometres from the centre of Helsinki. The campus houses the Departments of Physics, Chemistry, Mathematics and Statistics, Computer Science as well as Geosciences and Geography of the Faculty of Science of the University of Helsinki. The strategic research areas of the faculty include space research, basic environmental research, climate science, nanoscience, computational science, mathematical physics, data analysis of biological data, and geoinformatics, geosciences and urban research. VERIFIN (Finnish Institute for Verification of the Chemical Weapons Convention) and The Finnish Meteorological Institute are also located in the campus. The City Centre Campus for Human Sciences is home to the Departments of Theology, Law, Arts, Education and Social Sciences. The locations of different campuses are shown in the Figure 6. Also the location of Forum Virium, a private non- profit organization owned by the City of Helsinki, is shown in the figure. 2.5 Vantaa Innovation Environment The City of Vantaa consists of diverse areas which have been developed together with companies to implement new innovative solutions into practice. Innovation clusters have been created from within the same industry to develop and grow together. These innovation clusters operate as showrooms demonstrating the latest technology of industry and member companies. Vantaa supports the generation of new business opportunities and the exploitation of new technologies. To support companies in their development from the idea to the actual market entry, demonstration 16

17 environments have been created, where new products and services are tested in practice by real end- users. All these elements together constitute the Vantaa Innovation Environment. Altogether there are 300 companies, five universities and four universities of applied sciences in the innovation environment. Companies and universities together produce innovations for user needs. The Vantaa Innovation Environment offers an excellent demonstration and test environment for the products, services and systems provided by companies and other organizations Finland's biggest international airport Helsinki Airport (HEL) is located in Vantaa, offering the quickest routes from Europe to Asia. The Aviapolis area, which is located around the international airport, is the fastest growing business environment in the metropolitan area. 2 billion public investments on infrastructure have been made to improve the Aviapolis area. There are jobs and residents in the area. It can be said indeed that you really are just a walking distance away from the rest of the world. The development of the Aviapolis area is very important for the competitiveness of Finland. The airport area is an international hub for the Helsinki Region. The connectivity of the Region allows domestic companies increased access to foreign markets and increased foreign competition in the home market. More free movement of investment capital and workers between countries also improves the productivity of companies. Another good example is the new operational environment of Kivistö, which will grow from an area of jobs and residents in the next 20 years into an area of jobs and residents. This provides again a new demonstration environment for innovative solutions to be tested in. At the moment, the following five innovation clusters operate in the Vantaa Innovation Environment based on the demand of the Region (Figure 7). Airport Cluster Finland is an active network of Finnish companies operating in the airport business. Its 30 member companies represent a wide range of airport expertise, providing high- quality products and services for airports worldwide. The main goal of Airport Cluster Finland is to promote Finnish airport industry- related knowhow internationally, and to support the growth and internationalization of its member companies. By implementing different clustering activities, it also aims to build concrete business development possibilities for its member companies. CIDe Cluster Finland focuses on the development of products and services advancing treatment and rehabilitation. It brings together companies focusing on health and wellness, as well as public- sector organizations and other actors with business development and commercialization- related expertise. CIDe provides networking events, projects, as well as training related to the healthcare business and technology for its 26 member companies. 17

18 Figure 7. Vantaa Innovation Environment 2014 Green Net Finland brings together the expertise and resources of Finnish cleantech companies, scientific and educational institutions and public authorities. Its thematic focus areas include environmental monitoring and energy efficiency in the urban environment. It has 60 member companies. Nano Lab Finland brings together Finnish companies in the field of nanotechnology and new materials. Its showroom demonstrates the newest solutions of companies in a concrete manner. Nano Lab Finland gathers together over 20 Finnish companies in the field. The solutions are related to better hygiene, indoor air quality, cleaning, construction, process industry, research, and product development. As an enabling technology, nanotechnology can be used to benefit all traditional industries. RFIDLab Finland is a neutral non- profit association, whose mission is to improve the operational efficiency of companies with identification technology. It helps companies with the business potential of RFID and NFC technologies, creates networks, and drives development initiatives. RFIDLab Finland is owned by its 45 member companies and organizations, including all the major players in the RFID and NFC industries that operate in Finland and companies that utilize identification technology in their business. 2.6 Regional Entrepreneurship Model A crucial element of the Helsinki- Uusimaa Region strategy is ensuring that research and innovation transforms into entrepreneurship. The Helsinki- Uusimaa Region was nominated the European Entrepreneurial Region The Region s entrepreneurship support throughout the business growth life cycle consists of the entrepreneurial environment of the Region. It includes the infrastructure, the organizations operating in the field of entrepreneurship and business growth, development services and other support in different phases, the tools used, and all the organizations and the partner network operating according to the principle of Private- Public Partnering. This Helsinki- Uusimaa Region excellence the Entrepreneurship Support Model was published in the 18

19 EER application 3 and is presented in Table 1 as an updated version. This model has been an effective base for the fast development in recent years. Firm birth DISCOVERY Universities Research Institutes Private and Public Sector spin- offs Development INCUBATION Incubators Development organisations Entrepreneurial eco- system drivers Expansion ACCELERATION Science Parks Business Development Private Public Partnering co- operation platforms Market Creation GLOBALISATION Internationalisation Expertise Clusters, Internationalisation and growth programmes è Activation and Idea evaluation è Company set- up Kick- off and Coaching è Growth Financing and Networking è Growth Enhancement Pre- Incubation Academia Aalto University VTT Product Track Service, ELY Centre Helsinki Region Incubators Enterprising Future aim Entrepreneurship Society by students Laurea University of Applied Sciences Vocational schools Tekes financing New hi- tech firms for growth acceleration Technopolis growth services Venture Capital firms and Venture Accelerators Research Ventures Service Providers Table 1. Helsinki- Uusimaa Region Entrepreneurship support model Internationalisation support initiatives & co- operation Cluster activities Acceleration platforms, VC firms and financiers European schemes and co- operation networks The Helsinki- Uusimaa Region entrepreneurship atmosphere has improved widely due to activation and published success stories. Entrepreneurship is now integrated into the regional development agenda, and the good practices of student self- activation in the forerunner universities have inspired other universities, universities of applied sciences and vocational school students to activate their own entrepreneurship societies. Moreover, a culture of mutual contribution based on serial- entrepreneurs activities among start- ups and the start- up minded has evolved in the Region. A good example of such mentoring activity can be found in Aalto Entrepreneurship Society, which is based on student community but which welcomes experienced serial- entrepreneurs as mentors and coaches. This fully volunteer- based association operates close to the university entrepreneurship education and provides activities such as start- up traineeship programs, incubation programs, conferences, pitching events and even provision of venture capital funding. The importance of startups and entrepreneurship in the Helsinki Region is also reflected by the organization of Slush, the largest and leading startup and investor conference in Northern Europe and Russia. Slush is organized yearly by Startup Sauna, the Helsinki- based seed accelerator which has been rewarded as the top young university accelerator in the world by UBI Index. In November 2013 Slush gathered attendees, companies and 500 venture capitalists and other investors from 68 countries ( 2.7 Helsinki- Uusimaa Region Policies, Assessment and Prospects Concluding this chapter, the SWOT depicted in Table 2 summarizes the prospects for a sustainable smart city and region strategy of the Helsinki Region. Smart Cities and Regions make use of the possibilities created by Internet and Future Internet technology. The Helsinki Region seems to be well positioned as a model of a Smart Region for the push it gives to the development of new technologies within a multi- levelled infrastructure and towards the creation of new business sectors. Many elements needed to create, develop, test and market new ideas and new technologies are 3 Helsinki- Uusimaa Region, Application for the European Entrepreneurial Region Award, January

20 present. However, there are also some weaknesses and challenges to be addressed, such as the lack of diversity in the technology base, and the peripheral position of the Helsinki Region in Europe. On the other hand, as explained, the Helsinki Region also forms a key gateway for entering Nordic, Russian and European markets. Strengths Strong, innovation- oriented cluster Strong level of collaboration government business - universities Prominent role of user- driven, open innovation Effective innovative policy instruments Gateway for companies entering Nordic, Russian and European markets Weaknesses Strong ICT sector but lack of diversity Limited human capital base Limited scale Enterprises operating mostly in domestic markets Still too few growth- oriented and innovative SMEs Somewhat peripheral position in Europe Gap between basic research and business Opportunities Strong innovation- driven collaborative networks Push for creation of new business sectors Emerging entrepreneurial ecosystem Strong national and regional policy cohesion Geographical location as basis for new entrepreneurial opportunities Unused opportunities of the Internet for business and citizens and for smarter cities and regions Threats and Challenges Ageing population impacting labour shortage and conditions for SMEs Increasing international competition; globalisation pushing experts and companies to look for global opportunities Industrial structure largely depending on large companies and few industries Dependency on mobile technology, lacking diversity Table 2. SWOT analysis of Helsinki Region Innovation Ecosystem As the leading national expertise cluster, the Helsinki Region remains the strategic core of Finland s international competitiveness. High educational standards, a firm grounding in science and technology, and a solid track record of cooperation between the private and public sectors have laid the foundation for developing innovative products and services in the Region. As open environments for development, learning and interaction, development platforms reinforce strategically important areas of expertise and competitiveness in the Region. Designing, implementing and developing such platforms is an excellent objective for the common business development policy of the cities. Apart from the well- organised platform and co- ordination among the stakeholders, innovative funding solutions are needed to boost both RDI and innovation commercialization. Pre- commercial procurement (PreCo) and Innovative City are examples of Innovative instruments boosting innovation in the Helsinki region in recent years. The Innovative City Program is an urban innovation tool owned by the City of Helsinki and Aalto University, launched by the City of Helsinki and the Helsinki University of Technology in Today, this cooperation continues and has been developed with Aalto University from 2011 onwards. 20