Damien Lanfrey Italian Ministry of Education, University and Research Innovation Policy think tank - Advisor to the Minister

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1 Nurturing IT investments through cohesive innovation policy Smart Cities and Social Innovation at the Italian Ministry of Education, University and Research Damien Lanfrey Italian Ministry of Education, University and Research Innovation Policy think tank - Advisor to the Minister Hong Kong University Monday, April 29, 2013

2 The Overall Framework Increasing COMPETITIVENESS of the Italian Research and Innovation system in ACCESSING EU FUNDS (Problems: short-sighted planning, lack of method/procedures, need for a single policy) Re-thinking UNIVERSITY-RESEARCH-INDUSTRY RELATIONSHIP and Stimulating SMART SPECIALIZATION (Problems: Fragmented initiatives, Top-down, Science-push approach, poor coordination. Working with Regions, conditionality for accessing EU funds) Fostering YOUNG ENTREPRENEURSHIP and SOCIAL INNOVATION Streamlining, simplifying and improving SUPPORTING TOOLS and ACTIONS for R&I (Es. need for simplified and faster procedures, better financing tools, e.g. re-writing FIRST) Enabling a positive PUBLIC NARRATIVE on innovation Setting up a DIGITAL AGENDA for Italy

3 Investments National Innovation Clusters (408M): redesigning the Italian Technological District ecosystem through a series of actions consistent with the EU strategic agenda, in order to align the Italian strategy with the EU Framework Program for R&I Smart Cities I (240M, March 2012): Funds for the Regions Convergence (Puglia, Calabria, Sicilia, Campania) of which 40M for Social Innovation projects. 106 Applicants, 8 aggregated projects funded for SC-I, 188 applicants and 57 winners for SI-I Smart Cities II (655M, May 2012): Funds for all Italian Regions of which 25M for Social Innovation projects Other investments: Pre-commercial procurement grant (150M, March 2013), Tech Infrastructure for Research (650M, March 2011) SOURCES FSE [European Social Fund], FESR [European Regional Development Fund], FDR [Rotation fund to implement EU policies] and FAR [Italian Fund for Industrial Research Grant] Perspective: #HIT2020 (roughly 80B for H2020EU) setting up an Italian Framework Program HORIZON 2020 ITALY synced with the EU

4 Two Policies SMART CITIES & COMMUNITIES SOCIAL INNOVATION AGENDA

5 SMART CITIES & COMMUNITIES

6 Italian Smart Cities: The Vision To promote projects along drivers of: Dual R&I policy: addressing the most pressing societal and environmental issues by fostering innovation; emerging public needs as key innovation driver/demand; solutions from real needs; Social accountability: have measurable impact on areas of public interest and giving strong social accountability to R&I funding; A new scope of application: a perimeter, not an industrial or academic sector; Favouring multidisciplinarity

7 Italian Smart Cities: Characteristics 1.2 mld EUR biggest test in Europe on technological applications to cities and communities - Phase of industrial capacity building Normative action as the first cohesive national policy on smart and sustainable cities Main areas for SCC: Smart Mobility Smart Health & Ageing Society Welfare Technologies and Smart Inclusion Domotics Smart Education Cloud computing & Smart Gov Smart Safety and Smart Justice Smart Cultural Heritage & Tourism Renewable energy & Smart Grid Energy efficiency & Smart Architecture Smart Mobility & Last Mile Logistics Sustainable natural resources (waste, water, biodiversity) Marine Technologies Grants characteristics: At least 50% Corporations (or networks of, or consortia) of which at least 10% by SMEs At least 20% by Research Centers or Universities Involvement of 1 or more Public Administrations, rewarding efficacy of industrial research / impact on territory Rewarding Interoperability

8 Smart Cities I: 2 Winning Projects BE&SAVE - AQUASYSTEM - SIGLOD Natural Resources: management of the life cycle of assets (distribution, energy enhancement, safe management of waste landfill) and management of integrated water cycle. Key words: Water systems, integrated water cycle, Urban Drainage, Waste, Agribusiness, Energy Total Funding: ,34 eur (Total cost: ,08 eur) Participants: 21 DICET - INMOTO - (OR.C.HE.S.T.R.A.) ORganization of Cultural HEritage for Smart Tourism and Real-time Accessibility Improving cultural and environmental resources availability: create a digital ecosystem where companies, public administration, citizens and tourists create and access services through Social Innovation typical methods. Key words: Smart Culture, Smart Tourism, Ubiquitous Services, Social Networking, Services on-the-move Total Funding: ,41 eur Total Cost: ,00 eur Participants: 13

9 THE NORM (art. 20, dl 179/2012) Governance: charter and protocols (Promoting principles for Smart Citizenship and for participating to the Smart City project + setting framework for protocols to be signed by mayors of cities on the basis of starting conditions and objectives) Platform for data and applications (A catalogue of all Smart Cities & Communities (SCC) applications aimed at supporting interoperability and reuse, for data produced, informing smart monitoring/ongoing evaluation) Monitoring system (Building with key stakeholders - ANCI, ISTAT - a set of indicators of smartness, through objective and perceived benefits. Compulsory participation to Smart Monitoring system) PA as an innovative and creative procurer (A new role for public administrations, as a "smart buyer" for research, development and innovation-related activities, through bottom-up identification of societal and territorial needs) Smart inclusion (New challenges for an inclusive society through tecnhnology)

10 Italian Smart Cities: Normative Architecture

11 NEXT STEPS Implementation of the normative architecture (information architecture, governance committee, drafting of charter, smart monitoring) Sustaining investments through impact finance tools and pilots + improving procurement capabilities Strengthening the clustering and smart specialization through broader analysis

12 Cultural / Educational Governance - Sustaining a culture of innovation as learning process - Informing charter and monitoring (evolving values and indicators) - Understanding evolving skillsets (e.g. soft skills) - New educational models: students understanding and practicing smart citizenship (e.g. A Scuola di OpenCoesione and Ubiquitous Pompeii) - Education for inclusion: tackling intergenerational divide through young volunteers (e.g. Mondo Digitale) - Public engagement towards policy codesign - Involvement and discussion among key stakeholders throughout the process (workshops) and in decision-making (Committee) - Centre-periphery relationship - Incentive/sanction mechanisms linked to information (smart monitoring system) - Charter of Smart Citizenship and protocols signed by mayors Informational - Open data policy for each participating city - Sharing/reuse of SCC applications data and procurement practices - Data informing monitoring system - Public administration as information platform/ecosystem Smart Cities & Communities as pilot application for cohesive innovation policy Financial Procurement - Re-designing financial tools to stimulate the social capital market (E.g. Social Impact Bonds pilots, Crowdfunding legislation, Social Venturing pilot) - Linked to Smart Monitoring progress + signed protocols - Re-designing procurement processes by introducing new tools (e.g. innovative and pre-commercial procurement legislation) - Sharing best procurement practices - Linked to Smart Monitoring progress + signed protocols

13 A Scuola di Open Coesione

14 Ubiquitous Pompeii

15 SOCIAL INNOVATION AGENDA

16 Italian Social Innovation Agenda: The Vision Dual R&I policy: addressing the most pressing societal and environmental issues by fostering innovation; emerging public needs as key innovation driver/demand; solutions from real needs; Social impact: accounting for social impact of policies and promoting new ways of understanding our society s growth; A new scope of application: a process, not an industrial or academic sector: social goals + social means Reshaping Public-Private and Government-citizens relationships towards more open-ended,participatory solutions

17 Investments Social Innovation I (40M, March 2012) aimed at under 30 citizens (companies, networks of companies or associations), linked to SCC areas Social Innovation II (25M, May 2012) aimed at under 30 citizens (companies, networks of companies or associations), linked to SCC areas Social Innovation Clusters (7M, March 2013): for the creation of inter-regional clusters around one or more sectors of Social Innovation, such as: sustainable and local development, cultural heritage, reuse and recycling, social inclusion and intercultural dialogue, active citizenship and e-participation, ethical finance, ethical fashion, fair trade, artisan and biological production

18 The Making of a Social Investments = 72M Public Policy Impact Finance Measuring Social Impact Participatory methods Acceleration & Aggregation 5 Thematic Areas around Social Innovation (1 year of work) Innovation Agenda Instant Poll (online consultation for stakeholders) ( or online form) 85 contributors (44 , 41 form online) Total = 250 feedback Alpha version of the document 5 sections: - Introduction - Experiences - Objectives 2nd Event - May (final version of the doc) A net of institutional working groups EU position paper Alpha version of the document commentable on each paragraph Instant Poll (still open) Launch Event March 21st (synthetic presentation of the document The Italian Way to Social Innovation Agenda ) (key points and priorities) (over 200 participants) doc downloadable

19 The Making of a Social Innovation Agenda

20 The Making of a Social Innovation Agenda

21 Cultural / Educational - The Social Innovation Agenda itself - Students practicing Social Innovation values (e.g. fair trade, fair finance, participatory budgeting, - Sustaining a culture of innovation as learning process and hybridity in publicprivate relationship - Innovation beyond IT, social in means - New educational models: students understanding and practicing smart citizenship (e.g. A Scuola di OpenCoesione and Ubiquitous Pompeii) - Education for inclusion: tackling intergenerational divide through young volunteers (e.g. Mondo Digitale) Public Policy / Governance - Public engagement towards policy codesign - Co-designing the Social Innovation Agenda itself - Incentive mechanisms for participating stakeholders - An Agency or Department for delivering and monitoring Social Innovation (e.g. Nesta UK) Informational - Promoting social impact assessment tools and novel sets of indicators - Promoting a new way of measuring wealth, wellness and happiness (e.g. BES) - Testing wellness measurement in cities (e.g. URBES) - Sharing/opening data on social impact measurement - Linking technical aspects of public policies to social impact Social Innovation Agenda as pilot application for cohesive innovation policy Financial - New regulations for financial markets (e.g. good rating) - New financial tools better linked to social means and goals (e.g. crowdfunding and Social Impact Bonds) - Pilots for practicing the impact of such tools (e.g. Social Venturing and Social Impact Bonds) - Developing practical applications for Impact Finance, e.g. crowdfunding for schools or public services) Organizational processes / methods - Re-designing procurement processes by introducing new tools for solutions (e.g. Challenge Prizes) - Introducing new professions in public administrations - Practicing Service Design and Co-Design - Social Innovation Camps - Social Innovation Competitions

22 A new narrative for public investments in innovation Making transparency on public funding, also through innovative tools looking at processes and impact and not only static information Maximizing the impact of innovation/it investments through public/ stakeholder/ecosystem engagement through various features (esp. for SCC and SI, because highimpact) Supporting communitybuilding around innovation, reuse and extending value chains

23 Back to Literature Management of Innovation (from linear models to dynamic models and complex systems - e.g. Nancy Law s work in Education policy) Also interesting: open innovation models Organizational Studies / Organizational Evolution (e.g. Padgett and Pavitt, 2012) Science and Technology Studies (e.g. Actor-Network Theory) Design (Service Design, Open Design, P2P Design, Generative design) Public engagement and IT (Generative engagement, Collective action and communication)

24 Some findings Governance (not only participatory processes, but qualifying steps) Informational (the role of ICT in shaping available architectures) Finance Procurement Methods & Organizational Processes (the role of certain people and professions, the role of networks) Culture and Education (narratives and formats)

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