November 2009 www.urbact.eu

Using Public Procurement to Drive Skills and Innovation in urban communities.

How Cities Can Harness the Capabilities of Universities in a Period of Economic Uncertainty

Managing Urban Identities: Aim or Tool of Urban Regeneration?

Female Entrepreneurship: Towards an Urban Agenda for the Economic Dowturn

Lost Job - Lost Home / Lost Home - Lost Job Can Secured Housing Help Cities Mitigate Effects of the Crisis for their Citizens?

Ageing and Employment: Old and New Challenges in a Global Crisis Scenario

Dilemmas of Integrated Area-Based Urban Renewal Programmes

Methods of Governance across any Framework City-region as “Marble Cake”

Design Coding and the Creative, Market and Regulatory Tyrannies of Practice

Using Knowledge Economies Affected by the Crisis EDITORIAL November 2009 URBACT Life www.urbact.eu

wenty-six URBACT Thematic Networks and Working Groups involving 230 Publication Manager: partners across Europe have been at work communicating, studying, comparing Jean-Loup Drubigny Tand analysing for the past eighteen months. Rooted in these exchanges, each of the partners coproduce a Local Action Plan with their Local Support Group. Editorial Advisory Group : Melody Houk, Shandi Miller, As the projects advance, the Lead Experts accompanying the projects are responsible Peter Ramsden, for highlighting new or tried and tested ways of addressing shared challenges, of linking Paul Soto, them up, and providing analysis that will enable decision-makers in cities to benefit from Philip Stein and integrate this learning into their daily work. Graphic Advisor : Anne-Laure Guignard The global economic and financial crisis has challenged many established certainties and has accelerated changes that were already under way. Heightened challenges have Graphic Design and Artwork: forced city practitioners to adapt their strategies and sometimes even to reverse their Studio PAKENKO / www.pakenko.com priorities. Copy editing: Anna Collins All of these articles have been written by URBACT Lead Experts. At this point, midway Photos: through the life cycle of the projects, they reflect on the state of play in the projects, heavily Cover: impacted by the multiple effects of the crisis. Pascal Bastien / Fedephoto Interior : Page 1: Pascal Bastien / Fedephoto At first reading, there appears to be nothing in common between female entrepreneurship, Page 5: Gilles Coulon / Tendance Floue innovative public procurement, the dilemmas of area-based urban renewal, urban identities Page 8: Olivier Culmann / Tendance Floue and metropolitan governance. Page 14: Jéromine Derigny / Argos / Picturetank Page 23: Hamilton / RÉA But this great variety of themes reflects the diversity of the challenges facing European Page 26: Stephane Audras / RÉA cities, which the URBACT Programme enables them to confront with the support of peer Page 27: Duncan Philips / Reportdigital - RÉA cities. Page 31: Gilles Leimdorfer / RÉA Page 34: Guillaume Murat / Picturetank Page 38 (from left to right): Werner Otto/ agefotostock, Throughout the articles, several ideas return again and again: innovation, creativity, Mario Fourmy / RÉA harnessing capacities, cultural transformation, opportunities, potential, cross-sectoral, Page 39: Thomas Schlijper / HH-RÉA cross-boundaries, etc. This document has been printed on Cyclus, 100% recycled The reason is that these ideas are key components of sustainable integrated urban paper. development. The pressure created by the downturn makes it more necessary than ever before that decision-makers in cities find new reference points, establish new approaches, and imagine new ways of operating.

URBACT, the European Commission, Member and Partner States, and all the partners and experts involved in URBACT projects, contribute to European cities’ ability to emerge from the crisis. l www.urbact.eu Josef Postranecky Chair of the URBACT Monitoring Committee URBACT Secretariat 194, avenue du Président Wilson 93217 Saint-Denis La Plaine Tel. : 00(33) 01 49 17 46 02 Fax : 00(33) 01 49 17 45 55 1

TOWARDS INNOVATIVE PUBLIC PROCUREMENT Using Public Procurement to Drive Skills and Innovation in Urban Communities

Eurico Neves by Lead Expert of the UNIC Thematic Network

Europe has now long recognized that economic growth and competitiveness depends on innovation and that as such promotion of innovation is key for economic development. Still, public authorities, at European, national and local level continue to promote innovation mainly from the supply side, and forgetting about the importance of Market size, rate of growth, users willing to pay premium prices and first-mover advantage as critical factors in the creation of a favourable market for innovation to take-up. To use the image from the celebrated economist Alfred Marshall, they continue to try to cut a piece of paper oday Europe is clearly under exploiting figures illustrate that there is a clear difference with just one blade of a pair of scissors – and not realising the potential of public in the approach and use of public expenditure procurement to meet its innovation and allocation on the instruments to stimulate inno- and not surprisingly find it inefficient. Tresearch objectives. Experiences from vation (market pull using procurement in the US outside Europe show that progress in this field is vs. technology push using State aids in Europe) possible and the public sector has the potential Indeed, innovative procurement in USA is pro- Europe can drive forward innovation by to positively influence innovation and sustainable moted with explicit policies, which are actively development through public procurement, thus pursued – for example the Small Business Act, harnessing its large expenditure on public leading to economic growth and in addition tack- under which the USA government reserves 2,5% procurement and public agents, including ling one of Europe’s most pressing problems – how of all R&D procurement for small (often innovative) to increase the productivity and effectiveness of businesses (and social activities) in order to give city authorities that can “play this game” our public services. preferential treatment concerning procurement by learning to “spend smart”, promoting of innovation. Although no truly comparable or historical data innovation and defending relevant industrial sets exist various figures suggest that the United A recent inquiry in the UK (CBI, 2006) also showed sectors. States and EU have similar expenditure levels that when asked if public procurement practices regarding public procurement. However, US R&D helped or hindered companies’ own innovation public procurement expenditure is more than 20 activities, over two fifths of the companies cur- times that of Europe and US ICT research is more rently supplying public authorities (46% of supplies than 4 times European levels (EC 2005e). These to central government, 43% of suppliers to local

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authorities) said that the practices did hinder The facility to specify requirements in terms In the United Kingdom, the DTI’s (Department of them, compared to only 25% of non suppliers. of functional performance or standards, which Trade and Industry) five year program, published Overall only 16% said that current practices allows suppliers to produce any configuration of in 2004, committed the DTI and the OGC (Office helped them. technology they feel can meet the need; of Government Commerce) to establishing an Options to permit variants, thus opening up ideas portal; “a mechanism for firms, inventors Europe should not throw away the benefits bids to alternative ideas; and researchers to submit unsolicited, innova- of the support we give to innovation through Conditions that allow transfer of intellectual tive proposals to the public sector”; and to work grants, incentives and advice, but needs to property to the suppliers, and hence allow them together on a number of specifically identified complement it with efforts to create favourable to exploit their innovations in wider markets. tasks to support the promotion of innovation in markets - including the public sector - who Since 2008, Europe also has its Small Business public sector procurement, including identify- give innovators an early customer base from Act. One of its objectives is to adapt public policy ing significant and high profile projects where which to develop their products or services tools to SME needs, and it proposes a new government is seeking innovative solutions. and diffuse them ahead of global competition. code of best practice for public procurement Indeed good practices in terms of procurement in Thus, finally learning to use both blades of the that should facilitate SMEs’ access to public support of innovation are emerging in several EU scissors to cut paper, and deal away with eco- procurement contracts. member states and this is taking place at national, nomic recession. regional and supranational levels indicating the It offers solutions to difficulties faced by small wide variety of intervention opportunities. Public companies by improving access to information procurement operates indeed at all levels of about public contracts and how to bid on-line, governance and potential drivers for enhancing Europe reducing excessive financial requirements, and innovation through public procurement can be cutting the paperwork. found at these same levels. Regional or city level is moving towards procurement accounts for approximately half of innovative public It is now time to put it into practice through public procurement in Europe and is therefore concrete measures at all levels of governance, a major challenge to disseminate and involve procurement and in particular at local and city level. Some these actors into innovative public procurement regions or countries are expressing a political practices. Many regional structures are acutely The fundamental principles governing public commitment from the highest levels down into aware of the need to develop innovative strate- procurement across the European Union are innovation-driven public procurement, or pro- gies for their regions and cities and hence are transparency, non-discrimination and competi- viding tools and mechanisms that can induce willing partners in securing enhanced leverage tion. The aim of public procurement is to achieve change. and impact of public procurement on innova- value for money for the taxpayer through the tion. Notwithstanding these opportunities other promotion of competition in the marketplace. The 2001 “Netherlands” strategy for innova- challenges will need to be faced such as the The Treaty of Rome prohibits public procure- tive procurement”, aims to promote innovative multiplicity of (semi-)public actors at this sub ment from discriminating on the grounds of procurement, “by presenting a challenge in the national or sub central level (hospitals, universi- nationality, meaning that procurers should not invitation to tender and tailoring the contract ties, regional authorities, water boards, public be biased against firms or individuals from dif- forms to this.” transportation companies) and central govern- ferent Member States. ment control of “regional budgets”. A knowledge centre has been created (www. European Union Procurement Directives include pianoo.nl), which aims to raise awareness through, various requirements for specifications, selec- for example, the publication of a fact-sheet with tion of tenderers and award of contracts. The information on innovative procurement. It also Bringing it directives state that specifications must be supports knowledge sharing between public pro- non-discriminatory (i.e. capable of being met curers from all domains of government, including to the urban level by companies across the EU) and that specific health and education. The “Innovation Platform” rules on the use of EU and other standards are (a joint government-industry initiative) has pro- The role of cities as the “engines” of economic adhered to. In selecting tenderers, the directives posed an action plan which envisages specific change in modern knowledge-based societies limit the information and criteria that can be taken actions and targets, such as a 2.5% target of the is by now widely recognized and cities have into account in assessing the qualities of the total procurement budget reserved for goods or expanded their traditional role of purely physi- companies concerned. In awarding contracts, services not yet available on the market. cal and land planning into exploring new ways there are two options: lowest price or the most of intervening in social and economic fields as economically advantageous tender. Italy has a centralised e-procurement platform part of urban sustainable development. The role (Consip), providing consultancy and technology of cities as engines of growth and job creation The European Union adopted new procurement services (eAuction, eShops and an eMarket- and innovation catalysers is particularly recog- directives some years ago (Directives 2004/18/ place for procurement under EU threshold) to nised in the Urbact II programme and all the 9 EC and 2004/17/EC) that Member States are all public administrations especially for Central projects under this thematic pole are looking now implementing. These replace six existing PA. In 2006, more than 1.000 suppliers were at developing policies, tools and mechanisms directives and set out the procedures that need registered on the portal and there were more that can help cities managing authorities to to be followed at each stage of the procurement than 42.000 public administration ordering cen- foster local innovation and promote sustainable process above certain thresholds for works, tres (3.500 on eMarketplace). In 2006, only in development. These include the use of public services and supplies. The new directives go the eMarketplace around 11.000 orders (euro procurement as a tool for promotion of innova- some way towards promoting the possibil- 38mln, 230.000 on line articles) were placed, tion and sustainable development. Innovative ity for innovation and in particular,they allow: mainly in office material and IT products and and Sustainable Public Procurement is viewed accessories. by these cities as a relatively new progression Possibilities for technical and competitive from Green Public. dialogues between purchaser and supplier, a In Ireland the Government Supplies Agency uses necessary condition if each side is to under- elaborate criteria for selecting firms that could Procurement, that while continuing to take envi- stand the other; be modified to include innovation considerations. ronmental considerations into account, builds

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further by also including innovation and social munication with the market can help the public sive than others. The Cohesion fund enabled criteria, like, for example, promotion of employ- sector to purchase more innovative ICT solu- the financing of the gap needed to attract the ment or of SME participation. tions, particularly where the tender process is private company detaining the needed expertise designed around encouraging innovation, for and technology. Within URBACT communities, and also on other example using external experience to assist cities across Europe, there are a number of good with the draft of an ITT before the main tender The capital and operation costs are recovered practices, which demonstrates how the adop- process, on-site days and open tender docu- through the level of the tariff, which is paid only tion of innovative public procurement practices ments emphasising supplier’s ideas. by non- domestic operators. The consortium may strengthen cities evolution towards more holding the DBO agreement receives a rent to dynamic and competitive economies. cover their maintenance and operating costs. Support Public-Private Partnerships in These include: procurement. A number of EU member states By using this scheme and a local fund to cover The adoption of early procurement proce- and regions are increasingly resorting to PPPs the total operating costs, the City Council indi- dures, and in particular the cooperation between (public private partnerships) to resolve procure- rectly subsidizes the domestic consumers, as public purchasers at local level (city councils, but ment needs. Much early experience has been they are not paying for the treated water. also universities, hospitals, …) through Common confined to infrastructures and services such Procurement Agencies or similar, thus creating as hospitals and road and rail infrastructure A recent attempt to introduce water fees for the a critical mass that removes some of the bar- but also in areas of defence and utilities and in domestic consumers has encountered much riers towards innovative solutions; but also the the actual management of such investments. resistance and thus failed. implementation of foresight and market analysis Such a partnership approach offers a differ- studies prior to the launch of public tenders (also ent procurement process in which it might be The PPP agreement aims to protect the capital called pre-procurement techniques). Public pro- possible to imagine a greater role for innovation investment and to ensure the sustainability of curement also has a role in promoting practices (earlier consultation with the market, greater the project. The operator has a direct incentive which foster a culture of innovation – through, dialogue and creativity, value for money not just to maintain the assets and enhance operational for instance, earlier channels of communica- lowest cost approach, innovative contractual efficiency. tion with potential suppliers or by ensuring that arrangements etc). This form of agreement may contracts are not awarded purely on the basis also represent a way for bringing in innovative of cost – will also raise the profile of a learning SMEs into the procurement process through Insert social clauses into procurement culture within the supply chain. Suppliers may sub contracting procedures. While the benefits contracts. Government procurers can insert also have new ideas, technologies or processes of partnering with the private sector in PPPs are “social clauses” or “community benefit require- that the public sector can best learn about by clear, such relationships should not be seen ments” into contracts, relevant to the subject engaging at the very early stages of a procure- as the only possible course of action and are of the contract and consistent with national ment exercise. In addition, a supplier may also indeed complex to design, implement and oper- procurement policies, the EU Treaty and EU bring external ideas to the procurer during the ate. Many alternative sources of financing are Procurement Directive, that help to achieve process of the procurement exercise, and spark available, including “public - public” institutional wider social, environmental or economic benefits. further exchanges of knowledge that result in arrangements which should not be discounted Actions taken can have implications over the additional innovation and better solutions. in the hope that PPPs offer a miracle solution. longer and medium term as well as the short Therefore PPPs need to be carefully assessed term and it is therefore important to approach in the context of the project, the public benefit social issues from a whole life costs perspec- Waterstons & Darlington Borough and the relative gains to be achieved under tive of value for money. Social clauses can Council various approaches. include employment and skills requirements but may also include employment and training issues, workforce skills including adult basic aterstons, a small IT company, won a con- Dublin Region Waste Water skills, equality – disability, gender and ethnicity, Wtract to supply a new website to Darlington Scheme community benefits, core labour standards, Council, which sparked significant growth in environmental standards or small and medium public sector markets and encouraged the sized enterprises. company to recruit additional highly qualified he Government of the Republic of Ireland staff. The website won industry awards and the Thas encouraged private sector involvement Council particularly valued the company’s ability in the upgrade of its public utilities and infra- Use of social clauses by the City to go beyond their initial ideas on content and structure through PPPs. In most cases PPPs Council of Nantes design. Waterstons’ approach was considered have been implemented either through “design- innovative and the Council encouraged this build-operate” (“DBO”) contracts, or “design- by communicating with the market at the pre- buildfinance-operate” (“DBFO”) contracts, in he City Council of Nantes introduced a law in tender stage, using external assistance to draft which the private sector had also contributed T2005 to insert clauses that support employ- the invitation to tender document and having to finance the assets. ment promotion in public procurement. For an open specification that encouraged each construction and cleaning contracts, the winning bidder to develop its own ideas. Dublin City Council recognised the need for a company has to commit to employing unem- new treatment plant under the pressure of the EU ployed people for a certain volume of working Waterstons has since gone on to win several Urban Waste Water Treatment Directive, which hours, either directly or through a specialised more public sector contracts. As the com- required improving the quality of seawater in the employment agency. This is assessed in the pany has grown it has significantly increased its Dublin Bay. It decided to procure the treatment award criteria and monitored through contract demand for higher-level skills, recruiting around plant using the DBO method to ensure the best performance conditions. In April 2005, the City 20 additional young graduates to positions with value over the whole life of the project. At the of Nantes inserted the employment clause in two direct responsibility for clients. same time, building the plant on the restricted work contracts for the construction of a school site available at Ringsend required using the and a swimming pool. A workload of 12,500 This case study demonstrates that early com- most up-to-date technology, thus more expen- hours was reserved for unemployed people.

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Set out demanding standards, namely alone procurement for innovation and the ability The working group has since continued to moni- in the environmental field. Regulations can to handle procurement exercises. tor the introduction of innovations in the cities and successfully drive innovation either indirectly suggested areas for improvement. through altering market structure and affecting the funds available for investment, or directly The Environmental City District through boosting or limiting demand for par- Hammarby Sjöstad, Stockholm ticular products and services. “Performance Conclusions based regulation” sets targets beyond current market capabilities in an attempt to anticipate ammarby Sjöstad is a project to build up The adoption of practices such as those and stimulate innovation, currently used most Ha new part of the city. The amount of the described above will likely contribute to the obviously in the area of environmental emissions. apartments to be built was 15,000 and offices openness of public markets for innovation and Standards can act to encourage innovation 10,000. The area was an old industrial area, very sustainable development, eventually resulting through procurement if they are set at a demand- near to the city of Stockholm. The development ing level of functionality without specifying which of this environmentally friendly city district started in the attraction of innovative firms to the com- solution must be followed. They thereby foster in 1998 and included a unique method for inte- munity and helping to spark change and fasten innovation but do not prescribe the specific grated and sustainable planning of infrastructure evolution towards more dynamic local econo- route to achieving it. as well as for the implementation of innovative mies – possibly at a fraction of the cost of other technology for energy, water and waste man- measures, as direct public aid or infrastructure agement. A related slogan was “Everything development, e.g. science parks. Malmo Traffic Environment should be twice as good as the best or as the Programme state of art at that time”. The project was initially The present time of financial crisis and economic expected to be finished by 2012. recession calls for public authorities to take action and consider innovative ways to stimulate almo is one of the biggest and most densely innovation amongst the private sector and con- Mpopulated cities in Sweden. In 1997, the The process falls within Stockholm’s strategy tinuing to keep sustainable development issues city council approved a Traffic Environment of developing a policy vision on linking pro- high on their agendas. Public procurement can Programme that contains political and regulatory curement and innovation in their region. As a provide an answer to those issues but call from actions, including creating an environmental zone major procurement process, it included several a new attitude from public authorities – are the open only to low pollution vehicles. To place an actions regarding the preparation of public European Urban Communities ready to give it order in the field of road construction, the con- customers, namely information and education a try? l tractor has to comply with defined environmental activities (such as seminars, fact finding visits, criteria, e.g. buses and trucks must comply with and specialized reports) in order to encourage References : the highest Swedish environmental standards for environmental investments, change attitudes and “Public Procurement for Research and Innovation” – Expert motorized vehicles and contractors must have stimulate new thinking amongst public officers. Group Report on Developing procurement practices started to work according to an environmental Monitor innovation and contribution to favourable to R&D and innovation, European Commission, management system (e.g. EMAS or ISO14001). sustainable development in public procure- www.ec.europa.eu These regulations have led to innovation in energy ment. Impact needs to be monitored and there “Public Procurement for Innovation in Baltic Metropolises”, friendly transport technologies and because is a growing tendency of creating special organi- Tallin 2007, www.baltmet.org domestic and foreign companies were treated zations or networks for supporting cooperation “OPENING UP LARGER MARKETS TO ALL”, EQUAL equally, the regulations could not be challenged and innovation in public procurement throughout Programme, 2008 on the basis of EU discrimination laws. Europe. This is partly due to the realization of the “PPPs: a critique of the Green Paper”, by David Hall, PSIRU complexity of the public procurement process on behalf of the European Federation of Public Service when aiming at wider social goals like innovation. Unions (EPSU), www.psiru.org Induce a cultural transformation amongst Tasks to be performed include Information collec- “Using Public Procurement to Drive Skills and Innovation – A public procurement officers, through training, tion and dissemination, consultancy, systematic Report for the Department of Trade and Industry”, 2006, incentives, dissemination of EU Procurement evaluation and impact assessment of cases www.lo.dk Guidelines and other tool kits and good prac- related to procurement for innovation, systematic “Demanding Innovation: Lead markets, public procurement tices diffusion. It is obvious that there can be a appraisal of demand-side innovation policy tools and innovation”, NESTA, 2007, www.nesta.org.uk mismatch between high level support for change in urban communities and cities. “Innovation and public procurement – a new approach to and action on the ground. At the more opera- stimulating innovation”, CBI, 2006, www.cbi.org.uk tional level of public procurement a challenge is “Innovation and Public Procurement. Review of Issues to ensure that all public customers – individuals Tallin Transport System Working at Stake – Study for the European Commission (No as well as the bodies they work for – are will- Group ENTR/03/24)”, Fraunhofer, 2005, ftp.cordis.europa.eu ing to explore the potential of innovation and “Using Public Procurement to Stimulate Innovation”, The Council contributing towards sustainable development for Industry and Higher Education, 2007, www.cihe-uk solutions. A willingness that needs to be nurtured n their quest for more innovative public procure- “Procuring for innovation, innovation for procurement”, and rewarded, namely through training, sharing Iment, the Tallinn City Government has since Department for Innovation, Universities and Skills, 2008, of good practices, individual and group incen- September 2002 created a working group that www.dius.gov.uk tives and availability of the necessary means and is responsible for monitoring innovation in the “Public procurement and innovation—Resurrecting the resources (e.g. longer time frames for impact public transport sector and that included repre- demand side”, PREST, 2007, www.sciencedirect.com evaluation of public procurement). Currently, sentatives from the Tallinn Transport Department “Innovation on Demand – Can Public Procurement Drive public procurement training provisions are very as well as Registrikeskus (register center). One Market Success?”, ZEW, 2008, www.cherry.gatech.edu uneven across European central and local public of their aims was that of increasing the number authorities, and namely in urban communities. of people officially registered as residents of While some cities have well developed training Tallinn and the introduction of an ID-ticket for programmes, others have little or no training the Public Transportation System, following a provisions and rely on gifted amateurs, often public procurement process, in 2004, has been with no previous experience of procurement, let one of their outcomes.

The URBACTThe URBACT European Tribune Tribune 5 How Cities Can Harness the Capabilities of Universities in a Period of Economic Uncertainty

Clive Winters by Lead Expert of the RUN-UP Thematic Network

In times of economic downturn demand for higher education usually grows. This is usually seen through an increase in applications for educational courses and programmes to drive an individual’s employment potential. URBACT II, through a focus on innovation and creativity, is investigating the way in which cities can harness the wider potential of universities and knowledge based institutions in order to drive competitiveness and innovation at a local level.

he Lisbon European Union Spring Council of As highlighted by European Commissioner Jàn 2000 set a strategic goal for the European Figel [2] “Education, innovation and research play Union to become the most dynamic and a crucial role for Europe, in particular in these dif- Tcompetitive knowledge based economy ficult times. In fact, this is the time to invest more, in the world by 2010. This was driven through not less, in education, research and innovation. If significant research, policies, and projects on we invest more, we can come more quickly out how to stimulate the knowledge economy and of the crisis.” importantly the role of universities within the triple helix structures [1], which define the concept of But the challenge is not limited to investment. As the transformation process in university-industry- former European Commissioner Lord Mandelson, government relations. UK Secretary of State for Business, Innovation and Skills has expressed [3] “To compete in this However in a period of economic uncertainty the fast-moving world our companies must be built by real questions and debate are now: workers with the right skills, they must be able to What is the specific role of universities in a rely on world class digital and material infrastruc- period of downturn? and, ture, and benefit from a regulatory environment How can universities aid longer term that is designed to facilitate the creation and recovery? development of strong and flexible businesses. Universities and city authorities will play a vital This is where the role of government becomes role during this period of economic uncertainty. critical, because training, ground-breaking science,

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innovation, finance, infrastructure – these are not 2. Local Government organisations see to improve people’s health through research, things that markets will necessarily provide to Universities primarily as vehicles for Education education and global collaboration. Another the right degree on their own.” and Research & Development (see point 1) and goal is to become Scandinavia’s foremost expect them to support the development of their innovation centre in Life Sciences, and lead- To address these challenges we need to review local economy by default; although universities ing in Europe in exploiting new scientific data. the wider role of universities, their engage- operate in regional, national and international KI places great value on close cooperation ment with local communities, their support for markets and are not entirely (if at all) aligned to between the commercial and the academic sec- skills development training and education; their local priorities. tor. The Institute operates a Corporate Alliance support for stimulating spin-out and graduate unit that supports and stimulates cooperation start-up businesses alongside their role in inno- 3. An economic development perspective with companies focusing on strategic alliances. vation, knowledge transfer and business. examining the needs of the local economy, its modernisation, transformation, transplantation For further information, visit the Solna City Profile and new sector creation establishes common on www.urbact.eu (check the RUN-UP mini-site) ground where local priorities can be articulated Establishing a wider and the role of the university in this context can be openly explored and suitable knowledge The Role of Universities perspective transfer approaches defined in support of triple- on the role helix development. This is the key challenge in the Economic Downturn addressed by RUnUP. of Universities In a period of economic transformation and downturn, taking a wider view on the role and The URBACT II programme recognises the urban Solna, Sweden capabilities of universities is particularly impor- contribution to growth and jobs and that cities tant. It has never been so timely for economic are home to innovation, entrepreneurial spirit and development organisations and business to economic growth. rom Economic Crisis to Knowledge Economy, look at what capabilities exist within their local Priority axis 1 of FSolna, one of RUnUP’s partner cities, with a university and for universities to promote what the operational population of 65,000 people is located in east they can do to help. “Universities are increasingly work- programme in par- central Sweden, part of the capital Stockholm ticular recognises Metropolitan Area. During the early 1990s In essence this includes assistance to address ing with Small and Medium-Sized the important Sweden suffered an economic crisis, during some of the problems engendered by the eco- Enterprises in their own commu- themes of promot- which Solna was impacted with high levels of nomic downturn in a variety of ways that address ing entrepreneur- unemployment. In 1997, politicians from all politi- direct support in the downturn and aid long term nities to help them become more ship and improv- cal parties in the City agreed to a strategy to recovery, including: productive and profitable. They can ing innovation and enable it to become the most business friendly a. Skills, Training and Employee Development the knowledge municipality in Sweden. b. Innovation Knowledge Transfer and provide vital support to businesses economy and the Supporting Business but sometimes businesses do not development of a Solna has now been transformed into a serv- c. University Spin-Outs and Graduate triple helix struc- ice and knowledge intensive economy. The Entrepreneurship make use of the skills and expertise tures as catalysts number of companies located in the City has d. Access to funding support that exists.” to promote inno- almost doubled to approximately 8,500 and there vation structures are slightly more jobs (67000),than inhabitants. a. Skills, Training and Employee Deve­ and entrepreneur- Expansion has intensified and will continue until lopment ial spirit. However, the year 2025, when the population is expected As European Commissioner Ferrero-Waldner until now nearly all the attention has gone to the to reach more than 90,000 with employment has highlighted [6] “investment in education and role of larger cities with world class universities opportunities for all. training is the key to creating a better future. In – the so called Premier League [4]. the current financial and economic crisis, well- Feedback from the survey of companies in targeted investment can build and strengthen Yet small and medium sized cities as “Urban which Solna was recognised as the most busi- skills in the workforce. It equips people for the Poles” are critical to driving forward EU eco- ness friendly municipality in 2008 highlighted opportunities of the post-crisis world, and lays nomic performance and innovation competence. that the quick processing of planning permis- the basis for long-term sustainable economic The strategic development and exploitation of sion and food permits and the establishment of and social development.” endogenous potentials is crucial, and universi- strong communication mechanisms between ties are critical to this innovation process. A the city politicians and civil servants and busi- During the economic downturn the need to specific issue facing Urban Poles is they cannot ness representatives were the key features develop skills is more crucial than ever. Whilst make sufficient use of existing knowledge and of the city’s good track record in economic difficult circumstances may make it necessary to competencies of their universities to support development. This success has its basis in the rationalise and reduce the workforce to remain economic development and encourage entre- service-minded organisation, a positive attitude competitive, it is also important to retain and preneurship. Within its baseline study the work towards alternative solutions along with a profile develop people within an organisation who are of the URBACT II funded RUnUP network [5] to become and maintain the position as a busi- skilled and have a real potential for the future. has recognised that: ness friendly city. 1. Universities are positioned as mechanisms for As has been highlighted by many businesses research and development and subsequently Central to the transformation of Solna has been and business associations during the RUnUP licensing, patenting and spin-outs (and this is the success of Karolinska Institute (KI), one of development phase, engaging Universities in reinforced in European and National policies); the largest medical universities in Europe. It workforce development is seen as a key mech­ although this may not be where their potential is the largest centre for medical training and anism for improving leadership and management for supporting local economic development research in Sweden, yearly awarding the Nobel skills but Universities can also help improve busi- truly exists. Prize in Physiology or Medicine. It’s mission is ness practices and efficiency. Higher Education

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is increasingly introducing new ways of working, and inspired innovation has helped European skills such as design to add value; and a strategy such as expanding work-based programmes economic competitiveness in major sectors and implementation policy to produce dramatic so that training fits better with business needs such as pharmaceuticals and aerospace. But change in the region within a generation. and company practices. Tailored and flexible universities are also increasingly working with programmes save money and time for business Small and Medium-Sized Enterprises in their own The Design Centre concept will focus on prod- and ensure higher productivity returns. As part communities to help them become more pro- uct development, innovation and design in the of all this, universities can talk to employers and ductive and profitable. They also help large and North East. It aims to foster integration and give professional advice on what kinds of training small companies come together to innovate. interdisciplinary working between business support could help particular businesses. and the knowledge base in design and sci- In the area of economic diversification and ence, engineering and technology – a tangible In addition universities also provide good access modernisation it is recognised [8] that public example of the triple helix working promoted by to recruiting graduates and establishing student research organisations are to some extent less the URBACT II network RUnUP. placements. History shows that recruiting tal- important sources for supporting innovation in ented, enthusiastic graduates is an excellent SMEs. However the role of universities in techni- For further information visit the Gateshead City way of combating economic difficulties and cal change in this context should not be seen Profile on the URBACT website. ensuring that businesses are ready for recov- as limited to pursuing research “at the frontier” ery. Importantly, student placements provide but, instead to make accumulated knowledge students with a head start in their career but available as and when there is a need for it [9]. c. University Spin-Outs and Graduate additionally and importantly provide organisa- In support of this the Innovating Regions of Entrepreneurship tions with access to fresh young talent who Europe, Knowledge Transfer Working Group Experiences in universities have shown that they can make an immediate impact, and develop [10] identified that “voucher systems, training can be a source of spin-off firms [11], and this is a potential future loyal employee. courses, mentoring, selection of brokers and especially important in new science based indus- signposting SME entry points to the knowledge tries. Regions with low levels of entrepreneurship Related to education and skills development transfer network (higher and further education and low high tech industry are especially keen (linked to the RUnUP theme’s of modernisation as opposed to universities) can help meet the to encourage HEI spin offs. However, rates of of the economy and business transplantation) challenge of helping increase the take up by formation are likely to be affected by the nature the Swedish region of Västra Götaland has SMEs of knowledge transfer services.” Best and research base of the HEI and the level of introduced the Better Concept [7] to promote practice innovation cases are well publicised support in the surrounding region. the training of employees within SMEs through in Europe and can be adapted to meet specific the provision of distance learning courses deliv- local economic development requirements. The Small and Medium Sized City of Enschede, ered by University Colleges. The programme located in the east of the Netherlands with a is demand driven with students applying the population of 155,000 highlights a particular best knowledge learnt in the courses to the real life Gateshead, United Kingdom practice in the creation of new industries through problems faced in their SMEs enabling knowl- the dynamic role of the University of Twente edge to be applied to real life scenarios faced which is commit- in regional companies. The courses utilise an ateshead is the largest in the area of ted to making an internet based learning platform with lectures G5 Tyneside local authorities that cover economic and delivered through video streaming alongside Gateshead, Newcastle, North Tyneside, South social contribu- “Universities are positioned as mech- weekly planning and tutor support sessions. Tyneside and Sunderland and occupies a central tion to the region The impact of the concept has been significant position in the Tyneside conurbation alongside the of the Netherlands anisms for research and development with 830 participants supported over 4 years City of Newcastle on the South bank of the River where it is based. and subsequently licensing, patenting with business impact a key driver. In this context Tyne. In recent decades Gateshead’s economy The University companies are seeing Universities as accessible has undergone significant structural changes – was founded and spin-outs although this may not and providing knowledge and know-how that from traditional manufacturing industries towards in 1961 within a be where their potential for support- can be applied for immediate impact on bottom- more service sector businesses. Despite these local economy that line profitability through increased turnover and shifts and the fact that the industrial composi- needed a boost ing local economic development improvements in business process efficiency. tion of Gateshead is still progressively changing, to compensate truly exists.” the borough is still home to a high number of for the dwindling b. Innovation, Knowledge Transfer and manufacturing and engineering businesses that textile industry and Supporting Business in response to global competition, have invested actively supports Innovation is defined within the European in process, plant, machinery and people to now local economic Commission and OECD Oslo Manual as the supply high value products to high growth markets development through its patents, lifelong learn- implementation of a new or significantly improved both in the UK and overseas. ing and spin-out companies developed through product (good or service), or process, a new mar- its TOP programme [12]. It has as its objectives keting method, or a new organisational method Gateshead itself is developing an Innovation the development of knowledge based companies in business practices, workplace organisation Connector that could underpin the development from graduates, staff and local industry linked or external relations. of Gateshead’s new economy – the Design to the faculties of the university and including Centre for the North. The Design Centre is financial support, incubation space, advice and In this context universities have a significantly based on the principles of Innovation Connectors, connections to university research. important role to play supporting the design, that are partnerships to concentrate facilities development and prototyping of new prod- and encourage innovation between govern- The University actively promotes entrepreneur- ucts and the development and improvement of ment, universities and industry, creating hubs ship among its students and staff through various manufacturing processes. University Research based in deprived areas to create deep local programmes. As a result the University has the and Business Development expertise makes a impact; linked to regeneration based on tradi- highest spin-off ratio in the Netherlands. In 20 significant impact on individuals, organisations tional industrial strengths such as energy and years over 700 companies have originated from and society in general and can be frequently chemicals, new industrial specialisations such the University. These companies have had a applied to “real-life” situations. University-led as bioscience and software and softer enabling 5-year survival rate of over 70%, creating almost

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10,000 jobs to date. In addition the University has know-how required to develop their business. and local authorities to align to the focus of local about 130 student-run companies. The impact The scheme helps provide R&D funding to SMEs transformation and the knowledge economy, on the city is clear with strong industry relation- and support for new product development. In producing an economic development strategy ships and over 600 spin-off companies that thrive relation to the work of the RUnUP thematic based on triple helix partnerships. And finally on and around the University campus. network the scheme directly addresses the fear city partners need to formalise a core triple helix that some SMEs often have of universities and partnership for the delivery of new and upgraded d. Access to Funding Support research centres that often inhibits them from activities and actions outlined in a local action Supporting knowledge transfer to businesses accessing external expertise. plan. Universities across Europe operate differing through research and consultancy, universi- structures to support knowledge and technology ties can provide access to funding schemes Similarly, the Innovation Networks scheme high- transfer type activities and community engage- designed to maximise business competitiveness. lighted by the Innovating Regions of Europe as ment but they do have dedicated teams who Particular schemes operating through univer- a best practice exemplar offers small groups of work with business. sities or accessible by European Universities companies in the West Midlands region of the may include: UK grants to collaborate on product, process In support of this framework approach the Innovation Vouchers: designed to assist and service innovation projects. A low level of URBACT II network RUnUP will be delivering small and medium-sized enterprises to benefit bureaucracy and cooperation between various a series of 3 thematic workshops and 3 study from research & development and consultancy regional support programmes make it easy for visits within the strategic themes agreed for the expertise. companies to start innovation activities. The network. Overall the RUnUP network seeks to Knowledge transfer projects: forming a part- programme was designed to address two major bring stakeholders from academic, business nership between a local company, a university barriers preventing SMEs from innovating: lack of and public sectors together to boost economic and a qualified associate (normally a graduate adequate skills in-house and a shortage of funds. development in small and medium sized cities. of the university) By offering grants, the scheme encourages Recognising the all-encompassing nature of Business Collaboration Grants: SMEs with small groups of regional SMEs to collaborate economic development, RUnUP is inclusive in other businesses to bring new products and on product, process and service innovation. nature, reaching out to all sectors of the economy services to market. The Innovation Networks initiative offers grants to inspire and support entrepreneurship and International Trade: Offering support to busi- to groups of at least three SMEs collaborating innovation. nesses to access growing global markets on the development of an innovative product, process or service. In relation to the work of For further information on RUnUP, its network In support of problem solving for industry (linked the RUnUP thematic network the cooperation events and partner cities visit www.urbact.eu l to the upgrading of mature sectors in the econ- allows SMEs to share good practice, widen their omy) an example includes the Research Voucher skills base, reduce overhead and benefit from [1] The term triple helix defines the concept of the Scheme [13] launched in Limburg aimed at knowledge and technology transfer. transformation process in University-Industry-Government increasing the level of knowledge and improving relations. the competitiveness of small and medium-sized [2] European Commissioner Jàn Figel, Speech to the 2nd enterprises by creating and developing a “knowl- European University Business Forum in February 2009. edge market” in the region, which would allow Maximising the role of [3] Lord Mandelson, UK Secretary of State for Business, SMEs to call on external sources to supply the Innovation and Skills, 11th June 2009. universities in the local [4] Visit http://www.topuniversities.com/ for further economy information. [5] Visit http://www.urbact.eu for further information. [6] European Commissioner Ferrero-Waldner, “Investing in Many cities in the RUnUP URBACT network need Higher Education - an EU perspective”, 5th July 2009. to enhance their individual and organisational [7] “Knowledge Transfer Strategies for Regional Development knowledge of their local and regional knowledge and Competitiveness”, IRE Knowledge Transfer Working based institutions. Only by understanding the Group, Final Report, June 2008. structures, key contacts, key research and [8] “Firm Size and Openness: The Driving Forces of educational themes and existing approaches of University-Industry Collaboration”, in Y. Caloghirou, universities to working with their local economy A. Constantelou and N.S. Vonortas (eds.), “Knowledge Flows can they support the development of triple helix in European Industry: Mechanisms and Policy Implications”, structures and the alignment of university activity London: Routledge, 2004. to local economic development priorities. As a [9] “Universities and industrial transformation: An inter­ prerequisite to the design of new schemes and pretative and selective literature study with special emphasis approaches for university–business interaction, on Sweden”, Staffan Jacobsson, June 2002. cities need to consider defining their sector priori- [10] “Knowledge Transfer Strategies for Regional ties and the state of economic transformation. Development and Competitiveness”, IRE Knowledge Transfer Working Group, Final Report, June 2008. A 3-step framework for cities can be used [11] Spin out refers to a type of company that “splits off” for addressing this challenge. The entry point sections of itself as a separate business. The common is the bringing together of representatives of definition of spin out is when a division of a company or key triple helix organisations to develop a joint organisation becomes an independent business. The “spin response to economic challenges. By pooling out” company takes assets, intellectual property, technology, existing data and intelligence, an up-to-date and/or existing products from the parent organisation. and comprehensive “economic picture” can be [12] The TOP Programme, University of Twente.[13] Research developed in cities to inform policy development Voucher Scheme, Limburg. and identify successful arrangements for the governance of innovation and economic trans- formation. Subsequently city partners need to work together to re-define the role of universities

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Managing Urban Identities: Aim or Tool of Urban Regeneration?

Nils Scheffler, Paulius Kulikauskas, Fernando Barreiro by Lead Experts of the HerO, REPAIR and Net-Topic Thematic Networks

Identity is becoming an issue concerning mayors, city managers, and urban planners. It is regarded as an important factor with which a city or region can create a “corporate feeling” within their citizens and busi- nesses through civic pride, strengthening identification with the town and place, emotionally binding them. It serves as well to distinguish the city from other towns and regions in the global competition by creating a distinct image, and attracting skilled people and investments.

Urban identity is a complex and multi- referential phenomenon – it embraces dentity can mean a number of things for build on the positive local identity as it provides an urban area and the people that live and a sense of home, security and community for linkages between the material and immaterial; work there. It relates to tangible and intan- the civil society and serves as a “soft” location it has different scales: local, city, regional, Igible heritage: buildings, history, memories. factor. Individuals, communities, businesses and Identity helps citizens become attached to their authorities cherish and safeguard various aspects national; it can be seen from various per- environment and confirms that it belongs to them, of the identity of a place and its people for dif- spectives: personal, collective, external; it individually and collectively. This increases their ferent reasons: originality, sense of belonging, willingness to advocate for a place. Identity can pride and branding. develops in time, affected by change, and also help to improve the image of an area, stop- ping a down cycle process, supporting social Other cities and their neighbourhoods struggle influenced by many factors. This article transformation by positively marketing a place. to cast away various legacies and their identities explores different ways of how European The perceived identity of a place or a town by its of the past that are no longer relevant, desir- citizens can also be used to identify and detect able, nor even practicable. They are struggling to cities and metropolitan areas deal with improvement measures towards the desired develop new identities with their urban development urban identity in the context of urban and image and environment quality. actions. For them, a new identity is a vision and the image of that new identity serves as a market- regional development. For some cities it means that identity is an anchor, ing tool. In the Nineties, a housing estate south of providing continuity for development, preserving Copenhagen changed its name from Ishoejplanen rich traditions of communities, and making sure to Vejleaaparken in conjunction with their initiation that changes brought about by time do not carry of a grand urban renewal scheme, for no physical away essential qualities of the neighbourhood or improvement alone would help to attract new resi- the city. For the process of urban rehabilitation dents to Ishoejplanen, as this name was associated and development, it means to respect and even with the bottom of the social ladder.

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In between these extremes, there is a wide array Thus, they have as a goal to develop a new, themselves strongly with their town, which also of examples of cities dealing with urban identity more attractive identity also in order to attract leads to the development of a collective identity of in different ways, as changing times mean peo- people from the outside. the residents and stronger identification with the ple attached to a place need to decide what to place. Well-maintained cultural heritage serves retain, what to discard or let go, and what new The REPAIR cities seek to reinvent former military also to develop a positive image to external peo- elements need to be introduced. Sometimes sites of different types, locations, and periods, ple as a unique soft location factor in the global the new becomes a key carrier of identity to the and to use them as a catalyst in broader urban competition of attracting enterprises, skilled external world (Monaco and the Monte Carlo regeneration. A wide variety of new uses are working force, inhabitants and tourists. Casino) and the new identity comes to stay. being introduced in these sites, and as a result During a prolonged period of time, the Ruhr Area their original identity will change. A question Thus, within the HerO cities, cultural heritage is (Ruhr-gebiet) was an icon of industrialisation, emerges whether there should be any additional steadily gaining importance as one important yet today you will not find much steel produced efforts given to retain the military identity, and development asset, amongst others, to develop there – instead, it has developed a profile based how to manage its relationship with different and to strengthen a distinctive identity to attract on cultural landscape, arts, leisure, and services. groups of visitors and their views. and bind citizens, enterprises, a skilled work The old identity was no longer productive, but force and tourists. Because of its bearing on instead of being abandoned it was reinvented, cultural identity, cultural heritage is fast becoming as the old industrial structures were re-used for an element that gives strength to a distinct urban new purposes. HerO – Heritage identity, particularly in the context of globalisation; “glocalisation”, or localising in the movement of Identities can be used for romantic and practi- as Opportunity globalisation to strengthen the feeling of home cal purposes. They have been used as a tool and to be recognized! of social transformation and in branding and Contribution of physical cultural heritage marketing places. No wonder research and to identity demonstration have also focused on “spirit of the place”, and on personal and collective identities. The New Charter of Athens (1998) states that Physical Cultural Heritage There have been EU-funded projects – such as “Heritage is a key element which defines culture CULTURED in Interreg IIIC – that explored, for and the European character in comparison with as Tool for Identity “Building” example the use of cultural heritage in regional other regions of the world. For most citizens and development. In URBACT so far identity has visitors, the character of a city is defined by the The main contribution of physical cultural heritage not been placed at the centre of concern in any quality of its buildings and the spaces between (the focus of HerO partners) to identity, is shaped projects, nor has it been actively discussed or them… actions, together with an appropriate by cities’ townscapes, historic buildings, public used as an instrument. This article describes spatial strategy, are essential for the well-being spaces and quarters as well as the main visual how three current URBACT projects (REPAIR, of tomorrow’s city, and the expression of its axes, forming a unique and distinctive place to HERO and NET TOPIC) deal with this issue – special character and identity”. be. In particular, monuments act as irreplaceable urban identity in support of urban development focal points stimulating the process of forming and regeneration. This illustrates that people are interested in living and preserving the city’s overall identity. in cities with a distinct identity. Old Towns with their well-maintained physical cultural heritage To make use of the potential of physical cultural (monuments, groups of buildings and historic heritage for the preservation and improvement Three Different sites) provide this distinct identity. Most often of urban identity, the HerO cities safeguard they engrave the image and the identity of the and develop their historic urban areas and Approaches of town, effusing a feeling of home, community, cultural heritage; not making these areas a URBACT Networks likeness and appreciation. This identity is strongly museum, but a living, future-oriented organism related to the personal identity of citizens and adapting carefully to the needs of businesses to “Urban identity” that of the local community. Generally citizens and people, building up and maintaining the are very proud of their local heritage, identifying local identity of the place. Cities in the HERO network develop and use their physical cultural heritage to strengthen – among other things – their urban identity, which is strongly hall-marked by cultural heritage. The attracting and identity building on cultural heritage is con- binding sidered as an important “soft” location factor - citizens in the competition to engage and attract peo- - skilled workers ple and enterprises. So it is seen as a tool for - tourists branding and marketing, as well as functioning - businesses in support of binding and attracting people and Cultural heritage Urban identity Urban development businesses. contributes to supports providing supporting The NET TOPIC cities, suffering from industrial - distinctiveness to - image decline, territorial fragmentation, and social the outside - civic pride polarisation, are considering a city model change - commonness to - advocating for that would increase the strategic value of their the inside a place territories and transform them into more attractive - feeling of home - stopping down cities which offer greater quality of life and better on individual level cycling processes citizen coexistence. They expect to create new, - identifying impro- more positive, and prominent identities, both for vement actions branding and fostering social transformation.

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Thus, within the HerO partners one focal point ants and property owners have to be involved, a centrality and an individual urban balance, is to “use” cultural heritage to keep and shape building people’s sense of identity, ownership transforming them from satellite dormitory cit- the urban identity of the place, to make use and pride related to the place. Professionals ies to real cities. Indeed, they are building their of the Old Town as a feature building identity. such as architects and engineers also have to new “identity”. Therefore, cultural heritage is one important be implicated, building up their specialist skills driver in the municipal strategy to maintain and and capacity for an adequate preservation of New centralities are generated as a result of improve the urban identity. cultural heritage. For example, apprenticeships the endogenous dynamics of the periphery, as can be set up where young professionals can a consequence of a public (or mixed) decision Examples of actions taken by the HerO cities learn related skills under a master craftsman. promoted by a local authority external to the to strengthen their cultural heritage in order for Ecologists, economists and sociologists have central city. Hence, the new dynamics of the local it to support urban identity are: to be involved too, as their work affects the governments in peripheral cities in metropolitan development of historic urban areas and their areas, articulated around development and Directly investing in cultural heritage (safe- cultural heritage. Mass media can support cul- urban transformation projects, aim to achieve guarding it) to strengthen the area’s distinctive tural heritage-based urban identity as well by a particular and singular city model. character and identity; raising awareness and communicating to local actors on heritage issues and the value this Marketing the distinctiveness and quality of heritage may represent for them. Salford (U.K.) life of the area (cultural heritage) to the outside world (attracting enterprises, skilled workforce, As this indicates, building urban identity on inhabitants and tourists) and to the inside world the basis of cultural heritage is not a detached alford Quays is the result of the successful (binding citizens and businesses); process; it is integrated in the general urban Sregeneration of the derelict Manchester development process. This allows the building Docks creating a world-class business, cultural Communicating the particular cultural value of urban identity to contribute to the appreciation and residential area. The area is an important of the place to inhabitants and tourists, i.e., and understanding of cultural heritage, which employment site for Salford and has good public making the cultural heritage visible and simultaneously supports its preservation. transport links through use of Metrolink. The perceptible for citizens and tourists alike, Lowry was opened in 2000, bringing with it mirroring the historic traditions and values; All HerO cities are currently elaborating Cultural theatres, galleries, shops, bars, restaurants and organising creative cultural events Heritage Integrated Management Plans, in which conference facilities. The Quays has established in the historic setting, enlivening public urban identity is an integral part, particularly itself as a tourist destination with a wealth of spaces; within the field of action “Education and aware- world class entertainment, sporting, leisure and offering qualified and specialised tour ness raising”. cultural facilities. guides, not only for tourists;

Assigning functions to the physical cultural heritage, which citizens experience in their daily NeT-TOPIC: Urban life (e.g. public and cultural functions); Transformation Processes Strengthening and further developing the in Peripheral Cities of building traditions through design guidance, which have to be based upon visual, cultural, Metropolitan Areas functional, and historical assessments of the historic urban area, allowing contemporary Partner cities of NeT-TOPIC are peripheral cities design in terms of “future cultural heritage” as belonging to a metropolitan area. This location well as respecting the historic setting. has determined their evolution as urban spaces. They have suffered industrial decline, territorial Actions however do not only concern the “physi- fragmentation and social exclusion as a conse- cal” dimension, but also involve bringing new, quence of this “metropolitan membership”. Now sustainable uses to historic buildings and struc- these peripheral cities are reconsidering their city tures, giving cultural heritage a future-oriented model, trying to increase the strategic value of value, further strengthening cultural heritage- their territories in order to transform them into Another dimension that must be considered based urban identity. This also includes options more attractive and cohesive cities which offer are the links between the city and the current to make cultural heritage part of citizens’ daily greater quality of life and better citizen coex- social life of the place, taking into account the life, by targeting actions which address the istence. Thereby, a change in their traditional new functions of the peripheral sites of the economic, environmental and social needs of identity is taking place, or at least, “building a metropolitan area. Indeed, a crucial factor of the community (integrated approach). new urban identity” has become a main goal of urbanism is making the city a place of exchange. local government policies and aims. This encompasses creating proximity of relation- The Vienna Memorandum advocates working ship among people, creating an atmosphere of “together to preserve the urban heritage while From an initial situation of “suburbs” morpho- good citizenship and ensuring high quality in the considering the modernization and development logically characterised by large housing estates, urban environment. Ideally it should contribute of society in a culturally and historic sensi- and functionally characterised as dormitory cit- to establishing new bonds between individuals tive manner, strengthening identity and social ies, these cities are becoming locations which and groups. cohesion”. try to balance their residential and economic functions, where shopping centres, service Simultaneously, the different operations of physi- So “identity building” based on cultural heritage facilities and green areas are being established, cal renewal of the city have always brought with is only successful when it is designed in an and where new infrastructures are developed. them not only a functional dimension, but also integrated way involving local actors. In par- The combination of all these elements aims to a cultural one. This is systematically considered ticular, in the area of raising awareness, inhabit- provide the metropolitan peripheral territory with in the design of incorporated elements favour-

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ing collective memory and creativity, territo- change was triggered in the perception of the recent changes in the political system created a rial balance, social cohesion and finally, urban city in the eyes of its own inhabitants as well stigma among its people, which finally resulted identity. as in the perception of the city in the country in concealment of history and an important part as a whole. of its identity. Henkel-Arado bombers, made in Centralities and the cohesion of multidimensional Rostock, bombed Spanish towns during the cities are one of the most innovative challenges This new identity is mainly based in the idea of Spanish Civil War, and later Dutch and English to tackle in metropolitan areas. Urban centres valuing the centrality of the city, and in the use cities suffered the same fate from these aircraft are key sites for socialising, cultural identity, of this centrality for the development of central during WWII. In addition to feelings of guilt, during social inclusion, multicultural links, and for the activities that qualify the urban spaces and its the time of the DDR (the German Democratic awareness of belonging to the same community. social and cultural environments. One of the Republic) it was forbidden to refer to any military In the metropolitan city there is a multiplicity of pillars of the city’s identity strategy is to make history, and thus even the medieval fortifications urban centres and a diversity of cultural pat- it a welcoming city open to diversity, while of Rostock were neglected. Only participation terns of collective behaviour and social links. also preserving its Catalan and Mediterranean in the ASCEND Interreg IIIC project, progeni- The multiplication of centres in the frame of the idiosyncrasy. tor of REPAIR, allowed discussions to start an city region, the new articulation among these objective way to deal with this abandoned part centres, making them accessible for all the of Rostock’s history. The references to military inhabitants, and providing them with urban past are now slowly discarding the trauma of quality, has become a condition for citizenship former generations. and civic assets. Hence the role of the REPAIR project is to create In this perspective we should combine local more opportunities for Rostockers to celebrate identity (of each sub-metropolitan centre or the medieval fortifications as representation of community) and metropolitan identity, due to civil engagement in a prospering and free local the increasing level of fluxes and mobility of community defending its freedom and prosperity the social and economic components of the as a result mainly of voluntary citizens’ engage- metropolitan fabric. ment. The identity aspects, related to military heritage, are out of the closet. Yet the economic A city today is no longer that which is limited considerations prevail, and the hopes to recreate by municipal boundaries, but neither is it the more fragments of historic fortifications remain so called metropolitan city. Today it is a city low on the list of public investment priorities, region, with changeable geometry, vague bor- creating risks that both the trauma and healing ders, blurred centralities, and scarce symbolic will slowly disappear from memory. references that can provide meaning to its inhabitants. Contrary to the painful history of Rostock, the people of Medway in the UK have always been Including the cases of Net TOPIC cities, there proud of its Royal Dockyard at Chatham which are several examples of urban regeneration was once the most important naval dockyard through integrated plans and urban projects in Britain. Dating from 1570 it served to defend that have reinforced the urban identity and the country from the Spanish Armada, and was residents’ sense of belonging to peripheral sites protected by a series of forts including the Great within metropolitan areas. This can be achieved Lines of Defence. The closure of the Dockyard through regeneration processes focused on the in 1984 was a devastating blow to the people reconstruction of different dimensions of citizen and economy of Medway, with the direct loss of life, the diversification of functions and economic 5,000 jobs, and many more in support industries activities, the mixture of residents, engagement REPAIR – in and around the urban area. with the urban history of places, improvement Realising the Potential of public services and houses, and the acces- sibility and visibility of the site. of Abandoned Military Sites

Selecting new uses L’Hospitalet (Spain) and managing identities

The REPAIR project – “Realising the Potential n the city of L’Hospitalet, which forms part of of Abandoned Military Sites as an Integral part Ithe metropolitan area of Barcelona (Spain) of Sustainable Urban Community Regeneration” operations such as Plaza de Europa and the – includes partners who explore whether former extension of the International Exhibitions Centre military heritage sites can provide additional (Fira Granvia L’Hospitalet) are generating new urban regeneration potential. Those REPAIR urban centralities as well as new nodes of citizen partners who have systems of disused for- Medway has already demonstrated its ability relationship at the metropolitan scale. tifications as their target sites will confront issues to develop new socio-economic uses for their of identity that builds on national history and Chatham Historic Dockyard, which now employs Once the transformation process of the city patriotic feelings. as many people as when the Dockyard closed. model had been materialised and disseminated, The old buildings remain and there are some and once the evidence of radical changes had Rostock’s focus in REPAIR is aimed at its medi- museums and historic warships moored on been made more apparent than the inertia of eval fortifications, of which only fragments remain the site. The forts of the Great Lines still stand. the negative image of the city (peripheral, dor- due to neglect caused by suppressed aspects of However, as the wounds of loss of industrial mitory, marginal, unsafe, etc.), a progressive identity. For the people of Rostock, two relatively employment remain, new uses and different

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employment opportunities take the place of over lost jobs, and growing pacifism. There perceived by the outside world. Others already the old, and the identity of the place has been are large groups of society who simply have have an identity citizens are proud of, which changing. University functions have moved in, no connection to this identity at all, such as distinguishes them from other cities i.e., due and “Dickens World” and shopping are now many recent immigrants from non-European to their physical cultural heritage, functions, competing with references to the military past countries who just shrug off the military history etc., and which cities use as a tool and “soft” of the site. even more than most other kinds of their new location factor for the social and economic countries’ heritage. development of their area within the context of The New Dutch Waterline, a 19th century flood­ global competition. able defense system with fortresses stretching REPAIR objectives do not focus on identity, but for 85 km in the beautiful natural landscapes of rather on conservation of tangibles, access to For identity to be used as an asset it must be the Netherlands, is coordinated by a national sites, environmental and employment issues. managed—anchored, nurtured, safeguarded project, whilst the fortresses have been trans- Yet to answer the central question of REPAIR­ – and manipulated—and must include consid- ferred to different ownership. The approach to how can the successful regeneration of former erations beyond the physical environment. In the former military identity of these forts var- military sites also act as a catalyst for broader particular the varying perspectives of urban ies widely. Blauwkapel, a fort built around an sustainable urban development? - the issue identity of the various stakeholders have to be existing village, now incorporated by the City of of identity may prove important beyond mere considered, as urban identity is perceived on Utrecht, remains a quiet, picturesque residential conservation of the tangible cultural and natural an individual, subjective level. This means being area with some businesses occupying former assets and the finding of profitable new uses. capable of “managing” identity, and responding defense buildings, its past military function One may raise a sequence of questions: do new to the following questions : What is/are the cur- almost inconspicuous to the unsuspecting eye uses that are not related to the military function rent urban identities / of whom? What kind of of a visitor. Half of the former Fort de Bilt in of the past influence the changing identity of the identity is “wanted” and for whom? What forms Utrecht, divided in two by a highway, has been sites?; If yes, how do they?; Are some uses more and influences urban identities and how can they dedicated to remembrance of executed resist- compatible with the past identity than others?; be steered to obtain the desired identity? ance fighters of WWI and serves as a peace Will the historic identity wither, eclipsed and education centre for schools, while struggling erased by the new uses?; Should additional As a result, the array of related management to survive economically and accepting parties efforts be made to maintain the partial identity issues is complex and suggestions of what of corporations on team-building exercises. of the original use, going beyond retention of may or may not work includes more issues Fort Aan de Klop serves as a very success- tangible artifacts, memorial museums, and than those included in this article. At the same ful conference centre and restaurant, popular re-enactments? time, Prof. Sharon Zukin of Brooklyn College with residents of Utrecht, and accepting some warns that “the over-writing of historical and campers in summer. There are no simple answers to these questions. cultural identities will alienate and marginalise Time, memory and conscious management embedded social groups”, or it may erase the Fort Vechten, which is located on an old Roman of identities may prove to be critical factors. emerging identity of the place altogether. So the defense site of the Limes Path, has been run by Conversion of the military heritage is a relatively enthusiastic desire to manage urban identities, a non-profit foundation for 10 years, organizing recent undertaking in many countries. One using them as an instrument for marketing and private functions during the week, and opening would need to compare different sites, new social transformation, must be approached to the public during weekends for a wide variety uses, events, and results of efforts to anchor the with caution. of events, including military re-enactments of past identity in different ways and over a long various periods and cultural activities. It is now period to observe the changes of identity of the Although their primary focus is not urban iden- facing a change of function to operate as an former military sites and the effects provoked tity, the emerging experience of the URBACT information centre for the whole New Waterline, by the change. These efforts and results need Networks HERO, NET-TOPIC and REPAIR may and this despite its currently successful activi- to be seen in a wider context of brown-field help explore the variety of possible options and ties. All these former military locations are now redevelopment, management of identities of emerging approaches in addressing identity- economically sustainable, funding the mainte- other cultural heritage sites, and even of the related concerns while responding to the diverse nance and repair of historic remains and public cultural diversity of Europe. problems and goals of cities. These concerns, activities from their own commercial operations. if properly analysed and documented, can be Fort De Gagel, a site that is part of the REPAIR useful for many cities. Thus URBACT should project, is developing a Local Action Plan to explore further the management of urban identi- convert the fort to serve as a gateway between a The emerging issues of ties, building on past efforts and including other depressed housing area populated by Moroccan concerned URBACT players in the debate. l and Turkish immigrants towards the quality land- managing urban identity scape and leisure opportunities in the adjacent Further information about Dutch countryside, as well as accessing a centre From the experience described above, we see for urban agriculture - without any immediate that the issue of managing urban identities is HerO: www.urbact.eu/hero; Nils Scheffler: reference to its former function. relevant to a wide range of urban regeneration [email protected] issues. The practice of other European projects It is understandable that finding economically shows that various manifestations of, and refer- REPAIR: www.urbact.eu/repair; Paulius sustainable new uses is a key critical factor for ences to, urban identities can be a valuable tool Kulikauskas: [email protected] the conservation of military heritage, as it often to support civic pride and to create an image is for many other types of heritage sites. The for a place. Branding and marketing to support Net-Topic: www.urbact.eu/nettopic; Fernando intangible references to the military past help in image and identity can be a force to bind and Barreiro: [email protected] attracting visitors, who may identify themselves attract people and businesses as well to support with the history, patriotism, or other aspects of the cities in engineering social and economic the past identity of the sites. Yet the views on transformation of urban areas. retention of the past identity often vary, and they are not necessarily always positive. Some For some cities a new, positive identity is a views are shaped by the stigma of war, grief goal they want to reach in order to be positively

The URBACT Tribune 14

Female Entrepreneurship: Towards an Urban Agenda for the Economic Downturn

Professor Gill Scott by Lead Expert of the WEED Thematic Network

There is increasing recognition that the success of the European Strategy for Growth and Jobs depends on the involvement and contribution of both men and women across the Union. There is also increasing evidence that women’s entrepreneurship can be a key factor in the economic development of modern cities. The current economic crisis may, however, be threatening the capacity of female entrepreneurs to develop the sectors where they have proved they can make a contribution. It is more important than ever to avoid creating a climate that could disadvantage women as entrepreneurs or

workers. This paper draws on the work of n 2008 the Renewed Social Agenda reaf- has not increased at the same rate as increases the URBACT WEED project and explores firmed the European Commission’s commit- in employment [4] despite evidence that women ment to creating more and better jobs within starting their own business can be a key factor in how policies, tools and mechanisms Ithe framework of the European Strategy for increasing overall business start-up rates. within the URBACT partners and other Growth and Jobs alongside a belief that gender equality is a key factor for the success of the strat- Municipal-based practices and strategy have cities across Europe can be extended to egy. [1] The involvement and contribution of both a role to play in changing this picture. Despite strengthen the capacity of cities to use men and women across the Union was once again increased understanding of what is needed to recognised as a factor that can make a significant encourage and support women into enterprise, gender sensitive entrepreneurial support difference to economic growth; indeed some municipal involvement remains not only a new estimate that closing the gap between male and but seldom sustained approach although an as a way of becoming more dynamic and female employment rates could boost Eurozone important area for progress. Developing a better competitive environments. GDP by as much as 13%. Women have already relationship between women and entrepreneur- proved themselves to be capable of making a ship has only recently been seen as offering greater contribution to GDP in Europe through significant opportunities for city economies at increased participation in the job market. Female a time of economic crisis. Two reasons for this employment in the EU is now close to the Lisbon change of heart can be identified. Firstly, the areas objective of 60 per cent by 2010 [2], but extend- where women have been developing enterprise ing the full potential of women’s entrepreneurial or entrepreneurial capacity are those that make activities requires urgent attention if women’s cities attractive places to stay and work in the contribution is to be fully realised. [3] Self employ- long term. Care, retail, hospitality and knowledge- ment levels amongst women in most countries intensive sectors are the areas where women tend

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to be active. They are also important parts of However female entrepreneurs’ reaction to the business creation range of projects in the mid modern city economies, and are areas where downturn provides a glimmer of hope within this to late 1990s. services to reconcile family and work life can picture. Research carried out in February 2009 be developed in ways that can protect many by Prowess [7] into the impact of the downturn on The European Social Fund EQUAL Initiatives families from poverty. Secondly, supporting women-headed businesses found that amongst of 2002 to 2007 also had as one of its themes women’s entrepreneurial activities has been 350 Prowess member organisations a 40% rise business creation but specifically amongst dis- proven to be a way to engage women from in enquiries for business advice was recorded in advantaged groups. It funded over 600 entrepre- the more deprived areas and socio-economic 2008, i.e., interest in setting up new businesses neurship projects under that theme. The EQUAL groups of cities in economic activity prior to was continuing despite the devastating effect Compendium on Active Inclusion draws together employment or full-blown enterprise responsibil- of significant reduction in the availability of bank the lessons learnt on the subject of inclusive ity. The question we have to engage with now finance on client firms. entrepreneurship during the EQUAL programme is whether new ideas to increase the strength and includes details on one of its initiatives that and contribution of women—disadvantaged According to a Natwest Everywoman Report, focused on women – the Accelerating Women’s and less disadvantaged—to growth and job The Hidden Growth of Female Enterprise [8], Enterprise Development Partnership (AWE) [10]. creation can be found. Cities can be success- not recognising the potential contribution of AWE brought together a number of leading ful in promoting business development but for women represents a highly significant risk for agencies in women’s enterprise development policy development to work, clearer institutional the future growth potential of SMEs in the UK, in the English regions to develop a programme frameworks and structures and ideas are needed. and an even more important risk than before of activities and interventions to ensure that This is precisely what the Women, Enterprise the economic downturn. It is a conclusion that mainstream business support was developed to and Economic Development (WEED) URBACT has been made elsewhere in the world. The meet the needs of excluded groups of women. II project explores. International Trade Centre concluded in March Since 2005 the Commission has also been sup- this year that “women’s entrepreneurial abili- porting WES, the European Network to Promote ties can play a major role in leading the way Women’s Entrepreneurship. The network has towards revitalisation of national economies members from 30 European countries (EU, EEA Women’s enterprise: and world trade”. Such growth, however, will and Candidate Countries) and its members not happen unless action to support and help provide advice, support, information and con- a key concern female entrepreneurs is taken. It can be done. tacts regarding existing support measures for for cities in A sustained policy of commitment to general female entrepreneurs at national and regional business support and focused provision for level as well as help in an annual identification the current crisis women entrepreneurs over the last thirty years of good practices and research at national and [9] in the USA helps to explain the astronomical regional level [11]. The GEM Monitor Report of 2007 highlights the rise in woman-owned businesses there between different rates of entrepreneurial activity between 1988 and 2008; nearly half of all privately-held Despite this evidence of interest, initiatives have OECD countries and the consistently lower rate firms are now at least 50% owned by women. often been piecemeal, precariously funded and for women. [5] Differences between countries This is twice as high as any country in Europe inadequately integrated with city regeneration suggest that a raft of social, economic and and highlights the difference that effective policy policies. It is essential that policies and interven- political factors affect entrepreneurship – how can make. tions that have worked best in the past to drive else, for example, do we explain the very low female enterprise activity in different environ- rates for both men and women in France against ments are explored – an approach which must the high rates in Spain, and the fact that some be local. A lot can and needs to be done at sub cities are growing faster or are more inclusive Meeting the Challenge: national level and significant achievements could for women than others [6]? Examining this is be gained by individuals, communities and cities essential in the current economic climate as a European Endeavour working with such a focus. women will be hit harder than in previous reces- sions as employees and as businesswomen. It is not that Europe has failed to engage in And although they are unlikely to be harder hit efforts to increase women’s involvement in than men, it is important to recognise this impact entrepreneurial activity. Supporting a change Bringing innovation when women’s involvement in the economy has in women’s economic and social role has been grown so enormously in the last two decades. on the policy map in various ways over the last to municipal level Furthermore, the long-term positive significance thirty years in Europe. There has been significant of a feminised economy, and the increased investment in women’s education and labour Unfortunately, as suggested at the beginning potential amongst female-headed businesses market insertion and this is commonly associ- of this paper, despite increased understanding to lead some sectors out of recession should ated with women’s increased economic activity. of what is needed to encourage and support not be put at risk. A failure to really address the Positive action programmes of the sort that women into enterprise, municipal involvement barriers to women’s enterprise and employment characterised the 1980s and 1990s, however, remains if not a fairly new then a seldom-sus- or to make sure their capacity is maintained for were largely in the form of training and employ- tained approach, even though it is an impor- future periods of growth will be a long term loss ment projects for women returners, and were tant area for progress. The 9 cities working for the whole economy. less focused on women wanting to set up their within the WEED network include Alzira, Spain; own businesses. They were often very suc- Amiens, France; Celje, Slovenia; Crotone, Italy; It is not just economies that will lose out in the cessful at incorporating women into the newer Karvina, Czech Replublic; Enna, Italy; Medway, recession. Women are more directly exposed as sectors of city economies but seldom focused Kent; Santiago di Compastella, Spain; Umea, employees and business owners to the impact of on entrepreneurship. Nevertheless a few clear Sweden. The network is part of the URBACT II the current recession than ever before: women’s initiatives that focused on business creation in Programme and has been looking for the poli- earnings have become increasingly important a way that supported women did exist. EU co- cies, tools and measures that have and could to the household economy and the impact on financing spawned a range of initiatives such be developed to achieve the better relationship families of women’s job losses and business as the New Opportunities for Women (NOW) between women, entrepreneurship and local failures is greater than in previous recessions. which provided support and funding for a wide economic development so necessary at a time

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of economic downturn. In particular, examples or further training that Business Link can offer small businesses throughout Europe who do of good practice amongst the WEED partners them. At the same time the material and trainers not have access to bank loans. In Amiens, ADIE and others in cohesion and competitive regions are highly professional and focussed on provid- supports largely female unemployed participants show how: ing guidance at key stages. The result is high and relies on a network of a small staff paid by quality, attractive, and effective support for the the local authority and local volunteers to sup- 1. Promoting the culture and conditions for entre- real choices that women can make. port and advise entrepreneurs in their business preneurship amongst a wide range of women approach to build routes out of unemployment including those furthest from mainstream eco- In Sweden most efforts supporting women’s and the informal economy. The result is adapted nomic activity can be assisted by well planned entrepreneurship are made through the Women’s support services that meet the needs of women, locally based training innovations; Entrepreneurship programme of the Swedish such as mutual support, courses at appropriate Agency for Economic and Regional Growth. It times, and adapted finance such as low amounts, 2. Providing higher quality financial and business has become a coherent and structured approach peer group lending and reduced interest rates. support services that bring together and bridge to the problem of low levels of entrepreneurship It has increased the local rate of enterprise crea- private, public and semi-public agencies to ease amongst women in Sweden since its inception tion. The availability of finance is a key to this women’s access to financial and business sup- in 1993, but one of its strengths is that it also program’s success but as Philippe Guichard port services and provide ongoing support is allows local initiatives to have a place within a of the European Finance Network suggests possible with municipal involvement; wider scheme of national economic develop- “Co-ordinating training, mentoring and finance ment. The Women are Great programme are all part of the essential picture for support- 3. More women-friendly business incubators in Umea is an example of such a local initia- ing inclusive entrepreneurship”. Finding the can be achieved through municipal business tive. It targets existing entrepreneurs as well as right way to support women locally across their and university partnerships; and women who currently have a job but who want needs is essential. Amiens is currently looking at to start a business. The programme is run by new ways of enabling women entrepreneurs to 4. Changing public procurement procedures the Chamber of Commerce and financed by the combine business and family life—essential as to include social clauses can prove suc- national Promoting Women’s Entrepreneurship the maternity rights and benefits of employed cessful in widening markets for family-based programme. Marketing of the project is done women do not currently extend to self employed businesses. through advertisements in local newspapers and women. the response was extremely positive, particularly 1 Promoting the Culture and Conditions among women who wanted to start businesses. Access to quality and business-focused mentor- for Entrepreneurship Most of the women see the project not only as a ing is particularly valued by women starting and possibility to acquire more knowledge, but also growing an enterprise. Mentoring helps them to Earlier it was pointed out that women entrepre- as a forum for networking and exchanging of build belief in a positive vision for the develop- neurs are not a homogenous group. The 2007 experience, because most do not have natural ment and growth of their business and provides Prowess report Business Support with the F networks that they can utilise for matters related a conduit to business support and information. factor argues that integrating start up support to business and entrepreneurship. For those In Celje, Slovenia two of the measures sup- with training and providing transformational sup- already in business, the project is seen as an ported by the municipality to improve the growth port with female friendliness at its core could excellent opportunity to create networks to find potential of women’s businesses have been the and should be adopted by local and regional people they can build relationships with in their Voucher Counselling Programme and the bodies involved in business support. If main- continued work as entrepreneurs. The project One Stop Shop. The Counselling programme stream business support improved its family takes place over one year. During the project is delivered in partnership with the Chamber of friendliness and “bottom up” solutions driven period, each participant is offered a structured Commerce and is available for new start ups and by local demographics, and economic priori- programme to develop skills and ideas for busi- established businesses. Established business ties were developed, customer satisfaction and ness progression and is also offered 4 individual owners can receive 50 per cent funding towards local economic development could be improved. coaching opportunities in order to develop the 4000 Euros spent in any one year to receive Moreover, if the diversity of women were recog- business idea. Key to the programme’s success one to one or group counselling for improving nised the impact would be even greater. is the difference in interventions for women who an aspect of their business (typically marketing want to start businesses and for women who or business planning). Unemployed women and Business Link Kent has developed a very com­ are already employed. men can receive 100 per cent of 1500 Euros prehensive programme of women’s busi­ towards business advice and support for start- ness support in the Medway area of the UK 2 Providing Higher Quality Financial and ups for one year. Neither of these are loans, to encourage and support women to become Business Support Services they are grants. The One Stop Shop is located entrepreneurs. The agency recognised that the in the Municipal offices and provides informa- threshold to become an entrepreneur is higher An environment that promotes women’s enter- tion and training for entrepreneurs in all aspects for women than for men. They wanted to get prise has to recognise that over 80 per cent of business development. It has concentrated women to consider the idea of turning their of women’s businesses are micro enterprises. over the last few years on providing free, on line hobby or passion into a business or using their Focussing support on small enterprise means easy access to all the registration and tax forms transferable skills to enter the labour market recognising their small scale financing needs. that are needed to set up a business and thus or training. A programme of events has been In Amiens, France, the municipality is one of reduced considerably the costs of registration designed to offer a range of integrated training, the partners involved in the community-based etc. What is unique about this One Stop Shop enterprise and development services for women micro finance initiative of the Association is the combination of financing and business in a friendly and supportive environment. The pour le Droit à l’Initiative économique (ADIE). development allied to knowledge of regional format is relaxed and provides a supportive The municipality’s aim is to assist those who conditions. It highlights the value of developing and encouraging environment where women normally have little access to credit or markets local knowledge for appropriate services. from different groups and backgrounds and to build a route into self employment, and it business types can talk to other women and has taken advantage of the well developed 3 Women friendly business incubators find out whether working for themselves is right national micro credit scheme of ADIE. ADIE is for them. This provides local women with real a socially focused finance and support micro Developing effective partnerships between uni- exposure to the possibilities of self employment finance initiative for the entrepreneurs of very versities, business and local economic develop-

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ment departments of municipalities is essential to have a project approved by the municipality to develop strategies to stimulate innovation and if cities are to make the most of innovation com- a third consideration is included – its social how to understand and exploit the potential ing from research and development. However, impact. Although not yet fully established, the that women offer for sustainable economic despite the rising number of female undergradu- Alzira municipality is considering refining the growth. Amongst WEED partners the next step ates, the use of the services, networking and “social impact” to include the impact on families is the development of time specific local action space of such incubators amongst women is and specific groups of women. plans to address these challenges—to build small [12]. We know that successful completion on existing strengths and address the gaps of a business incubation program increases the preventing the use of women’s capacity to con- likelihood that a start-up company will stay in tribute to dynamic and competitive environments. business for the long term but a key challenge Conclusions Showing what can be done at city–level is a first is how to encourage and support women in step, but it must evolve into a set of principles their use. Whilst women’s education and train- and strategy to have real impact. l In exploring how policies, tools and mech­ ing levels have gone up in all Member States, anisms within URBACT cities across Europe their involvement in research and in a knowl- [1] Report from the Commission to the Council, the European have extended their capacity to use gender edge based or knowledge intensive economy Parliament, the European Economic and Social Committee sensitive entrepreneurial support, the intention has not gone up proportionately; they remain and the Committee of the Regions - Renewed social agenda: here has been to show how this constitutes a under-represented in enterprise central to the Opportunities, access and solidarity in 21st century Europe; route not just for a more inclusive approach to knowledge economy[13]. Since January 1999, COM/2009/0421. entrepreneurship but also as a way for cities the Council of Santiago has been support­ [2] Report from the Commission to the Council, the European to become more dynamic, socially just and ing the University of Santiago to develop Parliament, the European Economic and Social Committee competitive environments. Policy and innovation innovative technology-based companies coming and the Committee of the Regions – Equality between developed by municipalities and their partners from R&D projects. The impact has been the women and men – 2009; COM/2009/0077. have much to offer in terms of how to effectively constitution of 120 companies between 1999 [3] European Foundation for the Improvement of Living and promote gender equality. And despite the fact and 2008, of which 92% still exist. Until recently, Working Conditions Women at Work: Paths to equality - that entrepreneurial activity remains a challenge however, the number of women involved in such Back¬ground paper 2008 Available at www.eurofound. for all, there is considerable practice that could companies has been small despite the fact that europa.eu be drawn on to combat the effects of the eco- over 70 per cent of students in the university are [4] Allen E, Elam A, Langowitz N, Dean M (2008) Global nomic downturn, lay the basis for more attractive women. In order to address this problem the Entrepreneurship Monitor (GEM) 2007 Report on Women cities of the future, and use the dynamism of Woman Emprende programme was developed and Entrepreneurship. London, Global Entrepreneurship women entrepreneurs to move along the road in 2006 as a partnership between the university Monitor. out of recession. While there is some evidence and municipality to increase the visibility and [5] ibid (see footnote “4”). that women business owners have overtaken relevance of female entrepreneurship and to [6] Turok I and Mykhnenko V (2008) “Resurgent Cities”, their male counterparts for “growth ambition”, develop tools used to foster female entrepreneur- Urban Research and Practice, 1:1, pp54-77. the lessons from supporting women could prove ship. An example of a company supported in this [7] PROWESS is a UK based association of organisations useful for other non-gendered enterprise sup- way is GalChimia, a leading Spanish company in and individuals who support the growth of women’s business port initiatives [14]. the area of Synthetic Organic Chemistry, which ownership is a supplier to the Chemical and Pharmaceutical But it is not a single solution or simple route to get [8] Everywoman and NatWest (2008) Hidden Growth of Industry offering services of custom synthesis, there. There are dangers in localised entrepre- Female Enterprise. Accessed at www.everywoman.com contractual research and process development. neurial development when tied to local regenera- [9] Marlow S, Carter S and Shaw E (2008) Constructing The company was constituted by four female tion if it is the only route and is accompanied by female entrepreneurship policy in the UK: is the US a relevant Doctors of Chemistry and they expect to have no increase in income. [15] Current innovations benchmark? Environment and Planning C: Government a turnover of 5 million euros by 2011. Woman regarding entrepreneurship often start to break and Policy, vol 26, pp335-351 Emprende is the creation of a national and inter- down when it comes to applying them to those [10] EQUAL Compendium on Inclusive Entrepreneurship, national network and in this local implementation furthest from mainstream economic activity Accessed at http://wikipreneurship.eu it has proved successful. and when project funding runs out. As Peter [11] European Network to Promote Women’s Entrepreneurship Ramsden, a founder member of Community of (WES) - Activities Report 2006. Accessed at http://ec.europa. 4 Changing Public Procurement Practice on Inclusive Entrepreneurship (CPOIE) eu/enterprise/entrepreneurship/ Procedures has said, “Entrepreneurship can certainly be [12] Prowess and UK Business Incubation report Women- a tool for inclusion, but only if we have the friendly incubation environments and managed workspaces To support the development of gender equality right tools and a real commitment to inclusion. estimates that most science and technology business in entrepreneurship it is important to recognise Employed women have the greatest chance of incubators today contain less than 5% of women owned the nature of family dynamics and the potential being successful entrepreneurs so there is still businesses. of families to form small family enterprises that a great deal to do if unemployed women and [13] Women, Enterprise, Employment and Local Development: could be supported by procurement strategies of particularly unemployed women in marginal- Baseline Report. Accessed at urbact.eu municipalities. Unemployment in Alzira, Spain ised groups are to be included in change.” [16] [14] “Entrepreneurs, British Business and the Credit Crunch” has hit levels unimaginable in the previous ten There are measures which could stimulate more Accessed at: www.makeyourmark.org.uk years. Initially, much of the unemployment was women-headed firms, such as public authority [15] Scott G, Campbell J and Brown U (2001) “The concentrated in the construction sector, but there procurement policies with targets for women- Contribution of childcare to local employment: poor work is a growing realisation that whole families are owned small and medium-sized enterprises or work for the poor?” Local Economy Vol 16:3. affected by the downturn. Since 2008 the State (SMEs) that have not yet been tried by public or [16] Rake,K and Rothesone A (2009) Are women bearing Fund for Local Investment in Spain has made private authorities to any great extent in Europe. the brunt of the recession? London, Fawcett Society. funds available to local authorities to encourage The contribution of women entrepreneurs is [17] Moving out of the shadow economy: tools and methods them to undertake public works and investments also not fully understood because it is not well for an inclusive entrepreneurship approach, accessed at in order to reactivate the economy and to favour documented or researched. [17] www.ec.europa.eu[16] Wilson L, Whittam G and Deakins small to medium sized companies. Previously a D (2004) “Women’s enterprise: a critical examination of company would have to present a project and The challenge for municipalities and their partners national policies” Environment and Planning C: Government it would be judged on price and project. Now in economic development in Europe now is how and Policy Vol 22.

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Lost job - Lost home / Lost home - Lost job Can Secured Housing Help Cities Mitigate Effects of the Crisis for their Citizens? Heidrun Feigelfeld by Lead Expert of the SUITE Thematic Network Edited by Peter Ramsden

Comprehensive measures such as the linking of housing – related and employment – related measures are not to be seen in national programmes, unless one includes the employment impact of the construction industry. The responsibility for this lack lies completely at the local level.

Young Mrs. Miller is now living alone with her two My home is my castle kids. The money she earns with her part-time job goes quickly. Talk at her company yesterday re there ways out of the downward was that soon the first layoffs would be inevita- spiral that is currently putting more and ble. Today she received a letter from the energy more people at risk? Isn’t it the case company – electricity costs will soon be going Athat housing could be the safe haven up. That, on top of food, childcare and heating providing the space for people to rearrange their charges. Her throat starts to feel tight. This is not lives? What responsibility for providing and ena- how she had imagined her life. bling good housing lies with the cities?

Once she is unemployed, she will lose her flat. In times of recession and crisis, more groups of But without a flat, how can she find work again? the population lose security — security of employ- In addition, even as one of the “working poor” ment, the security of maintaining a sufficient she will face increasing problems in coping with income to sustain living standards and ensure charges for service costs. Where can she find help? one’s children’s education, and the security of the knowledge that one is working towards a humane ageing after age-related retirement.

An essential prerequisite for avoiding falling into a downward spiral is a secure housing situation. Yet, instead of providing this in a time of recession, the structural effects of housing policies, which lead to a lack of affordability,

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growing numbers of evictions and a decline Early and preventative multi-faceted measures the crisis has taken them by surprise, like so in housing standards (“poor housing for poor of intervention by municipalities for securing many others. people” – lower quality of new construction, housing could avoid the long-term social costs neglect of stock) seem only to heighten the involved in re-integration into the labour mar- However, the current approach to the problems threat posed to disadvantaged households. ket and winning back a decent living situation, and the first counter-cyclical measures have Even middle-class households are under pres- as well as the costs of the re-stabilisation of proven (as is so often the case) to be strongly sure. The crisis affects both home-owners, as neighbourhoods. sector-oriented, limited to the housing sector. mortgage companies foreclose when arrears They do not take into account the question of start to build up, and tenants, when rental and The discussion is under way. Maybe not enough employment of those affected. running costs rise as the market becomes on a city level, yet surely in fields where cost smaller and more expensive. increases, financing problems, dwindling jobs Approaches can be seen here and there, case and employment problems become immedi- examples can be found, but to verify their qual- European, national and regional levels of govern- ately visible – the building industry, real estate ity as good practice examples, more evaluation ment have applied themselves to the stabilisation market, non-profit and/or private developers is required. I will delve deeper into all these of the financial markets and the industries, busi- and property management. discourses, proposals and first measures at a nesses and service providers that depend on later point in this paper. them. They do this in order to secure jobs and In addition, social services at grass-roots level to maintain the level of individual consumption. are sending warning signals based on increasing Where do the cities stand? Until recently, cities However, there is considerably less awareness data and their awareness of the growing prob- saw themselves as in the calm before the storm of the how unstable housing situations can lems, trying to bring the slow-moving decision- (with the exception of those whose governments contribute to growing crisis scenarios of people making apparatuses to act and counter-steer. had made poor investments or lost large amounts at risk of exclusion. in speculation). Now, increasing unemployment Something that is becoming more and more rates are beginning to impact on housing and Very often, the loss of housing is wrongly dis- clear is that, cutting across ideological and urban development. Nevertheless, some time missed as an exclusively “individual fate”, regard- party-political divides, those concerned with is still left for preventive and pro-active action. less of real social and political causes. The crises housing are closing ranks in their demands for Current reports, however, all talk of an enormously that individuals undergo lead directly into a acceleration, regulation and security, for example increased level of city debt, thus decreasing the vicious circle of poverty. People who are home- closer alliances between the building industry scope of action by the minute. What especially less have considerably diminished chances in and ecological protection. interests me is whether there are measures to the labour market, and once without a job, they connect housing-related approaches to employ- are unable to afford to get back into housing. On the European level, structural measures of ment-related ones? And if such measures do The consequences of this vicious circle burden aid have already been taken and should also exist, are they on a detailed, local level? the public budgets, mainly of cities. Welfare become effective in the housing sector. At the departments find themselves obliged to set up same time, national governments are implement- Perhaps it is enough to sustain the liquidity of elaborate systems for temporary accommoda- ing measures not only to absorb the crises of a young family through income support from tion and floating support for the homeless and the banks and big industries, but also relevant varied and different social protection systems? to allocate individual benefits. for the economic recovery of the building con- Is it possible for services for the prevention of struction industry. eviction, linking negotiations with landlords or Ironically, it was exactly this cynical and irre- banks and welfare benefits, to disrupt the path- sponsible handling of the demand for housing Researchers in the housing sector, too, are trying way into homelessness? Up till now, this alliance for the financially underprivileged that led to the to live up to their role as analysts, prognostica- between social and housing policies has only global crisis – the US Credit Crunch. tors and masterminds, although the scale of been the main focus of innovative policy.

There is no question that it is easily accessi- ble, stable housing markets and the long-term Tenure distribution in the 27 EU Member States affordability of housing situations that hold the 100 key when it comes to the flexibility and mobility demanded by the economy. 90 ry (2008) 80 vato

70 Left out in the rain? 60 At the present time, it is still not easy to ascertain whether due cognizance is taken of this link 50 between employment, affordability and housing, 40 and whether appropriate measures are taken quickly enough, in order to provide comprehen- 30 sive stability to, for example, someone like young ODHAS European Social Housing Obser Mrs. Miller whose story began this article. 20

10 Questions need to be asked of the cities/munici- Source : CEC : Source palities, which will also have to bear the conse- 0 k y y e e g Social rental EU ki a taly

quences of not easily reversible spatial processes I anc tugal yprus

ustria Private rental Spain eland Malta oland Latvia inland Fr C P Ir Greec A Estonia F Sweden Bulgaria Slova and their social effects, as to how they are effec- Belgium

Slovenia Ownership r Po Hungar Romania German Denmar embour Lithuania

tively, preventatively and supportively shaping Netherlands x Lu ech Republic Cz

this crucial aspect of their citizens’ lives. United Kingdom

The URBACT Tribune 20

More comprehensive approaches, including In this article, I want to concentrate mainly on proposal was meant to pay a special attention to employment initiatives and the strengthening the field of funded, “social”, housing. [1] the most vulnerable households who too often of local economies using a broader spectrum suffer from energy poverty”. [2] Regarding hous- remain sporadic and/or limited to specific regen- On the European policy level, as a first response ing categories, as the leaflet explains, “It is up eration projects in particular regions. to the crisis first measures were taken in order to to the Member States to decide which type of achieve effects concerning employment in the housing will be eligible. Since, according to the job-intensive field of the construction industry new regulation, this measure should be imple- with a simultaneous climate-relevant impact mented in the view to support social cohesion, Minding One’s (ERDF). social and cooperative housing, which provide quality and affordable apartments and homes, Own Business This is already an improvement. Until recently, should be one of the main beneficiaries. However, housing was mainly seen in most Member States some countries might decide to further support If we search for the general patterns evolving as a national responsibility, energy improvements in at the moment, we see that measures for the and funding for housing- some parts of the private perpetuation of affordability and the mainte- related issues only pos- housing market... nance of buildings prevail over all others in the sible if obviously related to Measures taken by the housing sec- housing sectors – on the European as well as social inclusion objectives tor and by cities include discussions For the EU-12, the new the national level. and social services, or to measure means that quarter/neighbourhood of the issue during conferences, along with the already The dominance of the economic aspect of hous- action. However, there is seminars and workshops, carrying existing possibilities (2% ing policy is underpinned by two main factors. an ongoing process to of total ERDF allocation One is the aim for “affordable housing”. This is promote the acceptance out surveys, holding competitions for per country in the field of mainly related to the way that public authori- of housing as a decisive ideas, funding research and seeking housing, see above) there ties exercise influence on the housing market: tool for inclusion, cohe- will be a further oppor- regulatory influence through law, taxes, costs sion and growth. For contact with other fields, such as the tunity to invest up to 4% of infrastructure, funding, as well as still in some the first time the ERDF social and the ecological ones. of total ERDF allocation sectors on builders and administrators. The Programme of 2007-2013 on energy efficiency and other is the aim for “cost-effective construction” provides the opportunity renewable energy in exist- in both the building industry and architecture. to include housing-related ing housing.” To cite the This is subject to market-related, technical and funding for New Member States (the EU 12), up CECODHAS leaflet again: “Local stakeholders, of course regulatory influences. to an amount of 2% of the total ERDF allocation. especially housing providers,” (and I want to In particular, the funding is related to measures add: “and local / regional authorities”)… should As always in the housing sector, we are also in the field of housing, for refurbishment of the contact their Managing Authorities in order to dealing with two separate but inter-connected common parts of the building, energy-efficiency communicate the needs and potential in terms fields – housing stock and new construction. operations, or transformation of buildings owned of energy efficiency and renewable energy in the New construction is not surprisingly drawing by non-for-profit or public bodies into affordable existing housing stock, reflect on to which exist- much attention, even now in a time of crisis, in housing. ing schemes (loans or subsidies programme for the quest for innovation. Yet all the experts agree energy retrofitting for example) the ERPF could that due to the predominance of existing housing Only a very few cities and regions of the NMS be combined.” They also “should work with stock over new building, measures taken there have successfully laid claim to such funds, but partners to identify potential projects.” This is will have a much higher impact. much is still possible. exactly the mission on which the Local Action Plans of the project SUITE are based. This holds true even more for the challenge to Additionally, another funding opportunity via secure and improve the housing situation of peo- ERDF has also been made available as a rapid In a nutshell, this establishes more opportuni- ple in the lower income levels particularly affected response to the crisis at the end of the 2008, ties than before, and yet, even with its focus by unemployment and other effects of the crisis. and extended to include also Old Member States. on energy saving, on longer-term investments As an information leaflet put out and larger-scale and physical issues relating by CECODHAS explains, “The to the housing stock, it still won’t provide aid European Parliament and the to a mother of two with payment and job prob- EU-27 Member States adopted lems. While the notion of “social cohesion” is A typology of social housing provision in the EU-27 SIZE SOCIAL in April 2009 an amendment to mentioned, the possibilities for financing linked RENTAL SECTOR the regulation on the European social-and employment-oriented measures still The Netherlands United Regional Development Fund need further attention and work. > +20% Austria Denmark Kingdom Sweden (ERDF) which enables all Czech Republic Member States and regions in At the same time, on the European level, the

11% - 19% France Finland y (2008) the European Union to use EU argument is being made vociferously that the Poland

vator funding to invest in energy effi- shortage of funds and very real problems that Ireland Germany Estonia Italy ciency and renewable energy have arisen due to the crisis should not mean 5% - 10% Belgium Malta measures in housing, with the that the objective of creating a more social Hungary/Cyprus Slovenia view to support social cohe- Europe should be neglected. The importance 0 - 4% Portugal/Bulgaria Luxembourg sion.” Further, “In each Member of housing, its affordability and the necessity of Lithuania/Latvia Greece Spain State, expenditure on energy accompanying services constitute a large field efficiency improvements and within this discussion. Residual Generalist on the use of renewable energy

Universalist Obser Housing Social European ODHAS Targeted in existing housing shall be eli- The discussion on the “Right to Housing” [3] (Unitary) gible up to an amount of 4% of or “Right of Access to Housing” is high on the (Dualist) CEC : ce ALLOCATION CRITERIA

Sour the total ERDF allocation.” The agenda. At the meeting of European housing

The URBACT Tribune 21

Number i. of companies Changes in customers' profile (past decade) C. Helsink

policy ministers in late 2008, they “emphasised -PL that the current crisis in Europe calls for interven- 40 36 VV O 34 ry /

tion at all levels to guarantee the fundamental 31 30 vato right of access to decent housing.” [4] 30

The role and the implementation of services link- 20 ing housing related and social demand is growing, 10 based on EU decisions that state, among other Household Middle class things, that “services of general interest related size households 0 to social housing” should be excluded from the Single Older Ethnic Low-income ODHAS European Social Housing Obser

scope of the competition rules (2004). parents' people minority households . CEC -10 households

Housing-related issues have penetrated several -20 and Nikolova M. (2007) Managing social rental housing in the European Union: D. funding programs of the ESF European Social -19 decrease increase

Fund (which invests in the implementation of ., Czischke -30 -28 employment and social inclusion policies in the Member States), as well as the PROGRESS -40 funding strand (within the Open Method of J Heino : Source Experiences and Innovative approaches Coordination OMC). PROGRESS focuses on activities with a strong European dimension At the moment, nobody dares to claim to have extension of the stock of emergency housing). to guarantee an EU added value. These activi- found the philosopher’s stone for crisis man- ties are designed to inform policy analysis and agement. In the housing sector, as in so many In many cases, incentive programmes and tax developme nt. “To ensure decent housing for others, there is great insecurity, helplessness and reductions concern refurbishment and/or urban everyone” is among the five key challenges in concern about the inability to get on top of the regeneration. Retrofitting of insulation and other the field of social inclusion, as is the challenge downward trends despite the drastic measures energy efficiency measures play an important “to make labour markets truly inclusive”. The that have already been taken. However, in the role. Homeowners are supported in their mort- appeal this article makes is to connect these course of searching for means of action, what gage credit repayment in several NMS. two demands. becomes clear is that some sort of solution might well lie in the return to former values. In addition to fiscal measures, bureaucracy European research is also facing re-evaluation, reduction and increased use of EU subvention taking into consideration current trends and Reliability, sustainable action without speculation, funds (keyword ERDF), and the implementation challenges. In the current economic climate, fairness, transparency and control, as well as the of economic stimulus plans are promoted by resources are reduced, and policy sets a focus appreciation of long-term action and durability agreements between the State and communities on “outcomes”. Further, it is clearer than ever are on the top of the list. (e.g. Ireland, Latvia, Luxemburg, Spain and the before that carbon and energy matter more UK). This is where the connection to the local and more. But here again, housing creates key Measures taken by the housing sector and by level is so important for the cities. structures for effective measures. In the further cities include discussions of the issue during development of the different national housing conferences, seminars and workshops, carry- Comprehensive measures, such as the linking policies, researchers see – as common future ing out surveys, holding competitions for ideas, of housing-related and employment-related tendencies – a “reduced emphasis on ownership funding research and seeking contact with other measures as I suggest in this article, are not growth”, a “remaking rental housing” and an fields, such as the social and the ecological to be seen in national programmes, unless “emphasis on supply side” – tendencies, which ones. This results in lessons learnt and policy one includes the employment impact of the are a reversal of previous trends. [5] recommendations. Some of these are brought to construction industry. The responsibility for this the level of policy-makers; others take the form lack lies completely at the local level. In the future, this could provide especially dis- of self-assignments in the respective sector to advantaged households (as lone parent families, increase its own action. large families, unemployed people, and poor elderly people living alone) with a more flexible Among the measures being taken for the eco- A Contribution range of offers. Mrs. Miller, the lone parent with nomic recovery of the building construction her children who is threatened by poverty, and industry by national governments (and which from URBACT II? whose narrative begins this article, could be yield a double effect – building a sector with helped – the question is only: how quickly? added value and employers, as well as increas- In this dire situation, what are the benefits of a ing swift domestic efficiency and leverage) are networked look at other European cities and Of course, the nature of the problems varies several, which also support the housing sec- regions? Are the historically grown credos of from place to place and region to region. In addi- tor. [6] housing politics, framework conditions, and the tion, cities are at the moment strongly limited in scope of action, simply too different? their scope of action because of the crisis and Several countries counterbalance the banks’ must carefully analyse their priorities. However, unwillingness to grant credit for housing con- As a look at the current discourse shows, this this makes it even more important to hold this struction with governmental guarantees and also strengthens the relevance of the SUITE discussion in a serious manner. housing-related conditions for subsidised capital, Housing Project network within the European relaying interest rate reduction to homeowners Programmes URBACT II for sustainable urban Furthermore, there are considerable differences and governmental direct credits. development in its objective to discuss the role in the problems of cities and housing of the of the social regulation of housing for cities and OMS and NMS regarding the scale, severity Another frequent strategy is the promotion of to develop innovative approaches. SUITE’s and scope of action of the cities. According social housing or rental housing respectively, claim that in order to secure future sustainability to all reports, the crisis will hit the NMS harder especially in OMS (new construction, acquisition for housing, it has to integrate three different than has originally been assumed. of housing stock or commercial projects, and facets - social, economic and ecologic sus-

The URBACT Tribune 22

tainability – building a sustainability pyramid, is course?; Realistic expectations, pragmatism and seeable. Instead of fear and paralysis, it is nec- reconfirmed. clarity are of paramount importance. This new essary also in housing and urban development approach can relieve deprivation, build trust, and politics to take a risk and turn towards more The partner cities and agglomerations have all regulate markets, all at the same time. sustainable and more social politics. named single-parent families like “Mrs. Miller’s” as well as, more generally, low-income households Swift action with a sustainable perspective is of as their main addressees for future measures. paramount importance. The opportunities offered Groan globally, Ease Locally by EU funding (ERDF) have to be deployed. The They are keen to get support in discussing their focus to “enhance energy efficiency and fight burning questions, to develop a first, targeted climate change” should be in pole position. What Numerous approaches for tackling these prob- local action plan, and would much rather not be must be avoided are hasty measures that relieve lems are being discussed and considered, mainly left alone in their search for the desired objective. in the short run, but lack sustainability with fatal focusing on the possibility of ongoing financing In times of dwindling municipal resources, this consequences for our future. Quality reduction and affordability while maintaining serious qual- comprehensive approach naturally faces many is quite simply the wrong path. ity standards. challenges. Moreover, the risk of sacrificing quality standards in favour of hasty last-minute The potential of quickly effective social measures One focus lies on regulative measures (dedication measures is generally high. for especially threatened population groups, of building land, planning regulations, neighbour- however, should be considered more strongly hood planning), measures concerning housing Further, the much discussed focus on “social in ERDF and ESF funding programmes. I should policies (social liability of capital expenditure by mix” versus the focus on “social targeting” (limi- like to emphasize once more that measures to limited-profit housing associations, new models tation of access to the most disadvantaged) connect housing-related approaches to employ- of funding, lowering of monetary and other entry does not go unmentioned. The SUITE network ment-related ones on a local and detailed level levels) and visionary recommendations (such as a has already discussed this topic as a focus. It are still widely unavailable. It is still impossible decoupling from banks and financial markets). will soon provide small exemplary approaches to come up with specific suggestions as to from partner cities and other European cities to how “Mrs. Miller”, the lone parent we saw at In addition, certain types of households can be illustrate first proposals. the start of this article, can be helped quickly. targeted, especially those disadvantaged groups This is a problem, just as important as the dif- for example; and targeting can also be done of In the cross-links to further URBACT II networks ficulties being experienced at the moment in quarters in particular problem situations. dealing with housing questions, such as Healthy the maintenance and creation of jobs. It is the Cities (ecologic quality, services) and HOPUS cities’ duty to act as designers in this field. l Experts claim to stress the obvious high impor- (quality by coding), as well as to networks dealing tance of “soft measures”, good management with quarter questions, we can expect interesting [1] One has to take into account that the term “social housing” and accompanying services as opposed to comprehensive clues. An exchange with projects has a broad range of different connotations, based on “hard measures”, such as demolitions and new related to “Jobs and Growth” will bring a stimulus historical development and on national policies. constructions, even though these last are more for the connection between employment and [2] A concise overview can be found on both regulations obviously spectacular. [7] housing situation discussed in this article. on ERDF funding in this brochure from CECODHAS www. cecodhas.org (in English). It includes good practice cases However, there is a definite lack in comprehend- This, we hope, will prove that European from various countries and cities, and links. ing work and housing as integral worlds and in exchange between cities is not art for art’s [3] Currently, a network about “Housing Rights Watch” has developing corresponding measures that are sake, but will actually provide feasible ideas for been established within the field of “Homelessness”. See interdisciplinary and inter-institutional instead of implementation. FEANTSA www.feantsa.org - The Right to Housing. segmented. Employment and education activities [4] For short reports arising from this meeting and from the should be designed as integral parts of concepts meeting of European ministers for regional development relevant for housing and quarters. and cohesion policy see www.ue2008.fr. (search “ministres européens en charge du logement”). Small Gears Make For politicians, stakeholders, institutions and [5] Answers to the crisis have been the focal point of practitioners, this means giving up on old tradi- the Machine Work the plenary contributions of high-ranking experts of the tions and aiming instead for cooperative action. field of housing economics at the 2009 ENHR European Only in alliances with clear yet flexible rules can The time-tried path of public direct and indirect aid Network for Housing Research Conference in Prague on these new challenges be mastered. It is crucial for housing provision and purchase, of guidelines “Changing Housing Markets: Integration and Segregation”. for local authorities to find allies in the economic, and regulations of user costs, of influence on For presentations, see www.enhr2009.com. housing and social sector, and paramount for management and maintenance of the stock, and [6] For more information see the pre-summer 2009 survey of them to develop rapidly effective yet sustain- the networking with neighbourhood development, the IIBW Institute for Real Estate, Construction and Housing able solutions. is showing its benefits now. ‚Maßnahmen Europäischer Staaten zur Konjunkturbelebung im Hochbau“ (Measures of European countries for economic Social housing, which had been devaluated recovery in building construction), including a survey among recently, is again standing its ground. The non- 16 states. www.iibw.at (portfolio / construction, English profit building industry feels reassured in its La vie en rose? summary, German report.) approach and cities will be able to choose [7] A rich range of ideas as to how European countries steadier paths. All this sounds very positive and promising. So and cities might consider managing their social housing is it enough to roll up our sleeves, raise money, stock, ensuring adequate housing for all and achieving In addition, it is obvious that there is not ONE launch a bundle of measures and throw an opti- mixed sustainable communities, based on well-researched truth, no silver bullet, but lots of small gears that mistic look into the future of (social) housing? national problem assessment is provided by Whitehead, have to be adjusted separately. We have to ask: Christine; Scanlon, Kathleen (ed.) (2007), Social Housing What happened there?; What can still be used The crisis is not mastered yet, its duration and in Europe. LES London School of Economics and Political of this policy?; What can be easily regener- severity are still uncertain, and the effects of Science. ISBN 978-0-85328-100-9. www.lse.ac.uk (search ated?; Where do we have to make a change of institutional and economic efforts not fully fore- “whitehead socilahousing in Europe”).

The URBACT Tribune 23

AGEING AND EMPLOYMENT: Old and New Challenges in a Global Crisis Scenario

Annamaria Simonazzi by Lead Expert of the Active Age Thematic Network

Are older people discriminated against in the labour market? And if so, why? And what can national and local policies do to promote inclusion and favour active ageing? The paper aims at answering these questions. The first part provides an overview of the main factors behind the low employment rate of older people, highlighting the new threats entailed by the current global crisis. It will then outline the policy reforms that have been devised and implemented, at both the national and the local level, to increase the employment rate of elderly people, drawing also attention on the possible trade-offs. The final section will present the Population secure long-term sustainability for any welfare approach adopted by the URBACT Active Ageing system. That is why the EU has set two targets to be met by 2010: to have at least 50% of the EU Age project, and its aim of promoting a more and Employment population aged 55-64 in employment (defined comprehensive, sustainable and integrated in the Stockholm European Council in 2001) and opulation ageing is both a challenge to raise by 5 years the effective average age at life-course approach to active ageing. and an opportunity. A challenge to the which people stop working (agreed in the 2002 various welfare regimes, an opportunity Barcelona European Council). Pto move towards a more comprehensive, sustainable and integrated life-course approach If older workers remain in employment longer to active ageing. and increase their labour supply, the demand for these workers will need to keep up. To ensure that Radical changes in the age structure will have demand meets supply, the Member States should significant labour market impacts. Under present pursue actions aiming at removing disincentives conditions, longer life expectancy leads to a at the micro-level for workers to retire later and sharp decrease in the employed/pensioner ratio. for employers to hire and retain older workers; However, employment is the principal means by as well as at the macro-level. which citizens of all ages can meet their needs and socio-economic aspirations. At the same In many countries, the lack of job opportunities time, a high employment rate is the only way to remains a problem cutting across generations due

The URBACT Tribune 24

to structural features of the economy: policies among 55-64-year-olds is retirement. Once nologies (Langot and Moreno-Galbis 2008: 26). designed to extend working lives are more likely again, gender matters, since personal or family Stereotypes and prejudice may affect both to affect the younger generations’ prospects responsibilities which hardly make any showing employers’ willingness to hire and elderly workers’ (young in - old out, or viceversa). The current among the reasons for men’s inactivity loom large self-confidence, and hence their active search economic crisis has sharpened the risk of crowd- for women. Dismissal or for a new job in case of ing out, making stagnating demand the main redundancy (9.5% of all redundancy (O’Cinneide challenge faced by European labour markets. reasons) and own illness 2005; Gosheh Jr. et al Macroeconomic policies should ensure that or disability (11.5%) come Empirical research indicates that 2006). total labour demand is such as to prevent inter- after retirement (46%) and productivity increases with age; generational competition for jobs. early retirement (19.2%) More expensive. Elderly as the main reasons supervisors, conversely, point to workers are generally Local labour market policies targeting individu- for older workers aged a negative relation (Taylor 2001). considered to be more als (active labour market policies) must not be 55-64 to leave their jobs expensive and less pro- implemented in isolation: they should take into or businesses. Experience, stability and reliability ductive. Seniority-based consideration the possible effects on other seem to go under-rated, as is the wage systems can entail generations, and be complemented by labour Early retirement can cover increasing labour costs at market reforms aiming at increasing demand. up discriminatory practices possibility to reduce depletion or older ages (OECD 2006). (Casey and Laczko 1989). obsolescence of skills by training More flexible pay systems Lack of incentives on the (and in particular mov- part of employers to hire and work organisation. ing away from seniority- The Age older workers (the demand based wage systems) side), and lack of incentives might enhance the job Divide – indeed, often, disincentives – for older workers to security and employability of older workers remain at work (supply side) are the main reasons by reducing their relative cost. [2] The EC thus On average, the employment rate of people for the low employment rate of mature workers. seems to advocate finally bringing in more aged 55-64 is half that of the prime working To increase this rate thus means addressing the flexibility throughout the whole life-cycle. One age (25-54). With fa ew notable exceptions, factors affecting the problematic transitions in a should, however, consider the negative income the European countries are still far from the working career - financial disincentives, employers’ effects of these reforms, whose effects may be Stockholm objective (figure 1). Gender is one sin- attitudes, and attractiveness of work - in order to aggravated by more precarious working careers gle important factor in cross-country differences: ensure employability, continuity of employment, during the life cycle. in a number of countries, women have a much and re-entry. lower participation rate at all ages, and a more Less productive? Empirical research indicates discontinuous working career. (However, due to Policy disincentives. Research by the OECD that productivity increases with age; supervisors, economic and social change, inactivity rates have (2005) suggests that there are, embedded in conversely, point to a negative relation (Taylor been rising for men and decreasing for women.) public policies, strong disincentives to remain in 2001). Experience, stability and reliability seem Although 65 is the official age of retirement in the labour market on ageing. High replacement to go under-rated, as is the possibility to reduce most countries, the main reason for inactivity rates may negatively affect the attractiveness depletion or obsolescence of skills by training of working longer. [1] Early and work organisation. Age-related discrimina- Fig. 1 - Employment rates across EU Member States retirement institutions may tion is especially severe for unskilled workers for older workers (55-64) by gender 2008 also negatively affect elderly and for women. Results from the LFS (Labour Tot Male Female participation in more indirect Force Survey) confirm that older people are on ways: by negatively affecting average less educated than younger age groups, United Kingdom Sweden the expected return to training, with large differences across countries. “Indeed Finland generous (as opposed to flex- in many Member States the low employment Slovakia ible) early retirement schemes rate for the age group 55–64 is due to the Slovenia may discourage training par- combination of the high share of older people Romania ticipation by older workers with lower levels of education and the tendency Portugal (Fouarge and Schils 2009). for the less skilled to have lower employment Poland Austria Pension reforms have been rates” (EC 2007: 95). Netherlands carried out in many member Malta states with the primary aim of Training. Far from being narrowed, the skill Hungary increasing the retirement age gap is usually widened by training. It is fairly Lithuania (and/or tightening conditions well established that older workers receive less Latvia and reducing entitlements by training than younger categories, and the less Cyprus switching to funded schemes). skilled older workers receive less training than Italy A number of countries are the more skilled. Poor education and lack of France introducing more flexibility human capital lead to exclusion from learning Spain Greece in the age of retirement and paths in a vicious circle of discrimination in the Ireland in the possibility to combine workplace. Mature people who lose their jobs Estonia pensions and earnings. after decades of repetitive tasks are often unable Germany (including ex-GDR from 1991) to adapt their skills to the new demands. Thus, Denmark Age-related discrimina- firm-level employment practices often prevent Czech Republic tion. Employers seem to older workers from remaining in or rejoining the Bulgaria Belgium prefer investing in young labour market.

European Union (15 countries) 2008. LFS, Eurostat, : ce workers, whose longer time

European Union (27 countries) Sour horizon allows the firm to Reconciliation. Elderly women face even more

0,0 10,0 20,0 30,0 40,0 50,0 60,0 70,0 80,0 recover the cost of new tech- serious barriers than men. Lack of adequate

The URBACT Tribune 25

policies for work-life balance leads to spells of als - e.g., implementation of policies targeting The URBACT Experience inactivity during working life (Simonazzi 2008). training, life-long learning, employment (through Data disaggregated by gender and age show employment centre reform), healthy working The URBACT project on Active Age (led by that mature women are the most penalized in conditions, adaptation of the workplace and Rome), involves nine cities across Europe. The the labour market (figure 1). Moreover, there are work organization to the needs of older work- employment issue is closely intertwined with fewer learning opportunities for women in gen- ers, curbing age discrimination while fostering health, care and social inclusion issues, and thus eral, and for mature women in particular, making reconciliation and entrepreneurship. represents only the first of the themes that will adaptation to labour demand extremely difficult. be discussed at the transnational workshops. When they succeed in re-entering the labour Greater flexibility in retirement, gradual retire- The cities are currently drafting their local action market, it is often at the cost of discrimination, ment, combinations of retirement and work, but plans on employment, in response to their spe- segregation and poor job quality, in terms of also improvement of job quality, may help defer cific needs. Thus, Edinburgh is focusing on wages and job security (Daubas-Letourneux retirement. [6] Strategies to encourage intergen- the promotion of flexible working practices for and Thébaud-Mony, 2003). erational solidarity and the exchange of skills older people, through better work organisation between young and elderly people – by enabling (including work/life balance); the Municipality Health and working conditions. Physical interactions among groups to share experience has established the practice of calling for older strain, poor health and disability, job quality, and recognize tacit knowledge [7], learning people’s opinions when discussing the policy- flexible work organisation and working times platforms [8], coaching makers’ choices. Maribor arrangements can affect elderly people’s attach- [9], tutoring and men- is also focusing on retire- ment to the labour market. The available data toring models [10], new ment, working on poli- signal the importance of work-related health communication channels At the local level, there is a much cies and initiatives aimed problems for older workers. Reorganisation and partnerships [11] may at easing the transition at the work place can adjust the distribution help improve retention by keener awareness of the need for from work to retirement, of tasks in accordance with the older work- firms. Projects have been active involvement of all the actors – for instance by planning ers’ capabilities. Arrangements to withdraw launched to search for post-retirement activities gradually, part time or reduced working hours new solutions for workers target groups as well as local authori- capable of reducing the (possibly supplemented by income support made redundant by firms ties and stakeholders in general. negative economic impact measures) can help in retaining older workers downsizing or re-locate, of retirement. Building in employment. in declining [12] and rural upon a pilot project, [17] areas [13]. Rome will focus on further Economic crisis. Higher labour costs relative developing services for to productivity make the elderly, and especially These various measures need to be harmonized the orientation and advice to 50+ unemployed the low-skilled elderly, extremely vulnerable in in a mainstreamed (integrated) strategy in order workers, on fostering professional re-qualifica- downturns, when they are often encouraged to avoid trade-offs; [14] moreover, their success tion and training, and on the development of to exit the labour market through redundancy is conditional upon the existence of an adequate self-entrepreneurship. Thessaloniki is focus- or early retirement schemes. By making young aggregate demand for labour. ing on strengthening the information between people cheaper and more expendable, labour employers and employees in order to facilitate market deregulation has increased the relative The local level. While financial incentives or the awareness of older workers with respect to cost of elderly workers, who are usually on disincentives (pension schemes, tax wedge, the opportunities offered by the labour market open-ended, regular employment contracts, EPL), as well as passive labour policies, are in terms of training and services. with wage and non-wage costs fixed by national handled at the national levels, the implementa- contracts. Thus, older workers tend to be more tion of active labour policies rests mostly with We cannot report on the experiences and vulnerable in times of recession.[3] While the local authorities. At the local level, there is a projects of all the cities involved because current global crisis is sharpening the trade off much keener awareness of the need for active some of them are still working at this task. between young and old workers in the labour involvement of all the actors – target groups However, they all seem to respond to two market, in the case of older workers transition as well as local authorities and stakeholders common principles: active involvement of into inactivity is often a path of no return (EC in general. Success requires bringing in both the target groups, and consideration for an 2007:77). The effects of the crisis on the older older workers and employers in the implemen- integrated life-course approach to Active workers’ activity rate risk stretching out to the tation of public policies, for instance by work- Ageing, in order to minimise both conflicting longer run and seriously impairing the results ing together on plans aimed at increasing the aims and trade-offs, and in the awareness achieved in times of relatively higher growth. profitability of the mature workforce, or simply that promotion of older-age active citizen- by raising awareness of the potential business ship builds up in the course of the life cycle. benefits deriving from employing older workers This understanding, which is an integral part (Warwick Report 2006). In Germany, for instance, of the URBACT projects, drives the search Setting the incentives right: the government has acted on both the supply for interaction and coordination among the and demand side of labour, by improving older URBACT network participants. In the case of An overview workers’ qualifications and making it profitable “Active Age”, interaction with “My Generation”, of macro for firms to retain older workers. [15] A similar in particular, should lead to a crucial contribu- two-handed approach, acting on both workers’ tion in developing tools and ideas on how to and micro policies qualifications and firms’ policies was adopted engage target groups, and to devise common by the Czech Republic in 2002 [16]. policies to create active transitions in the vari- A wide range of policies within the Active Age ous phases of the life course, while reducing approach have been devised to address the Finally, the various local policies need to be trade-offs. For instance, tackling the problems various factors making for older worker discrimi- coordinated in order to avoid conflicting aims of the different paths of transition from youth nation at the workplace. [4] These policies have across generations or vulnerable target groups. to adulthood - from drop-out back to school, been targeted to the economic system - e.g., Active involvement of target groups and policy from school to work, from juvenile crime into deregulation of the labour market, flexibility coordination are the two principles which have more orderly life – and of transition from adult- measures, pension reforms [5] - and to individu- been adopted by the “Active Age” project. hood to maturity, seniority, and old age, can

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help in finding innovative ways to foster active with wage and tax wedges (Bassanini and Duval 2006). better qualification, employability, and more flexible time citizenship throughout the life course. 3] There seems to be a positive correlation between arrangements. On the other, the employers’ association the employment rate of older workers (both male has published a Guideline for companies explaining how and female) and the rate of growth of the economy. to adjust work tasks to older workers, enhance life-long [4] COM (2006) 571 final of 12/10/2006, The demographic training, plan working time arrangements and build age- Final future of Europe – from challenge to opportunity. mixed teams. See also “Experience works”, the “Regional [5] For more details, see www.oecd.org/els/social/ UK Programme for Unemployed over-45s” launched in Remarks workincentives 2000, targeted the over-45s by assisting those unemployed 6] European Commission 2008, Joint Report on Social to go back into work and those in employment to further National and local policies have been targeted Protection and Social Inclusion. develop their careers . Around 38% of those who received basically to increase the employment rates of [7] Project “Moderniser sans exclure les seniors”, France support have returned to work. the elderly population. These rates are still very www.ec.europa.eu [16] In the “National Programme of Preparation for Ageing” much determined by the national employment [8] www.webu2.upmf-grenoble.fr a number of concrete measures have been introduced for models and by the various welfare regimes, [9] www.ec.europa.eu job retention and higher employment rates among elderly which in turn reflect historical, social and cultural Managing age groups and seniors: conclusions from people. A range of measures have been implemented models. Local policies need to take into account comparative research programs, www.latts.cnrs.fr to prevent age discrimination in work and pay, providing the socio-economic background in which they [10] www.ec.europa.eu older people with retraining opportunities, and promoting are embedded, but, exploiting their proximity to [11] www.ec.europa.eu adaptability and innovation in the workplace in order to target groups, they need to engage them, involve [12] The Walloon government, in collaboration with trade support company competitiveness, facilitate cooperation stakeholders, calling on people to participate unions and the office for vocational training and employment, between governmental bodies and social partners during in the selection and implementation of policies. introduced a restructuring Support Plan to help workers company restructuring, and implement a system of life-long In this process, policy-makers can learn from who lose their jobs. learning for employees. the exchange of experiences and good (and [13] “Clare Life Long Learning Network” addressed the [17] “Over-45” - a pilot Action Plan 2005–2007 promoted bad) practices. l need to provide a LLL curriculum in a rural area of the by the XIV Department of the Rome Municipality – aimed at West coast of Ireland. providing customised services by the Public Employment [14] The new employment guidelines promote both an Services to the population target. The project consisted [1] The OECD study finds a strong negative correlation between integrated approach to advance solidarity between of several steps: identification of institutions well-rooted in employment rates of workers aged 55-64 and the replacement generations, embracing young and female employment, the territory and with in-depth coverage; activation of the rate (that is, the ratio of annual benefits to earnings before and issues of reconciliation and integration of migrants. COL (Labour Orientation Centres) network; formulation retirement), with Mediterranean countries at the higher end. See integrative guidelines no. 18 “Promote a new life cycle of a methodology for analysis of the features and needs [2] It should be noted that, by introducing “flexibility at the approach to work”, COM (2006) 571 final of 12/10/2006, of the over-45; testing and evaluation of the first results. margin”, which falls mostly upon young people and new The demographic future of Europe – from challenge to “Sportello lavoro over-40” - a planning laboratory led by entrants in the labour market, labour market de-regulation has opportunity. COM (2007) 244 final 10/05/2007, Promoting district XVII of the municipality of Rome and promoted by created a competitive advantage for younger, more precarious solidarity between the generations. two association, Associazione Atdal and Lavoro over 40 and expendable workers vis-à-vis older workers, usually on [15] On the one hand, mandatory agreements have been –provided advice to people over-40 with a diploma and an “typical” contractual arrangements, and therefore “burdened” signed with social partners to coordinate actions concerning experience of precarious work.

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Dilemmas of Integrated Area-Based Urban Renewal Programmes

Iván Tosics by Lead Expert of the NODUS Thematic Network

The author thanks Philip Stein for his comments on the first draft of this paper

Urban renewal policies underwent significant manage and improve the interactions changes in Europe in recent decades. With between all three components, in order for some simplification, the following periods deprived areas to have a chance to become a can be distinguished: “normal” part of the settlement pattern. From 1970s: “hard” urban renewal - extensive this statement it follows that disadvantaged physical interventions neighbourhoods need complex interventions 1980s: “soft” urban renewal - efforts to which have to cover not only physical keep the original population in place and social issues but the whole range of 1990s: “integrated urban renewal” - government and governance issues. combining physical, economic and social Thus the “new generation” of integrated interventions area-based urban renewal programs aim at The last decade brought heated debates improving deprived areas through complex about the understanding of the problems and interlinked multi-sectoral interventions. of disadvantaged neighbourhoods and Behind this common understanding, however, about the potential methods to handle there are two sensitive dilemmas which are these problems. Previously, the common heavily debated. understanding was that the problems of disadvantaged neighbourhoods were caused by physical characteristics of the places and hoods are of basic importance. Such interven- tions are needed to correct market failures (capi- the composition of their population. Claude Should tal avoids problematic neighbourhoods) and to Jacquier (see Jacquier 2008) was one of the empower the residents, improving their access Interventions be to mainstream job opportunities and other institu- first to call attention to the role of the crisis Targeted to Deprived tions of the society. of local institutions and their incapacity to Areas or Not? There are many different versions of area-based regulate the interactions between place policies. The most common is determined by a ne of the dilemmas of integrated urban top-down mixture of different types of (physical, (environment), people (social) and institutions renewal is related to the very ration- economic, social) interventions. Another type, (economic and political). According to ale and value of this type of interven- gaining ground in the 2000s, is characterized by Otion. The supporters of area-based attempts to increase the participation of local Jacquier, an integrated programme for interventions argue (Vranken-De Decker-Van residents. One of the best known examples of Nieuwenhuyze, 2003:61) that although general this second type is the Neighbourhood Fund in sustainable urban development has to anti-poverty programmes are essential, direct Berlin. interventions into the most deprived neighbour­-­

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In 1999 Berlin introduced the system of b) to enhance the skills of residents in order to affluent households, leading to better social mix Neighbourhood Funds. On the basis of objective improve their chances of finding a job (Birmingham of local residents. In a later version of this policy indicators the most deprived neighbourhoods of city council organized training for unemployed the aim was modified: “(…) social mix can at least the city are selected. Each of these get access residents to maximise their chances of being offer the opportunity to successful households to to a given amount of money. The decision about employed in a new shopping centre); stay in the neighbourhood. This means that they what to do with this money has to be made by will not have to run up the downward escalator the residents. In practice a jury is established c) to improve access to information (example: and leave the neighbourhood.” (Vranken-De in each of these neighbourhoods, with at least East Manchester, where the municipality ensured Decker-Van Nieuwenhuyze, 2003:61). The pres- 51% of the members selected randomly from access to internet for everyone); ence of successful households in deprived the local residents. Ideas, collected from the neighbourhoods is also important to provide residents, are then judged by the jury which d) to improve transport to enable residents of positive career-routes and aspiration to the makes the final decision. poorer areas to reach opportunities existing future generation. in other areas (example: Docklands light rail There are, however, strong critiques of area system in London). The growing popularity of social mix policies also based policies from wider societal perspec- comes up against the limits of integrated interven- tives. Such territorially targeted approaches “... In the debate about area-based initiatives one tions in particularly deprived neighbourhoods: simply displace problems between different of the views is that area-based initiatives are according to Kahrik (2006), “The lack of social neighbourhoods and do not add to the overall only good when the capital in existing popula- economic and social well-being of the city as major problems of an tions was a constraint on a whole – “they are the equivalent of rearrang- area are related to the empowerment strategies ing the deck chairs of the Titanic”… This is physical characteristics Social mix ideas, if not applied care- which could be addressed the more true as (...) “the causes of the prob- (eg., rundown buildings by social diversity strate- lems and the potential solutions (...) lie outside and/or public spaces). If fully and in combination with other gies (…)” the excluded areas.” (Vranken-De Decker-Van problems are predomi- public interventions, might develop Nieuwenhuyze, 2003:62, quoting Ray Forrest nantly social or related Social mix strategy has and Michael Parkinson). According to this view to employment however, in sharp contradiction with the social been implemented in the problems of the most deprived areas can interventions should not goals of housing policy. Dutch urban renewal pro- not be solved within these areas. Instead, hori- be based on the area. grammes. In this case zontal interventions are needed (reducing pov- This view, however, is in selected deprived erty, increasing the level of education, etc.) and weakened by the fact neighbourhoods some of physical interventions should address larger that horizontal policies the cheap dwellings are territorial areas. quite often do not “reach” the most marginal- demolished and replaced by more comfortable ized groups of society – those living in the most dwellings which are offered to successful exist- Vranken (2008) raises further problems with deprived areas. ing local households, i.e., not only families from area-based interventions. outside the neighbourhood. Needless to say, the dilemma of the rationale “Selecting only areas with the most severe of area-based interventions is not conclusive, The evaluation of such policies (e.g., the Dutch Big problems might imply that areas that are only neither of the opposing views is universally City Policy), however, shows ambiguous results. slightly better off do not receive any attention accepted, and all the opposing arguments According to Musterd-Ostendorf (2008:83) “(…) at all. Second, area-based policies may move raised in the debate are true to a given extent the idea of attracting the better-off to settle in problems from one area to another. Third, by (for each of the arguments it is possible to find disadvantaged neighbourhoods appeared not to focusing only on a few neighbourhoods or dis- concrete cases which “prove” the validity of work”. Another problem is that a long period of tricts, the potential of other parts of the city or the argument). time is needed until real communication develops the metropolitan area may be ignored. Finally, between the different social strata living in the area-based policies may just be chosen because same neighbourhood. of their better visibility – which is a strong argu- ment for politicians – and not because they are How to deal Social mix ideas, if not applied carefully and more appropriate.” in combination with other public interventions, with the one-sided might develop in sharp contradiction with the As an alternative to area-based interventions, social structure social goals of housing policy. A recent case horizontal policies are put forward. These for this can be traced in the four largest Dutch should take the form of public interventions of deprived areas? cities. for the whole urban area, either universally accessible or targeted on the basis of spe- The other dilemma relates to the social composi- These cities apply urban regeneration through cific characteristics (not through selection of tion of residents in deprived areas. According the demolition of some of the worst housing areas). to the recently very fashionable “social mix” stock and the creation of high-value new owner approach the most deprived areas can not occupied housing. The aim is to increase social Some selective examples of such horizontal be improved with long-lasting results unless mix through the creation of a housing mix which policies are the following: a change in the local social structure can be might attract middle and higher income people realised, i.e., unless it becomes more mixed by back to the city, into the new high quality housing a) to give equal opportunities to everyone in replacing a part of the low status residents with built in the previously poor neighbourhoods. For education through schools which are of equal new, higher status ones. this policy there is an investment budget of 1.4 quality everywhere (example: significant efforts billion euros given by the national government made in the Finnish educational system to provide The original version of this idea aimed to achieve a with additional resources from urban authori- equal educational quality throughout the school better mix of different housing categories in poor ties and housing corporations for the period system); neighbourhoods, with the hope that a supply 2005-2009. However, these policies have been of new good quality housing would attract new criticized by analysts: attracting higher-income

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residents by positioning these urban areas in no more than 5% the existing proportion of where both residents and municipality are bound competition with the VINEX locations (large disadvantaged households. Another possible by agreed conventions and obligations in the scale new developments outside the city’s ter- method is to encourage non-disadvantaged initial phases of the process. ritory), the real aim is to increase the tax base, families to move into new housing in disad- which leads at the same time to unacceptable vantaged areas. The social mix strategy can easily become too social consequences. Here “social mix” means “fashionable”, applied without careful analysis of public support is given to those who are already Social mix policies raise many interesting ques- local circumstances and/or leaving important more affluent.. tions. One is the evaluation of the effect of the aspects out of consideration. Recently many population change. The effect of the parachuted large-scale demolition programmes have been Similar arguments are raised by Glynn (2008), disadvantaged households on more affluent launched in lower status neighbourhoods in who calls the social mix oriented city-centre neighbourhoods can be measured for exam- European cities with a reference to social mix regeneration “sugarcoated gentrification”. ple by changes in real estate values in these policies but with little or no regard to the external areas. On the other hand the effect of the para- effects and social consequences. In the case The outcomes of social mix strategies are chuted more affluent families on disadvantaged of Paris, for example, large scale demolition rarely surveyed with empirical analysis. Such neighbourhoods can be demonstrated with the in the banlieues (large prefabricated housing an analysis – still unpublished – was mentioned resulting positive communication-based effects. estates in the outer parts of the city) are heavily in a presentation given by Galster (2009). The Andersson and Musterd (2005), however, argue criticized by social analysts due to the fact that empirical analysis of such policies faces a lot that there are usually no such effects, and if this in the same areas there is a huge shortage of of problems. The first is the definition of “disad- is true, mixing serves only to increase property social housing. There are similar large scale vantaged” which has clearly to be elaborated values in the area, or in other words to offer nice demolitions in Glasgow, Lyon and German cit- in different forms in different countries (income, real estate to middle class families. ies (just to mention a few), together with large race, tenure…). The concept of “social mix” scale investments of many hundreds of millions also has to be defined carefully, referring to Another question raised by these policies is of euros in transport, upgrading public areas, composition (on what basis), concentration (the the justification for the application of social mix and erecting new public buildings. extent or breakdown of mixing), scale (building, policies. This might be different according to neighbourhood, metropolitan level). the type of neighbourhood: it may be more In most cases it is not the physical problems justified in deprived areas where the reason which justify the large urban regeneration According to Galster, taking a “social mix” for the concentration of programmes linked to approach can be valid on the grounds of equity disadvantaged people extensive demolitions, and efficiency, and in terms of who is the ben- is the lack of choice or but economic and social eficiary of the policy. These rationales can be racial discrimination, It also means that to achieve social problems. In some areas surveyed through an analysis of the beneficiary rather than in low-rent or segregation became of the policies: 1) the disadvantaged, 2) the immigrant-receiver areas mix in deprived areas requires a well unbearably high (the La advantaged, or 3) society in general (i.e., both where mixing can destroy planned housing policy, covering the Duchère housing estate of these groups, but not necessarily equally). existing social links with- in Lyon is just an exam- So the evaluation criteria of the effects of social out offering anything bet- whole urban area, and ensuring the ple with 80% social hous- mix policies can be the following: ter. Even political counter- production of sufficient social housing ing), the prestige of these arguments can be raised estates has decreased, Equity criteria: to what extent is the first group against such policies: in less segregated areas. and they have sunk to the winner (improving in absolute sense the well social mix can be con- the bottom of the hous- being of the disadvantaged) sidered as a new form of ing market as a result. In unwelcome institutional most cases demolitions Efficiency criteria: to what extent is the third intervention, especially of technically sound build- group the winner, i.e. positive sum outcomes for ethnic/migrant groups. For example poor ings are clear consequences of earlier mistakes for the society (aggregation of disadvantaged + black households would not want to move into in public policies, regarding economic develop- advantaged), taking both intra and extra neigh- more affluent white neighbourhoods where ment, employment, urban, housing and migration bourhood effects into account they may face hostility and be considered as policies. This means that social mix interventions problem families. On the other hand they would have to be applied in time, before segregation Galster emphasized that social mix policies not want to stay in neighbourhoods with bad is reaching a level which can no longer be might only be efficient within given circum- schools, and little social aspiration. They are “repaired” through application of such cautious stances. If the share of disadvantaged people looking for something else, which is not on the interventions and more drastic measures like in a neighbourhood is below 20%, there is little list of the planners’ ideas offered. [1] demolition need to be considered. need and mixing is likely to have little impact. But if this share is above 40% it is too late in a An additional question raised by these poli- The dilemmas of the social mix approach are sense—the problems are likely too extensive cies is related to methods of selection of the highlighted from a different angle by Vranken for social mix policies to be effective. (These families to be moved out – whether defined as (2008): figures refer to “disadvantaged” as defined by low income or as “harmful” families (the latter the US poverty standard, i.e., these percentages are handled in the UK by the law on anti-social What makes world cities like New York, Paris, are specific to the concept of disadvantaged in behaviour). Similarly the question can be raised or London so attractive is the existence of a that context). On this basis one of the methods in terms of where they should be parachuted, kaleidoscope of ethnic villages. This means that to increase social mix might be to reduce the under which circumstances and to what extent social heterogeneity should not be a target at share of disadvantaged people to 20% in all should the residents of these areas be included the lowest spatial level. Within apartment blocks, neighbourhoods where the existing proportion in the decision-making concerning the rehousing streets and even small neighbourhoods, social is above this threshold. This could mean that initiative. In order to solve this problem, Lyon has heterogeneity is not only hard to realise; it often disadvantaged families from these areas are developed a legal charter, “Greater Lyon Charter creates more problems than it solves and will be “parachuted” to more affluent neighbourhoods, for Rehousing” as a means of trying to resolve self-destructive in the end. Do not try to create but only to the extent that they increase by this problem of inclusion in the decision-making “communities” through physical constructions.

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All of this means that a carefully planned social strategy of the given city and the metropolitan strategy to handle the problems, with the help mix strategy can not exclusively concentrate on region: discussions with the affected residents of locally developed solutions, ensuring the a selected area: besides interventions within the and with all other actors in the broader area integrated approach and involving the local deprived area (demolition of bad and construc- should decide the fate of people, places and stakeholders. At the same time the city-region tion of higher quality housing) interventions in institutions. level is also important to minimize the area other areas are also needed, i.e., the neigh- (spillover, external) effects. bourhoods to which deprived residents are to The joint analysis of the topics of social mix and be moved. It also means that to achieve social of the area-based character of urban renewal All these tasks would need strong government mix in deprived areas requires a well planned interventions leads us to some important on the functional urban area level. The reality housing policy, covering the whole urban area, conclusions. is far from that though, the development of and ensuring the production of sufficient social integrated policies in the city-regions is quite housing in less segregated areas. Urban renewal interventions should never be difficult all over Europe. Both top-down efforts exclusively area-based – even in cases when and bottom-up initiatives are needed to “build Lyon provides an example: according to a pro- most types of interventions concentrate on a up” the much needed financial and regulatory gramme starting in 2001, thousands of housing selected deprived area, it has to be acknowl- functions of the city-regions. units were demolished in Venissieux (a high-rise edged that some types of problems (e.g., employ- housing estate with a very bad reputation), while ment, education, health care) can not be handled National urban policy should also play an impor- a similar number of new social housing units exclusively on the basis of the small area and tant role in making the step forward from limited were built in other areas to create new balance need therefore interventions beyond the area, examples of good integrated area based pro- across the entire Lyon area. This was a quite on a much broader territorial scale. grammes towards more systematic practices. costly strategy for the local government who had In this process practitioners also have a task to buy plots in more expensive areas in order The stronger the socio-spatial segregation of an to act as conspirators (Jacquier) to build in a to be able to provide social housing in such area is, the more “social mix” type of interven- bottom-up way municipal, regional and national “normal”, non-segregated neighbourhoods. tions are needed. However, in order to minimize competencies in their various offices and depart- negative externalities, such interventions should ments, and in the political sense to develop In some countries (e.g., France, Germany) there be planned on a broader territorial base (e.g., both levels of integrated urban development. l are national laws existing either to prescribe a city-region, see Tosics 2007). This also means minimal share of social housing for each set- that the interventions should not only be carried [1] This example has been raised by Phillip Thompson at the tlement or to ensure that a given percentage out within the deprived area and the monitoring International workshop “Planning with/for people. Looking of new housing in each new housing project of the effects should take place for the whole back for the future”. 14-17 June 2009 Technion – Israel above a minimal size should be affordable for of the broader territory. Institute of technology Haifa lower income households. In an optimal scenario both area-based and References While there are debates about social mix in all horizontal (people based) interventions should Andersson, R. & S. Musterd (2005) Area based policies, western countries, this topic is hardly mentioned be decided within the framework of a wider a critical appraisal. Tijdschrift voor Economische en Sociale in post-socialist countries. One of the reasons for urban renewal strategy, covering the whole Geografie, 96, 4, pp.377-389 this difference is the fact that in these countries urban area. Such a strategy should include a Galster, G, 2009: Neighbourhood social mix: theory the large housing estates and inner city areas are longer term perspective about the economic, evidence and implications for policy and planning. not yet as segregated as in many of the western environmental and social aspects of develop- Presentation held at the International workshop “Planning cities. There is also another reason, however. ment of the whole urban area and should create with/for people. Looking back for the future”. 14-17 June In post-socialist countries only very little social the area-based and the horizontal policies for 2009 Technion – Israel Institute of technology Haifa housing exists (stock has been privatised, new interventions on that basis. Glynn, S, 2008: Soft-selling gentrification? In: Urban is not built), thus to find replacement flats for Research and Practice, Vol 1., No 2. July 2008, 164-180 the most excluded is almost impossible and The introduction of area-based urban renewal Jacquier, C. 2008: Cities and territories for urban recycling. integrating them into existing neighbourhoods policies was a very important step 10-15 years Keynote paper for the European Council of the Ministers for is also difficult, due to the strong exclusion ago, enabling the integration of physical, eco- Urban development conference, Marseille, 25 November tendencies in the majority population. nomic and social interventions within the selected 2008 neighbourhood. The growing externalities of Kahrik, A, 2006: tackling social exclusion in European such policies, however, make it necessary to neighbourhoods: experiences and lessons from the NEHOM recognize that to overcome the “area effect”, project. Geoforum 67(1) The link between the integrated approach should be extended Musterd, S. – Ostendorf, W. 2008: Integrated urban to the city-region level, where the areas for renewal in the Netherlands: a critical appraisal. In: Urban the territorial scale and interventions should be selected, NGOs and Research & Practice, Vol 1. No 1. March 2008:78-92 the social character of population groups should be involved in the Tosics, Iván: City-regions in Europe: the potentials and area programmes and the outcomes should be the realities. Town Planning Review Vol. 78, No. 6 2007, renewal interventions monitored. This means a “second integration”: 775-796 local area based actions must be integral parts Vranken, J. 2008: Cities and neighbourhoods in difficulties. From this short overview it turns out that of larger scale, regional development strategies. Some propositions on people, places and policies. Keynote there are no clear answers on the dilemmas These “next generation” integrated policies will paper for the European Council of the Ministers for Urban of urban renewal regarding area-based or also enable the more sophisticated and control- development conference, Marseille, 25 November 2008 horizontal interventions and how much social led use of social mix ideas in urban renewal. Vranken, J – De Decker, P – Van Nieuwenhuyze, I, mix is needed at all. Of course, the level and 2003: Social inclusion, urban governance and sustainability. type of deterioration of an area might give Thus the city-region level has a key role to play: Towards a conceptual framework for the UGIS Research some ideas: urban ghettos should be handled instead of simply applying global ideas and/or Project. UGIS Collection 1. Oases-Garant, Antwerpen- differently from the case of simply marginal – pre-defined indicators, the governance system Apeldoom low rent – areas. However, the final answers of the functional urban area has to identify and to these questions should depend on the understand the local problems and set up the

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METHODS OF GOVERNANCE ACROSS ANY FRAMEWORK City-Region as “Marble Cake”

Tamás M. Horváth by Lead Expert of the Working Group JOINING FORCES

This paper is based on the concept of Joining Forces, formalised originally by Thierry Baert, Lead Partner. Thanks to Peter Ramsden for his comments on the article.

In the theory of fiscal federalism public tasks are divided among different tiers of government at least in two ways. While one is based rigorously on delegation of administrative powers (“layer cake” model), he so-called “layer cake” federalism in behind the overall cooperation processes just the other is a more flexible functional spread central-local relations of public administra- in city-region size. Private and voluntary players of public responsibilities to governmental tion is based on a relatively clear delineation are also involved in common policies. They are Tof providing functions and programmes steering policy options, cooperative actions in and non-governmental bodies, even among different levels of governments. It means the wider meaning of this term. a general responsibility in the field of particular collective and private stakeholders. This tasks however the lower level operates explicitly Apart from intergovernmental and public-private less formalized way of administration, or implicitly within the formal frame of the upper relations, the flexible and dynamic character of level and central authorities. In contrast, “marble functional division has also a third characteris- so called governance, is one of the best cake” federalism [1] is a system devoted to prag- tic feature in city-regions as units that develop methods to manage tasks at city-region matic mixing of tasks and programmes among networking features of co-operation, instead of different levels of government at either local or traditional cooperation only inside the administra- scales which, in fact, always crosscut any state and national levels. This less formalized but tive poles. Network governance [2] is quite open more associative way of managing activities has to cover actions characteristic in a large city-area, existing administrative borders in quite a been spreading for more than a decade in large and furthermore to make linkages for one large changeable way. Provision of local public cities and their wider area in Europe. centre to other similar ones in order to merge either of them in the global competitive economy. functions is shared according to the “marble Furthermore the “marble cake” model is more cake” model in this case. Stakeholders’ tasks complex than pragmatic devolution of functions to a more competent component of governing and interaction among them are divided in a actors. Selecting a particular level, which is sat- Non-Institutional very unique and innovative way in particular isfactory to supply some public needs, would remain in frameworks of public administration Character cities and their surrounding wider areas. as such. However, in the practice, you can face with much wider flexibility, when, for instance, European programmes and projects scrutinized Is this particular marble cake in every-day voluntary or private stakeholders are also involved mainly the territorial framework of the European governing practice delicious enough for in provision, of urban common tasks and these urban system so far. The ESPON [3] in this field are managed well just at a city-region scale. highlighted polycentric development, then delimi- city-regions to try it? The paper is about Local political relations are mostly over the sole tation of functional urban areas and other spatial some examples how specific functions are activities of municipal authorities because power analyses. METREX [4] is a network of practition- relations are spread among the mentioned wider ers concerning with planning and development shared among partner cities and regions range of stakeholders. Intergovernmental, non- at metropolitan levels. The URBACT programme governmental and private involvement in supple- (www.urbact.eu) preferred a more functional view. in Europe. mentary public functions may be well-developed at Nevertheless the URBACT II developed this profile a city region level realizing fruitful opportunities. In to a direction of actions to promote a more integra- order to supply public needs in economy of scale, tive development in different fields of cooperation. motivation of driving forces should be defined It focuses very much on particular functional issues

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and in the frame of the programme some of the ment. (See Box 1 as a brief description about and opportunities. The SRE tasks are mainly of projects deal with especially methodological the model). There is no official regional level a planning, organising and co-ordinating nature. and practical aspects of existing examples in of government in Eindhoven, however the law The task of the Regional Council is for example the flexible “marble cake” cooperation. As a part allows municipalities to work together and create to define town and country planning, an envi- of the programme the working group “JOINING a regional form of government. This voluntary ronmental policy plan and a socio-economic FORCES” [5] found out a more methodological institution is called a region, it does not have policy plan. The implementation is left to the aspect to study governing practice of big cit- a specific separate body but the legal basis is municipalities. However, there are some large- ies and their area. This contribution matters to given to municipalities for cooperation in one or scale regional projects under the control of the collect and systematize more important instru- more specific issues. These types of regions SRE, mainly recreation projects. ments as well as introduce them in practice have statutory policy competences, such as of wider cooperation at any city-region level. economic development, transport and environ- Eindhoven isn’t alone as a knowledge centre. Our working group especially scrutinizes the ment and until the 1st of July 2008 also had spatial Its geographical location was the reason for above mentioned phenomenon in the prac- planning. Sources and capacities of imple- the city to enter into a partnership in 2003 with tice of eight city-regions representing different mentation are realized by directly linked public Leuven in Belgium and Aachen in Germany, countries of the EU. In some cases more than foundations. City-regional connections to other two other knowledge centres “just across the one member state is represented in a particular big urban poles are deployed to enhance their border”. The Eindhoven-Leuven-Aachen triangle city-regional areas. (See the boxes further on) interests with neighbouring countries. These aims to promote and serve as an example for So, the “marble-cake” method in building and have proved to offer flexible capacities in the international and interregional partnerships in maintaining networks becomes more and more field of economic innovation and cooperation the field of knowledge and innovation. important as supplementary practice to territorial based on spatial relations. administrative activities either in member states ELAt, the Eindhoven-Leuven-Aachen triangle, or their municipal and regional tiers especially is a geographical area of high-tech activity in in large metropolitan areas. Box 1 the Dutch, Belgian and German cross-border Planning and Programming in and region. The total ELAt area covers 14,269 square The “marble cake” methods of operation work out of the City-region Eindhoven kilometres, has a population of nearly 5.9 mil- in different frameworks of metropolitan insti- The City Region Eindhoven (SRE) lion, a workforce of 2.9 million and an aggre- tutional design while the model as such is not gate GDP of € 157.5 billion (2005). High-tech, really institutional as a whole. In order to see the knowledge based industries account for a direct context this background should be summarized he city-region Eindhoven is located between share of 20% in the GDP. The driving force of in brief. It arises from the period of metropolitan Tthe economic centres of the Dutch Randstad these industries creates large multiplier effects government, which was conserved later on in conurbation, the Ruhr conurbation of Central on the economy. The estimated R&D spent in cases where the structural basis remained. Germany, Brussels and Antwerp. The region ELAt is four billion euros, representing 2.5% of has 725,000 inhabitants and 32,000 businesses. ELAt’s GDP. According Gorzelak and Smetkowski (2005) [6] The economic structure is characterised by the division of public tasks can be managed on the presence of a high quality industrial base, and a ELAt is a stimulus for and an example of the basis of different models in city and its urban service sector which is continuously undergoing improvement of the knowledge economy in area as follows. steady growth. Key industrial clusters include Europe via cross border and interregional coop- mechatronics, the automotive industry and elec- eration. The impact of the activities within the i. In the complex functional model an elected tronics. New sectors are industrial distribution, ELAt project doesn’t only concern the three urban authority has a wide range of responsibility on environmental technology, medical technology regions (Eindhoven, Leuven, and Aachen) and the whole city-region. It supplies infrastruc- and information technology. Research and devel- the other cities in urban network of NWE, but it tural and social public services and formulates opment activities are particularly prevalent in the will also have an impact on the surrounding areas. policies especially in development, economic region. Of the total amount spent annually on www.sre.nl and environmental issues regularly on the research and development in the Netherlands, basis of integrated development strategies. some 50% goes to the Eindhoven Region. The ii. In the model of selected and most signifi- slogan for the Eindhoven region is therefore cant tasks the elected or nominated authority justifiably “Leading in Technology”. The pres- Another aspect of the “marble cake” practice with general responsibility is limited to some ence of a sound industrial base and high quality derives paradoxically from the “layer cake” of the competencies. Typically this limita- service sector calls for an excellent regional period. In the era of formal metropolitan gov- tion focuses on the remaining development infrastructure. ernment [8] institutional structures could be function at the city-regional level as an entity. typified as follows (Goldsmith, 2001: 328-329): iii. The counselling model neglects any separate The SRE is an inter-municipal cooperative union i. single tier government at city-agglomeration level government level, however mainly strategic plan- in which municipalities cooperate in order to pro- iI. two-tier government, so called federations ning is prepared and implemented by agencies, mote common interests, in other words, govern- in big cities which might be lead by a delegated council of ment by the municipalities for the municipalities. iII. cooperative forms with institutional existing local public authorities. The working area covers 21 municipalities with background. a total population of almost 725,000. It is worth adding to this classification, that the The latter one is represented in our group by latter focuses on methods most clearly, which is The SRE looks after the common interests of the Urban Community of Lille (Lille Métropole adapted many times by the other cities in different the municipalities in the region. For example in Communauté Urbaine - LMCU). LMCU is a statu- clusters mentioned above. “Marble cake” solu- the field of spatial planning, traffic and transport, tory public body consisting of 85 municipalities tions have been more popular since the failure of housing, the environment, recreation and tourism, including the city. The formal legal construc- metropolitan governments in the 1970s. education, health, culture and socio-economic tion of “communauté urbaine” was adopted affairs. The purpose is to bring about a balanced by law in 1966 and two years later institutions Eindhoven City Region [7] is a good example development of the region, in which there are of cooperation around Lille and four other big on the counselling model as well as maximizing rural districts in addition to a clearly defined cities of France were established. Originally this non-institutional instruments in spatial manage- urban district, each with its own set of problems framework served simply cooperation among

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municipalities in agglomerations. These urban Inter-municipal cooperation To eliminate this risk, a European policy of communities have their own budget, may levy Thanks to its expertise, the Urban Community promotion of metropolitan regions could be a taxes, decide on agglomeration-size investments, is constantly striving to favour the development relevant policy response. The growing impor- carry out development and land-use planning. of Lille Metropole. The Urban Community’s tance of the instruments showed by the Lille The main fields of activities are public transport, missions, its uncontested technical know-how and Eindhoven type of examples can have road maintenance, environmental policy. These acquired over many years in the fields of trans- the effect of enhancing people’s appetite to functions were enhanced in 2000 with economic portation, urban ecology, highways, allied with its be involved directly through elected bodies or development, widening of cultural and sport organisational ability help to achieve the objective indirectly through locally elected bodies in influ- infrastructure, social housing, etc. set out in the community programme. encing development of their own wider urban area. The desire to be more competitive in the TGV global economy either for increased growth or Poverty continued throughout the 1960s and in response to crisis is one of the key motiva- Emerging 70s, when the whole region was faced with tions but others will emerge including carbon problems after the decline of the coal, mining reduction and a concern to manage sprawl, external cooperation and textile industries. From the start of the congestion and improve quality of life and the 1980s, the city began to turn itself more towards urban-rural interface. The “marble cake” model In the case of LMCU some of the huge projects the service sector: factories and workshops of governance in city-region scale is a challeng- in public transport, telecommunication and were replaced by offices and services and, in ing combination of different network solutions to development of a techno-pole were very ambi- a certain way, Lille seems to have rediscovered widen large urban capacities without any type tious and successful linking to the policy inten- its medieval role as a merchant city. The Lille- of administrative amalgamation and without tion to become the centre of the new Europe. Paris TGV link in 1993, as well as the creation using traditional bureaucratic instruments. l This was realized as a more efficient strategy of the new Euralille district and the arrival of the than those implemented by some others [9] Eurostar in 1994, have played a big part in the [1] Layer Cake and Marble Cake federalism are originally from the communities established in the same resurrection of the city’s economy. Lille is now terms of American federalism, referring to central- early era. A very much influenced political elite an important crossroad, in the European high- local relationships in the framework of states and the could reach significant results for the region as speed rail network: it lies on the Eurostar line to federal level. This was extended later to relationships a whole. In the 1980s the first metro-line was London and the French TGV network to Paris, of national and local levels in every democratic county, opened, and then Euralille centre was built up, Brussels and other major centres in France such notwithstanding the federal or unitary structure of the country. including the new high-speed train station, etc. as Marseille, Lyon, and Toulouse. In 2004, Lille [2] On democratic network governance see Sorensen and These investments promoted the city region to was designated European Capital of Culture. Torfing, 2007 and Marcussen and Torfing, 2007 be competitive at the international level and gave Source: Site of Lille Tours 2007. [3] www.espon.eu an opportunity to spread the complex area of www.lillemetropole.fr [4] www.eurometrex.org development further on. [5] www.urbact.eu [6] Cited by Kuc-Czajkowska and Sienkiewicz, 2009:33 The story of the TGV transport (see Box 2) is a [7] Partner: Eindhoven City Region (SRE) Harm Martens good example on: flexible but very competent Further examples could be from the field of public , Ab Oosting forms and frameworks of governance in com- services. In most of the metropolitan areas, for [8] Concerning the basis of this classification it is worth to petitiveness. LMCU could not have been suc- instance, solid waste collection and disposal make a difference with other ones which focus more on the big cessful alone. It was an institutional engine of are provided under formal and/or informal co- city itself notwithstanding really on its area. See Szente, 2007. wide scale strategic development which spread operations. Externalities do arise, so the question [9] Biarez, 1997 cited by Goldsmith, 2001: 329 regional coverage of cooperation to wider areas, is whether this is accepted and adressed, and References including cross border, in a complex ongoing if so, within what kind of framework and using Biarez, S. (1997) “Metropolization against metropolitan process. High speed train stations in big cities what methods. In this case we found out division government”, in G. Saez, J-P. Leresche and M. Bassaud made strong initial incentives for the development of municipal shares in providing companies as (eds.) Metropolitan and Cross Frontier Governance. Paris: of the whole urban area. The development is a an instrument of making public influence. L’Harmattan. national one, however. connected lines are in the Goldsmith, M. (2001) “Urban Governance”. In: Paddison, R. city and its region, so exploitation of opportunities In sum, governing actors, methods, processes Handbook of Urban Studies. London: SAGE. need involvement of municipalities, chamber of cannot be presented as simply a municipal Gorzelak, G. and M. Smetkowski (2005) Metropoliia i jej commerce, civil participation in site. or local associative issue. This contemporary region w gospodarce informacyjnej. Warsaw: Scholar. phenomenon is over the horizontal cooperation Kuc-Czajkowska, K.A. and M.W. Sienkiewicz (2009) among municipalities or vertical cooperation “The Problems of the Status of a Capital City: The Case of Box 2 between any different levels of governments. In Warsaw”. International Journal of Public Adminstration in High speed transport particular case functions are spread among a Central and Eastern Europe. No. 1: 25-34. and Lille Metropole wide range of counterparts and territorial area, Marcussen, M. and J. Torfing (2007) Democratic Network stepping over every geographical or administra- Governance in Europe. Basingstoke: Palgrave Macmillan. tive barriers. This approach can mobilise many Ravetz, J. (2000) City-Region 2020. London: Earthscan. Lille Metropole is a Eurometropolis resources. Technological development (case of Shah, A. (1997) “The Reform of Intergovernmental Fiscal of 1.9 million inhabitants Eindhoven) or high speed train (Lille) are neither Relations in Developing and Emerging Market Economies”. working population of 500,000 people traditional nor local or internal functions at all, Policy and Research Series of The World Bank, no. 23. capital of the Nord-Pas de Calais Region, however local actions made very important Washington D. C.: The World Bank. Lille Metropole has 85 muni­cipalities and contributions in order to widen the cooperation. Sorensen, E. and J. Torfing (2007) Theories of Democratic 1.1 million inhabitants The basis of it becomes more and more difficult Network Governance. Basingstoke: Palgrave Macmillan. France’s 4th largest conurbation after Paris, to imagine and describe and is not based on Szente, Z. (2007) “Status of Capital Cities in Europe”. Lyons and Marseilles and 2nd conurbation by administrative areas or methods. However non- International Journal of Public Administration in Central population density administrative instruments have become more and Eastern Europe, no. 1. widespread at this large scale, with some risk weakening the democratic frameworks.

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Design coding and the creative, market and regulatory tyrannies of practice

Professor Matthew Carmona by Lead Expert of the Working Group HOPUS

Design coding is the focus of the HOPUS consortium within the URBACT programme. This article reflects on one of the inspirations for HOPUS, namely the UK pilot programme that evaluated the use and effectiveness of design coding as a design/ development tool. It focuses on the roles and relationships between the different stakeholders in the coding process, and compares the pre-conceptions about coding with actual experiences in use. The article reveals the gulf in professional cultures that impact on the development process. This is underpinned by the continuing struggle between creative, market-driven, and regulatory modes of praxis. The article The Three Tyrannies through their unique professional skill (to design) and professional / technical knowledge. The com- is polemical in that it points the finger at he built environment is a collective endeav- munity only has indirect power through the right approaches that potentially undermine our, influenced by a diversity of stakehold- to complain to those with regulatory authority, ers, each with a role to play in shaping what whom (usually) they elect. the creation of the built environment as a Twe see and experience as the architecture, collective endeavour. It is also propositional urban form, public space and infrastructure that In reality individual development projects will reflect constitutes the urban environment. Each will have different relationships between the stakeholders in that it draws from the evidence-base to their own motivations informing the particular role depending on the relative power positions in each they play in shaping the built environment, and case and in each country. Nevertheless, the idea propose that design coding could, if used these will determine the relative priorities they of conflicting and varied power relationships, and correctly, positively regulate the essentials place on different outcomes: aesthetic, economic, the notion of multiple stakeholder aspirations, can social, environmental or functional. each be understood in terms of the modes of of urbanism, whilst leaving room for design praxis from which they emerge. These boil down creativity and enhanced market value. In a typical development process developers to three distinct traditions – creative, marketdriven, have the real power to shape the built environ- and regulatory – each with a major impact on the HOPUS will help to demonstrate the potential ment though their ability to fund development. built environment as eventually experienced. The public sector has power over some aspects of such methods across Europe. of design through their regulatory powers, whilst At their most extreme, each can be characterised designers have wide ranging responsibility but as a particular form of “professional tyranny” that little real power. Instead, they gain their influence has the potential to impact negatively on the

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design quality of development proposals. The politician proclaiming “we know what we like The revival of design coding word tyranny is favoured because it encapsu- and we like what we know”, or the unbending in England lates a single-minded pursuit of narrow ends in council technocrat determined that “rules are a manner that undermines, or oppresses, the rules”. The tyranny also reflects a concern that Reflecting this history, for a long time, the issue aspirations of others. Although actual practice the public sector’s real power stems from the of design quality was either given lipservice to, is not typically situated at the extremes, there right to say “no” to development proposals via the or actively excluded from the political agenda (as is value in exploring these positions which are series of overlapping regulatory regimes – plan- was the case in England in the 1980s), resulting extensively discussed in the literature and which, ning, building control, conservation, highways in open inter-professional conflict, sub-standard it is contended, to greater or lesser degrees adoption, environmental protection, etc. – whilst design outcomes, and relatively little interference underpin all practice. the power to make positive proposals is limited from above. More recently, driven by the global by the fact that typically it is the private sector movement of design up the political agenda, with access to resources. increasingly local and national administrations have been searching for the right tools through The creative tyranny which to overcome the process-based tyrannies, and deliver better design solutions. The first tyranny results from the fetishing of A zone of conflict design where the image, rather than the inherent and compromise In part this reflects the new positions of archi- value – economic, social or environmental – is tecture and urban design as weapons in the of paramount concern, and where the freedom battle of global and local inter-city competition. The tyrannies represent extremes, perhaps to pursue the creative process is valued above But reflecting this competitive city ethos, atten- even caricatures, but arguably they are also, to all. Such agendas are most closely associated tion and resources have tended to be focused a greater or lesser extent, reflections of realities with the architectural profession, often under a on urban centres, rather than in predominantly that practitioners from whichever side of the guise of rejecting what is sometimes seen as a residential areas, or on housing development. tyranny trinity are repeatedly faced with during further tyranny, that of “context”. Perpetuated Yet it is in these areas where the standard of the development process. They result from by the dominant model of architectural edu- design is often open to greatest criticism. In profoundly different motivations, respectively: cation across Europe, and by the continuing the UK, the need to deliver large new housing peer approval; profit; and a politically defined impact of Modernism, many designers see all allocations whilst avoiding the revolt of suburban view of public interest, but also from very different forms of regulation as limiting their freedom for and rural England, led the Government to review modes of working and associated professional self-expression. the potential of design coding to deliver better knowledge fields, respectively: design; manage- design and a smoother regulatory process. ment / finance; and social / technical expertise. They have long driven practice and debate in the UK (and elsewhere in Europe) whilst the result The market tyranny has often perpetuated profound and ingrained stakeholder conflict within the development Coding, A second tyranny reflects an argument that the process and led to sub-standard development nothing new market knows best, and what sells counts. In solutions. the UK, this argument has been made most Coding of one form or another is nothing new often and most vociferously in connection with At the heart of each is also a different and in England, or elsewhere. Different forms of the speculative housing market, where house- overriding imperative, respectively to achieve regulation of the built environment have occurred builders have long campaigned for a freehand to an innovative design solution (within the given throughout recorded history, with types of cod- use their standard housing designs and layouts constraints – site, budget, brief, etc.), to make a ing used as far back as Roman times. Today, on the basis that they know their market. Thus good return on investment (in order to sustain a many of the development standards used to design quality is perceived by developers as a viable business), and to satisfy a defined range guide the design of buildings and the urban complex mix of factors which include dominant of public policy objectives. As these are often in environment can be described as coding, of economic aspects of supply and demand revolv- opposition to each other, the result will be a three sorts, controlling almost every aspect of the built ing around costs and sales potential – buildability, way tug of war, with the central ground stretched environment. However, most of these are limited standardisation, market assessment, customer thinly within what can be characterised as a zone in their scope and technical in their aspirations feedback – and within which visual or spatial of conflict and compromise (see Fig. 1). and are not generated out of a physical vision or quality is secondary. In this market, architects understanding of a particular place or site. have often been cut out altogether from the Figure 1 : Zone of conflict and compromise development process. The evidence overwhelmingly suggests that cod- ing in the form of non site-specific development Design Business imperative imperative standards is unlikely to provide the answer to delivering better urban design. Moreover, faced The Regulatory Tyranny with a perceived increase in regulation of different types, architects and developers have become For some, the final tyranny, that of regulation, increasingly concerned about the impact this

can be analysed (and challenged) in terms of Zone of is having on their room to manoeuvre; or their the political economy it represents, namely as Conflict and space to deliver, respectively, creative and profit- an attempt to correct market failure. For many Compromise able solutions. The question, therefore, is what regulatory economists, however, no market is a good code and can such a tool be used to failure existed in the first place and standards deliver public interest objectives such as more

and codes simply create barriers to change Policy housing and better urban design, whilst still and innovation. Encapsulating these positions imperative allowing for creative architectural design and and distorting in the process the workings of a enhanced economic value (the preoccupations “natural” market might be the reactionary local of the other two legs in the tyranny trinity)?

The URBACT Tribune Figure 2 : Zone of productive negotiation

Creative Market imperative imperative

Zone of Regulatory Productive imperative Negotiation 36

So do Codes the delivery of tick-box architecture and stand- objective of Government was to streamline hold the answer? ards-based urbanism. planning). However, as pay back for the up-front investment, a streamlined process of applying A second set of critiques focused more on for and obtaining reserved matters consents For Ministers in England, design codes seemed process-related issues with an economic impact (for the detailed design of successive phases of to hold the promise of a new and different on the development process. They concluded the development) was apparent, following the approach. An initial literature review and scop- that design codes would: granting of an initial outline permission for the ing study established that design codes were D. Lead to excessively bureaucratic decision- development as a whole. a distinct form of detailed design guidance that making with less discretion and more paperwork stipulate the three dimensional components of a and delay; The research concluded therefore that – in particular development and how these relate to E. Result in a cost-cutting culture through the appropriate circumstances – design codes one another without establishing the overall out- cutting out of designers from the development are valuable tools to deliver a range of more comes (see doi:10.1016/j.progress.2006.03.008). process; sustainable processes and built development The intention of design codes was to provide F. Result in very restrictive and prescriptive plan- outcomes. However, design codes are just clarity over what constitutes acceptable design ning through which the freedom of the market one possibility amongst a range of detailed quality for a particular site or area, thereby would be curtailed. design guidance options and it is important (theoretically) achieving a level of certainty for to understand where they should and should developers and the local community, and, within not be used. In this regard, codes seem most an appropriate planning framework, helping to valuable when sites possess one or more of the improve the speed of delivery. Used in this way, following characteristics: the intention was to provide a positive statement A new Large sites (or multiple smaller related sites) about the qualities of a particular place. evidence-base that will be built out over a long period of time Sites in multiple ownership As such, design codes were seen as site-spe- During the two years that it ran, the pilot pro- Sites that are likely to be developed by differ- cific tools, typically building upon the design gramme delivered a substantial evidence base ent developers and/or design teams. vision contained in a masterplan, development on which to base informed judgements about the framework or other site or area-based vision. potential or otherwise of design codes. Space This reflects the key benefit of design codes, The codes themselves focus on urban design only permits an overview of key findings here. namely their ability to coordinate the outputs of principles aimed at delivering better quality multiple teams and development phases across places, for example the requirements for streets, large sites in order to realise a coherent design blocks, massing and so forth, but may also cover vision. Design codes can provide an integrating landscape, architectural and building perform- focus through which to bring together the various ance issues such as those aiming to increase Headline findings processes and those involved in them. They do energy efficiency. this because their preparation necessitates the The research revealed that as a particularly engagement of all creative, market and regulative There followed an extensive pilot programme robust form of design guidance, design codes parties early in the development process. The to fully test the potential of design coding, can play a major role in delivering better quality detailed discussions that result help to resolve including the detailed monitoring and evalua- design, and this should be the major motivation issues that otherwise typically cause tensions tion of nineteen case studies across England for opting to use them. They do this by “fixing” later in the process and undermine the quality (see http://www.communities.gov.uk/pub- and delivering the “must have” urban elements of the built outcomes. lications/citiesandregions/designcoding2). that form the common and uniting urban frame- The announcement of work for schemes. However, the research also showed that design the pilot programme codes do not sit in isolation and are certainly brought with it an imme- They also have a significant no panacea for delivering better quality devel- diate and negative reac- The codes themselves focus on urban role to play in delivering a opment. Moreover, if the commitment to their tion in the professional more certain development design principles aimed at delivering production and use is lacking amongst any key press reflecting a range process, and – if properly stakeholders, codes can become a divisive force of reoccurring critiques. better quality places, for example managed – can provide and an expensive waste of resources. These directly attacked the requirements for streets, blocks, the focus around which what the writers saw as teams of professional The research demonstrated that design an attempt to extend massing and so forth, but may also stakeholders can coordi- codes are not without their problems – logis- the tyranny of regulation nate their activities, deliver- cover landscape, architectural and tical, resource, skills and time-based. Just through the introduction ing in the process a more like any other form of detailed design guid- of design coding; and in building performance issues such integrated and consensus ance, if design codes are themselves poorly making the arguments driven development proc- as those aiming to increase energy designed, or inappropriately used, they may directly reflected crea- ess. For this, however, they be as much part of the problem as the solu- tive and market tyranny efficiency. require a significant up- tion. But despite this, evidence from across the perspectives. front investment in time pilot programme suggested that the arguments and resources from all against codes are largely based on a range of Summarised, a first set of critiques parties, although the evidence suggested that common misconceptions with little basis in fact. focused on design outcomes and sug- for commercial interests this was compensated

gested that design codes would: for by the enhanced economic value that better

A. Suffocate the creativity of designers by reduc- design and a stronger sense of place brought

ing their scope to innovate; to the resulting developments. B. Deliver only traditional design solutions through an in-built presumption against con- The research revealed that the use of design temporary design; codes made no discernable difference to the C. Promote formulaic design solutions through length of the formal planning process (a key

The URBACT Tribune Figure 1 : Zone of conflict and compromise

Design Business imperative imperative

Zone of Conflict and Compromise

Policy imperative

37

Figure 2 : Zone of productive negotiation

Rebutting design – establishing the spatial vision (typically a masterplan), coding that vision, and designing each creative Creative Market parcel as they come forward against the code. imperative imperative tyranny critiques

Taking, first, the group of critiques that broadly Zone of reflect a creative tyranny perspective (A to C Regulatory Productive Avoiding a new imperative Negotiation above); far from stifling the creativity of designers, design codes were shown to have the potential regulatory tyranny to increase the creative input into the develop- ment process. Thus whereas much volume This does not mean, however, that codes are house building in the UK has occurred without uniformly prescriptive, restricting in the proc- the input of architects and urban designers, ess the designer and / or developer’s room for design codes and the masterplans to which manoeuvre (a major concern of both creative they relate cannot be prepared without these and market critics). The case studies suggested skills. Moreover, although some design codes that local circumstances and the vision of those Conclusions strongly favour traditional architectural design, responsible for each code’s design will determine many others demonstrate that coding is equally the precise characteristics of design codes. For No one sets out to create poorly laid out, char- suited to deliver innovative contemporary hous- example, the case study code documents var- acterless places, to exclude good designers ing design. ied in length between 25 and 100 pages, and from the residential development process, or whilst some aspects were highly prescriptive (e.g. to prevent developers making a reasonable The research suggested that design codes building lines), others were dealt with far more return on their investment. Despite this, the encourage the delivery of a stronger and more flexibly (e.g. architectural treatments). The extent evidence suggests that too much of what has unified sense of place, including architectural to which codes are capable of modification as been built in the recent past has continued to variety within a theme, but also, critically, they successive phases of a development comes display the former characteristics, whilst the require that developers break away from standard forward is also a matter for local decision, with latter perceptions remain widespread amongst house types and local authorities from crude processes of code review and the use of code affected groups. The extensive testing recently local development standards. They do this by supplements commonly utilised in order to undertaken in England found that site-specific encouraging stakeholders to think together about give greater flexibility between phases and to design codes have great potential to assist each development in its entirety as a unique place, enhance those parts of codes that have proved in overcoming these problems, with potential then fixing this through the codes, rather than as less successful. benefits that include: a series of separate and discordant parts. Better designed development, with less oppo- sition locally, and a more level playing field for developers Overcoming the tyrannies The enhanced economic value that a posi- Rebutting market tive sense of place and better quality design can bring What is universal, is the potential for code pro- tyranny A more certain planning process and an asso- duction to act as a collaborative process, in so ciated more certain climate for investment critiques doing challenging and potentially overcoming the A more coordinated development process types of praxis that underpin the three tyrannies. built on consensus instead of conflict. This integration of activity extends to the sec- Thus the pilot programme revealed that coding ond set of critiques (D to F above) that broadly brings together a wide range of individuals and The findings suggest that in regulating future reflect a market tyranny perspective. Here the organisations with a part to play in delivering urban development, design coding does not research revealed that rather than adding to and development. stifle the potential for creativity and value gen- complicating the bureaucratic burden, if used eration, and may even enhance these critical correctly, codes can clarify regulatory processes An early and vital role of any coding process will contributions to place-making. This is because, and reduce the uncertainly faced by developers. therefore be to put together the right team with if used correctly, codes allow the essentials of In part this is because codes also reduce the the right skills and resources and commitment good urbanism to be regulated, raising market discretion available to regulators by establishing to the use of a coded approach. Experience value in the process whilst still leaving room for and tying down the critical design components shows that this process actively avoids selec- design creativity. of schemes well in advance of detailed planning tion of stakeholders who are stuck in the sorts applications being received. In turn, this consid- of confrontational mindsets discussed above. In examining the potential of different erable investment up-front in the design process Instead, stakeholders were selected who were forms of design coding across Europe, ensures that far from representing cost-cutting willing and able to negotiate their role and con- HOPUS will attempt to determine the use devices, design codes cannot be prepared with- tributions to the development process within the and value of such tools in the hugely dif­ out a significant injection of design time, skills confines established by the code. In this regard, ferent design, development and regula­ and resources early in the process alongside design codes seemed to establish a zone within tory contexts that make up the European the positive engagement of key stakeholders. which productive negotiation (rather than com- Union. Discussions through HOPUS have As such they add to, rather than reduce, the promise) could occur, internalising this within the revealed that many European countries overall design input into schemes, and require development team, rather than externalising it as face the same sorts of practice-based additional resources to fund this. open conflict. Effectively tyranny had been sub- tyrannies that have predominated in the stituted with understanding (at least in part) and UK. It is hoped that the project will be able In fact design codes require the exercise of a desire to address collective aspirations (Fig. 2). to provide some practical advise about if advanced design skills throughout the process and where design coding should be used, of their preparation and use, and unlike other and about how the use of such tools can processes of development, coding distributes be optimised across Europe. l the creative input across three distinct phases of

The URBACT Tribune 38

Urban knowledge economies affected by the crisis?

Willem van Winden by Lead Expert, REDIS Thematic Network

How does the economic crisis affect the development of cities towards “knowledge cities”? This paper discusses the impact of the crisis on the knowledge economy in general, and the development of new “science districts” in particular. It builds on the experience of cities involved in the REDIS-network [1]. REDIS focuses on the development of science quarters in cities.

Recalling the basic drivers of urban economic There are signs that the emerging knowledge growth economy has reinforced the role of cities in the economy. After a long period of urban decline, n turbulent times of crisis and recession, it the end of the 1980s marked the beginning of a makes sense to recall the basic drivers of remarkable revival of urban areas in Europe and economic growth. It is clear for some dec- the US, and this tendency coincides with the Iades now that economic growth does not emergence of the knowledge-based economy. only come from “traditional” production factors The strong knowledge infrastructure of many cities (land, labour and capital). Rather, technological has turned into a key economic asset. Moreover, progress and innovation are key drivers of growth. the diversity (of people, firms and cultures) so typi- Governments and companies around the world cal for urban regions constitutes a fertile ground are aware of this, and have invested heavily in for new ideas and innovations. The diffusion research and development (R&D), knowledge of new knowledge and technology is faster in infrastructure and knowledge management. The urban areas, thanks to the density and physical annual global budget devoted to R&D currently concentration of large numbers of knowledge exceeds one trillion US dollars [2]. workers and knowledge-based firms [3].

The URBACT Tribune 39

Planning for the knowledge The City of Newcastle with high R&D investments (examples are Finland, economy Sweden, and Germany). Their governments generally consider the financial crisis as an he city of Newcastle, UK (REDIS-partner) is opportunity for reforms that strengthen R&D Cities throughout Europe deploy a variety of another fine example. Over the last years, the and innovation, and the development and use instruments to boost their knowledge economy. T city has already successfully transformed its of “green” technologies and eco-innovation. On They make policies to attract talent, to reduce industrial image, through heavy investments in the other side, there are countries with low R&D school drop out rates, to develop knowledge culture and flagship architecture. The city’s next investments. In their response to the crisis, they clusters, facilitate knowledge transfer between ambition is to become a significant “city of knowl- appear to only marginally refer to research and universities and companies, and to promote edge” in the UK. Among other things, the city is innovation stimulation measures. In the longer entrepreneurship. Several cities have invested in developing a large “science quarter” at a former run, these different policy responses may forge a landmark architecture and other “grand projects” brewery site, in the city centre. To realise this growing divide between EU countries, with tech- to underline their ambitions as knowledge city. ambition, the City Council works together with nologically leading countries taking a further lead, The city of Valencia (Spain) for example created the University of Newcastle and ONE Northeast, and a group of falling behind countries adjusting a futuristic “city of arts and sciences” (designed the regional development company for the their specialisation towards less technologically by Calatrava), a multimillion euro investment Northeast of England. The partners have the advanced goods and services. presenting Valencia as a knowledge center of intention to transform the brewery site into a the 21st century [4]. new mixed-use city centre quarter, focused on The impact of the crisis varies among European attracting and developing world-class knowledge countries, but also within countries, not every An increasing number of cities invest in urban and business in science and technology. See city is equally affected by the economic crisis. “knowledge quarters” or “creative districts”, and www.newcastlesciencecity.com There are signs that industrial regions (includ- develop them as integrated parts of the urban ing those specialised in high-tech industry) are fabric. This brings knowledge back to the heart particularly hard hit, due to their strong export of cities. The trend reflects the growing conviction orientation and the collapse of world trade. A of policy makers that innovation and knowledge creation is an iterative and interactive process that thrives in diverse and mixed environments. There is a sharp contrast with the 1970s and Impact of 1980s, when knowledge and science parks the crisis: were typically created at “greenfield” suburban locations, outside the core city. observations and expectations The shift from the isolated campus model to integrated approaches has brought knowledge- How will the current economic crisis affect the based development to the heart of Europe’s transition process of cities towards a knowledge cities. New ideas about the significance of user economy? (read, citizen) involvement in innovation reinforce this tendency. There are some good reasons for optimism. Public spending on science, research and higher edu- The City of Dortmund cation knowledge will probably not decrease on the short run. Some countries, including France and Germany, even announced to increase R&D spending as part of the economic rescue pack- he city of Dortmund exemplifies this shift from age. In that sense, the knowledge sector is robust. isolation to integration. Like much of the Ruhr T Changes are under way, however. The recession is area, this former industrial powerhouse faced fuelling debates on the nature of R&D investment. recent UK report shows that workforce skills massive economic decline due to deindustri- Many argue not just to augment expenditures largely determine how well cities are perform- alisation. Since the 1980s, knowledge based but to spend resources more economically, and ing in the recession and that most of the worst development has been the cornerstone of local develop “smart specialisations”, not only on the hotspots are repeat casualties from previous economic policy. Back in the 1980s and 1990s, national but also on the urban level. There are recessions. “High skills cities, places with highly the city developed a mono functional technology strong voices to focus public R&D spending even qualified populations such as Cambridge, York park, physically remote from the city. Currently, more on pressing issues such as addressing and Oxford, have fared better compared to areas the city is developing a second, “new genera- climate change and moving to more sustainable with a high proportion of residents with no or tion” knowledge hotspot on the Phoenix site, forms of energy. low qualifications, such as Stoke or Rochdale a former industrial site near the city centre. In which have been much harder hit” (http://blog. contrast to the first technology park, this one is Inevitably, in the not-so-distant future, govern- taragana.com). In The Netherlands, similar ten- being redeveloped as a mixed-use area, includ- ments will have to raise taxes or cut expenditures dencies can be observed. Industrial regions in ing residential functions, leisure, and all sorts to reduce the debts that they are now accumu- the Southeast of the Netherlands suffer more of amenities. Moreover, to give it identity, the lating. This constitutes a possible threat to large than knowledge and service based cities like development is explicitly linked to the industrial knowledge based programmes. There may be a Amsterdam. This early evidence suggests that past of the area. Parts of the industrial heritage mounting societal and political pressure to spend diversified knowledge cities will emerge stronger are preserved and reconverted. This attempt tax euro’s on social policy rather than “fancy” or out of the crisis than industrial regions, but to preserve or create “identity” is typical for elitist knowledge economy projects. this conclusion could be too early. Industrial post-modern knowledge locations. More info regions are hit harder because of their export on www.phoenixdortmund.de Luc Soete, innovation professor at Maastricht orientation, and a rebounding world economy University, identifies a gap between EU countries may boost their exports and bring them back in this respect. On one side, there are countries with a vengeance.

The URBACT Tribune 40

There are some positive aspects of this reces- of the currency. 45% of entrepreneurs in the can be observed. First, the impact is different sion, too. First, the recession may give a boost region claim that economic slowdown does on different types of cities. There are some to R&D co-operation between the public and not influence their businesses at all. The rest of indications that diversified cities with a strong the private sector. There are no strong signs them say the situation is unfavorable. The most knowledge base are outperforming industrial yet of private sector cuts in innovation efforts visible results of crisis are growing unemploy- cities, but the effect could be temporary. It and expenditure, but that might change when ment rates (from 7,9% to 10,4% in the first half is simply too early to tell what the structural the recession lasts. In any case, private firms of 2009) and a growing city budget deficit (data effects of the crisis will be. Second, it is clear are keen to save costs and may be interested received from City of Bialystok). that national policy responses matter for cities, in cooperation with public science. This could and here we see major differences between EU have positive long-term effects, and contribute to The city of Bialystok is developing a science member states. Overall, investments in public regional types of “smart specialisation”. Moreover, park, but it is mainly financed with EU funding. R&D will not decline, but there is a divide in the crisis is a catalyst for entrepreneurship. Many The city even experiences “benefits” from the the EU between countries that explicitly boost employees start their own business. crisis: companies offering services propose knowledge investments (those are the countries lower prices in public tenders. The city allocated that already spend much on R&D) and those almost PLN 3 mln (approx.750,000EUR) for that do not. The effects will be strongly manifest architectural design and site development for the on the urban level, because it is in cities where Effects on the development science park. As many as 23 bidders stood for the lion’s share of R&D takes place. the tender. In similar tenders organized before of urban there were regularly only a handful. And the final On the positive side, the crisis may bring public “knowledge quarters” price the city paid for the project is about PLN 1 research and private enterprise closer to each mln (approx.250,000EUR). The same situation other. Firms facing economic difficulties have holds for other public investments like roads, an interest to turn to universities (or other public The REDIS network [5] (under the URBACT II public transport, etc. research institutes) to keep their innovation train programme) unites eight European cities with running. This may have lasting effects, and local advanced plans to develop “knowledge quar- In Magdeburg, the situation is also rather stable; governments are wise to lend a helping hand. ters”: special areas or quarters in the city where the public investments in the city’s “science port” knowledge economy is central. What is the will continue as planned, and there are no signs The REDIS project unites cities that are making impact of the current crisis on these develop- of declining interest from the private sector. On urban plans for knowledge-based development. ments? What trends do we observe? the longer run, there is a threat of budget cuts Here we see a division. On the one hand, there for universities. The Land Sachsen-Anhalt is are public sector dominated (and financed) In some cities, declining land prices and real discussing the budget for 2010-2011; expendi- plans for science parks and knowledge quarters. estate values have a deep impact on the value tures have to be cut by about l 3 billion, and These developments are hardly affected by the proposition of newly planned knowledge quar- universities will have to take their share. This crisis so far, as they mainly rely on public fund- ters. Private investors are faced with higher may affect Magdeburg University as well, with ing (national, regional and EU) that was secured capital costs while expected revenues are on negative impacts on the citiy’s ambition for the and earmarked before the crisis broke out. On the decline. Developers are inclined to opt for science port. the other hand, some cities have development cheaper solutions (higher density building, less projects in which the private sector is heavily luxury, “downsized” plans for public space and The city of Aarhus is developing the “IT city of involved as co-investor. Here, we see signifi- infrastructures). One of the key questions is Katrinebjerg”. The area is home of companies, cant downsizing and delay effects: investors whether sustainability issues (investing in green research institutes and an incubator for inno- face lower land and real estate values, higher technology, energy saving buildings, new ways vative firms, all active in ICT. The effects of the capital costs or limited access to capital, and of energy supply) will suffer from the crisis. In crisis are modest so far, with some firms facing lower expected revenues. The value proposition the REDIS-network, we see that some large- a decline in turnover and profitability. Niels Chr. of these projects has radically changed for the scale knowledge projects are delayed; also, the Sidenius, Managing Director of INCUBA Science worse, in a very short period. There is a tendency envisioned participation of the private sector is Park comments on an emerging lack of funding of the public sector taking over the role of the abandoned or downscaled. In Newcastle, initially and risk capital, due to the credit crunch: “Firms private sector as driver of the developments. the partners were looking to procure a private experience more difficulty to find funding, in sector developer to take forward the develop- particular bio-tech and life-science companies. In the coming year, the members of the REDIS ment of Science Central knowledge quarter. One of the reasons is that a number of business network will continue to reflect and act on Due to the economic crisis, the delivery of the angels have lost a lot of money on property the development of knowledge quarters. For site has changed. The city development com- assets”. There is some delay in the implementa- those interested in the network’s activities, we pany (1NG) is now managing the site on behalf tion of projects, but this is not a general trend. refer to the website: www.urbact.eu l of the land owners. A phased approach to the Importantly, the market for office space is under development of the site is to be implemented pressure, which undermines the area-based [1] http://urbact.eu/en/projects/innovation-creativity/redis/ now. There is also more focus on using public concept to some extent: “It is easy for many of homepage/ sector funding in the short term to invest in the our companies (and potential tenants) to find [2] 2009 Global E&D funding forecast infrastructure for the site to provide the right alternative locations we therefore have to focus [3] See Van Winden, W. (2006), Globalisation and conditions to attract private sector developers. even more on the additional, more science park Urban Competitiveness: Challenges for Different specific facilities and services”. Types of Urban Regions, in OECD (2006), Competitive In many cities, the development of new knowl- Cities in the Global Economy, OECD Publishing, Paris edge quarters does not depend much on the [4] http://www.spanish-living.com/regional/Valencia_city- private sector but rather on investments from uni- of-arts-and-science.php versities, public authorities or EU funds. Here, we [5] http://urbact.eu/en/projects/innovation-creativity/redis/ see little if any impact of the crisis. In Bialystok, Summing up homepage/ one of REDIS partner cities, the impact of the crisis is not severely felt. In general, Poland is less The economic transition of cities towards knowl- affected by the crisis, thanks to strong consumer edge-based economies will continue during demand, stable EU funding and a devaluation and after the crisis. Some effects of the crisis

The URBACT Tribune URBACT II PROJECTS

PROJECTS ISSUES ADDRESSED LEAD PARTNERS

Cities, Engines of Economic Development & Job Creation

Creative clusters in low density urban areas (diversifying local economic base; using cultural activities as catalysts for development; Creative Clusters Obidos - PT setting up physical, social, educational environment to attract and retain talented people in «the creative city»; etc.)

SMEs and local economic development (support systems for small scale SMEs and innovative/ high-tech projects; Fin Urb Act Aachen - DE pathways to partnerships between cities and Managing Authorities; communication on support schemes, etc.)

OPENCITIES Opening cities to build-up, attract and retain human capital (identifying factors of «openness» and their impact on city attractive- Belfast - UK (Fast Track Label) ness; increasing and promoting city openness to attract international migrants, etc.)

Science quarters and urban development (integrated policies for the development of science/ knowledge quarters; REDIS Magdeburg - DE multi-level governance issues; etc.)

Strengthening endogenous potential of urban poles (improving local governance of innovation; promoting triple helix partnerships RunUp Gateshead - UK for local economic development; setting conditions for the stimulation of knowledge-based activities, etc.)

Traditional industries and innovation (strengthening local industries and promoting innovation in the ceramics sector; UNIC (Fast Track Label) Limoges - FR promoting ceramics traditions as a driver to urban renewal; valorising cultural and industrial heritage, etc.)

URBAMECO (Pilot Fast Track Regeneration of deprived areas and city-wide/ regional growth and competitiveness (fostering economic growth opportunities; Grand Lyon - FR Network - completed) integrated neighbourhood development plans; local partnerships and involvement of local communities, etc.)

Urban incubators for social enterprises (fostering inclusive development policies; consolidating inter-institutional partnerships; Urban N.O.S.E. Gela - IT connecting local authorities and the Third sector, etc.)

Women at work (improving working conditions, promoting/ supporting entrepreneurship, fostering employment in NTIC WEED Celje - SI and scientific/ knowledge-based sectors, etc.)

Social Inclusion & Governance

Strategies for cities with an ageing population (supporting employment; improving long-term and home-based care services; Active A.G.E. fighting social exclusion and insecurity; fostering inter-generational solidarity as a driver for elderly-sensitive urban development policies; Roma - IT assessing the impact of ageing in urban planning; etc.) Building Healthy Urban factors influencing health (indicators and criteria for a healthy sustainable urban development; healthy sustainable lifestyles; Torino - IT Communities (Fast Track Label) use of structural funds in addressing health issues)

Urban sprawl and development of hinterlands (planning tools and financial schemes for a sustainable city-hinterland development; CityRegions.Net Graz –AT cooperation at regional level)

Approaches to strengthening social cohesion in neighbourhoods (area-based and integrated approaches to neighbourhood CoNet Berlin - DE development; new governance structures for the integration of socio-cultural, educational and economic dimensions, etc.)

JESSICA and Urban Development Funds (design and implementation of funding schemes; territorial evaluation and diagnoses; Regione JESSICA 4 Cities city projects and Operational Programmes, etc.) Toscana - IT

Strategy and governance at city-region scale (spatial planning; mobility and transports; environmental issues; develppment of Joining Forces Lille Metropole - FR knowledge-based economies; attractiveness and competitiveness; social inclusion, participation, empowerment; governance mechanisms, etc.) Implementing integrated sustainable urban development according to the Leipzig Charter (tools for the definition, implementation, LC-Facil monitoring of integrated policies for urban development; testing the «Sustainable cities Reference Framework» developed Leipzig - DE by the Group of Member States and Institutions) MILE (Pilot Fast Track Migration and integration in Operational programmes (enterprise development for ethnic minorities and active inclusion Venezia - IT Network - completed) in the labor market;·cultural diversity and social cohesion;· access to key services, etc.)

Promoting the positive potential of young people in cities (transforming passivity and alienation into positive personal My Generation Rotterdam - NL and professional aspirations; fostering active transitions from education to work; holistic coordination of youth related initiatives, etc.)

Governance in integrated urban development (long-term integrated policies and financial planning for sustainable regeneration RegGov (Fast Track Label) Duisburg - DE of deprived areas; monitoring progress and achievements; sustainable partnerships; city-region governance; neighbourhoods at risk, etc.)

Santiago Suite Sustainable housing provision (economic viability and social mix; environmental quality standards, etc.) de Compostela - ES

Cities & Integrated, Sustainable Development

Cruise Traffic and Urban Regeneration (physical and environmental regeneration of port-areas; cruise traffic and port-heritage C.T.U.R. Napoli - IT as drivers to economic and social development; planning and management of cruise development, etc.) Mission EGTC Sustainable development of cross-border agglomerations (local and multi-level governance systems) Opérationnelle Transfrontalière - FR Cultural heritage and urban development (revitalization policies; protection of visual integrity; integrated systems HerO (Fast Track Label) Regensburg - DE for the management of cultural heritage) University Design coding for sustainable housing stock (governance for the implementation of design coding; quality standards HOPUS La Sapienza, for urban and architectural design, etc.) Roma - IT University LUMASEC Sustainable land use management (managing urban sprawl; fostering attractiveness; strategies for local decision-makers, etc.) of Karlsruhe - DE

City model for intermediate/ peripheral metropolitan cities (managing urban identity; governance issues; fighting urban L’Hospitalet NeT-TOPIC fragmentation; regeneration of brownfields, military sites, etc.; transforming a mono-functional city into a multifunctional city) de Llobregat - ES

Spatial planning and urban regeneration (improving coordination of area-based regeneration and regional/ metropolitan planning; Generalitat Nodus integrated policies, etc.) de Catalunya - ES

Regeneration of abandoned military sites (socio-economic regeneration of abandoned military heritage sites as a driver REPAIR Medway - UK for sustainable urban development) THE URBACT II PARTNERS

www.urbact.eu

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