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2016 Dream Commitment: Smart Communities

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2016 Dream Commitment: Smart Communities 2016 Dream Commitment: Smart Communities A report from Innovation Norway on the challenges and opportunities within the area of opportunity that is smart communities. i Innovation Norway Postboks 448 Sentrum, 0104 Oslo, Norway www.innovasjonnorge.no www.drømmeløftet.no Original Norwegian language version published 28 September 2016 Front page photo: Choreograph/Thinkstock Editors Ellen Rakneberg Olav Bardalen Innovation Norway Contributors Anita Krohn Traaseth Arne Borgersen Frank Langva Gaute Hagerup Geir Ove Hansen Guri Bjønnes Hotvedt Hilde Hukkelberg Håkon Nyhus Inger Solberg Karin Ammerud Sørensen Leif Knudsen Line Magnussen Mona Skaret Per Annar Lilleng Per Christer Lund Per Melchior Koch Rodin Lie Tina Nordlander Tor Mühlbradt A massive thank you to everyone else who contributed to the work on the report, including Asplan Viak, the Municipality of Bodø, the Brønnøysund Registers, Bærum Smart Cities, Cisco, DOGA, Enova SF, eSmart Systems AS, the Research Council of Norway, Forsvarsbygg, the Municipality of Gjesdal, the Municipality of Hvaler, IKT Norge, Insam AS, the Norwegian Ministry of Local Government and Regional Development, Microsoft, Nordic Edge , Smart Innovation Østfold, the Norwegian Smart Grid Center, the Municipality of Oslo, OREEC , Sintef Byggforsk, Sintef Energi, Snøhetta, the Municipality of Stavanger, Tekna, the Municipality of Trondheim, Vannklyngen and more besides. ii Dream Commitment: A voluntary initiative on innovation policy In 2015, Innovation Norway and its partners arranged 84 open debates in Norway and abroad. The initiative attracted more than 3500 people from industry and the community to debate the future of the country. We also received vast amounts of written input. Key issues were: How can Norway prepare for a time in which the importance of the oil and gas industry will decrease, with regard to both business activities and earnings? All essential challenges also represent an opportunity for business development, conquest of new markets and new economic growth. How can Norwegian industry help solve major global and national challenges? Six areas of opportunity were identified as part of the Dream Commitment. These are areas that span existing industries and sectors and where Norwegian expertise, technology and commodities meet global challenges and new market opportunities. The six areas are: • Marine environment • Clean energy • Bioeconomy • Healthcare and welfare • Smart communities • Creative industries and tourism Can we replace lost export earnings by developing new, internationally competitive and knowledge- based industries? This report looks at the challenges and opportunities linked to the area of opportunity that is smart communities. 1 Summary of recommendations More than half of the global population currently lives in cities and urbanisation is continuing. There is a need for smarter solutions to ensure that cities remain attractive places to live and work and to ensure efficient and sustainable utilisation of resources. This necessitates excellent solutions for transport and communication, consumption of energy and water, waste management, security, welfare services, planning and decision-making processes. Many cities around the world are currently struggling with pollution, lack of social services, too few homes and homes of a poor standard as well as inadequate infrastructure. The UN's 17 Sustainable Development Goals identify the challenges that must be resolved in a sustainable society. The EU's seven major societal challenges also does this. These challenges also point the way to new market opportunities, particularly within smart cities and smart communities in general. Achieving smart solutions in urban and societal development could contribute to achieving several of the sustainability goals. Public-private sector interaction with residents Close interaction between the public and private sector is an essential requirement for realising the opportunities associated with smart communities. The development of smart communities is interesting to both national and international authorities as it provides the opportunity to harness an unreleased service innovation potential, among other things by increasing the quality of services to users and, not least, streamlining operations. Norway has developed a welfare society based on an oil and gas industry that will become less important in the future. At the same time, Norway has excellent conditions in place to achieve the ambition to develop smart communities. Several major international players look at Norway as a country that can be suitable as a test bed and to pilot solutions. Such advantages may be linked to the population being early adopters of new solutions, having excellent infrastructure, technological advantages and well-developed public services. The key barrier is inadequate and not very comprehensive strategies on the part of the authorities. Norway has extensive positive experiences of collaboration and partnership between the public and private sector, something that the ongoing initiative to develop smart communities can also benefit from. Common denominators will be societal functions in which public authorities supply services for which digitisation technologies allow for smart solutions. The development of smart communities cannot be driven only by technological development. Smart communities require smart residents and the behaviour and needs of smart residents are visualised through compilation and analysis of big data. The data must be analysed in real time, i.e. in such a way that it provides a meaningful expression of the situation at the time of the data being received. This is in order to give the residents a say when it comes to the development of smart communities. Trisected baseline Smart communities utilise areas of opportunity that can be measured using a trisected baseline: economy, environment and society. In order to succeed with a public-private sector collaboration, it must be economically profitable to develop and operate solutions in smart communities, as the initiatives will otherwise be short-term only. The initiatives must have a sustainable quality that reduces the climate and environmental issues that we currently experience in urban areas. And last but not least, smart cities must facilitate human enjoyment. Smart communities must be good places for residents to live. 2 Smart communities provide new business opportunities. The areas of opportunity span traditional industries, disciplines, technologies and policy areas. There is major global awareness of the need to develop cities and societies with more sustainable and efficient solutions. According to the analysis institute Frost & Sullivan, the global smart city market now represents a market opportunity exceeding NOK 13,000 billion over the next five years. This makes cities attractive centres for innovation, creativity and economic development. Innovation Norway wishes to play an active part as a facilitator and supporter of innovation and business development aimed at smart communities. Of several initiatives, the following must be emphasised: 1. First and foremost, the development of smart cities and societies must increase quality and reduce costs for public services. At the same time, focus on the development of smart cities and societies must promote solutions that deliver on a trisected baseline: economy, environment and society. Smart cities and societies can comprise anything from smart buildings, smart transport, smart healthcare, smart controls, etc. – areas of responsibility that are currently split across several different ministries. We need a more centralised effort to realise the ambitions to implement smart cities and societies. Innovation Norway recommends that authorities assign a single ministry the overall, coordinating role to implement a national direction and associated goals and action plans for the development of smart cities and societies. 2. Technology and data represent some of the foundations for the development of smart cities and societies. The public sector generates vast quantities of data that are extremely valuable if they are efficiently made available for the development of new services, products and business models for the development of smart cities and societies. Legislation and framework conditions must be developed so that we can open up commercial use of public data, while also complying with requirements relating to data security and privacy. Innovation Norway recommends a common national platform for the exchange of data across sectors and industries, for which the Brønnøysund Registers and the Agency for Public Management and eGovernment (Difi) should take coordination responsibility. The stakeholders must take shared responsibility for privacy and information security and legislation must be adapted for such exchange of data. 3. The well-developed Nordic collaboration is an essential platform for the development of Norway's commitment and export of knowledge and solutions within smart cities and societies, internationally. The Nordic countries should collaborate more to develop complete, Nordic system solutions and increase their shared, international visibility. Innovation Norway will contribute to ensuring that smart cities and societies become a joint area of development in the Nordic partnership, so that international companies view the Nordic region as the most attractive development/test venue for smart cities and societies. 4. If we are to fulfil the possibilities
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