Best Practices Sustainable Cities

Innovative and
Sustainable Cities
Best Practices in
Competitiveness Strategy
2016 1
Innovative and Sustainable Cities
Best Practices in Competitiveness Strategy
COPYRIGHT 2016 Global Federation of Competitiveness Councils
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Innovative and
Sustainable Cities
Best Practices in
Competitiveness Strategy
2016 1
Global Federation of Competitiveness Councils Innovative and Sustainable Cities
CHAIRMANS LETTER
On behalf of the board of directors and members of the Global

Federation of Competitiveness Councils (GFCC), I am pleased
to present the 2016 report, Innovative and Sustainable Cities:
Best Practices in Competitiveness Strategy.
When the GFCC was formed almost seven years ago, it was
predicated on the belief that sharing best practices among
national competitiveness organizations and among nations
would provide benefit to all. With the release of this years
report, we have again put that belief into practice and created
what we hope will be a useful tool for competitiveness organi-
zations and initiatives around the world.
GFCC members understand more than anyone that the nexus
of sustainability, innovation, national competitiveness and eco-
nomic prosperity can manifest into a higher standard of living
for all.
It is the mission of the GFCC to actively promote debate and
dialogue, competition and collaboration, and innovation above
all else. This years Best Practices is the first to include cases
from our university members, reflecting their increasing partic-
ipation with the GFCC. In this years report, we also highlight
outstanding examples of competitive cities from six countries
from all parts of the world: Brazil, Canada, Ecuador, Korea,
Saudi Arabia and the United States.
Best Practices in Competitiveness Strategy is issued annually
by the GFCC. I hope you enjoy the 2016 edition.
Sincerely,
Charles O. Holliday, Jr.

Chairman, Royal Dutch Shell, plc
Chairman, Global Federation of Competitiveness Councils
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TABLE OF CONTENTS
Executive Summary 4
BRAZIL
National Industry Confederation (CNI) 14
Pontificia Universidade Catolica do Rio Grande do Sul (PUCRS) 26
CANADA
GO Productivity 34
University of Waterloo 42
ECUADOR
Competitiveness Council of Quito 50
GLOBAL
Webster University 56
KOREA
Korea Economic Research Institute 64
SAUDI ARABIA
Saudi Arabian General Investment Authority 74
UNITED STATES OF AMERICA 83

U.S. Council on Competitiveness
Foundational Global Competitiveness Principles 88
Global Federation of Competitiveness Councils 90

Membership and Network
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EXECUTIVE SUMMARY AND OVERVIEW

Innovative and Sustainable Cities
Cities are the engines of economic growth. Urban infrastructure is vital to economic
Eighty percent of global GDP is generated in growth and competitiveness, and under
cities.1 Cities and metros accumulate assets pressure. Infrastructure is the bedrock
needed for innovationtalent, technology, capital of competitive economies, the circulatory
and infrastructure of all kinds. They attract systems that move the goods, services,
highly educated workers and entrepreneurs, ideas and people that are the lifeblood
who share and transfer knowledge within and of an economy and society. However,
across industries, and form networks humming increased urbanization and urban population
with ideas, creativity, innovation and economic growth have placed significant pressure
potential. These ecosystems drive a thriving on city infrastructure. In many older cities,
and dynamic economy, which further attracts infrastructure is crumbling or in disrepair with
more of these critical assets in a virtuous circle. substantial investment needed to modernize
Due to the accumulation of these assets, high transportation, water and sewer, energy and
value growth industries, industry clusters and other systems.
technology hubs tend to emerge and grow in Population growth in cities has placed
metropolitan areas. pressure at the nexus of energy and
Emerging and converging population, economic sustainability. Cities account for close to
and technological trends have spurred nations two-thirds of world energy consumption and
their governments, businesses and universities more than 70 percent of global greenhouse
to significantly increase their attention to the emissions.3 Many of the fastest growing urban
infrastructure, systems, operations and culture areas lie in emerging and rapidly developing
of cities. economies, driving the growth in both world
The world is undergoing the largest wave energy consumption and carbon emissions.
of urban growth in history. Today, more than Cities are becoming drivers and
half of the worlds population lives in urban platforms for innovation. As the worlds
areas, a share expected to increase to two- cities and metro areas grow so does the
thirds by 2050. In 2014, there were 28 mega need for sustainable urban environments,
cities (cities with 10 million inhabitants or which require new and scalable innovations
more). By 2030, the number of megacities is energy efficient buildings, new approaches
expected to grow to 41.2 The urban population to water and waste treatment, highly fuel
is expected to increase from 3.9 billion in 2014 efficient vehicles, smart grids, clean energy
to more than 6 billion by 2045. systems, and new housing and public
transportation models. Some cities will be
built from scratch, offering tremendous
1 World Bank, http://www.worldbank.org/en/topic/urbandevelopment/overview.
2 World Urbanization Prospects, United Nations, Department of Economic and
Social Affairs, Population Division, 2014. 3 World Bank, http://www.worldbank.org/en/topic/urbandevelopment/overview.
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Executive Summary and Overview
opportunities for innovation in urban infra- are advocacy for change, and coordinating
structure, as well as design and systems the many stakeholders, service providers and
that maximize sustainability, maintain the economic assets that must come together
quality of life, and support the creative and for transformation. Government often plays
enabling environments that foster innovation a critical role due to public ownership and
and competitiveness. New technologiessuch government operation of infrastructure,
as advanced materials, energy and energy government investments targeting change
efficiency technologies, and the digital and transformation, and the ability to plan and
revolutionare poised to deliver transformative implement nationwide efforts.
solutions at every scale. In Brazil, the Pontificia Universidade Catolica
All around the world, cities, metro regions and do Rio Grande do Sul (PUCRS) worked with
the institutions that support them are deploying government and businesses to develop and
different strategies, plans and programs, and implement its TECNOPUC Ecosystem of
technologies to meet the challenges of creating Innovation to stimulate joint R&D and innovation
competitive cities, and to fulfill their potential activities, which included establishment of a
for economic growth and as homes for thriving, Science and Technology Park. TECNOPUC was
sustainable communities. These diverse based initially on partnerships with three global
pathways to making cities smart, sustainable businessesHP, Dell and Microsoft.
and innovative are reflected in the 2016 GFCC In Canada, the University of Waterloo is
Best Practices. Themes explored include: leading a first-of-its-kind initiativethe Global
leadership for transformation, nurturing talent Entrepreneurship and Disruptive Innovation
for competitive and innovative cities, smart and (GEDI)designed to leverage the regions
sustainable infrastructure, building ecosystems innovation assets and accelerate the transition
that underpin innovative cities, the critical role of of on-campus research to industry. The GEDI is
digital technologies, how smart services evolve championed by the universitys president, Feridun
and grow, and barriers to change. Hamdullahpur, and governed by a committee
of internal university stakeholders, including
Leadership for Transformation the Office of Research, Accelerator Centre,
Across countries, a diversity of organizations Co-operative Education and Career Action,
governments at different levels, private sector Office of Advancement, University Relations
enterprises, universities and partnerships and the Provost Office. In addition, in the GEDI,
lead efforts to make cities smarter and more Waterloo University is partnering with regional
efficient, to make them more sustainable, to mayors, technology accelerators and economic
better serve urban populations, and to build development organizations to create a cohesive
innovation ecosystems. Some of the most Toronto-Waterloo Innovation Corridor.
important roles leadership organizations play
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In Ecuador, the Secretary of Productive Aramco is encouraging development of a

Development and Competitiveness for the strong IP protection system by filing its patents
Municipality of Quito has established the and licenses domestically and internationally,
Competitiveness Council of Quito. The Council maintaining strong internal policies and processes
is chaired by the Mayor of the City, and has for protecting its own IP and that of partners, and
15 members representing the citys economic advocating for the enactment of comprehensive
sectors including commercial and industrial national IP policies.
businesses, agriculture, tourism, financing, The Saudi government is enacting policies to
exporters, construction and universities. The advance the Dhahran experience. One example is
Councils role is to focus on and coordinate the Competitive Acceleration Program, in which
work between the public sector, private stakeholders committed to reaching targets in
sector and academia in developing a ten-year a set of competitiveness indicators to increase
competitiveness agenda and roadmap for the city. the ease of doing business and enhance Saudi
In Korea, the Korean government established Arabias competitiveness. The program culminated
an integrated master plan for cities, a Ubiquitous in enacting policies for promoting a more efficient
(Smart) City (U-City) model that treats the city market and business environment for both local
as an organic whole in order to optimize its businesses and foreign investors.
functioning. Other government Ministries played
a key role in implementing the master plan. The Nurturing Talent to Support
Ministry of Information and Communication
Competitive and innovative Cities
announced The Plan for Activation of U-City
Construction in 2006, while in 2009 the Cities can serve as magnets to attract highly
Ministry of Land, Transport and Maritime Affairs skilled talent and entrepreneurs, and serve
announced the first five-year Comprehensive as education and training grounds to prepare
Plan for U-City, and then updated the people for their roles in the global economy and
Comprehensive Plan in 2013. These plans for contributing to the competitiveness of cities.
helped organize, focus and integrate the efforts In Brazil, as part of its TECNOPUC Ecosystem of
of 49 local institutions. Innovation, the Entrepreneur Tournament engages
In Saudi Arabia, the state-owned oil giant Saudi students in entrepreneurial skills development.
Aramco acts as a champion in the Dhahran During lectures and workshops focused on
Techno-Valley (DTV), an emerging energy development of business ideas, students learn
innovation hub in the City of Dhahran. Saudi about Design Thinking, creativity, technological
Aramco has helped build the capabilities of DTV innovation, business modeling, market testing
by providing investment capital, technical talent and preparation of a market pitch. Afterwards,
and business opportunities; it also provides students apply what they have learned, presenting
interregional and international connections via its business plans they have developed to a jury that
networks and value chains. Saudi Aramco helps selects the projects with the greatest potential
stimulate R&D within the hub and academic to grow into a new business. In the nine years
institutions, helps other stakeholders within the in which Entrepreneur Tournaments were held,
hub to bridge the commercialization gap through more than 16,800 students have participated in
collaboration or supplier relationships. It has seminars and workshops, training and projects.
attracted companies such as Schlumberger, Globally, Webster Universitys network of
GE, Sipchem, Honeywell, Baker Hughes and campuses extends to cities on four continents,
others, which co-located in Dhahran to do educating thousands of students across the
business with Saudi Aramco. Finally, Saudi
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world. To help develop global awareness and and global understanding. In the Global M.A. in
knowledge, study abroad students from Webster International, students complete their degrees in
campuses can spend a term, a semester or a year five terms at five different locations.
at other Webster campuses. Webster students
can choose to complete an entire degree program Modern Infrastructure Makes Smart,
outside their home country or can transfer credits
among campus locations. Yet, the assets of
Sustainable and Innovative Cities
these campuses have not been optimized for the Possible
benefit of the whole university nor each individual Physical infrastructure underpins a citys
campus and its home city. Established structures, society, quality of life and economy, the ability of
geographic isolation, leadership orientations, businesses and manufacturing to operate, and
limited communication infrastructure, and unique deployment of the workforce. There are many
characteristics of a specific locationsuch as approaches to establishing and modernizing
culture, economics, politics and regulationsare a wide range of infrastructure to make it more
barriers to successful integration. efficient and sustainable.
Two initiatives address this challenge. The Global In Brazil, a Smart Grid infrastructure is being
Leadership Academy is a leadership development developed for the City of Barueri, which will
program designed to enhance Websters provide numerous benefits. Using smart meters,
institutional capacity for global work. The three consumers will be able to monitor daily power
goals of the year-long Academy are developing consumption, and pay variable pricing according
faculty and staff leadership skills, providing a to the day and time energy is consumed.
comprehensive understanding of Websters Wireless radio frequency technology and
complexity and creating ambassadors to the power line communications for information and
communities Webster serves. data transmission will enable the distribution
The Global Student Leadership Summit, held company to have more accurate information
in 2015 and planned again for 2017, convened about energy consumption and the status of
29 students of 20 nationalities from 8 Webster the energy network. Energy interruptions in
campuses at the St. Louis, Missouri campus to the system, the problems origin and extent will
discuss leadership and advocacy. They built their be automatically identified. It will be possible
knowledge and skills, developed relationships to program the automatic re-composition of
with peers across the campus network, enhanced the system in contingency situations. For the
their intercultural competence, and gained a distribution company, as energy consumption is
better understanding of the impact that student better distributed across time, it is possible to
involvement has on students and Webster increase asset utilization. Automated monitoring
University worldwide. The program goal is that and systems optimize the distribution of energy
student participants return to their home campus according to demand, resulting in better
and implement the skills and knowledge acquired operational efficiency. Deployed in a very dense
to improve student life throughout the Webster industrial region, the Smart Grid will reduce
University network. companies needs for generators.
Other initiatives include the Global Citizenship In the United States, water supply and
Program (GCP), a set of undergraduate degree water infrastructure are important issues for
requirements building students knowledge in manufacturing and residential communities. In
areas such as roots of cultures, social systems February 2016, the Council on Competitiveness,
and human behavior, physical and natural world, along with partners Marquette University and
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A. O. Smith Corporation, gathered more than the development and growth of industry clusters
50 experts on water and manufacturing and technology hubs. Around the world, there
to identify and discuss challenges and are different approaches to integrating economic
opportunities related to water, energy and assets into engines of innovation.
manufacturing using the Milwaukee, Wisconsin In Brazil, PUCRS developed the TECNOPUC
region as a case study. With 86 percent of the Ecosystem of Innovation to stimulate joint R&D
state of Wisconsin bordered by water, issues at and innovation activities within the community.
the intersection of water and manufacturing are Elements of TECNOPUC include: the STARTUP
a priority. Milwaukees economy was founded GARAGE Business Modeling Program, a space
on manufacturing industries that were highly for ideas, and technology and innovation projects
dependent on the abundance of fresh water. for entrepreneurs coming from the academic
The City of Milwaukee has already taken steps units of PUCRS who seek support to develop
to improve its water stewardship. Among these a business model; CREATIVE GARAGE, which
efforts is the production of Milorganite, an offers companies space and routine work for
organic nitrogen fertilizer created from solid business development, as well as tutorials and
waste collected from sewage treatment plants. the possibility of using the environment and
In addition, Milwaukee is integrating natural equipment in TECNOPUCs pre-incubator;
systems with the built environment in projects CREATIVITY LABORATORY, a space in which
such as green roof installations and rain barrels. people and their companies or institutions expose
Company commitments to water stewardship their ideas, problematize, discuss, negotiate, make
were highlighted at the dialogue. For example, decisions and create strategies to solve problems;
Wisconsin-based Kohler Companya global BUSINESS ACELERATION PROGRAM, which
leader in kitchen and bath plumbing fixtures supports entrepreneurship originating from
has helped U.S. consumers reduce water use by university research (spin-offs) or present in the
110 billion gallons over the last ten years, saving TECNOPUC (startups); and CULTURES OF
$1.3 billion in water, sewer and energy costs. INNOVATION, in which TECNOPUC sponsors
Kohler is committed to helping reduce another seminars for the exchange of experiences about
100 billion gallons of water use in the next three effective interaction with the worlds leading
years. Also, MillerCoors, the second largest beer innovation markets.
company in America, is implementing the Alliance PUCRS is developing an innovation hub and
for Water Stewardship Global Standard at its industry cluster anchored by the university at
Milwaukee brewery. The brewerys has increased its Science and Technology Park. Along with
the efficiency of its water usage, and showcases IT industry anchors Dell and HP, which have
its green roof and rain garden to thousands of concentrated their Brazilian R&D centers in
people who tour the brewery each year. TECNOPUC, other global players have been
attracting to the TECNOPUC hub, including
Building the Ecosystems that Microsoft, Accenture, Tlantic, Sonae and
Underpin Innovative Cities ThoughtWorks, as well as large national
enterprises, such as DBServer, Globo.com and
A citys economic assets include sources of
Randon Group.
research and technology, businesses, human
capital, financial capital and culture. But In Canada, GO Productivity is focusing on the
institutions and networks are needed to knit human element of innovationfor example,
these diverse assets together into innovation how and how often people within a specific
ecosystems, creating an environment for community work together in collaborative teams
entrepreneurship, new business formation, and
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to identify and resolve challenges, develop new accelerate the transition of university research
and better processes, and create solutions to to industry to create regional economic
problems that may not have been previously opportunities. GEDIs vision is to create a dynamic
identified, a tremendous barometer of how link between research, industry and disruptive
effective an innovation ecosystem can be. GO startups, by creating a nexus of innovation:
Productivity suggests that the key to higher levels a physical space where business leaders,
of innovation and its real impact on business is entrepreneurs and academic researchers can
directly linked to Investment in Human Capital. connect and collaborate. GEDI will provide four
The design of the ecosystem or culture itself is key services: connecting industry partners with
important in supporting investment back into its the universitys impact-driven research, giving
people, allowing them to pursue higher levels companies the opportunity to collaborate on
of innovation. This includes an environment research projects; helping businesses tap into
that supports many, and the right kind, of the pool of innovators at the university, such
collisionshuman interactions around new idea as graduate students and faculty; assessment
generation, development, testing and refinement, services that help enterprises determine how
and implementation. Interactions can include well their internal systems foster innovation;
various conversations, meetings, training and and leadership development through executive-
learning sessions, and events, both formal and level education, a masters degree in innovation,
informal, that allow for significant collaborative innovation coaching, and dissemination of the
design and development opportunities. In latest in innovation research through white papers
cities, these interactions take place between and conferences. The universitys longstanding
a wide range of organizations; various service creator-owner intellectual property policy has
providers, stakeholders, suppliers and customers, helped foster a strong entrepreneurial culture
government and not-for-profits all need to be among faculty and students, and spawned a
included in the ecosystem that supports these thriving startup ecosystem second only to Silicon
interactions and their associated collisions. Valley in its density. This entrepreneurship is
These collisions are crucial to producing further supported as Waterloo runs the largest
serendipitous momentsthe unpredictable, free startup incubator on any campus in the world,
unexpected eureka-type moments that can which has helped Waterloo students establish
occur when people come together for a brief 120 companies to date.
period around a particular idea or theme, and In Ecuador, the City of Quitos competitiveness
experience a breakthrough. Unfortunately, agenda has five pillars: productive development,
most firms do not design for collisions to occur, infrastructure and connectivity, innovation,
halting opportunities for more innovation. There investment and social development. Areas
needs to be real thought around what structures of focus include: encouraging private sector
should be in place, the use of time and space, participation in projects identified as a priority
characteristics of physical space, and what for the city such as mobility, sustainability and
freedoms and expectations are encouraged tourism; investment and formation of Quitos
within defined boundaries. Also, there needs to investment agency; fostering an ecosystem for
be consideration and communications around industry cluster development; and improving the
the values supported and promoted within the ease of doing business areas of regulation for
ecosystem. which the municipality has responsibility such
In Canada, the University of Waterloo is as starting a business, dealing with construction
launching the Global Entrepreneurship and permits and registering property.
Disruptive Innovation initiative (GEDI) to
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In Saudi Arabia, the City of Dhahran recognized Exchange) to promote start-up businesses
that it could not simply import an innovation cul- in freshwater technology, and bridge the gap
ture through enterprise acquisitions. It needed between research and industry. A. O. Smith
requisite elements to support knowledge transfer, will also provide support in a global outreach
such as a critical mass of local skills, widespread program that works to identify and broaden
adoption of technology by public and private efforts to develop sensor technologies for
sectors, and the appropriate legal and cultural monitoring fresh and wastewater. Marquette
institutions. The Dhahran Techno-Valley (DTV) University is collaborating with industry to
has helped overcome these challenges by bring- develop cross-functional sensors for water
ing together various stakeholdersuniversities, monitoring equipment, and faculty are fostering
private sector institutions, MNCs and the public academic-industry partnerships on big data in
sector, among othersin an effort to collaborate the water sector.
on research and leverage knowledge of local
markets. The state-owned oil giant Saudi Aramco Digital Technologies Play a Central
is playing a critical role. First, Saudi Aramco is
Role in Building Smart Cities
leveraging intellectual capital by encouraging
knowledge sharing through its collaboration with Information and communications technologies
King Fahd University of Petroleum and Minerals (ICT) provide powerful tools to connect
researchers, and cross-pollination of ideas, for people into networks, to connect people with
example, by organizing innovation forums. Second, critical information and services, to improve
through R&D satellites across its international the efficiency of government services, and
networks (e.g., Houston, Texas and other loca- to establish smart and sustainable city
tions), Saudi Aramco is facilitating the transfer of infrastructure.
complex knowledge and promoting Dhahran as a In Brazil, So Paulo, the biggest city in Brazil and
hot spot for innovation. Third, by utilizing its local pioneer in smart city initiatives, operates three
and international links, Saudi Aramco is helping centers focused on specific city management
steer DTV in directions that better meet regional activities. The Center of Emergency Management
and international needs. is responsible for integrating meteorological
In the United States, the Council on Com- information in the city, the Traffic Engineer
petitiveness, along with partners Marquette Company gathers information on traffic, and
University and A. O. Smith Corporation, gathered the Operations Center of the State Police is
more than 50 experts to discuss water, energy responsible for monitoring security. Each of those
and manufacturing in the United States. Stake- agencies used to maintain an independent Center
holders highlighted efforts to strengthen to integrate their activities. As a response to the
the innovation ecosystem for water research increasing number of emergencies, mainly linked
and technology. For example, the Milwaukee, to summer rain, that were dispersed through all
Wisconsin-based Water Council launched a three agencies, the city realized the need for a
water innovation scouting program called PROOF, smarter and faster way to gather and interpret
expected to connect emerging technologies this kind of data. In 2016, working with IBM,
from government laboratories, universities and a platform was developed to create the CMGI
entrepreneurs to commercialization across (Integrated Monitoring and Management Center).
industry sectors. A. O. Smith Corporation The CMGI, located in the city center is respon-
a global manufacturer of water heaters and sible for: receiving and integrating data coming
boilershas several projects, including the ICE from individual agencies, analysis and interpre-
Institute (Innovation, Commercialization and tation of information, decisions about adequate
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response to emergency events, communication Globally, Webster University makes significant

of required actions to responsible agencies, use of digital infrastructure to increase human
broadcast of information, and real time indicators connections and collaborative work across its
regarding emergencies throughout the city. The network of global campuses. Websters Global
main area of CMGIs focus is weather related Wide Area Network connects all campuses
emergencies: tree falling; flooding; land sliding; across the globe, creating consistent and reliable
and also some innovative uses, such as man- service for all constituents at higher speeds and
agement of shelters and blankets for homeless greater bandwidth. The new platform has enabled
people during the winter. video conferencing across the network, invaluable
Another smart initiative in the state of So as a substitute for costly travel and in building
Paulo was also developed in collaboration with connections among campuses, their faculty, staff,
IBM. ARTESPthe regulatory public agency for and students. For example, video conferencing
transportationneeded a system to manage and regularly scheduled events bring members
30 state roads that are the responsibility of of the community in contact with each other.
20 different concessionaries. Until 2014, the Academic conferences and summits hosted
ARTESP control process was strictly manual. by each campus on topics such as born global
Using IBM solutions to solve the problem, a entrepreneurship, humanitarian rights, global
platform gathers data coming from each of the communications trends, the Eurozone, Asian
concessionaries, and enables ARTESP to act regional cooperation, and womens empowerment
promptly to accidents and perform predictive draw members of the university community who
maintenance. 360-degree cameras monitor can attend virtually.
more than 70 percent of the roads. Car counting In the 1990s, Webster was an early adopter
sensors, connected toll plaza systems and of online courses and programs, provided
emergency telephones send data in real time asynchronously via the web due to time zone
to the operations center. differences among campuses. Today, to coordinate
The successful experience in So Paulo academic and operational activities among
led different cities to replicate its integrated Websters European campuses, video-enabled
operations center model. For example, Porto classrooms enhance the ability to coordinate
Alegres Center for Integrated Command of the course offerings in synchronous modes. Courses
City (CEIS) supports city management during can originate at any of the European campuses
critical situations and emergencies, including the and be delivered to students at each of the other
use of about 850 cameras in the city. Through campuses, optimizing and diversifying enrollments
CEIS, big city critical situations involving traffic and faculty expertise in such courses.
and natural events are identified, and decisions In Korea, a world leader in ICT, the U-city (smart
made in an integrated and prompt manner. When city) model is equipped with cutting-edge IT,
an accident is identified, traffic is re-routed enabling smart capabilities and services. For
by the Public Company of Transportation and example, these include: in transport, real-time
Circulation (EPTC) to facilitate medical access public transport information service; in safety,
to the area. The Secretary of Health, and the intelligent unmanned security and monitoring of
service of the Municipal Humanitarian Emergency mountain fires; in the environment, monitoring via
Service coordinate medical attention. Then EPTC sensors and CCTVs; in healthcare, telemedicine
adjusts traffic to reduce impact to users. Similarly, and personal medical advice; and in education,
the cameras can easily identify a flooding, and remote lecturing, presence check with RFID,
actions can be undertaken by different agencies. U-classroom, and searching and reserving books
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and digital items. As a Smart City plan extended implementation of the Curitiba Master Plan,
the U-City initiative, new smart city projects using providing an advanced tool for public land
ICT were identified. These include, for example: management.
smart parking (parking spaces identified in real- In Korea, the U-City project is evolving. The first
time and payment of parking fees via a smart U-City plan was designed primarily for developing
phone application), smart crossroad (smart the basic infrastructure, including application
bollard and safety fence installed in front of the of core technologies, and Korean cities have
elementary school to detect traffic violations and emphasized different elements of U-City. For
sound an alarm), smart streetlamps (CCTV and example, Songdo established a standardized
WIFI function added to save energy and prevent model for U-City and U-City infrastructure.
crimes), smart building (monitors information on The Mapo District (Seoul) mainly expanded the
building management necessary to reduce energy service and infrastructure for vulnerable citizens
consumption), and situation-based smart home such as children, seniors and the disabled.
(identifies the safest escape point during a fire). Yeosu encouraged the use of bicycles to reduce
its carbon emissions, forming a growing green
Evolution and Spread of Smart U-City. The Eunpyong District (Seoul) provided
Cities various safety services and integrated with an
existing disaster management system, developing
A model project or ICT platform can spark the
an upgraded model for a safer city. Also, the
evolution and spread of efforts in other cities or
basic U-City infrastructure has established the
city functions, with new and diverse applications
foundation on which the Korean government is
evolving from the original. Others take new tools
developing various smart city projects.
and new capabilities and mold them to their
specific needs.
Barriers to Change
In Brazil, the Integrated Operations Center
envisioned in So Paulo was expected only to Major transformations can confront a variety
monitor and predict weather emergencies, but the of barriers to change, ranging from culture and
infrastructure and its potential functionalities led habit, to financing and existing systems.
to an integrated center supporting traffic, urgent In Brazil, in developing and implementing
medical response, and surveillance and security. the TECNOPUC Ecosystem of Innovation,
In Recife, the Center of Traffic Operations which included proposing actions to transform
operates about 600 cameras to monitor traffic education, the Pontificia Universidade Catolica
in the city. As the application has been deployed, do Rio Grande do Sul faced the challenge of
use of the system has been extended to improve the traditional inertia within the academic and
safety and support the police mapping criminality. university environment.
Initially, operations centers in So Paulo and
In Brazil, in So Paulos smart system to
Porto Alegre did not have these extended
manage roads across the state, the main
applications, but have since adopted them.
issue encountered during implementation of
Similarly, the platform developed by the the platform was not the technical challenge,
municipality of Curitiba goes beyond the idea of but the change of communication protocol
an integrated center. The Institute for Research among different concessionaries. Used to
and Urban Planning (IPPUC) developed a geo- manual operations, they were resistant to the
referenced platform. Through the platform, changes needed to comply with new information
the IPPUC is able to detail and supervise requirements.
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In Canada, as Waterloo University launched enforced. With such perceived risk, few MNCs
its GEDI program to connect businesses to its were willing to devote money and effort to R&D
impact-driven research, a key challenge was in Dhahran.
clearly articulating to external stakeholders how The technology cluster is sponsored by the
GEDI complements, rather than duplicates, the state, which creates challenges in the budgeting
work of existing technology accelerators and process for city clusters and small-scale
innovation hubs within the Toronto-Waterloo enterprises working on promising technology.
Innovation Corridor. Other challenges have Research budgets can be compromised due to
included finding ways to align industry needs financial crisis or other factors. Some budgets
with the other research demands placed on for R&D institutions were cut and the lack of
faculty, and align industry timelines with academic a vibrant private sector led small companies to
schedules. Finally, there is the challenge of complain of insufficient funding sources. Another
financing GEDI. crucial problem was the dearth of statistical data,
In Korea, the U-city project has been less than which hampered efforts to understand market
optimal due to the dispersed efforts taking place demands, for example, financial feasibility studies
under the U-city umbrellaSmart Water Grid by for new products. Finally, cultural attitudes often
the Ministry of Land, Infrastructure and Transport; got in the way of innovation. Outsiders note a
Internet of Things business of Smart City by the prevalent why do we need this sensibility, in
Ministry of Science, ICT and Future Planning; and which taking risks, such as investing in blue-
the Smart Grid project by the Ministry of Trade, sky research that sometimes leads to real
Industry and Energy. Korea seeks an integrated breakthroughs, is not encouraged.
approach to achieve the synergistic effect. There
are many institutions involved whose efforts
must be coordinated. There was a limitation on
effective and timely development, especially
for harmonizing roles between the central
government and local governments. Also, there
were gaps between cities in implementing the
U-City plan, because some local governments did
not have an adequate budget.
In Saudi Arabia, development of the innovation
ecosystem in the City of Dhahran faced the
challenges of a dearth of scientists, government
red tape and the need to develop a culture of
innovation, rather than relying solely on enterprise
acquisitions. Other barriers and challenges
revolved around the business environment.
Executives at MNCs pointed to a persistently
high cost of doing business in Dhahran, due to
factors such as unwieldy immigration laws and
visa restrictions. Copyright issues also present
a challenge to protecting intellectual property;
regulations that exist on paper are often not
13
BRAZIL
Smart Cities in Brazil: Some Drivers and Players Paving the Path
of Competitiveness and Quality of Life
Introduction
An underlying assumption behind the idea of
smart cities is the pivotal role of urban areas as
engines of economic growth and development.
On the one hand, cities are clusters for education,
health-care, culture, technological innovation,
entrepreneurship, social services, government
administration, and communications, as well as
the rules and institutions that create the social productivity and wealth creation with disecon-
environment for doing business and investing omies that must be overcome to preserve and
in new technologies that promote evolution. On reinforce their role as poles for wealth creation.
the other hand, urbanization also comes with
Therefore, the current scenario requires cities to
challenges in areas such as energy, mobility,
develop and implement ways to manage these
waste disposal and management, employment,
challenges. It is clear that many of the existing
and other issues regarding social inclusion and
approaches have been, in different degrees,
environmental sustainability. These challenges
based on information and communication tech-
are even more important when considering that,
nologies (ICT), but [t]he concept of smart city is
according to the Department of Economic and
far from being limited to the application of tech-
Social Affairs of the United Nations, UN-DESA
nologies to cities, as presented by Albino et al.
(2015), 89 percent of the urban agglomerations
(2015). We argue for a comprehensive perspec-
expected to emerge by 2030 are located in less
tive: smart cities, especially in a developing coun-
developed countries (see Table 1). Many of these
try context, should be understood and promoted
urban spaces combine economies that promote
Table 1: Number of urban agglomerations of income groups expected to emerge until 2030,
by size of urban settlement
High-income Upper-middle- Lower-middle- Low-income Total
countries income countries income countries countries
10 million 0 6 6 1 13
5 to 10 million 3 4 5 8 20
1 to 5 million 17 68 43 13 141
Total 20 78 54 22 174
14
Brazil
as an economic and social space that fosters cre- Conceptual Framework

ative initiativesnot necessarily high-tech ones
Figure 1 presents the conceptual framework used
to tackle modern challenges to achieve higher
for the identification and analysis of the most
living standards and sustainable, inclusive and
relevant smart cities solutions being deployed
environment-friendly growth. This paper describes
in Brazil. Creative solutions for a citys problems
how the idea of smart cities and the underlying
usually are developed and marketed by three
technologies materialized in the Brazilian context.
types of actors: local small and medium enter-
In Section II, a conceptual framework is presented,
prises (SMEs) or entrepreneurs searching for
in which key drivers of smart cities are identified,
appropriate solutions for local problems, local ser-
explaining how they determine the outcomes in
vice providers using technology to make existing
the cases presented in Section III. This framework
services smarter, and global companies imple-
is not only an analytical tool for the cases, but
menting solutions with adaptations to local needs.
also a provider of key elements for a coherent
These players are represented in the interface
identification of efforts being carried out in Bra-
between people and technology, and they often
zilian smart cities, and the potential of innovations
interact with other agents within the innovation
in different knowledge fields to create growth,
system. The outcome deriving from these inter-
dynamic competitiveness, and wellness. Finally,
actions are smarter essential services, which will
in Section IV, there is a short discussion on policy
eventually have a positive impact on competitive-
implications derived from the selected cases.
ness, quality of life, citizen participation, and social
empowerment.
Figure 1: Conceptual Framework
15
The development and implementation of smart or a Smart City can be deemed more attractive
city solutions must consider not only business for investments, which can also enhance different
enterprises, universities and research institutes, systemic factors.
but also (and mainly) policy and governance From the above, a matrix is envisaged to posi-
mechanisms, institutions, and a broad societal tion smart city solutions according to the type of
structure in which people, firms, research insti- agents and expected outcomes associated, as
tutes, and technology itself are embedded. On presented in Table 2. Such an arrangement will
the one hand, local governments can play a cen- be one important criterion for selecting the cases
tral role in smart cities through the design and of smart city solutions in Brazil presented in the
implementation of supportive policies, creation of next section.
economic opportunities, implementation of trans-
parent governance, promotion of collaboration The following section presents two cases posi-
between multiple players, promotion of entre- tioned differently in the matrix. While Integrated
preneurship, investment, targeting schemes, and Operations Centers enhance the quality of life
definition of priorities for smart cities initiatives, in Brazilian big cities, the Smart Grid Application
among other strategic actions. On the other hand, attracts investments and enhances competitive-
the institutional structure provides incentives and ness in a specific region. Tendencies have been
constraints for individual actions. As discussed in identified from specific conditions of Brazilian
the next section, social rules, norms, expectations, cities and local competencies developed in
conventions, and beliefs can be determinant fac- response to an increasing demand for technolog-
tors for the diffusion and scale-up of some smart ical solutions applied to cities problems. As it will
city solutions. be seen, type of actors differs in each case.
Feedback loops and multidirectional causal
relationships are also considered. People affect Cases
and are affected by technology, as are policy,
governance, and institutions. In addition, resulting Case I: Integrated Operations Centers
outcomes and impacts also affect the system in Brazilian Big Cities
as a whole. For instance, some solutions may
have a positive impact on education, which, in The World Cup and the Olympic Games have
turn, may provide an opportunity for enhancing relied on solutions aiming to improve intelligence
citizen participation and influence over local deci- and control of the city management Integrated
sion-making, or enhance absorptive capacity for Operations Centers that have been launched as a
the use of existing technologies. Moreover, other response to major weather related emergencies
outcomes may generate further impacts that can and mobility problems. They have been spreading
be self-reinforced. For example, better quality out to other big cities and gained improved func-
of life can attract a high-skilled labor force that, tionality, with companies and local governments
in turn, can be determinant for the success and working together in response to a combination of
further improvement of competitiveness of cities, local competences and necessities.
16
Brazil
Table 2: Type of agents and expected outcomes associated with smart city solution
Capacity to attract Enhanced quality Citizen

investments of life participation
and enhance and social
competitiveness empowerment
Local solutions for local problems developed (1) (2) (3)
by local entrepreneurs
Local services that became smarter (4) (5) (6)
Global solutions designed by global corporations (7) (8) (9)

including adaptations to local needs
The Pioneer Case of So Paulo interpret this kind of data. In 2016, working with
So Paulo smart city initiatives are pioneers in IBM, a platform was developed, aiming to create
Brazil, dating from the early 2000s. So Paulo is an Integrated Operations Center to enhance the
the biggest city in Brazil, with almost 12 million capacity of the previous systems. Three months
inhabitants, and one of the 10 most populated cit- after beginning implementation, the CMGI (Inte-
ies in the world; across the Metropolitan Region, grated Monitoring and Management Center) is
So Paulo has more than 20 million inhabitants. already operational, and is still under development
The city operates at least three centers focused to add new features and capabilities. The invest-
on specific activities. The Center of Emergency ment related to software and services used in the
Management (CGE) is responsible for integrating endeavor is about US$ 2.7 million.
meteorological information in the city, the Traffic Today, the CMGI is located in the city center and
Engineer Company (CET) gathers information on responsible for: receiving and integrating data
traffic in an integrated location, and the Oper- coming from individual agencies, holistic analy-
ations Center of the State Police (COPOM) is sis and interpretation of information, decisions
responsible for monitoring security. Each of those about adequate response to each set of emer-
agencies used to maintain an independent Center gency events, communication of required actions
to integrate their activities. to responsible agencies, broadcast of sensible
As a response to the increasing number of emer- information, and real time indicators regarding
gencies, mainly linked to summer rain, that were emergencies throughout the city. The main area
dispersed (and sometimes replicated) through of CMGIs focus is weather related emergencies:
all three agencies, the city realized the neces- tree falling, flooding, land sliding, and also some
sity of a smarter and faster way to gather and innovative uses, such as management of shel-
17
ters and blankets for homeless people during trolled by ARTESP and implemented by IBM has
the winter. Although there is no official report on notably improved control and management of not
the results yet, the Center has notably improved only one city, but also a whole region.
control and management of the city. More than 70 percent of the roads are monitored
Another smart initiative in the state of So Paulo by 360-degree cameras, in high resolution and
was also developed in collaboration with IBM. with zoom capabilities. Also countless car count-
ARTESPthe regulatory public agency for trans- ing sensors, connected toll plaza systems, and
portationdemanded a system to manage roads emergency telephones send data in real time to
across the state. Operation of the 30 state roads the operations center.
is the responsibility of a group of 20 different According to the developers, the main issue
concessionaries. Until 2014, the ARTESP control encountered during the implementation of the
process was strictly manual, counting only on platform was not the technical challenge, but the
calls and agents spread through the 6400 km of change of communication protocol among differ-
roads across the 271 municipalities of the state. ent concessionaries. Used to manual operations,
This process was evidently ineffective, causing they were resistant to the changes needed to
long periods of time before road assistance comply with new information requirements. The
reached accidents, poor maintenance, numerous platform is open to third party developing partners
cases of road crimes, and slow actions to dis- and is already used worldwide for other purposes,
cover and respond to problems, jeopardizing the offering the possibility for further improvement of
overall quality and negatively affecting more than road services, expansion to city traffic, and use in
20 million users. security, biometrics, and open and closed events
In 2014, the Brazilian consultancy enterprise management.
Magna Sistemas won a public contract to imple-
ment a Center of Operations to gather and cen- The Diffusion of Integrated Operations
tralize information about So Paulo roads. Using Centers in Brazil
IBM solutions, tailored specifically to the problem, The perception of described benefits in So Paulo
the endeavor took only months to begin trial management has led different cities to replicate
operation. Today, the project is in an advanced its model. Currently, several Brazilian cities rely on
maturity level, and about 60 percent of the whole Integrated Operations Centers, and an immediate
process is automated. The platform gathers data response to city situations has become a require-
coming from each of the concessionaries, and ment for city managers. Besides So Paulo, cities
enables ARTESP to act promptly to accidents, such as Curitiba, Recife, Porto Alegre, and Belo
perform predictive maintenance, and strictly Horizonte run Integrated Operations Centers.
observe adherence of the companies to regu- These experiences are briefly described below.
lation. As in the case of CMGI, the system con-
18
Brazil
In Porto Alegre, an Integrated Operations Cen- population. As the system is successfully used,
ter has been in operation since 2012. Called other cities in the country are deploying similar
the Center for Integrated Command of the City initiatives based on Porto Alegres technology,
of Porto Alegre (CEIS), it aims to support city including Belo Horizonte, Cuiab and Vitria.
management during critical situations and emer- Similar to Digifort, other national companies are
gencies. The Center has been implemented by entering the market and/or expanding to new
Digifort, a Brazilian multinational company spe- markets. Digifort has provided IP systems for
cialized in IP surveillance systems and responsible many applications in Brazil and abroad, show-
for integrating images from about 850 cameras in ing how Brazilian solutions for smart cities are
the city. Similar to the Center developed by IBM, already competitive. The company operates in
Porto Alegre centralizes information for dissemi- more than 20 countries and sells products in
nation to technicians from 18 municipal agencies. biometrics, mobile applications for security and
Through CEIS, typical big city critical situations monitoring, and optical character recognition
involving traffic and natural events have been systems (to identify stolen cars, for example).
identified in the Center, and decisions made in an Due to local necessities of Brazilian cities, com-
integrated and prompt manner. Thereby, when an panies are developing specific solutions that
accident is identified, traffic is re-routed by the can be deployed in other cities. In addition, as
Public Company of Transportation and Circulation technologies are introduced in the market and
(EPTC) to facilitate medical access to the area. companies appropriate them, new products are
First, the Secretary of Health (SMS), and the developed. As solutions to smart cities become
service of the Municipal Humanitarian Emergency a growing market, more players enter the mar-
Service (SAMU) coordinate medical attention. ketplace, start competing, and integrating new
Then EPTC adjusts traffic to reduce impact to technologies.
users. Similarly, the cameras can easily identify a Implementation of smart city initiatives in Porto
flooding, and actions can be undertaken by dif- Alegre has led to a simplification in the structure
ferent agencies. The Civil Defense Department of the administration, improvements in access to
(GADEC), for instance, is activated to guarantee education, adoption of new technologies in diag-
the protection of citizens, the Municipal Depart- nosis and health, as well as improvements in pub-
ment of Urban Cleaning (DMLU) is responsible lic transportation, and adoption of energy saving
for proper cleaning of the area, and the Municipal measures (Azambuja et al. 2014). Adopting the
Secretary of Construction and Roads (SMOV) approach presented in Table 2, center solutions
is responsible for any improvements to prevent enhance the quality of life in the city and build
repeated situations in the area. the capacity to migrate from sector 2, in which
The system is open to State and Federal Agen- entrepreneurs develop local solutions for local
cies, and a space is dedicated to the press, problems, to sector 8, in which global solutions
which disseminates information to Porto Alegres
19
are designed by global corporations and adapted according to data coming from traffic lights. The
to local needs. For example, Digifort has evolved initiative SWAN is another example, a successful
into a global company through local solutions. solution for water consumption management. The
Similarly, in Recife, the Center of Traffic Oper- ISI-TICs has increasingly grown its activities in the
ations (CTTU) operates about 600 cameras to past two years and has partnered with companies
monitor traffic in the city. As the application has such as GM, Whirlpool, Serttel, Mecsul, and DSP-
been deployed, the use of the system has been Geo.
extended to improve safety and to support police Complementing the solutions above, the plat-
mapping criminality. Initially, neither So Paulo or form developed by the municipality of Curitiba
Porto Alegre had these extended applications, goes beyond the idea of an integrated Center.
but have since adopted them. The application may The Institute for Research and Urban Planning
be further extended to new uses, such as working (IPPUC) developed a geo-referenced platform to
to monitor the cleanness of specific regions and gather all public tools in the Curitiba metropolitan
the frequency of public services. region. Esri, an American geo-referencing service
This extension of the applications function at the provider, provides the system and Exati, a local
Centers is possible due to a complementarity with company works in system development.
other initiatives. In this sense, the municipality Through the platform, the IPPUC is able to detail
of Recife supports Porto Digital, a technologi- and supervise the implementation of Curitiba
cal park to foster innovation. The initiative hosts Master Plan, providing an advanced tool for public
different companies and experiments to develop land management. The system enables standard-
smart cities solutions. Those companies have ization and consolidation of spatial information,
tested smart city solutions in the technological with more homogeneous management of munic-
park and sold products to other cities in the coun- ipalities in implementation of programs. Once
try. For example, Serttel is a Brazilian company citizens have access to the platform and easier
responsible for the implementation of intelligent access to public facilities, the platform serves
smart traffic control in So Paulo, Rio de Janeiro, as a communication tool with citizens as well,
and Recife, and the bike sharing system spon- improving quality of life and business conditions
sored by Ita Bank in So Paulo. in the city.
It is important to mention two fully deployed Tendencies to Integrated Operation Centers
projects run by SENAI Innovation Institute for Centers have quickly become a tool and environ-
Information and Communication Technologies ment to promote new business and technologies.
(ISI-TICs), an R&D center based in Recife that is In contrast to using cameras merely to visualize
part of a large network of laboratories under Bra- what is going on in the city, the intelligence of the
zilian National Industry Confederation coordina- agencies is used to improve services and inte-
tion. The first, called Onda Verde (Green Wave), grate actions between different departments that
helps drivers find faster ways to their destination would otherwise be isolated and make separate
decisions.
20
Brazil
Those tendencies are presented in Figure 2, medical response, and surveillance and security.
highlighting the relationship between the diffusion However, these features are not yet available and
of players and Integrated Operations Centers, there are still no functionalities directly available
and the extension to more complex and complete to the population or developed by citizens. On the
functionalities. opposite side, Curitiba offers a geo-referenced
As we see the domains of application of the platform with services available to citizens, where
described Centers, it is possible to identify exten- not only citizens have access to more integrated
sions in all of them. The Center envisioned in So information about public services, but it also
Paulo was expected only to monitor and predict facilitates the integration and management of city
weather emergencies, but the developed infra- infrastructure by the government. Therefore, as
structure and its potential functionalities led to more complete applications are developed and
an integrated Center supporting traffic, urgent solutions improved, centers become much more
integrated, leading to improvements in business
Figure 2: Tendencies to Brazilian Integrated Operation Centers
21
conditions and enhancement of citizens quality While activities to gather information and inte-
of life. The promotion of digital inclusion initiatives grate agencies in Brazilian cities are resulting in
is also an important step to provide better con- Centers capable of managing big cities in a much
ditions for citizens. Nevertheless, there are still smarter way, it is evident that further tools must
many new and old challenges to overcome, and be deployed and actions taken to consider any of
one should not expect that an Integrated Opera- the Brazilian cities smart. In addition, Integrated
tions Center would solve all of them. Operations Centers are still isolated actions and
no homogenization or coordination is seen in a
Players on Integrated Operations broader perspective. Initiatives such as FiWare, of
Centers the European Union, could be envisioned, aiming
The development of integrating centers depends a broader deployment of applications and solu-
on different players. In the case of So Paulo, tions, using a common platform for future devel-
technology development depended mostly on opments.
an international corporation, which implemented
an integrated system allowing authorities to act Mentioned Companies: IBM (MEI), Magna
faster, by means of much more accurate infor- Sistemas, Digifort, Serttel, Esri, Exati.
mation. It was a global solution developed and
deployed in response to a local demand. Case II: Smart Grid Digital Application
However, as Centers become more diffused and While Brazil is distinguished for its development
more integrated, new players are required and are of biomaterials and bioenergy, smart energy
able to participate. As we see in the presented consumption in the country is less well known. A
cases, different players have entered the market pioneer initiative has been led by AES Eletropaulo
and cooperated in more complex and complete in Barueri, a city in the Metropolitan Region of
functionalities. Not only global corporations such So Paulo known for hosting many industries and
as IBM, but national companies such as Digifort headquartering numerous companies in Brazil.
and Serttel are able to compete in this new mar- The use of energy and smart consumption are
ket and apply local knowledge to reduce prob- issues for the city, where companies and produc-
lems associated with big cities. In addition, results tion rely heavily on the electricity network.
of Integrated Operations Centers have motivated The central idea is to install an infrastructure of
municipalities to take a financialand also orga- digital meters that allows Barueri to manage its
nizationaleffort to integrate and get agencies electricity consumption in real time through the
working toward a common objective. Agencies companys trading system, relying on development
and governmental bodies have different systems of smart meters. Usually, energy consumption is
and operational behaviors that must be recon- measured by electromechanical meters that are
ciled to allow common actions. This is an effort in manually read periodically. New meters will allow
terms of IT adjustments, common procedures, and a direct communication with the energy provider,
functionalities. indicating the consumption and any interruption in
energy supply.
22
Brazil
This Smart Grid initiative involves a variety of technologies use wireless networks to transmit
operational and infrastructural developments, information, power line communication relies on
including smart meters, a smart network, and the power lines themselves for data transmission.
systems reducing energy losses. Electronic power By using both radio frequency technologies and
conditioning, and control of the production and power line communication, the distribution com-
distribution of electricity are important aspects pany can have simultaneously more accurate
of the Smart Grid and are being developed with information about local and global consumption,
different partners. and the status of the energy network, leading to
The project will be deployed starting with the better energy management and smart energy
necessary infrastructure, enabling the develop- distribution control. The solution is under develop-
ment of new smart solutions in the city. In addi- ment and is a result of a local service becoming
tion, more accurate information about local and smart through new communication technolo-
global consumption will be available, leading the gies and energy infrastructure. The initiative is
distribution company to more efficient energy attracting investments in green energy, comple-
management. menting Smart Grid initiatives. This is the case of
renewable energy micro-generation and variable
Underlying Solutions to Smart Grid pricing according to the day and time energy is
In this case, AES has developed a partnership consumed. In addition, the centralization of all
with the Brazilian company WEG, a specialized information will be done in a concept-metering
components provider. The enterprise will develop center, connected in a network of meters planned
a smart meter for energy savings and provide to be redundant.
new functionalities to consumers. As an imme-
diate result, consumers will be able to access Smart Grid under development in Barueri relies
daily power consumption through a display in the on an open standard communication, allowing
equipment or on the website of the power dis- for interoperability of meters provided by multiple
tribution company. In addition, once the system suppliers. In this regard, not only will WEG provide
communicates with AES, the company will be meters to the Smart Grid, Siemens will be one of
able to automatically identify energy interruptions, the providers for the first batch. All together with
the problems origin, and its extent. Itron, an American company dedicated to deliver-
ing end-to-end Smart Grid and smart distribution
Communication between meters and the distribu- solutions, the companies will provide 62,000 smart
tion company will be developed by Cisco. Smart meters for the project.
Grid technology applied in the project was devel-
oped at the Cisco Center of Innovation located in Figure 3 presents the relationships of technology
Rio de Janeiro. The solution provided by the com- providers and project participants in the Smart
pany integrates radio frequency technology and Grid implementation in Barueri.
power line communication. While radio frequency
23
Figure 3: Relations and Players of the Smart Grid Application implemented in Barueri
Applications and Benefits of electric tariffs is also possible through variable

As in the Smart Grid project, smart meters replace pricing according to the time energy is consumed.
electromechanical meters. Of 62,000 meters Smart homes and differentiated services, and
installed, 2,100 will be installed aiming to prevent programs to optimize consumption may be devel-
illegal consumption in the grid. The Smart Grid oped, looking for new adherents.
infrastructure applied in Barueri also allows the Many of the applications and developments
deployment of innovative solutions for automating resulting from the Smart Grid initiative can lead to
the distribution of energy. Thus, it will be possible benefits for both consumers and the distribution
to program the automatic re-composition of the company. Improvement of energy supply quality
system in case of contingency situations, and the benefits householders and companies in the
automatic control of voltage and reactors. This Barueri region. As a very dense industrial region,
is possible due to a telecommunication system the Smart Grid initiative reduces the necessity
interconnecting the substations to the operations of particular generators by companies, improving
center. A line of fiber optics and digital radios is security of energy supply, potentially reducing
already installed in Barueri, allowing the connec- energy cost to consumers.
tion of voltage concentrators and other equipment
that are being acquired or developed for the For the distribution company, as energy consump-
project. Due to this communication infrastructure, tion is better distributed across time, it is possi-
service restoration, isolation of grid problems, and ble to increase the efficiency of assets use, in
localization of problems will be possible. which lower peaks of energy are demanded meet
the regions necessity. Moreover, as monitoring
In parallel to contingency activities, an additional and actions are automatic, operational systems
optimization of energy consumption based on optimize the distribution of energy according to
the participation of consumers is envisioned. demand and a better operational efficiency is
Due to Smart Grid meters, consumers are able achieved. Losses in the system, including illegal
to monitor their energy consumption in real-time consumption and systems with low efficiency, are
and improve energy management. In addition, reduced as well.
smart grid meters enable the commercialization of
energy produced in micro scale by consumers, for Mentioned companies: AES Eletropaulo, Sie-
example through solar energy systems. Reduction mens (MEI), Cisco (MEI) e Weg (MEI).
24
Brazil
Conclusions impact city management, enhancing quality of

life and companies competitiveness, whether by
This paper presents two cases of Smart Cities
demand for technological solutions developed by
in Brazil, supported by a conceptual frame-
companies, or by an infrastructure that enables
work based on systemic factors, outcomes, and
business opportunities and further technological
impacts of Smart Cities initiatives. A matrix of
deployments.
agents and outcomes associated with smart
solutions is proposed, and cases were selected
based on their expression of impact in the matrix. The National Industry Confederation (CNI) represents
and defends Brazilian Industrys interests before federal,
In this regard, while Integrated Operations Cen- state and municipal governments through a nationwide net-
ters enhance the quality of life in Brazilian big work of private entities responsible for initiatives to support
cities, Smart Grid Digital Application in the city of industrial development and competitiveness.
Barueri is attracting investments and enhancing Under the leadership of CNI, the Brazilian Entrepreneurial
competitiveness in a specific region. Mobilization for Innovation (MEI) is one of the most success-
ful forums in regard to innovation that gathers the Founders
Both cases present the robustness of Brazilian and CEOs of the 120 biggest and most innovative companies
solutions, driven by the necessities of big cities. in the country.
In the case of Integrated Operations Centers,
companies and city governments have collab- References
orated to implement local solutions, improving
UN-DESA, 2015. World Urbanization Prospects: The 2014
government management and service quality to Revision. New York: United Nations Department of Econom-
the population. Diffusion of Centers has been ics and Social Affairs, Population Division.
followed by more functions available to the pop- Albino et al.,2015. op. Cit.
ulation and impact on the quality of life. As com- Azambuja et al., 2014.
panies develop solutions that make Centers more
www.ibm.com, accessed on 10/09/2016.
integrated and, as the solutions are more widely
adopted, solutions for local problems develop into www.artesp.sp.gov.br, accessed on 10/18/2016.
global solutions for big cities and local entrepre- www.digifort.com, accessed on 15/09/2016.
neurs become global companies. www.aeseletropaulo.com.br accessed on 16/09/2016.
Smart Grid Digital Application in Barueri is an www.serttel.com.br, accessed on 18/09/2016.
initiative capable of attracting investments and www.portodigital.org, accessed on 20/09/2016.
enhancing competitiveness through better energy www.cisco.com, accessed on 19/07/2016.
management. Initiatives depend on different www.weg.net, accessed on 22/07/2016.
developments made in partnership with big com-
panies in Brazil, mostly by multinationals. The
infrastructure to be deployed will enable further
developments in mobility and energy, developing
the infrastructure for electric cars, and local pro-
duction and commercialization of energy.
The presented cases are not solely local projects,
but rather initiatives leading to transformation in
big cities and Brazilian companies, successfully
designing and implementing globally-connected
local innovation, promoting sustainability in inno-
vation initiatives and policies, investment projects,
and city life. Cases present how smart cities can
25
BRAZIL
Education, Research, Entrepreneurship and Innovation:
The Case of PUCRS and TECNOPUC
The Challenge
The so-called Knowledge Society involves a
reorganization of society and its institutions, gen-
erating changes in economic, social and political
processes, based on access to new information
technologies and communications. In this new
society, the ability to learn is the main competi-
tive advantage of organizations and individuals,
requiring new pedagogical learning forms. Today,
the acquisition of knowledge is not confined to
physical space (in traditional educational institu- direct involvement in societys process of eco-
tions), or time (in one single period). The Knowl- nomic, cultural and social development. In this
edge Society requires continuing education. In context, the university should be entrepreneurial,
this ever-changing world, old models of learning developing mechanisms that incorporate char-
are questioned and new teaching approaches acteristics from the Knowledge Society into its
emerge, based on learning by doing, creativity, educational plan and management model. For a
the ability to innovate and learning how to learn. Catholic university to be innovative and respond
to societal needs, there is the additional challenge
Therefore, the society focused on innovation
of making the necessary changes in a manner
expects universities to adopt new pedagogical
consistent with its guidelines and operational
approaches that respond to current demands,
context.
as well develop new skills and concepts of time
and space in the learning process. In this regard, It is imperative to overcome the traditional inertia
learning to learn means learning to reflect, raising within the academic and university environment,
questions, adapting quickly and continuously by and propose transformative actions in education
questioning the surrounding cultural environment. and training aligned with the new Knowledge
The university collaborates in the development of Society under construction, one that is mainly
a global project of perennial human development, inter- and transdisciplinary, entrepreneurial, sus-
building an educational process that addresses tainable and characterized by knowledge as its
different dimensions, such as cognitive, commu- most important production factor. It is also nec-
nity, caring, ethics and social justice. essary to foster innovation and entrepreneurial
competence of PUCRS academic community, as
In this new century, harmonizing a culture of inno-
a way to expand its relationship with society and
vation with a sustainable long-term vision, while
propose affirmative development actions based
maintaining quality and tradition, is a challenge
on the Triple Helix (a leading role for universities
that must be tackled effectively. In other words,
in engaging industry and government in generat-
the new role of the university includes expanding
ing new knowledge, technology, innovation and
its traditional focus on education and training
economic development).
(teaching and research), and a new mission of
26
Brazil
How was the challenge overcome? Encourage innovation and company-university

interaction,
PUCRS has developed its own model of opera-
tion to stimulate joint research, development and Generate synergy between academia and
innovation (RD&I) activities with the community companies.
using, where possible, available tools and assets
(such as incentive laws, funds, public calls, and Who were the leaders, catalyzers, and
PUCRS resources), recognizing the importance of enablers?
cooperation between public and private organiza-
tions, and other universities. Called TECNOPUC PUCRS rise in recent years is related directly to
Ecosystem of Innovation, the model aims to affirm the synergy between its actions and the conver-
PUCRS strategic positioning as an innovative gence of its strategies. These include establish-
and entrepreneurial university, and also recognize ing a Science and Technology Park, introducing
the concepts of innovation, entrepreneurship and new concepts aimed at research, development
sustainability as fundamental guidelines for the and innovation, as well as reshaping its educa-
steady development of the universitys academic tional and pedagogical practices based on these
and management practices. new experiences. From this broad set of actions
emerges an entrepreneurial university, built on the
foundation of its history and tradition, and recog-
Who were the stakeholders involved? nized for its contemporary leadership in the field
TECNOPUC is the result of an integrated action of innovation. As a result, we see the strength-
involving government, businesses and society. ening of its intellectual capital connected to an
The ultimate goal is to create an innovation eco- organic and constantly changing society.
system aimed at increasing the competitiveness
of its actors, improving the quality of life of their What types of barriers were faced
communities and making the academic capabili-
ties of the university available to society, promot-
in implementation? How were they
ing scientific and technological development of overcome?
the region. Additional objectives include: By proposing actions to transform education, the
Attract research and development companies traditional inertia within the academic and univer-
(RD&I) to work in partnership with the sity environment had to be overcome.
university,
Promote the creation and development of new What results were obtained?
businesses, It is clear that the dynamics of this process involv-
Attract research projects and technological ing innovation, development and knowledge have
development, profoundly altered the universitys relationships,
inducing changes in the posture of the university
27
community and its relations with society. Based Entrepreneurship and innovation fostering
initially on partnerships with three global busi- highlights:
nessesHP, Dell and Microsoftthe growth of Startup Garage:
TECNOPUC reflects the potential of the intellec- The Startup Garage Business Modeling Program
tual capital available at PUCRS and its ability to is a welcoming space for ideas, and technology
attract new businesses, whether graded, spin-offs and innovation-based projects. Startup Garage
or start-ups; this is shown by the high number of is for entrepreneurs and groups of entrepreneurs
innovative projects and other indicators: coming from the academic units of PUCRS
who have not started their businesses and seek
Knowledge Generation: support to develop a business model. Forty-five
More than 50 undergraduate courses professors, students and scientific technicians
More than 100 specializations (Lato Sensu) participated in the first edition held in 2014. The
2nd Edition of the program took place in 2015.
45 graduate courses (Stricto Sensu)
Creative GarageCo-Working:
More than 25,000 undergraduate students
The program offers companies a personalized
More than 5,000 graduate students space and routine work for business development.
More than 1,500 teachers90 percent The program environment and activities aim to
teachers and doctors improve participants entrepreneurial profiles, as
well as increase their awareness of cooperation
More than 5,000 employees and innovation. It offers tutorials, work dynamics
Technology Transfer: and the possibility of using the environment and
109 national patents requested (since 1999) equipment in TECNOPUC Viamo creative pre-in-
cubator. The program is free, 16 weeks long and
50 international patent applications (since offers two weekly meetings.
2002)
Creativity LaboratoryCRIALAB:
25 prototypes developed in 2014 This space is dedicated to the development of
Creative Dialogues, in which people and their
Intelectual Capital:
companies/institutions expose their ideas,
124 organizations in TECNOPUC
problematize, discuss, negotiate, make decisions
26 companies incubated in the Raiar incubator and create strategies to solve complex problems,
6,300 jobs created accelerating the creative process (adding value
for society and for business), while interacting
More than 500 direct fellows in companies with the different areas of knowledge.
More than 80,000 m2 of built area and Business Aceleration ProgramPROA:
available for RD&I This PUCRS initiative supports and develops
innovative entrepreneurship originating from
28
Brazil
university research (spin-offs) or present in TEC- Acceleration of synergies: this initiative

NOPUC innovation ecosystem (startups), utilizing connects companies, people, knowledge,
methodology that makes the sustainability of their processes and services, seeking to enhance
innovations possible. actions aimed at innovation, research and
Cultures of Innovation: development under the tutelage of analysis
TECNOPUC sponsors seminars for the exchange and management tools. The methodology
of experiences about the potential of effective helps create opportunities to stimulate the
interaction with the worlds leading innovation internal market for goods and services,
markets. Representatives of Israel and from other facilitating shared development between
innovation environments, such as South Korea, companies, and allowing for cross-investment.
France, England, Mexico, the United States and
Canada, among others, have come to present and TECNOPUCs Internationalization
discuss their views. Complemented by business Program
rounds, the seminars help to develop global inte-
Considering the strategic direction of PUCRS
gration strategies for innovative local companies.
to promote innovation, internationalization and
Qualified Relationships: interculturalism, it is important to note that, over
More than 100 researchers involved in RD&I the past three years, several international actions
projects were triggered by TECNOPUC:
More than 15 research structures involved Increased TECNOPUCs participation in
RD&I projects international cooperation networks by signing
MOUs/ Agreements with other innovation
More than 10 academic units involved in RD&I environments or international networks;
projects
Strengthened the soft-landing program
More than 150 RD&I projects (reception of foreign companies);
More than US $ 15,000,000 raised for RD&I Consolidated the take-off program (creating
projects opportunities for our companies in foreign
Guided Tours: open access for society to markets);
learn about the physical area of TECNOPUC, Professionalization of Exchange Program
in addition to interacting with entrepreneurs, for entrepreneurs with partner countries (i.e.,
researchers and students, who usually talk CONNECT Program);
about their entrepreneurial experience in an
innovative and entrepreneurial structure. Intensified participation in international
missions, enabling the participation of
TECNOPUC and RAIAR companies; and
Ongoing training of TECNOPUC team.
29
Due to these initiatives, the Science and Tech- The Entrepreneur Tournament has also pro-
nology Park has already formed international duced significant results in engaging students in
partnerships with more than 150 innovation envi- entrepreneurial skills development, and raising
ronments around the world. awareness of the need to meet the demands of
In addition to these projects, which translate into the Innovation Ecosystem TECNOPUC. In the
significant numbers, TECNOPUC serves as a nine years in which Entrepreneur Tournaments
key connection point and source of information were held:
exchange between the university and companies. 1,828 students registered (in the latest edition
One of TECNOPUCs most important sources of alone, held in 2015, more than 280 students
input and human capital is the university, with its participated, 40 projects were submitted, and
students, teachers and researchers. Therefore, 40 hours of training were provided);
developing the capacity of these actors and pre- More than 15,000 students have participated
paring new plans has required practices that tran- in the awareness phase, when seminars,
scend tradition and seek innovation processes as workshops, lectures, and Restless Chats are
good examples to be pursued. offered.
Number of Participants Entrepreneur Tournament

300
278 289
250 260
245
PARTICIPANTS
200
198
150
148 158
100 122 130
50
0
2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015-
1 2 3 4 5 6 7 8 9
TORNEIO
30
Brazil
Overall, a total of more than 16,800 students than 120 stakeholders. Beyond the numbers,
have participated and, considering that PUCRS TECNOPUC has become a key driver of regional
has about 30,000 undergraduate students per economic development, and a model in Latin
year, this level of participation represents more America as a modern Science and Technology
than 50 percent of the undergraduate student Park focused on transforming research and inno-
body. vation in business, and helping promote interaction
Even more students are expected to participate in between the university, business and government.
the next editions of the Entrepreneur Tournament, Pioneers in the park and IT industry anchors, Dell
not only from PUCRS, but also from other univer- and HP contributed significantly to this progress,
sities. It is anticipated that twice as many students concentrating their Brazilian research and devel-
will participate, and that students coming from opment centers in TECNOPUC. Attracted to this
other universities will grow at least 30 percent. growing hub of innovation and entrepreneurship,
It is also expected that the group of participants other global players have come to TECNOPUC,
will be more academically diverse, coming from a including Microsoft, Accenture, Tlantic, Sonae and
more heterogeneous set of courses. ThoughtWorks, as well as large national enter-
prises, such as DBServer, Globo.com and Randon
In summary, after 13 years of systemic deploy- Group. But not only large companies benefit from
ment, the positive outcomes of the pioneering this environment. Many startups have emerged,
TECNOPUC initiative are increasingly evident and realized the benefits of co-locating next to
both nationally and internationally. A sustainable large companies, also settled in TECNOPUC, fur-
innovation ecosystem has formed and pro- ther developing the innovation ecosystem.
gressed, and it is increasingly relevant to the city
and society that surrounds it, producing products Concrete results achieved in various dimensions
and services. show this environment of collaboration and rela-
tionship building fosters innovation, and adds sig-
nificant value in regional economic development.
What was the impact of the solution For example, the ANPROTEC study of Technol-
implemented? ogy Parks and Business Incubators practices is
Taken together, two elements of the initiative are quite illustrative in this respect, validating TEC-
transforming the profile of the university and the NOPUC as a consolidated park, excelling in all
behavior of its employees, raising the benefits aspects (e.g., concept, infrastructure, capital, site
they contribute to the community: integration, talent market, clusters, partners, gov-
ernance and management, services, and knowl-
1. TECNOPUCInnovation and edge); presenting mature practices; and getting
Entrepreneurship: top marks in infrastructure, services and as an
Since the August 2003 opening of the PUCRS innovation engine. In addition, the study acknowl-
Science and Technology Park, TECNOPUC has edged that the park now has a recognized brand
created more than 6,000 jobs and engaged more and consolidated strategy to attract companies,
31
foster constant interaction with the university, and the university to stimulate innovation, as well as
work in an integrated way with different levels of the social, environmental, cultural and economic
government. development of society. It seeks to be recognized
Moreover, two new initiatives further support for promoting the improvement of societys quality
sustained growth of the Park and further align its of life, contributing effectively to a new develop-
world-class environment with the new trends of mental model where innovation and entrepre-
internationalization, co-working, design thinking, neurship, based on education and knowledge,
open innovation and networking: are essential to the success and growth of our
society.
Global TECNOPUC: Housed in a modern
building, Global TECNOPECs innovative 2. EducationTransforming Actions in
processes foster synergy and sharing. It Teaching and Structural Practices:
aims to promote networking and open Entrepreneur Tournament is a process of
innovation projects among companies, entrepreneurial learning, proposed by the Entre-
stimulating interdisciplinary approaches preneurial Center of PUCRS, designed with the
and entrepreneurship. It has spaces for objective of stimulating an entrepreneurial culture
group work, anchored in virtual collaborative at the university. The focus is on business propo-
platforms that support new organizational sition, creation of start ups and meeting societys
working relationships that transcend location demands. Since 2007, the Entrepreneurial Center
and time. Also focused on internationalization, has conducted this activity, recognized as the
Global TECNOPUC offers temporary space main event intended to encourage new behav-
for external companies, for example, for those ioral processes in students, as well as to create
that need temporary space to develop new new solutions by promoting development of new
products and services for the global market. entrepreneurs and new businesses formation. In
INOVAPUCRS Condominium: INOVAPUCRS the initial editions of the tournament, the focus
fills an important gap in the innovation was on PUCRS undergraduate and graduate
ecosystem by providing an environment students exclusively. Currently, with more compre-
designed to house companies that have hensive challenges, students from other universi-
graduated from the incubation process. ties are offered access to the center, keeping the
It helps minimize the difficulties these objective of stimulating students teamwork and
companies may face when they require entrepreneurial training.
a transition period to the park or market The Entrepreneur Tournament gives students
environment. from different academic backgrounds an oppor-
In short, the performance of TECNOPUC can be tunity to put what they have learned in the
explained as qualified relationship and collab- classroom into practice. It also enables them to
orative construction. The Park fosters partner- transcend the prevailing disciplinary culture, and
ships and collaboration between companies and develop a new inter- and trans-disciplinary per-
32
Brazil
spective that reflects the current world and strate- About the Author
gies that shape the development of a Science and Jorge Luis Nicolas Audy Graduated in Analysis of Information
Technology Park such as TECNOPUC. During Systems from PUCRS (1983), Master and PhD in Information
lectures and workshops focused on development Systems from UFRGS (1990 and 2001), Specialist in Arts
of business ideas, students learn about Design Management and Multimedia Technologies from PUCRJ and
IBM (1992). He is currently a full Professor at the Faculty of
Thinking, creativity, technological innovation, busi- Computer Science and of the Graduate Program in Computer
ness modeling, market testing and preparation of Science and Vice President for Research, Innovation and
a market Pitch. Afterwards, students apply what Development of PUCRS. President of ANPROTEC (National
they have learned within the spirit of competition, Association of Organizations promoting Innovative Enter-
prises). Member of the Deliberative Council of EMPRAPII
presenting business plans they have developed to (Brazilian Company of Research and Industrial Innovation).
a jury that selects the projects with the greatest Member of SBC (Brazilian Computer Society), SBPC (Brazil-
potential to grow into a new business. ian Society for Science Improvement), AIS, IEEE and ACM.
Again in this context, the synergy TECNOPUC

helps create is evident, as these ideas are seeds For more information about TECNOPUC, contact tecnopuc@
pucrs.br or the park director, Prof. Rafael Prikladnicki (rafa-
that may grow into start-up businesses, then nur-
elp@pucrs.br) or Prof. Jorge Audy (audy@pucrs.br).
tured at the RAIAR incubatoran integral mech-
anism of the TECNOPUC innovation ecosystem
fostering the establishment of start-ups in the
park.
33
CANADA
Priority and Design of an Effective Innovation Ecosystem
When the topic of innovation and what it means

to an organization comes up, many business lead-
ers in Canada think immediately about product or
technology.
It is quite natural that their first thought is about
one of these assets. After all, these are the areas reflect only a portion of the overall picture. The
where businesses most often have clear-cut reality is that lack of innovation capacity remains
targets and goals around leveraging innovation to the biggest gap preventing firms from significant
create growth. increases in competitiveness.
But an innovation equation founded solely on At GO Productivity, we suggest that the key to
these two areas is missing one very important higher levels of innovation and its real impact
consideration: people. on business is linked directly to Investment in
The employee factor, how often opportunities Human Capital. Partly, this means generously
are created for staff to interact effectively and investing back into your people. This includes
regularly with each other, plays a significant role training and learning, collaborative brainstorm-
in how innovation is conducted. How and how ing and planning, and collective problem solving.
often people within a specific community have the But it is about more than that; it is also about
ability to work together in collaborative teams to creating specific conditions within an ecosystem
identify and resolve nagging challenges, develop to encourage innovation to happen. Gold star
new and better processes, and create solutions to companies such as Google understand this better
problems that may not have been previously iden- than anyone. And they live and breathe a culture
tified is a tremendous barometer of how effective that relies on it.
an innovation ecosystem can be. To better understand the impact of continued
investment in people, at both a community and
Indicators of Competitiveness firm level, we must first reconcile industrys
obsession with trying to find the One Driver to
When measuring the impact of productivity
Rule Them All. The question of what is the most
investments, both businesses and communities
essential driver of competitiveness? surfaces
tend to rely on the same old metrics, such as sales
again and again. But this idea of searching for a
generated or jobs created, even though these are
silver bullet driver is a mistake. It is much more
lagging indicators, and clearly do not predict future
important to recognize the value of many different
performance. Some leading indicators, such as
drivers, and to prioritize them in ways in which
investment in new capital equipment, or research
they can together create meaning and insight.
and development spending, are slightly better
predictors of future success (or failure), but still
34
DRIVERS OF COMPETITIVENESS HIERARCHY
LAGGING
CART INDICATORS
(Results)
ECONOMIC
COMPETITIVENESS
Growth and Job Creation
CAPITAL INVESTMENT
Automation and R&D
OPERATIONAL EXCELLENCE
Process Optimization
LEADERSHIP & MANAGEMENT

Cultural Alignment
HUMAN CAPITAL, INNOVATION & COLABORATION

Knowledge, Skills and Abilities, Interactions and Collisions LEADING
HORSE INDICATORS
(Drivers)
Canada
35
Drivers of Competitiveness Hierarchy ecosystems that nourish those investments make

up the essence of the horse that pulls the cart of
To that end, we recommend reinterpreting
competitiveness forward.
Maslows Hierarchy of Needs for the individual, to
build a similar pyramid illustrating the needs of a
business community, whether that be defined as Designing Innovation Ecosystems:
an individual firm, a small focused group of com- the Importance of Collisions
panies or even an area as large as a city. After all, The characteristics of an ecosystem or cul-
cities and the organizations that drive growth in ture that most effectively supports the regular
them are simply just groups of people interacting investment back into its people, allowing them
with each other towards various common purpos- to pursue higher levels of innovation, are guided
es. by several key elements. First, the design of the
When we rearrange Maslows pyramid to account ecosystem itself is extremely critical.
for each of the core drivers of competitiveness One of the important conclusions drawn from the
(with the strongest indicators at the bottom), we Centre for Social Innovation model (see inter-
get the below hierarchy. view excerpt) is that a very significant aspect of
For decades, stakeholders across Canada have encouraging innovation to occur with regularity
had a myopic view in understanding what drives is the creation of an environment that supports
competitiveness by strictly examining the cart many, and the right kind, of collisions. By its
(i.e., the results). These lagging indicators reflect definition, the word collision can have a negative
only what is already accomplished. The power of connotation. But from our knowledge of chem-
this pyramid lies in prioritizing the key factors and istry, we understand that, when two particles
investments that actually lead to higher levels of collide, there is the opportunity for pre-existing
competitiveness. The pyramid reminds us to cal- bonds to dissolve and new bonds to be formed.
culate impact in a much more meaningful way via That, combined with the new direction particles
the most essential leading indicators, prioritizing can take post-collision, provides an accurate anal-
what actually drives competitiveness, not the ogy around the idea of the importance of creating
results of our efforts. healthy collisions to foster innovation.
Highlighted in this pyramid, at a foundational level, Collisions in a specific ecosystembe that at a
the most essential needs for driving competi- firm, in a business community or at the city level
tiveness are the needs for Human Capital. And are the necessary human interactions around
it is in the very ecosystem that provides these new idea generation, development, testing and
needs where innovation can most strongly exist. refinement, and implementation. When people
Competitiveness and ultimately growth may be come together and set aside pre-existing notions
the goals, but without aligning the culture, knowl- and form new bonds, ideas are given new life, and
edge and skills of your workforce to support the new products, processes and initiatives are born
continuous improvement that leads to increased and improved. These types of interactions can
efficiency, the resources invested in the higher include various conversations, meetings, training
layers of the pyramid will never reach their full and learning sessions, and events, both formal
potential. And it all begins at this foundational and informal, that allow for significant collabora-
layer of investment in human capital that hous- tive design and development opportunities. In cit-
es the environment that enables innovation to ies, these interactions take place between a wide
occurto allow for new partnerships, ideas and range of organizations; various service providers,
collaborations to drive change. In simplest terms,
investment in human capital and the innovation
36
Canada
37
stakeholders, suppliers and customers, govern- needs to be real thought around what structures
ment and not-for-profits all need to be included should be in place, the use of time and space, and
in the ecosystem that supports these interactions what freedoms and expectations are encouraged
and their associated collisions. within defined boundaries.
Innovation requires collaboration, and collab- The physical space is a very important consider-
oration itself requires collisions. But there is ation, whether dealing with pre-existing space or
a particularly critical reason these collisions a new space. Factors such as availability of light,
become even more important to fostering inno- furniture, walls, common area and meeting room
vation. Again, learning from the Centre for Social space, accessibility, use of greenspace, traffic ele-
Innovation model, these collisions are crucial to ments and more may be considered, in addition to
producing serendipitous momentsthe unpre- the specific cosmetics that can influence the look
dictable, unexpected eureka-type moments and feel of the space.
that can occur when people come together for Designing around use of time becomes a function
a brief period around a particular idea or theme, of understanding how and how often people with-
and experience a breakthrough. These serendip- in the community are encouraged to participate in
ity-producing collisions often take on a water- collisions and innovation related activities. Clear
shed-like quality, and often can be looked back design around the parameters of when and for
upon as a defining moment in the development of what purpose meetings, events and free hours
a new business, product, process or general idea. are encouraged can have a significant impact
on when and how people make the time to work
Innovation Ecosystem Design together to develop new ideas.
Ingredients: Space, Time, and Values Finally, there needs to be explicit consideration
Unfortunately, most firms, just like cities, do not of and communication about the values that are
design for collisions to occur, which means they supported and promoted within the ecosystem.
often do not experience the benefit of serendipi- It is with these values that the DNA of any and
tous moments. It is in this lack of design where the all innovations that are developed will be encod-
opportunity for more innovation is most severely ed. The values of the ecosystem give specific
halted. Having the right ingredients to create purpose, focus and boundaries around which
the system that promotes the continuous flow of potential innovations can arise.
healthy collisions can sometimes happen organ- Ultimately, the better and more well defined the
ically, but mostly it is a missed opportunity. There design of the ecosystem is around these three
factors, the more opportunity there will be for
innovation to thrive.
38
Canada
Interview with Adil Dhalla, CEO of Q: So its interesting you talk about it being
Centre for Social Innovation initially conceived as a co-working space,
but now there is this community aspect to it,
Q: What was the purpose behind creating CSI which is more than people just sharing some
[Centre for Social Innovation]? of the physical space. Can you tell a little
A: Fundamentally, like most good products or more about how the community has evolved
services, it was solving a problem. The problem and what kinds of things the community
being that access to office space and amenities participates in to promote those key interac-
around that are expensive, especially for early tions?
stage organizations, small organizations, and A: When CSI started, our identity was more just
non-profit organizations. So the motivation to around co-working and very physically rooted in
start CSI was based on this idea of sharing. If we space. Today at least half of our members now
shared workspace and all the things surrounding actually do not access space from us. They are
it, fundamentally we could solve peoples problem virtual members. That means for the most part
of not being able to afford office space in down- they see value in being part of the community. I
town Toronto. think thats also really important because as we
On a more philosophical basis there was this evolve our own thinking, we ask ourselves why do
other problem around how do we get people to we exist. And fundamentally we exist to help peo-
share ideas, opportunities, and networks? With ple change the world, and space is just a tactic of
the premise being that in order for us to truly thatso are programs, so are services, and so are
make meaningful, systemic large-scale change people in specific positions. And so you ask about
and impact, we need to figure out ways to work communityI think one of the tactics that we
together. have used to enable change is through investing
and animating community. Our community has
So in addition to the idea of sharing space, there
grown from twelve founding members to now
was this other idea about sharing our work, with
over a thousand. We cross every sector, were
the hope being that the diversity of experiences
small, were medium, were large. Some of us are
coming together in the space would create new
incorporated, some of us are not. Some of us are
and innovative ideas to really tackle the worlds
non-profit, some of us are for-profits. Collectively
problems.
we have succeeded because everyone started out
with a common purpose which is that we wanted to
make the world a better place, and we curate our
community that way.
39
Q: What specific types of businesses are these can exist or are possible when you think
represented in the community? in the scale of cities. If you can imagine from
A: We have many sectors from people working in the example of one public spacewhat kind of
Environment to Education to Civil Liberties, Civil supports, or infrastructure, or investments are
Rights, Social Justice, Socio-Tech, consulting, needed in order to realize how space, people, and
various professional service providers, and many programming all reinforce a mutually understood
more. And that diversity is important, one, from idea about making connections?
just a perspective of inclusivity, and two, because Q: You talked about intentionally designing
its actually these different experiences that tend for serendipity. What are you referring to?
to, when coming together, create new ideas. A: Imagine the potential of all the untapped con-
We do not have a specific mold as to this is the nections we dont instinctively make. Thats why
type of thing you should be in order to be a CSI the notion of serendipity is so fascinating because
member. We actually really pride ourselves on the you create the conditions for these unexpected
fact that we dont have a lot of consistency in that moments that though you cant predict, you can
regard. foster in some way.
One of the advantages to the rise of urbanism Q: We know that innovation can often happen
and the increasing density of cities, is that theres when youre out of your comfort zone in some
more people in the same space. This provides ways, not in the same routines, not talking to
benefit in a number of ways including our oppor- the same people. And I think theres no ques-
tunity to connect with one and other and for dif- tion that CSI fosters that kind of environment
ferent experiences to happenin that way CSI is for innovation. Its certainly one of the qual-
very similar to a public space in a city like a park ities that has drawn GO Productivity to the
or a square. Where Im interested to see cities go community. But there is also something else
more, if I were to take a page out of CSI, is bring- there. Theres the old adage: You get what
ing intentionality to the interactions that happen you put in. The values that people come to
within that space. Fundamentally, the strength of the table with create an environment where
a city hinges on how connected its people are. people are ready to connect with and engage
Cities are growing and becoming more dense but with others, even if that sometimes means
their success hinges on the ability of their people doing something for free. Can you speak to
to be connected and work together, so there has collaboration as a key value that members
to be that layer of intentionality for that to hap- bring to the table at CSI?
pen. Without that, were just a bunch of strangers
occupying space together. A: I think you need to have a culture of collabo-
ration, which also sounds like the type of thing
Q: What are the different ways you achieve you would say and everyone would agree Yes of
that intentionality at CSI? course! But how do you actually invest in that
A: We invest in people. Specifically, we have happening? The first you have to do is identify
community animators whose job it is to weave is your values. Values are the DNA or playbook,
together the connections with the needs and asks to how people think or act in a certain way. To
of the community. We invest in space design, and be clear, here at CSI people can opt-in or opt-
we put intentionality around how we can design out. And thats totally okay because you cant be
for serendipity within our spaces. The third thing something to everyone. But CSIs culture and the
we do is create programs and events which also values which define it speak a lot to the impor-
have a role in connecting people together. All of tance of collaboration. All great communities
40
Canada
are like great pot-lucks: They only work when About the Author
everyone brings something to the table. From the Mr. Ron Subramanian is the National Director
very beginning, we incept, imbed, communicate, of GO Productivity.
share this concept that your role in being here is
to contribute. And it comes back to you in various
GO Productivity is a Canadian not-for-profit organization
ways. But yes, anyone who chooses to be a part that helps businesses become more innovative and produc-
of CSI, as a consequence is buying into the social tive. We work directly with small-medium size enterprises on
contract that asks them right from the beginning, an advisory, coaching, and training basis. Through a highly
customized and facilitative approach, we partner with key
What are you bringing to the table?
stakeholders across Canada to build leadership and inno-
Q: Can you talk specifically about the busi- vation capacity at the regional and firm level. We continu-
ally strive to inform and update our services with the most
ness model of CSI and how people partici-
up-to-date thought leadership in order to position Canadian
pate? industry for higher levels of competitiveness and growth.
A: We are property managers first. We buy and
rent buildings and lease space to others. We also Portions of this case study are based on Leading Growth
have a tiered membership model for people who Firm Report #24: Return on Culture, prepared for the Ontar-
dont want space but want to leverage our ser- io Government by GO Productivity in Spring 2016.
vices or be a part of the community. We also work
via various partnerships and grants.
Q: What does a city need to have in place to
embrace this model/approach?
A: I think the idea of shared space can work
everywhere. I think that some helpful assets
would include low-cost real estate, access to
transit, and diversity.
Q: ...and having the right kind of space, with
the right design or opportunity for design?
A: For sure. We [humans] really appreciate
beauty. There is a huge correlation between our
uptake and how it looks. Beauty is certainly part
of it, and so the design of the space is important.
41
CANADA
GEDI: A University-Led Model to Accelerate innovation, Enhance
industry Competitiveness and Drive Regional Economic Growth
Synopsis
Universities undertake a wide range of
fund-amental research that can change how
things are done. Some research may generate
transferrable use immediately, some may have to
wait for decades and some may never find any
use. Regardless, a great number of discoveries
with high potential fail to reach the marketplace. 1.69 percent of GDP, compared to the OECD
Global Entrepreneurship and Disruptive Innovation average of 2.4 percent (McKenna). According to
(GEDI) is a first-of-its-kind initiative, led by the the Globe and Mail, Canada is the only developed
University of Waterloo, designed to systematically country that purchases more intellectual proper-
accelerate the transition of on-campus research to ty than it sells (McKenna), while relatively high
industry, creating regional economic opportunities barriers to foreign direct investment also stymie
and positioning Canada for global success. growth (OECD, 47). Perhaps not surprisingly, the
Conference Board of Canada gave the country a
The National Challenge: Canada C for innovation in its 2015 report (Innovation
Needs Innovation Provincial RankingsHow Canada Performs).
The countries most likely to succeed Chief among the reasons for Canadas subpar
are those that understand that business performance is an underinvestment in research
innovation holds the key to rising living and development on the part of business.
standards. Although government support for innovation is
relatively strong, private sector investment in R&D
Innovation Canada: A Call to Action, 2011
has steadily declined for more than a decade, and
Canada currently ranks 26th among OECD coun-
On paper, Canada has all the conditions for inno-
tries (Lynch). In part, this is due to the fact that
vation excellence. Among advanced demo-cra-
Canadas business landscape is dominated by
cies, this G7 member enjoyed the fastest recov-
small and medium-sized companies that lack the
ery from the 2008 recession (Grant). It boasts
resources for extensive R&D. Also, most large-
conservative debt-to-GDP ratios (The Canadian
scale multinational corporations carry out R&D
Press) and world-leading post-secondary educa-
outside of Canada.
tion rates, while the government offers one of the
most accommodating research and development Although there exists strong university-based
tax structures within the OECD (State of the research and innovation capacity in Canada, too
Nation 2010). much university research fails to get translated
into industry, in part due to the reasons noted
Despite these factors, Canada continues to lag
above. As outlined in the federal governments
most advanced economies on key measures of
innovation. Spending on R&D now stands at just
42
Canada
2016 innovation strategy discussion paper, Cana- Around the world, innovation clusters are driving
da has strong research capabilities yet needs to discoveries and economies. They include Brit-
improve in transforming ideas into marketable ains London-Cambridge innovation cluster, the
products, services and business models (Govern- concentration of Israeli high-tech firms between
ment of Canada). Haifa and Tel-Aviv and, of course, Californias
Today, innovation in fields such as advanced Silicon Valley. Now a similar concentration of cut-
manufacturing, transportation, clean technologies, ting-edge activity is taking shape in Canada: the
information and communications technologies Toronto-Waterloo Innovation Corridor.
and digital media is disrupting products, process- Anchoring one end of the corridor is Waterloo, a
es and sectors around the world. These changes city Inc. magazine ranked at the top of its 2016
are creating seismic shifts in traditional business list of emerging startup hubs to watch (Zoe).
models and shaking up established industries Dubbed Silicon Valley North, its assets include
both domestically and abroad. world-class research institutes, universities and
To stay competitive, Canadian businesses must colleges; incubator and accelerator centres that
anticipate and adapt to those changes. To thrive, facilitate growth and commercialization; and one
they need to position themselves on the leading of the highest densities of startups in the world.
edge. They need to recognize that universities Just over a hundred kilometres away lies Toronto:
have a crucial role to play in making that possible, Canadas corporate headquarters and its cen-
by pushing the boundaries of discovery to create tre of finance, industry-led R&D, health and life
new knowledge, preparing emerging talent to be sciences, and venture capital. According to Berry
leaders of the future and creating all-important Vrbanovic, Mayor of the City of Kitchener, If
ways to connect those discoveries and that talent you look at us as a corridor and the potential for
with industry to drive positive disruption. growing it, theres so much opportunity that exists
here, and the fact that we have such different
The Local Challenge: Building the sized communities on either end of the corridor
gives people more choices of where they can live,
Toronto-Waterloo Innovation Corridor work and play. And thats an asset.
We need to connect people and their
Altogether, the Toronto-Waterloo corridor includes
ideas. These clusters are where innovation
16 post-secondary institutions, 15,000 tech
will happen innovation that will ensure
companies, 5,200 startups and six million people
Canada is at the forefront of technological
speaking 150 different languages.
advancement in the 21st Century.
Canadian Finance Minister Bill Morneau, 2016 According to a 2015 Compass report, increased
connection and integration between Toronto and
Waterloo is key to the future growth of Canadas
leading innovation ecosystem. These improve-
ments could attract international entrepreneurs,
43
capital, and other resources needed to acceler- tion platform for change agents in business and
ate the combined ecosystems growth rate, the industry, a testing ground for ambitious and entre-
report states. More importantly, it would propel preneurial students, and a hatchery for solutions
the region to become an even bigger engine of to the worlds most pressing problems.
economic growth and job creation (Waterloo, GEDI aims to:
The David vs. Goliath of Startup Ecosystems).
Break down existing barriers to unleash
Now, a collection of regional mayors, technology the full potential of industry, academia and
accelerators and economic development organi- government to bridge the innovation gap and
zations are working together to create a cohesive jump-start the knowledge economy
Toronto-Waterloo Innovation Corridor: North
Americas second-largest technology cluster. Open the door to stronger collaboration
through the full innovation spectrum, from
ideas and insights, discovery and invention to
The Solution: GEDI the talent needed to deliver solutions
The University of Waterloo will transform
Connect, integrate and accelerate innovation
how we collaborate with industry and
by connecting a diverse range of resources
government.
and experts to solve industry problems
Feridun Hamdullahpur, President, University
of Waterloo Play to Canadas greatest economic
strengths, focusing on strategic sectors of the
To open new horizons for innovation and prog- knowledge economy
ress, we need to deepen our understanding of Create a space where businesses can reinvent
the world around us, to undertake fundamental, themselves, accessing the talent, research,
discovery-oriented research. And that is where skills and connections they need to create
universities excel. But how do we transform the disruptive innovation
insights made on campus into world-changing
Support the next generation of globally
innovation?
leading companies
That question prompted the University of Water-
Housed on the University of Waterloo campus,
loo to launch the Global Entrepreneurship and
we will start building this initiative with a base
Disruptive Innovation (GEDI) Initiative on Septem-
of more than 100 affiliated faculty, lecturers,
ber 15, 2016.
researchers and staff, as well as connections to
GEDIs vision is to create a dynamic link between more than 200 local startups. Our clients range
research, industry and disruptive startups, unlock- from individuals with a disruptive idea to executive
ing the University of Waterloos talent, insight and teams from major corporations examining future
invention to more fully realize the economic ben- possibilities for their industry.
efits for Canadians. We want to create a nexus of
To our knowledge, no other university in Canada
innovation: a physical space where business lead-
has undertaken anything of this scope.
ers, entrepreneurs and academic researchers can
connect and collaborate resulting in a continuous While most universitiesincluding University of
and escalating feedback loop. Waterloohave startup incubator programs and
commercialization offices, GEDI is the first initia-
The GEDI initiative provides a concierge-based
tive designed to systematically unlock and com-
service that helps industry tackle their toughest
bine all innovation enablers on campus together
problems, commercialize disruptive technologies
in a physical space or networkeffectively moving
and position themselves for global success. It
research out of the lab and into the marketplace.
serves as a laboratory for innovation, an educa-
44
Canada
To enhance industry-research collaboration, we Quantum technologies

provide four key services. Nanotechnology
Research and development partnerships Cybersecurity
The University of Waterloo is a leader in The Internet of Things
impact-driven research, particularly in key frontier
disciplines that hold the potential to disrupt and Machine learning
invent whole new industries disciplines such as Data science and visualization
quantum and nano-technology, additive manu-
Autonomous systems
facturing and robotics. GEDI connects industry
partners with that expertise, giving companies the Connected systems, including robotics
chance to collaborate on highly focused research Additive manufacturing and 3D printing
or take part in more exploratory projects.
Our focus also includes a number of strategic
Access to talent and discoveries industry sectors:
GEDI helps businesses tap into a deep pool of Financial
innovators within the university, from graduate
students to faculty to undergraduates within Health and medical
Waterloos world-leading co-op program. We also Automotive
connect industry with the growing and diverse Agriculture and food
pool of technology-enabled and socially driven
startup companies that make up the regions Energy
entrepreneurial ecosystem. Clean energy, including alternative fuels
Insights and diagnostics Environment, including water
GEDI provides assessment services that help Our strength lies in our power to create connec-
enterprises determine how well their internal tions, amplify existing partnerships and spawn
systems foster innovation and how ready they are new collaborations within the Toronto-Waterloo
for the next disruptive technology. Innovation Corridor and beyond.
Leadership development in technology,
innovation and intrapreneurship The Leaders and Stakeholders
To empower business leaders to create a culture a new generation of entrepreneurs is
of innovation, we provide a suite of development rising out of the Waterloo region. At its
opportunities and resources. These include centre is an indispensable institution,
executive-level education, a masters degree in talented inventors and a dedicated group of
innovation, and innovation coaching. We also dis- community leaders co-operating to support
seminate the latest in innovation research through the hubs ambition to become a world-class
white papers and conferences. technology centre.
Initially, we have chosen to focus our work on tar- Shane Dingman, The Globe and Mail
geted areas that reflect both Waterloos particular
research strengths and the greatest potential for GEDI is led by the University of Waterloo and per-
global impact. These include technology platforms sonally championed by the universitys president,
and disruptive sources such as: Feridun Hamdullahpur. The initiative is governed
by a committee of internal stakeholders at the
University, which includes the Office of Research,
45
the Accelerator Centre, Co-operative Education skills for every stage of business development,
and Career Action, the Office of Advancement, from idea generation to venture creation to com-
University Relations and the Provost Office. mercialization and growth.
The University of Waterloo is uniquely posi- Waterloo also has earned a reputation as a
tioned to conceive and drive this groundbreak- world-leading research institution, home to more
ing endeavor. Its success, however, depends on than 40 centres and institutes, and 65 Canada
engaging with a number of external partners, as Research Chairs, not to mention Canadas largest
discussed below. school of engineering and its largest academic
concentration of computer science researchers. In
The University of Waterloo 2015-16, the University attracted more than $182
As Canadas top innovation university and the million from public and private sources to fund
engine of the countrys leading technology and research across a spectrum of challenges, from
talent cluster, Waterloo is a magnet that can nanotechnology to cybersecurity to green energy.
attract established industries looking for help in For the eighth year in a row, Research Infosource
creating and harnessing the power of disruptive Inc. named Waterloo the Research University of
innovation. That makes us the ideal location to the Year among Canadian comprehensive uni-
establish a central conduit between industry and versities (Canadas Top 50 Research Universities
academia. List).
Our world-leading co-operative education pro-
gram forges strong connections to businesses Industry leaders
in Canada and around the world, and produces Currently, GEDI is in discussion with several
graduates with extensive industry knowledge. potential industry partners who recognize that
Meanwhile, an emphasis on impact-driven Canadas futureand their ownlie in creat-
research encourages collaborations between ing transformative change. In doing so, we are
faculty and industry. building on a long tradition of collaboration with
industry that includes The Mike and Ophelia
Our longstanding creator-owned intellectual Lazaridis Quantum Nano Centre, the Advanced
property policy has helped foster a strong entre- Manufacturing Consortium, the Waterloo Centre
preneurial culture among faculty and students, for Automotive Research, the Southern Ontar-
and spawned a thriving startup ecosystem io Water Consortium and the UW-Schlegel
second only to Silicon Valley in its density. An Research Institute for Aging.
impressive infrastructure of support for fledgling
entrepreneurs bolsters this ecosystem. We run Regional innovation partners
the largest free startup incubator on any campus GEDI is reaching out to local technology accel-
in the world, helping Waterloo students establish erators, research institutes and post-secondary
120 companies to date which, in turn, have creat- institutions, as well as more than
ed more than 800 jobs. 200 startups that contribute to Waterloos thriving
The Universitys commercialization office helps entrepreneurial ecosystem. We complement the
innovations get to market sooner, conducting valuable services they provide by connecting
patent searches, assessing markets and identify- industry partners with sources of innovation found
ing competing technology. Meanwhile, the Conrad on campus and across the region, unlocking addi-
Centre provides an academic hub for entrepre- tional economic potential.
neurship on campusa place to learn essential We also leverage and increase the impacts of the
work done through the Ontario Centres of Excel-
lence and the Ontario Network of Entrepreneurs,
opening the door to more collaborations.
46
Canada
Government GEDI officially launched on September 15, 2016.

GEDIs goals align with federal government Moving forward, the projected budget for 2017-18
priorities. The Government of Canada recently will be CAD$13 million, funded by the University
earmarked $800 million for innovation networks of Waterloo, government and industry partners.
and clustering as part of its innovation strategy. By 2020-21, we expect the budget to grow to
Meanwhile, the mayors from communities within CAD$32.5 million.
the Toronto-Waterloo Innovation Corridor have
been discussing ways to attract business, boost The Results
growth and unlock the potential of this innovation
cluster. GEDI feeds directly into those ambitions. We are determined to make access to
disruptive innovation faster and easier.
Feridun Hamdullahpur, President, University
The Barriers of Waterloo
Carving a new path inevitably involves overcoming
obstacles. For GEDI, a key challenge was clearly Successful innovation clusters create value
articulating to external stakeholders how our mis- greater than the sum of their parts. Locally, GEDI
sion and services complement, rather than dupli- will amplify existing partnerships and create new
cate, the work of existing technology accelerators collaborations within the Toronto-Waterloo Inno-
and innovation hubs within the Toronto-Waterloo vation Corridor, creating new jobs and economic
Innovation Corridor. opportunities.
Other challenges included finding ways to align Nor do the benefits end there. Because GEDI is
industry needs with the other research demands strategically focused on high-potential growth
placed on our faculty, and align industry time- sectors, we will accelerate disruptive innovation,
lines with academic schedules. On this latter increase foreign direct investment in Canadian
front, Waterloo has the advantage that our co-op research and help Canadian companies succeed
students are available to work throughout the on the world stage. As a result, we will directly
year, while our faculty are not necessarily tied to contribute to national job growth and economic
eight-month teaching schedules. prosperity.
Finally, like almost any new initiative, we faced Each year, we anticipate that GEDI will attract
the challenge of financing GEDI. We are cur- more than 10,000 visitors, keen to connect with
rently working to secure industry investment and our partners, develop collaborations and learn
government funding, as detailed in the following from this first-of-its-kind initiative.
section.
What Comes Next: A Scalable,
The Investment Replicable Model
Work on GEDI began in earnest in February GEDI provides a model that can be readily scaled
2016, when University President Feridun Hamdul- up within the Toronto-Waterloo Innovation Corri-
lahpur presented the idea to the Board of Gov- dora region that is home to 16 post-secondary
ernors. To transform the initial vision into reality, institutions. Expanding GEDI to include other
the University of Waterloo invested staff time universities, colleges and research institutes
and resources, together valued at approximately would open the door to a number of high-poten-
CAD$500,000. tial collaborations.
47
Even more significant, this is a model that can be About the University of Waterloo
widely replicated. Universities lie at the core of Unwavering commitment to innovation in research, learning
most great innovation systems. By pioneering a and experiential education makes University of Waterloo a
model for translating more on-campus discoveries celebrated source of talent and new ventures. A research
into real-world innovation and accelerating the powerhouse and the engine of one of the worlds top-25
startup ecosystems, Waterloo offers the worlds largest
pace of innovation, GEDI can help drive positive co-operative education program, a uniquely entrepreneur-
disruption on a global scale. ial culture and a dynamic learning environment for 36,500
undergraduate and graduate students. Championing inno-
vation and collaboration, Waterloo builds a better future for
Canada and the world.
Who to Contact
Office of the President
University of Waterloo
519-888-4567, ext. 32203
president@uwaterloo.ca
Office of the Vice President, University Relations
University of Waterloo
519-888-4734
Sandra.banks@uwaterloo.ca
Works Cited
Budget 2016: Budget in BriefAn Innovative and Clean
Economy. Government of Canada. www.budget.gc.ca/2016/
docs/themes/economy-economie-en.html. Accessed 13 Oct.
2016.
Canadas Top 50 Research Universities List. Research
Infosource Inc. www.researchinfosource.com/top50.shtml.
Accessed 13 Oct. 2016.
Dingman, Shane. Startup city: The high-tech fever reshaping
Kitchener-Waterloo. The Globe and Mail, 17 Jul. 2015, www.
theglobeandmail.com/technology/kitchener-waterloo-start-
up/article25558263/. Accessed 13 Oct. 2016.
Government of Canada. Canada: A Nation of Innovators. June
2016, www.ic.gc.ca/eic/site/062.nsf/vwapj/InnovationNa-
tion_Report-EN.pdf/$file/InnovationNation_Report-EN.pdf.
48
Canada
Grant, Tavia. Why Canadas recession wasnt as brutal. The The Canadian Press. A quick look at Canadas federal debt-
Globe and Mail, 13 Jan. 2011, http://www.theglobeandmail. to-GDP ratio. Macleans, 5 Sep. 2013. www.macleans.ca/
com/report-on-business/economy/economy-lab/why-cana- general/a-quick-look-at-canadas-federal-debt-to-gdp-ratio/.
das-recession-wasnt-as-brutal/article612437/. Accessed 13 Accessed 13 Oct. 2016.
Oct. 2016.
Vrbanovic, Berry, Series 401: a mayoral meeting of the minds
Hamdullahpur, Feridun. President Hamdullahpur opens day on the Toronto-Waterloo Region corridor, Communitech News
two of the Waterloo Innovation Summit. University of Water- November 15, 2015.
loo, uwaterloo.ca/president/speeches-and-publications/
Waterloo, The David vs. Goliath of Startup Ecosystems.
president-hamdullahpur-opens-day-two-waterloo-innovation.
Compass, 28 Oct. 2015, blog.compass.co/waterloo-the-da-
vid-vs-goliath-of-startup-ecosystems/. Accessed 13 Oct.
Independent Panel on Federal Support to Research and 2016.
Development. Innovation Canada: A Call to Action. Govern-
Zoe, Henry. 16 Emerging Startup Hubs to Watch in 2016.
ment of Canada. rd-review.ca/eic/site/033.nsf/vwapj/R-D_
Inc., 29 Dec. 2015. www.inc.com/zoe-henry/ss/best-16-cit-
InnovationCanada_Final-eng.pdf/$FILE/R-D_Innovation-
ies-to-start-a-company-2016.html. Accessed 13 Oct. 2016.
Canada_Final-eng.pdf. Accessed 13 Oct. 2016.
Innovation Provincial RankingsHow Canada Performs. The
Conference Board of Canada. www.conferenceboard.ca/
hcp/provincial/innovation.aspx. Accessed 13 Oct. 2016.
Lynch, Kevin. Global rankings tell worrisome tale about state
of Canadian innovation. The Globe and Mail, 15 Sep. 2015,
www.theglobeandmail.com/report-on-business/rob-commen-
tary/global-rankings-tell-worrisome-tale-about-state-of-ca-
nadian-innovation/article26360143/. Accessed 13 Oct.
2016.
McKenna, Barrie. Canada is falling behind global leaders
in R&D. The Globe and Mail, 16 Nov. 2014, www.theglobe-
andmail.com/report-on-business/economy/canada-fall-
ing-behind-in-research-and-development/article21605656/.
Morneau, Bill. Financial Statement of Minister of Finance.
House of Commons, 22 Mar. 2016. https://openparliament.
ca/debates/2016/3/22/bill-morneau-1/only/. Accessed 13
Oct. 2016.
OECD. OECD Economic SurveysCanada. June 2016, www.
oecd.org/eco/surveys/Canada-overview-OECD-econom-
ic-survey-2016.pdf. Accessed 13 Oct. 2016.
State of the Nation 2010. Science, Technology and Innova-
tion Council, http://www.stic-csti.ca/eic/site/stic-csti.nsf/
eng/00048.html. Accessed 13 Oct. 2016.
49
ECUADOR
Public-Private Dialogue as Catalyst for Competitiveness and
Sustainability in Quito
One of the challenges that the cities of Latin foster private enterprise and be open to the
America face is creating the conditions that world. Quito in 2040 must be a city that
make a city competitive, inclusive and sustain- protects its natural heritage, prioritizes the
able. Striving to balance these economic, social pedestrian, has quality public spaces and
and environmental goals is a public policy chal- a sustainable and efficient transportation
lenge. However, none of these objectives can be system.
achieved without a constant dialogue between The economic component is fundamental, and the
the public sector and the private sector. first step for urban planning has been to establish
Recognizing the need for public-private sector the basis for balanced economic development.
collaboration, Quito presented a new agenda The City of Quito accounts for 10 percent of
for shaping the future of the city towards 2040, Ecuadors population, 27 percent of the coun-
after several months of deliberation with experts trys GDP, and 20 percent of its non-oil exports.
in different fields, taking into account the needs Quitos productive structure is dominated by
of entrepreneurs, urban planners, students, uni- professional activities, manufacturing, construc-
versities, cultural actors and citizens. The results tion and commerce that account for 62 percent
of this work were presented at HABITAT III, the of its economy. However, the growth of the pro-
United Nations Conference on Housing and ductive sector has been largely spontaneous and
Sustainable Development, recently convened in unplanned. The location and design of industrial
Quito to reinvigorate the global commitment to spaces, and land use have not been optimal and,
sustainable urbanization, and to discuss the urban at present, many industrial enterprises are located
agenda for cities in their role as drivers of national in urban areas of the city, generating, in many
economic and social development. In this context, cases, increased social pressure. In response,
Quito is developing plans to achieve orderly and territorial production planning needs to focus on
sustainable growth, guided by the following vision: creating synergy and balance in the use of space
This Vision sees Quito in the year 2040 as and land to achieve economic, social and environ-
a modern and livable city whose citizens mental goals. Three areas of policy and planning
feel that they belong and where they can are crucial.
live in dignity. It is a resilient city that The first is public policy, including the rules that
successfully addresses its challenges. govern and promote urban growth, land manage-
Cultural diversity is considered its greatest ment, environmental policy, investment, innovation,
asset, keeping its historical heritage alive. mobility, culture and social development. The
It promotes the full exercise of human second area involves accommodating the needs
rights within a democratic and free and interests of stakeholders. On the public side,
environment. We want the city to have a this includes the local government or mayoralty,
design that serves life and respects the the national government and multilateral agen-
environment. We want it to be inclusive,
50
Ecuador
cies. On the private side, this includes production three elements is fundamental to the develop-
and trade chambers, urban and rural communities, ment of the citys competitiveness. Thus, the city
corporations and private companies, universities needs to create a non-private, non-state compet-
and citizens. The third area of planning involves itiveness agenda and strategy that address these
physical spaces and productive infrastructure three areas in an integrated and sustainable way,
such as the airport, wholesale and retail markets, and develop a plan of action that includes objec-
the slaughter center, the citys road network, tives measurable in their impact and identifies the
digital network, etc. The ability to integrate these role key institutions play.
Focus of productive planning of the city
Produc've Urban Planning for the produc7ve and sustainable

strategy development of Quito
Consensus produc7on policy

(Industrial, investment,
innova7on, tourism,
Policies
entrepreneurship)
Urban Planning (Floor)
Environmental, Cultural Partner,
Mobility, (Vision 2040)
Basic infrastructure
Road infrastructure
Educa7onal infrastructure
produc7ve infrastructure Local and na7onal
Industry
Airport Infrastructure Stakeholders government
Smash Repairs
Market Network Produc7ve Corpora7ons and private
camal companies
Urban and rural
Compe&&veness is communi7es
construct Connec7vity Interna7onal organiza7ons
Telecommunica7ons
from the local Aerial
Eciency - Eciency-Impact
THE CITY NEEDS TO CREATE AND PROPOSE NON-PRIVATE, NON-STATE, SOCIAL, COMPREHENSIVE,
COHESIONERS, AND SO SUSTAINABLE CONTRIBUTIONS, AVAILABLE IN THEIR IMPACT AND AVAILABLE FOR
INSTITUTIONAL CONSOLIDATION
51
In February 2016, the productive development 3. Methodology of operation

secretary of the municipality of Quito formed The tables already have had important results:
Quitos competitiveness council. The Councils
role is to focus on and coordinate work between The first Quito Invest is an initiative to encour-
the public sector, private sector and academia in age the participation of the private sector in proj-
developing a competitiveness agenda for the city. ects identified as a priority for the city: projects
Chaired by the Mayor of the city, the Council has for mobility, sustainability and tourism. Up to $3
15 members representing the economic sectors billion could be invested in these projects. Also,
of the city, including: the investment board is working to develop other
key tools to improve the business climate as a
Chamber of Industries fast track mechanism for investments, sector
Chamber of Commerce incentives and the formation of Quitos investment
Chamber of Agriculture agency. The table of productive development
has been more complicated because the citys
Chamber of Tourism industries are currently focused on the short-term
Stock Exchange and day-to-day issues, not by explicit decision
but rather because the countrys changing tax
Association of Banks
and commercial policy has created an environ-
Association of Exporters ment of uncertainty and indecision. For this table,
Construction Chamber we are increasing the level of work and seeking
input from academia and the productive sector
Federation of Chambers (Mining, flowers, on stimulating industry cluster development.
banks, textiles, metalworking, etc.) This includes, first, identifying who is in the city,
Three representatives of the main universities which are the most dynamic sectors and, of those
General guidelines were established at the Coun- sectors, which generate the most jobs and are
cils first executive meeting: the most competitive. Once this information is
gathered and a plan developed, we will focus the
1. The council will dedicate itself exclusively to entire productive ecosystem to make these sec-
addressing structural issues of the city, devel- tors more competitive. The table of procedures
oping by years end a ten-year competitiveness (tramitology) is perhaps the most complex and
agenda. challenging. Here we have set forth an objec-
2. There are three technical working groups: tive and methodology, aligned with the World
Banks Doing Business framework and indicators,
Productive development table
focused on improving the ease of doing business
Tramitology table (cutting red tape and in the areas of regulation for which the municipal-
streamlining permitting) ity has responsibility: starting a business, dealing
Business climate table with construction permits and registering property.
52
Ecuador
Components of the Competitiveness Agenda of Quito
The discussion generated within the Council and sibilities of both public and private stakeholders,
its sectoral panels has led to the development setting objectives and goals, and establishing
of the Competitiveness Agenda of Quito, an programs that enhance competitiveness. While,
essential instrument for productive medium- and undoubtedly, managing a long-term agenda is
long-term planning and a consensus roadmap complicated, made even more so when the politi-
for improving the citys competitiveness. Quitos cal times create an uncertain environment, setting
competitiveness agenda has five general pil- and institutionalizing a balanced and integrated
lars: productive development, infrastructure and economic, social and environmental strategy are
connectivity, innovation, investment and social fundamental steps for creating a competitive and
development. At the operational level, this agenda sustainable city.
has four strategies, promoted directly by the
Competitiveness Council, and that involve respon-
53
Components of the Competitiveness Agenda of Quito
Produc've Compe''veness
Strategy agenda
Long term Poli'cal 'me
AGENDA PLAN ESTRATEGY SPACES OF
PARTICIPATION
Produce Quito Produce

Compe77veness and Innova7on Produc7ve
Development Board
Agenda of Quito to 2025 Cluster and chains Urban Agriculture Social Responsibility
Council
Connec7vity produc7ve chain
Eco Development
Supplies

Job
Respond. Social
Interna7onaliza7on
Commission.
Ci7zen window
Qualita've Quan'ta've
Invest Quito Invest
Territorial Agenda Macro analysis
Table of Investments.
PDOT Sector growth AZrac7on of investments, one-stop Table of Tramitology
Vision 2040, CC Workshop Contribu7on sector. To the shop, City Brand Commission on land
Strategic plan of PEs GDP of Quito Soil and economic
Compe77veness Council Structure of employment Tramitology development
Chaining produc7on Ci7zen window
Objec7ve Voca7on export
Innovate Quito Innovate

Improve produc7ve development strategy Table of Innova7on
Set Baseline for Goal Compliance Digital agenda Economic development
Dening a consensual agenda with the private sector Urban and produc7ve commission
Ci7zen window
Ar7culate be[er the ac7on of each actor innova7on
Districts of innova7on
ICTs
Pillars
Master plan for Visit Visit Quito
Requirements
competitiveness Air Connec7vity (Tourism)

Consejo de Turismo
Comisin de
and Connec'vity
Ins7tu7onality by
Development
Infrastructure
and innovation ambiente, suelo,

Investment
Mee7ng tourism
Produc've
municipal ordinance
Innova'on
desarrollo econmico
Social
Secretarial compe77on Marke7ng Mesa conec7vidad y
Ar7cula7on with other

from Quito to Product development, Quality,
investments and development.
MICE
Ventanilla ciudadana

dependencies
Private Sector
2019 Marke7ng, online and oine
marke7ng.
Involvement
Direct
Planning execu7on 3
54
Ecuador
Quito, Competitive and Global City

The vision of the competitiveness of the city could
be defined as follows: A city open to the world
that, due to its geographic location, becomes
the capital of regional integration and promotes
entrepreneurship and private investment. Dynamic
in nature, the city is connected to the rest of the
country and the world. It has an international ori-
entation and takes advantage of opportunities.
About the Author

Mr. Alvaro Maldonado is currently the Secretary of Produc-
tive Development and Competitiveness of the Metropolitan
District of Quito where he proposes and dictates public policy
that aims to enhance the citys business climate, investment
attraction and overall productivity for economic development.
55
GLOBAL
Sustaining Cities by Connecting People: Global Public Purpose
Partnered with Private Investment
Webster University can be and has been

described in many ways. Founded in 1915 in St.
Louis, Missouri, United States, Webster is a Tier
1 nonprofit private university currently serving
nearly 17,000 students studying at campus
locations in North America, Europe, Asia, and
Africa, and in a robust learning environment
online. Fully accredited by the Higher Learning
Commission of the North Central Association, call home. Using the language of entrepreneur-
Websters mission is to ensure high quality ship, we can think of our founding as a start up
learning experiences that transform students for created by women for women, who then accel-
individual excellence and global citizenship. At erated the institutions growth at a phenomenal
the time of its founding by the Roman Catholic pace through focused strategy and considerable
Sisters of Loretto, Webster was one of the first risk taking. The gazelle-like Sisters of Loretto
colleges west of the Mississippi River to pro- put in motion an institution willing to embrace
vide bachelors degrees for women. From those an increasingly diverse and inclusive sense of
beginnings, Webster evolved to welcome an ever community, including the decision by the Sisters
more inclusive community. In the 1960s, Web- to launch the institution to private and indepen-
ster welcomed male students and transferred dent status at its first half-century mark. Just as
the college to a lay governing board, leaving the Webster pioneered in offering programs for work-
identity of a Catholic womens college for inde- ing adults, for those in military service and their
pendence with no religious affiliation. Student dependents, and creating fully online courses
profiles expanded to include those on military and programs, the institutions first creation of an
bases, working adults and, in the 1970s, stu- international residential campus in an important
dents in Europe as Webster opened residential city of the world marked a mission-defining strat-
campuses in the cities of Geneva and Vienna, egy that persists to this day.
followed by Leiden and London. Today, campus
locations also include Athens, Greece; Accra, The Challenge: Optimizing and
Ghana; Bangkok and Cha-am, Thailand; and Integrating Private Assets for Global
joint degrees are offered in partnership with
three Chinese institutions in Beijing, Chengdu
Public Purpose
and Shanghai. Websters global character is rooted in its his-
tory, dating to at least 1919 when the college
While Websters history and global diversity are
welcomed two French students as part of the
distinctive, what sets the university apart is its
war relief effort. In 1925, Webster created its
entrepreneurial approach to taking education
first scholarship to study abroad and, in 1931,
to our students, enabling us to meet the unmet
students from other countries began completing
needs of our students and the communities they
56
Global
their studies at the Webster Groves campus. wherever they are located. Faculty at international
During the next 20 years, 200 faculty members campuses are globally diverse; at the European
and students went abroad or came to Webster. In campuses, 90-95 percent are local residents in
the 1970s, the university took the significant step the country or region, but not necessarily native to
of establishing a residential campus in Geneva, the country or region. They are complemented by
Switzerland, soon followed by Vienna, Austria and those on assignment from other Webster cam-
Leiden in the Netherlands. puses. Because of the longstanding presence of
From enterprising beginnings in three European campuses in their communities and the residen-
cities, the Webster University network of global tial nature of faculty, the embedded connections
campuses now extends to cities on four conti- to each city location are culturally acute. In many
nents, educating thousands of students across cases, programs enjoy country accreditation,
the world. Websters campuses in Europe and adding value to a Webster degree achieved in that
Africa are fully residential campuses with full country.
degree programs, educating primarily students Yet, the considerable assets of these campuses
native to countries in the region of each campus and the cities they call home have not yet been
Leiden, Athens, Geneva, Vienna, Accra, and from optimized for the benefit of the whole univer-
the Middle East, Asia, and Africa. Thailand is the sity nor of each individual campus [and city] in
location for two campusesgraduate students advancing the universitys mission of transform-
in Bangkok and undergraduates in Cha-am. In ing learners for individual excellence and global
China, graduate students complete joint degrees citizenship. Generally, people are not inclined to
at Chinese partner institutions. At the European work together across communities because of the
campuses, generally, the student population is lack of contact and communication, limiting any
15 percent local, 15 percent from the United sense of shared purpose. Established structures,
States and 70 percent from the rest of the world. geographic isolation, leadership orientations,
Study abroad students from Webster campuses limited communication infrastructure, and unique
and from its U.S. affiliate partners can spend characteristics of a specific locationsuch as
a term, a semester, or a year at other Webster culture, economics, politics, and regulationsare
campuses, as well as through arrangements with barriers to successful integration. Absent this
partner institutions around the world. Our network integration, local realities and self-interest take
of campus locations and partnerships means that precedence when a global view, locally expressed
Webster students can choose to complete an and manifested, can bring new talent and inno-
entire degree program outside their home country vative solutions to bear on the issues facing the
or can seamlessly transfer credits among campus worlds population living in cities.
locations. The curriculum is centrally coordinated, The focus of this case is the strategy needed to
taught in English, and Webster programs are catalyze and strengthen the connected ecosys-
accredited by the Higher Learning Commission tem of a universitys global network. The neces-
57
sity that demands integrating the universitys nium Development Goals (MDGs), the United
network for global impact is linked directly to the Nations recently launched a set of 17 Sustainable
necessity of connecting people across city and Development Goals (SDGs), calling out the world-
country boundaries for the benefit of the cities wide need for improved industry, innovation, and
where Webster is located as well as for the world. infrastructure; sustainable cities and communities;
Framing the need for entrepreneurship globally, and decent work and economic growth.
United Nations Secretary Ban Ki-Moon explains,
Entrepreneurship is about innovating, breaking Meeting the Challenge: Connecting
down barriers, taking risks and showing that new
business models can tackle long-standing prob-
People Through Strategy, Leadership,
lems (United Nations Foundation: Entrepreneurs Programs, and Infrastructure
are the Spark for Global Change). The enduring As Webster University anticipated its second
problems that the United Nations, its foundation, century, the institutions strategic plan had largely
its partners, and leaders in communities world- been accomplished, and university leadership
wide are tackling are many and varied: public embarked on a strategic planning process to
health, hunger and poverty, education, empow- establish the goals and metrics for building, from
erment of girls and women, security, sustainable the institutions entrepreneurial successes, a
development, technology, energy, and communi- sustainable enterprise for Websters next century.
cations. The need for innovators with a passion The new strategic plan, Global Impact for the
for humanitarian causes crosses the borders of Next Century (2015-2020), is organized around
communities and countries. Leadership across four themes:
new borders demands a global mindset that
Global innovation through inclusive leadership
embraces the interdependence of the worldits
challenges and its opportunities (Gundling, et al. A global, student-centered experience
1-2, 35-37). While the challenges to cities in the A network of academic and operational
continents Webster students call homeNorth excellence
America, Europe, Asia, and Africavary, the need
for human connections, innovative leadership, Strategic and sustainable development
entrepreneurial approaches, and a global mindset Informed and shaped by hundreds of members of
persists. the Webster University communityfaculty, staff,
The need is acute for collective will and concerted students, administrators, trustees, and alumni
action that is entrepreneurial and informed by a worldwidethe plan was endorsed by Websters
global perspective and mindset which can address Board of Trustees to place priority on integrat-
the challenges facing people living and working in ing, articulating, and leveraging Websters global
the worlds cities. To greater and lesser degrees, assets in a sustainable way. The plan commits
St. Louis, Shanghai, Vienna, Leiden, Athens, and Webster to enhance student support systems
Accra face issues of hunger and poverty, gender and embed experiences across the network that
equality and womens empowerment, health and enable and cause students to put values into
disease, environmental sustainability, income action to enhance their learning, with a focus on
inequality, racism, security, violence, and improved the values of global citizenship and diversity. As
educational access and outcomes, among many a worldwide institution, Webster will educate a
others. Building on the successes of the Millen- diverse population locally, nationally, and interna-
tionally, and strengthen the communities it serves.
58
Global
Several areas of strategic focus illustrate the Increased faculty and staff global mobility
means by which Webster seeks to be glob- by providing the first international travel
ally impactful through systemically integrating experience for approximately 18 percent of
programs, services, scholarship, student and participants.
employee talent, operations, and engagement Increased participants grounded
among and with members of a global commu- understanding of Webster Universitys
nity. To achieve connections among members of complexity, developed and enhanced
the Webster University community and their city participants leadership skills, and created
homes, we have focused on: ambassadors to the communities Webster
Leadership development for faculty, staff, and serves. Notable gains appear in participants
students 1) establishing relationships across the
Academic program development Webster network and leveraging them
to resolve institutional challenges and 2)
Infrastructure investments recommending innovative and creative
solutions to institutional challenges.
1. Leadership Development for Leadership accomplishments within the
Faculty, Staff, and Students project-based framework of the Academy as
Two innovative initiatives have increased the well as in participants current roles and new
commitment, talent, and capacity of faculty, staff, roles as a result of promotions within Webster
and students across the Webster Global Network or at other institutions.
to lead in connected ways: the Global Leadership Key initiatives in the institutions strategic plan
Academy and the Global Student Leadership advanced by participants in areas such as
Summit. leading major curriculum revisions, developing
Created by President Stroble and Provost Schus- talent and improved culture within units,
ter, the Global Leadership Academy is an inno- building student community, and advancing
vative leadership development program designed major facilities and information technology
to enhance Websters institutional capacity for projects. Academy participants have extended
global work by virtue of the programs impact Websters global impact through new
on faculty and staff leadership. The three goals partnerships, faculty scholarship, and campus
of the year-long Academy are developing and locations or study abroad initiatives that
enhancing faculty and staff leadership skills, facilitate greater mobility.
providing a comprehensive and grounded under- The Global Student Leadership Summit, held in
standing of Websters complexity, and creating 2015 and planned again for 2017, first convened
ambassadors to the communities Webster serves. 29 students of 20 nationalities from 8 campuses
Since its inception in 2013, the Academy has across Websters worldwide network at the St.
achieved these strategic results: Louis, Missouri campus to discuss leadership and
Meaningful interactions among faculty and advocacy. They built their knowledge and skills,
staff from 15 Webster University campuses, developed relationships with peers across the
including 4 international campuses and 9 network, enhanced their intercultural competence,
metropolitan campuses outside the home and gained a better understanding of the impact
campus in St. Louis, Missouri. that student involvement has on students and
Webster University worldwide. Prior to the weeks
summit, the students met in an online course to
develop their leadership competencies and to
59
study the new strategic plan. At the conclusion of building students knowledge in these topic areas:
the summit, teams made formal presentations of roots of cultures, social systems and human
six proposed actions to advance the four themes behavior, physical and natural world, global under-
of the strategic plan. For Global Student Lead- standing, arts appreciation, and quantitative liter-
ership Summit 2017, to be held at the Webster acy. Skills requirements occur in courses coded
Vienna campus, a cohort group of 26 student for: written communication, oral communication,
leaders will be recruited from the St. Louis, critical thinking, intercultural competence, and
Geneva, Vienna, Leiden, Thailand, and Ghana ethical reasoning. Aligned with high impact teach-
campuses within the Universitys international ing practices and 21st century knowledge and
network, and selected through an application pro- skills identified by the Association of American
cess that includes a review of leadership involve- Colleges and Universities, the GCP is the basis of
ment and work experience. The program goal every Webster undergraduate degree. This foun-
is that student participants return to their home dation builds students global perspectives and
campus and implement the skills and knowledge mindset, and enhances student mobility through
acquired to improve student life throughout the the presence of GCP course offerings across
Webster University network. campus locations.
The examples of programs with a global feature
2. Academic Program Development are long standing at Webster, including the inno-
Ensuring all students have an experience that vative Global M.A. in International, offered since
builds their global perspective requires a global 2006. Cohorts of 8-12 students complete their
feature in every academic program. A quick degrees in five terms at five different locations. In
survey of Websters certificate, undergraduate, the summer of 2016, 18 students completed their
masters and doctoral program titles finds at Global MA programs, having studied in Geneva,
least thirty specific global/international programs Vienna, Leiden, Bangkok, Beijing, London, Wash-
spanning all five colleges. Schools and colleges ington DC, and Havana. Newly created certificate
are engaged in incorporating specific curricular and degree programs, and programs of research
content and/or experiential components such as and community engagement often address global
study abroad opportunities as an aspect of com- challenges linked in specific ways to the cities
prehensive internationalization. This work con- where Webster campuses are located. Examples
tinues and is designed to extend the foundation include academic programs, scholarship, and
created by faculty in the form of a new general community outreach focused on cyber security,
studies program, called the Global Citizenship teaching English as a second language, inter-
Program (GCP). The Global Citizenship Program, national NGOs, entrepreneurship, sustainability,
recently recognized by the Association of General human trafficking, refugees and asylum seekers,
and Liberal Studies as an exemplary program, public health, national security, the political econ-
is a set of undergraduate degree requirements omy, human rights, gender empowerment, and
transnational politics, to name a few. These areas
60
Global
of focus are central to academic study as well as travel for operational purposes. In the 1990s,
conferences and summits offered on our cam- Webster was an early adopter of online courses
puses in partnership with members of the local and programs, provided asynchronously via the
and global communities. The focus and needs of web due to vast time zone differences among
the cities we inhabit inform our scholarly work and campuses. Our recent strategic focus on Euro-
our larger purpose of meeting needs where they pean alignment seeks to coordinate academic
are, whether global entrepreneurship in Vienna, or and operational activities among Websters Euro-
status and needs of refugees and asylum seekers pean campuses. The installation of video-enabled
in Geneva and Athens, or victims of human traf- classrooms enhances our ability to coordinate
ficking in Leiden and St. Louis, or leadership for course offerings in synchronous modes. Courses
young Africans in Accra. can now originate at any of the European cam-
puses and be delivered to students at each of
3. Infrastructure Investments the other campuses, thus optimizing enrollments
and faculty expertise while diversifying the enroll-
Human connections and collaborative work ments in such courses. The connections among
across Websters network of global campuses in campusesfaculty, staff, and studentsare
global cities depend upon an infrastructure that enhanced by video conferencing as well as reg-
increases our connectivity across the network ularly scheduled events that bring members of
and within each community. To that end, Webster the community in contact with each other. Across
created a Global Marketing and Communications the European campuses, students compete in
Unit that provides coordination and necessary Websters Got Talent competitions, play football
support for globally distributed university commu- tournaments, and attend leadership development
nity members, prospective students, alumni, and workshops. Student government leaders collab-
media outlets. Both academic and operational orate to advance improvements within their cam-
functions rely on the quality and strength of pus communities and to lead across the network.
Websters global information technology network. Academic conferences and summits hosted by
Recent partnership strategies have replicated each campus on topics as varied as born global
those typically employed by multinational corpora- entrepreneurship, humanitarian rights, global
tions, establishing a global wide area network. communications trends, the Eurozone, Asian
Websters Global Wide Area Network, established regional cooperation, and womens empowerment
in partnership with AT&T, means one telecommu- draw members of the university community who
nication network connects all Webster campuses attend in person as well as virtually.
across the globe, creating consistent and reliable Location matters, and it begins with St. Louis,
service for all constituents at higher speeds and Missouri, United States, Websters home for 101
greater bandwidth across the network. The new years. While our home campus is located in Web-
platform has enabled video conferencing across ster Groves, a charming suburban town 15 miles
the network, invaluable as a substitute for costly from the St. Louis city center, we serve an urban
61
population with a campus located in the heart of Kleiman and Poethig state in regard to U.S. cities,
the city. For more than 40 years, we have offered just as much as cities need anchor institutions,
degree programs for those who live, work, and anchors need cities. Yet, the awareness of inter-
play in downtown St. Louis; in two of those cam- dependence between anchors and cities too
pus sites, Webster led the way in the restoration often takes the form of partnerships on specific
and reopening of historic buildings long in disuse. projects or programs rather than the kind of
We opened our current location for the downtown intentional and strategic planning that is found in
Gateway Campus in 2015, complete with an art the private sector (Kleiman and Poethig). Trans-
museum, auditorium, dedicated classrooms, con- actional relationships and one-off engagements
ference room space, computer laboratories, vid- typify city-anchor relationships, while the truly
eo-enhanced facilities for synchronous distance impactful partnerships that function at systemic
delivery, and shared space with partners such and strategic levels are the ideal for a private
as the World Affairs Council. Websters success university serving a public and global purpose.
in engaging and serving the community as an
anchor institution depends upon the centrality of Lessons Learned and Next Steps.
our location and our committed partnership with
government, community agencies and organiza- The challenge of galvanizing shared commitments
tions, and the growing start-up community pres- across individuals with diverse interests is a uni-
ent in downtown St. Louis. versal circumstance best addressed by bringing
people in contact with each other to discover
The intention to serve as an anchor in the com- shared interests and the benefit of working
munity has driven decisions about locations of together to solve shared problems. Engaging with
the campuses in Vienna, Austria; Accra, Ghana; others whose lived experiences are not our own
Athens, Greece; Bangkok, Thailand; Leiden and enables us to grow in our connection with the
Amsterdam in the Netherlands; and all three Chi- human community and to act in ways that sur-
nese locationsBeijing, Shanghai, and Chengdu. pass self. Sheer lack of mobility among cities and
Investments in facilities central to cities and with communities limits our knowledge of each other
residential facilities support desired mobility and each others needs. As humans, we are prone
among campuses, providing opportunity for aca- to positive biases about the value of what we
demic study and cultural immersion. Proximity to know and negative biases about the value of what
potential students within the community is the pri- we do not know. This is why increased contact
mary factor for these campus location decisions, among peoplewhether in person or virtuallyis
but the proximity to partners who provide intern- essential to transcending self-interest and inade-
ships, onsite locations for classes and programs, quate knowledge of ourselves and each other.
and available professionals who bring expertise
to our classrooms as instructors and speakers The ubiquitous nature of this challenge means
are important factors for the quality of programs that solving the problems of creating adequate
that intentionally link theory and practice. As infrastructure, optimizing talent and technology
for economic growth, and improving urban living in
sustainable and equitable ways will require bringing
62
Global
people together in connection with one another. About the Author

As diverse communities learn from one another, Dr. Elizabeth (Beth) J. Stroble is the president of Webster
partner in leadership, and share experiences and University, a top tier private nonprofit university serving nearly
perspectives to identify innovative solutions to their 17,000 students in 8 countries on 4 continents. Her leader-
cities most persistent problems, cities will prosper ship has strengthened Websters academic profile and global
outreach. Previously she served as senior vice president and
in a globally competitive environment. provost, chief operating officer at the University of Akron
As Webster Universitys president, I know from and held administrative and faculty positions at University of
Louisville and Northern Arizona University.
direct experience that the challenge of unifying
our diverse constituencies of faculty, staff, stu-
dents, alumni, and community members across Notes
our global network is daunting indeed. Through I acknowledge and thank Provost, Senior Vice President and
the solutions to connect people described in this Chief Operating Officer Julian Z. Schuster, for his partner-
ship in advancing Websters global mission in every way and
paper, we not only seek to embed even more
specifically in launching the Global Leadership Academy. For
fully our presence in local communities and cit- their exemplary leadership of the Global Leadership Academy
ies campus by campus, but also to build a global and for the contributions of the evaluative data reported here,
community. I am grateful to Director Laura Rein and Co-Directors Holly
Hubenschmidt and Erik Palmore.
Adopting mission-focused strategies for meeting
I acknowledge colleagues who provided leadership for stra-
the needs of those we educate and the com- tegic plan initiatives described in this case statement as well
munities we serve relies upon a global mindset as advice and research for this paper: Provost, Senior Vice
that welcomes immersion in new ways of living President and Chief Operating Officer Julian Z. Schuster,
Associate Vice President Foundation and Government Rela-
and thinking. This mindset contrasts our mis-
tions, Carolyn Corley, Vice Provost Nancy Hellerud, and Chief
sion-based, need-meeting premise of global Communications Officer Rick Rockwell.
education with a missionary viewpoint, that of
exporting an American worldview or an imperial
Works Cited
perspective that aims to plant the institutional
flag at international branches for the benefit of Association of American Colleges and Universities. College
Learning for the New Global Century. Washington, D.C.,
the home campus. To be successful as a private, 2007.
global serving university requires a systemic inte-
Gundling, Ernest, et al. Leading Across New Borders. Wiley,
gration and linkage of individuals and communi- 2015.
ties using levers of connection such as leadership
Kleiman, Neil and Erika Poethig. Heres How Cities and
development initiatives, academic programs, and Anchor Institutions Can Work Together to Drive Growth.
key infrastructure investments. To be competitive Next City, 2015. https://nextcity.org/daily/entry/anchor-in-
as a global city requires the building of mutual stitutions-cities-national-resouorce-network. Accessed 17
Oct. 2016.
interests among disparate populations, using
levers of connection that build global mindsets, United Nations Foundation: Entrepreneurs are the Spark for
Global Change. Issuu, 2014. https://issuu.com/unfounda-
entrepreneurial talent, and innovative solutions.
tion/docs/gec_report_110414_sm?e=1749953/11848938.
For both cities and university, we have witnessed Accessed 17 Oct. 2016.
the positive impact of a private university partner-
ing for a public, global purpose.
63
KOREA
Smart Cities in Korea
Urbanization in Korea
Economic Growth and Urbanization of Korea
The miracle of the Han river gained strong
momentum as early as the 1960s, along with
HCI (Heavy Chemical Industry) nurturing plan by
means of the Five-Year Economic Development
Plan. As a result, Korea has become the 6th
largest trading country in the world (WTO) and, Others
consequently, urbanization has been an inev- Other possible problems of rapid urbanization
itable outcome. By 2010, the urban population could be an unbalanced growth among cities,
in Korea had tripled compared to the 1970s and various social problems such a NIMBY Syndrome,
the proportion of urbanization had reached 90.9 as people will need to keep more of their own
percent (Figure.1), especially in the capital area. properties.
As more weight is put on the city level, the com-
petitiveness of cities has become the core factor Enhancing its City Competitiveness
for the competitiveness of nations. is the Key Factor
To solve these problems, effective means to
Visible Problems as a Consequence of Rapid enhance city competitiveness must be a high
Urbanization priority, and only fundamental solutions can alle-
Infrastructure viate these problems. If we regard the city as
As cities in Korea outgrew available infrastructure, one whole organic system, such problems under-
the pace of establishing new infrastructure could mine its optimal function, so an immediate cure
not keep up with the fundamental needs of the is needed. Thus, to address such concerns, the
urban population. OECD estimates that USD 53 Korean government established an integrated
trillion is needed by 2030, equivalent to an annual master plan for cities, as a next generation model
2.5 percent of global GDP, to meet the growing of cities, and U-City plan was its starting point.
demand for infrastructure globally and, although
it has not been specified, Korea will also need to Overview of Koreas Countermeasures
make a significant investment. In December 2006, the Ministry of Information
and Communication announced The Plan for
High Population Density Activation of U-City Construction. In November
Mass migration to urban areas is often driven by 2009, the Ministry of Land, Transport and Mari-
unbalanced economic development. For example, time Affairs announced the first Comprehensive
in Korea, people tend to find better opportunities Plan for U-City (09~13) and, in October 2013,
in urban rather than in rural areas. This tendency, the second Comprehensive Plan for U-City
however, can cause the problem of high population (14~18) was announced.
density, which can further exacerbate housing, pol-
lution, traffic, living cost and sanitation problems.
64
Korea
Figure 1: Total Population & Urbanization Rate of Korea

Source: Korea Land & Housing Corporation
65
The notion of U-City has evolvedto the Smart The first plan was designed primarily for develop-
Cityand Koreas Smart City project is building ing the basic infrastructure, including application
on the foundation of the former U-City Project. of core technologies, as this basic infrastructure
With the aid of existing U-City infrastructure, the could be leveraged to support further devel-
Korean government is developing various smart opment of other areas. In contrast, the second
city projects. The Smart City plan in Korea is plan was devised to expand U-City projects all
focusing more on industrial competitiveness of over the nation, as well as to penetrate foreign
cities. Therefore, the governments plan is designed markets. With some degree of variations, the
to generate positive outcomes such as encourag- two comprehensive plans aimed to enhance the
ing both domestic and foreign investment, promot- competitiveness of cities, especially metro areas,
ing the growth of domestic SMEs and IT start-ups, and ultimatly expand the development scheme
and providing jobs for local citizens. to achieve harmonized growth all over the nation.
As Korea gained status as a top global compet- Along with 49 local institutions, the government
itor in the telecommunication industry, thanks to initiated its 1st plan, which targeted 55 percent of
its cutting-edge technology, the strategic devel- metropolitan areas and 23 percent of rural cities.
opment plan of Smart City has long been pro- The Ministry of Information and Communication
moted. Nevertheless, due to dispersed efforts on provided a total of 145 billion Won over 5 years,
the U-City projectSmart Water Grid by Ministry 46 billion for the U-City Plan and 990 billion for
of Land, Infrastructure and Transport; IoT busi- the u-Eco city by means of R&D.
ness of Smart City by the Ministry of Science,
ICT and Future Planning; and the Smart Grid Case StudyThe 1st Comprehensive
project by the Ministry of Trade, Industry and Plan
Energythe projects actual outcome has been
less than optimal. Thus, a major concern of the Challenges &Evaluation
Korean government and other institutions is to Although the government tried to disperse initia-
generate the synergistic effect, which can further tives evenly over the nation, the U-City plan was
contribute to the success of the Smart City mostly confined to metropolitan areas. Only some
project. rural institutions were involved as to undergird
its development. For the 1st plan, for which the
central government was mostly responsible, there
The U-City Plan
had been a visible limitation on effective, timely
By definition, U-City is the city, equipped with development, especially for harmonizing roles
cutting-edge IT technologies that provide Ubiqui- with local governments. In addition, gaps in imple-
tous access to vast information on transportation, mentation developed between cities that initiated
weather and even crime. (Figure2) the U-City plan simultaneously because some of
Initiated in 2003, the Hwasung and Sungnam the local governments did not have an adequate
areas were selected for the new city plan. In budget. Moreover, as the real-estate market dete-
2006, the Ministry of Information and Commu- riorated during the implementation, some of the
nicationcurrently the Ministry of Science, ICT U-City plans had to be abolished.
and Future Planningannounced its Basic Plan Also, as it lacked an objective institution that
for Active Establishment of U-City. Later, the could evaluate progress without politics, the most
Ministry of Land, Transport and Maritime Affairs effective tools and/or methods to achieve further
announced the 1st and 2nd comprehensive plans development could not be pinpointed in a timely
for U-City. manner.
66
Korea
Figure 2: Koreas U-City

Source: UBICOM Report (Citing Korea Ubiquitous City Association)
67
Table 1: Results of the 1st U-City Plan
Initiation Year Target Location Result
Songdo Devised a new model for an effective U-City infrastructure that became a standard
for other plans.
Busan Provided the service, which encouraged citizen participation, maximizing the
promotion effect for U-City Plans. Also, as it built up the integrated service,
2009 including the past U-City infrastructure, it reduced the total cost of development.
Mapo District (Seoul) Accumulated cutting-edge IT technology, contributing to further expansion of
U-City projects in other cities.
By harmonizing with other city systems, it created an integrated and
comprehensive system able to provide affordable and efficient services.
Songdo Established a standardized model for U-City.
Busan Reduced costs by maximizing use of existing infrastructure.

Increased the communitys satisfaction level as it promoted citizen participation.
Mapo District (Seoul) Mainly expanded the service and infrastructure for vulnerable citizens such as
2010 children, seniors and the disabled.
Yeosu Encouraged the use of bicycles to reduce its carbon emissions, forming a growing
green U-City.
Gangreung Invented an effective city administration method and low-carbon smart service, and
developed a sustainable growing green U-City.
68
Korea
Initiation Year Target Location Result
Eunpyong District Provided various safety services and integrated with existing disaster management
(Seoul) system, developing an upgraded model for a safer city.
Songdo Utilized CCTV installation to secure safety of citizens. Combined both wired and
wireless services, reducing administration cost for the telecommunication system.
Ansan (Gyeongi Increased the utilization rate of public assets and provided practical services that
Province) could enhance the daily life of citizens.
Established the basis for providing integrated service by developing the integrated
platform system.
Namyang By bringing successful expansion of small-mid u-cities to other areas, it was
designated as the exemplar for the other cities.
Increased the work efficiency of public servants, further reducing the
2011 administration cost.
Naju Equipped with the vision of Green Energypia, it is expected to save about
4.8 billion won in annual energy administration cost.
Estimated to bring a profit of 1.8 billion won solely for carbon emission control.
As operated under the eco-friendly scheme, it is expected to contribute to the
expansion of green growth.
Yeosu Expanded its standardized model of U-traditional market service which led other
cities to follow.
By improving the traditional market structure, it recovered the old business model,
boosting economic growth of local areas.
Busan Established a flooding information at the existing U-City service, reducing costs for
further development.
Jeonju Built the safe living place, improving the overall satisfaction of citizens.
Provided the specific U-City service considering the aging society, improving the
overall welfare of citizens.
Yeongju Provided a rejuvenating city safety service, enhancing the prevention of fire and
2012 alleviating citizens concerns regarding natural disaster.
Yangsan By recovering its old city infrastructure, it provided a rejuvenated traditional market
service.
Provided the service focusing on the Human itself, increasing citizens
satisfaction level.
69
Figure 3: 1st Comprehensive Plan

Source: UBICOM Report (The 1st Ubiquitous City Master Plan (2009-2013) by Ministry of Land, Transport, and Maritime
Affairs, Nov.2, 2009)
1. On top of the urban social infrastructure

(roads, bridges, schools, hospitals, etc.)
2. Build ubiquitous urban social infrastructure using ubiquitous technologies

(fire sensor, transport CCTV, environmental pollution sensor, vehicle sensor,
anti-crime CCTV, facilities safety sensor, water quality sensor, USN, other sensors)
Integrated Urban Management Center
3. Provide seamless ubiquitous city services

(public admin, transport, health, medical and welfare, environment,
public facilities management, education, etc.)
Therefore, several issues must be considered to Smart City plan, and both plans were aimed
help ensure an optimal level of success in the at enhancing city competitiveness by adopting
development of the U-City Plan: proper collabo- cutting-edge technologies, but the latter put more
ration between the central and local government, weight on IoT and eco-friendly technologies.
more practical approaches to building additional In June 2015 the Ministry of Science, ICT and
U-City projects that take into account the status Future Planning proposed a plan for making City
of a deteriorating economy, and establishing an Complex for Demonstration.
institution to evaluate the project objectively.
The demonstration plan consists of two major
subcategories, supporting center and smart
The Smart City Plan-An Extended service demonstration, and the supporting cen-
Initiative of U-City Plan ter can be further subdivided into three sub-ar-
The Smart City is a city where various ICT tech- eas, Platform, Supporting Center for SMEs,
nologies are integrated by maximizing the func- and Service Demonstration.
tion of a city as a Platform. In Koreas case,
U-City plan was proposed prior to that of the
70
Korea
Platform establishes and operates open IoT Evaluation

platforms based on international standards and, Anyang has been acclaimed for its major suc-
for SMEs Supporting Center, it supports and cess in the Smart City field. One of the major
provides mentoring for firms which are trying to contributors to success was the willingness of
equip with state-of-the-art IT technologies. For the authority, and the provision of financial and
Service Demonstration, Smart Home, Smart technical support sufficient to meet the demand.
Parking and Connected Tourism Services are However, although Smart City initiatives have
provided. been planned and implemented, the actual out-
Along with currently adopted smart city technol- come in Anyangs case is still unclear and it is
ogies, Table 2. shows other feasible possibilities, unable to evaluate which initiatives have been the
some of which are already installed in other areas. most successful. Thus, initial plans should include
more thorough efforts to fulfill support require-
Case Study-Anyang ments and proper means to gauge the degree of
Anyang is the exemplar for other cases, which inte- success.
grated successful smart city technology, and more
than 60 nations are noticing its advancement.
Table 2: Feasible Components for further Smart City Project
Area Name Overview
Smart Parking Real-time availability of parking space is indicated and the automated payment of
parking fee is allowed with the aid of smart phone application.
Transportation
Smart Crossroad On the crossroad in front of the elementary school, Smart Bollard and safety fence
are installed so that alarm will sound when cars violate the traffic law.
Smart Streetlamp CCTV and WIFI function are added to the streetlamp to provide energy savings
and prevent crimes.
Smart Building Monitors information on building management necessary to reduce energy

Energy consumption.
Smart Management Provides real-time analysis of accumulated energy usage and status of all
of Store franchise stores to minimize energy consumption and provide an efficient store
control system.
Situation-Based Smart Provide the safest escape point during a fire.
Home
Living
Beacon-Based For beverage and food sellers, it provides low-cost, highly effective marketing
Marketing based on its Beacon Technology.
71
Table 3: Budget Outline

Source: IDB
Project Cost (Million KRW) Period Main Operations
Crime 16,473 2008.08~2014.11 Crime Prevention CCTV 3,476

Prevention cameras at 771 sites
CCTV
Automatic Vehicle Identification (AVI)
Establishment
114 AVI at 47 sites
Bus 4,740 2003.10~2014.11. 300 Bus Information Terminals
Information
140 Vehicle Information Devices
System (BIS)
Intelligent 14,315 2008.02~2014.04. Anyang Smart City Center
Transport Establishment
System (ITS)
119 CCTV, Fiber optical network
established, etc.
Total 35,528
Table 4: Major Service Areas

Source: IDB
Service Area Services
Smart Traffic Real-time traffic information

Bus information terminals
Parking space information
Facility location and traffic use information
Traffic signal control
Smart Safety Smart phone safe helper
Intelligent crime prevention service
Smart Disaster Service Forest fire surveillance
Winter snow conditions surveillance
72
Korea
Concluding Remarks Although it is not straightforward to carry out

such initiatives, especially without any difficulty,
Although the ambitious plans of the U-City and
the Smart City project must be implemented
Smart City project have been initiated with much
because it is the only way to meet the increasing
expectation, its actual outcome has not reached
demand of citizens and to enhance city compet-
its optimal level yet. This is mainly because (1) too
itiveness.
many institutions are involved, (2) harmonization
between the central and local governments is
lacking, (3) the government departments respon- Korea Economic Research Institute (KERI) is Koreas
leading nongovernmental research institute founded in 1981.
sible for development are frequently changed Guided by founding principles of free market, free enterprise
and/or abolished, and (4) objective institutions for and free competition, KERI has successfully integrated
evaluation are lacking. research in both the entirety of the Korean economy and
long-term and short-term prospects for corporate growth.
To be more successful, active participation from
the local governments is necessary, while the
central government could provide financial and
technical support. Cities such as Seoul and
Incheon, which have adequate financial and tech-
nical capabilities, are preparing their own Smart
City plan, and more local Smart City plans are
projected for the near future.
Also, more participation from the private sector
should be encouraged to potentially maximize
the efficiency of such plans. For example, in June
2015, the consortium between Busan city and
SKTthe Korean Telecommunication Company
was selected as the trial Smart City business,
aiming to raise 1,500 IoT professional workers,
develop 150 creative enterprises and generate 15
globally competitive firms. Since many state-of-
the-art technologies are developed by innovative
firms, the governments efforts should reach out
to such companies as well.
73
SAUDI ARABIA
Dhahran, Saudi Arabia: An Evolving City in Innovation*
Executive Summary
Innovative cities are a vital part of a countrys eco-
nomic strategy. Given an increasingly integrated
global economy and rising competition, countries
need to develop innovative cities to ensure being
ahead in the race for economic sustainability and
leadership. Cities that succeed at being innovative
are often characterized by an innovation ecosys-
tem, making the city a centre of wealth creation without challenges; these included a dearth of
with links to local, regional, and global economies. scientists, government red tape, and the need to
There are many paths along the way to innovative develop a culture of innovation.
cities, ranging from cities where innovation is led An important success factor for the city of Dhah-
by private sector stakeholders, to those led by ran is the presence of an enterprise champion
national enterprise champions and everything in Saudi Aramco which supports innovation in
in between. In many developing countries, often important ways. Saudi Aramco has helped build
a state enterprise emerges that champions the the capabilities of Dhahran Techno-Valleyan
cause of innovation in cities. energy innovation hubby providing investment
The city of Dhahran, located in the Eastern Prov- capital, a pool of experienced technical talent,
ince of Saudi Arabia, represents the potential for and business opportunities; it also provides
Saudi Arabias innovation in the energy sector. interregional and international connections via
Endowed with oil wealth, a national corporate its networks and value chains. It helps stimulate
champion, and one of the top science schools in research and development (R&D) within hubs and
the Kingdom, a growing innovation ecosystem academic institutions by facilitating knowledge
is promising to put Dhahran on the path of most creation and sharing. In addition, it helps other
competitive cities in the energy and petrochem- stakeholders within the hub to bridge the com-
ical industries. However, Dhahran was not a city mercialization gap with their resources through
collaboration or supplier relationships. All these
support factors have brought about a wealthy city
with strong infrastructure, research, and with cor-
*Some sections of this paper are adapted from the authors porate and social links that are propelling Dhah-
previous publications. See, for example, The Global Innovation
ran to an energy innovation hub status.
Index 2013: The Role of Enterprise Champions in Strength-
ening Innovation Hubs; Coherent Linkages: How to foster
innovation-based economies in the Gulf Cooperation Council
(2012 Strategy & formerly Booz & Company); and Strength-
ening Innovation Hubs in the GCC: The Role of Enterprise
Champions (2013 Strategy & formerly Booz & Company).
74
Saudi Arabia
Innovative Cities: More than One Path Hewlett-Packard, Lockheed, and Xeroxhelped
to Success catalyse growth at various points in the citys
history. More recently, chaebols (conglomer-
The developmental paths of innovative cities vary. ates)including Samsung, LG, and SK Energy
In some countries, such as the United States, have played this role in innovation cities in the
innovative cities tend to form around research Republic of Korea. Sometimes these champions
institutions that attract and support an entre- are state-owned enterprises (SOEs). For example,
preneurial community. For example, San Diego, the state-owned oil giant Saudi Aramco acts as
California has become an important city for inno- a champion in the Dhahran Techno-Valley (DTV),
vation in the United States. Leading minds are an emerging innovation hub in Dhahran, Saudi
attracted to the University of California-San Diego Arabia.2
campus, as well as the presence of renowned
research institutions such as the Scripps Institu- Enterprise champions support innovation cities
tion of Oceanography, the Scripps Research Insti- in important ways. They help build capabilities by
tute, the Salk Institute, and the Sanford-Burnham providing capital, a pool of experienced techni-
Medical Research Institute. In addition, San Diego cal talent, and business opportunities; they also
hosts companies, such as Qualcomm, the tele- provide interregional and international connec-
communication technology supplier, which provide tions via their networks and value chains. They
funding and support for developing innovation. At stimulate research and development (R&D) by
the opposite end, in cities such as Singapore and facilitating knowledge creation and sharing. In
the Republic of Korea, government-sponsored addition, they help other stakeholders bridge
research programmes provide the seed for the the commercialization gap with their resources
innovation of cities.1 Between these opposites, through collaboration or supplier relationships. All
in cities such as London in the United Kingdom these support factors enable cities to become
and Kerala in India, a range of innovation cities innovative and wealth generating.
are based on different models that include vary-
ing degrees of involvement from government and Dhahrans Challenges
academic institutions. Dhahran is a major administrative center for the
Although innovative cities develop in different Saudi oil industry. Together with the nearby cities
ways, every successful innovation city is charac- of Al Dammam and Al Khobar, Dhahran forms
terized by strong participation and involvement part of the Dammam Metropolitan Area, which is
of large enterprises that serve as champions commonly known as greater Dammam and has a
for innovation. Sometimes these champions are population of more than four million inhabitants.
private enterprises, as they are in Silicon Valley in Large oil reserves were first identified in the
the United States, where companiesincluding Dhahran area in 1931 and in 1935 when Stan-
1 Samman et al, 2013. The Role of Enterprise Champions in Strengthening 2 Ibid.

Innovation Hubs.
75
dard Oil drilled the first commercially viable oil The Dhahran Techno-Valley has helped overcome
well. Standard Oil later established a subsidiary this by bringing together various stakeholders and
in Saudi Arabia called the Arabian American Oil facilitiesuniversities, private sector institutions,
Company (ARAMCO), now fully owned by the MNCs, and the public sector, among othersin
Saudi government and known as Saudi Aramco. an effort to collaborate on research and lever-
In one regard, Dhahran has a major advantage age knowledge of the local markets. Yet, as with
over other cities attempting to spur innovationit acquisitions, technology and research clusters
has large cash reserves from its oil wealth, at have had mixed levels of success in creating a
a time of economic crisis around much of the truly innovative culture, due to a fairly long list of
world. Such resources have been used to support challenges. Most notably, a critical lack of techni-
the transfer of not only physical but also human cal skills among the population means that for-
capital from other countries. Establishing satellite eigners largely staff such clusters.
R&D in related strategic sectors around the world, At the corporate level, several executives at
with links to home-based R&D institutions and MNCs pointed to a persistently high cost of doing
corporations, can help bridge that gap. business in Dhahran, due to factors such as
Additionally, acquisitions or joint ventures that unwieldy immigration laws and visa restrictions.
allow for the establishment of R&D sites in Dhah- Copyright issues also present a major challenge
ran can help with the transfer of complex knowl- to protecting intellectual property; the regula-
edge.3 Indeed, over the past four decades, two tions that exist on paper are often not enforced
Dhahran-based giant companies, ARAMCO and in reality. With such perceived risk, few MNCs
SABIC, have cooperated with and acquired parts were willing to devote money and effort to R&D in
of MNCs and have attracted experts from around Dhahran. Instead, much of their focus is on con-
the world. tract and service provisioning, which is not ideal
for establishing knowledge-based economies in
However, the city of Dhahran cannot simply Dhahran.
import an innovation culture. Past experience with
enterprise acquisitions shows little effect on any In some cases, local bureaucracies got in the way
citys overall ability to innovate from within. This is of innovation efforts. The technology cluster is
because these cities lacked several requisite ele- ultimately sponsored by the state, which creates
ments to support such knowledge transfer, such challenges that manifest themselves in the bud-
as a critical mass of local skills, widespread adop- geting process for city clusters and small-scale
tion of technology by public and private sectors, enterprises working on promising technology.
and the appropriate legal and cultural institutions. Research budgets can be compromised due to
the financial crisis or other factors. Some budgets
3 Complex Knowledge refers to knowledge that is embedded in a local context. To

transfer this type of knowledge requires a level of seeing and doing as it is very
difficult to articulate. See Innovation: Is Global the Way Forward? A joint study by
Booz Allen Hamilton and INSEAD, 2006.
76
Saudi Arabia
for R&D institutions were cut and the lack of a and dissemination of new products and services.
vibrant private sector has led small companies to Enterprise champions such as Saudi Aramco
complain of insufficient funding sources. support this value chain in three ways: by building
Another crucial problem to address was the hub capabilities, by supporting and developing
dearth of statistical data, which hampered efforts hub R&D activities, and by enabling commercial-
to understand market demands through research ization.
functions that are standard in other markets, such Building Dhahrans Capabilities
as financial feasibility studies for new products. Innovation development depends on the ability
Finally, cultural attitudes often got in the way of to generate and protect intellectual property
innovation. Outsiders note a prevalent why do we (IP), and gain access to the capital and exper-
need this sensibility, in which taking risks is not tise needed to develop it commercially. Saudi
encouraged. Often people do not see the long- Aramco has leveraged its financial resources and
term value of research projects, particularly the expansive networks to support these require-
kind of blue-sky research that sometimes leads ments by acting as service provider, investor, and
to real breakthroughs. In addition, companies in customer. At the same time, it has attracted local
technology clusters and parks point to the lack and international companies such as Schlum-
of accountability towards work.4 Given the high berger, GE, Sipchem, Honeywell, Baker Hughes,
involvement of government and strict labor pol- and others, which co-located in Dhahran in order
icies, it is often difficult to hold people account- to do business with Saudi Aramco. In doing so,
able for their mistakes, to the frustration of MNCs Saudi Aramco has been able to orchestrate the
trying to establish themselves in the city and creation of a network of resources that can, for
region at large. example, provide King Fahd University of Petro-
leum and Minerals (KFUPM) and its partners with
The Role of Saudi Aramco in access to top-notch commercial research.
Dhahrans Innovation Saudi Aramco has also created a sufficiently large
talent poolone on the scale needed to start and
Innovative cities often depend on some form of
seed new businesses. Its established alliances
innovation hub to integrate scientific research
and partnerships with local and global companies,
with commercial application. These hubs serve as
as well as its acquisition of other companies, help
commercialization catalysts by transforming tech-
secure the technologies and capabilities needed
nological advances into marketable products and
to strengthen the Dhahran innovation hub.
services. Accordingly, innovative cities must have
the main innovation kernels of research, devel- Finally, Saudi Aramco is helping to support and
opment, commercialization, and the production encourage the development of a strong IP pro-
tection system by filing its patents and licenses
4 Based on 2010 interviews conducted with several such parks in Dhahran and
domestically and internationally, maintaining
other GCC countries.
77
strong internal policies and processes for pro- Enabling Commercialization

tecting their own IP and that of their partners,
One of the challenges that DTV faced as a
and advocating the enactment of comprehensive
nascent hub was its ability to close the gap
national IP policies.
between R&D and commercialization. This was a
result of several reasons including difficulties in
Supporting and Developing Dhahrans attracting partners and investments in projects
R&D Activities with high technical risk and long developmen-
Once the major structural elements are in place, a tal time frames, the risk of losing grant funding
self-sustaining R&D ecosystem is needed. To be as project scope expands beyond academic
successful, an R&D system requires capabilities research, the lack of critical end market insight
that enable stakeholders to capture customer or access, and the lack of entrepreneurial culture
needs, conceive breakthrough ideas, and feed within the research community. Saudi Aramco
high-value concepts into the prototype develop- has helped bridge the commercialization gap, and
ment pipeline. This requires talent development reaped benefits in several ways:
within the hub, especially with regard to the staff Through training and consulting, Saudi Aramco
and students of academic partners. Often this has helped its domestic suppliers enhance
development is fueled by increased industry their capabilitiessuch as manufacturing
collaboration and financial support. Universities quality and efficiencythat they need to
generate IP that is marketed to external users successfully commercialize innovations. In
by university-owned companies, and local busi- turn, these enhanced capabilities helped Saudi
nesses produce products and services based on Aramco improve the quality of its products
local IP. This requires finding specific beneficiaries and reduce waste. In addition, Saudi Aramco
with different objectives, including basic research, created opportunities for entrepreneurs to sell
industry-driven commercial research, and technol- their products and services.
ogy development and commercialization. Enterprise champions often employ highly
Saudi Aramco is playing an essential and critical talented people, but they do not always
role in achieving R&D goals in at least three dis- provide them with incentives to innovate.
tinct ways. First, Saudi Aramco is leveraging intel- Saudi Aramco addressed this need by
lectual capital by encouraging knowledge sharing providing employees with opportunities to
(through its collaboration with KFUPM research- share their ideas with senior management and
ers) and cross-pollination of ideas (for example, rewarding them when ideas are successfully
by organizing innovation forums). Second, through implemented.
established R&D satellites across its international Finally, Saudi Aramco is educating
networks (e.g., in Houston, Texas, and other loca- downstream companies about new domestic
tions), Saudi Aramco is facilitating the transfer of and international markets, and has acquired
complex knowledge and promoting Dhahran as a companies that can provide innovation
hot spot for innovation. Third, by utilizing its local capabilities with innovation ripple effect
and international links, Saudi Aramco is helping throughout the hub value chain.
steer DTV in directions that better meet regional
and international needs and, thus, help contribute
to DTVs development and Dhahrans economic
growth.
78
Saudi Arabia
Dhahran Innovation Push This has positioned KFUPM 13th worldwide in

terms of the number of patents issued [Figure 2].
Recent economic figures for the Eastern region5
With the field of patenting activities connected to
show that it accounts for 60 percent of Saudi
Saudi Aramco and other DTV stakeholders, the
Arabias GDP, emphasizing the importance of
innovation linkage is established between KFUPM
the Eastern Region and Dhahran to the Saudi
and DTV tenants. This explains, for example, why
economic landscape. Indeed, in a study by the
KFUPM patents are cited in patents of the worlds
SAGIA, modeled after the World Economic
top industrial organizations such as GE, Baker
Forums Global Competitiveness Report, the
Hughes, Inc., and Schlumberger Technology
Eastern Regions score for Capacity to Innovate,
Corporation [Figure 3], which contributes to the
along with other important sub-factors, is higher
growth of the Dhahran innovation ecosystem.
than the countrys average [Figure 1].6
Other indicators of the innovation push in Dhah- Supportive Government Policies
ran include the progress KFUPM has achieved
over the last decade in patent issuance. Over The city of Dhahran and its path towards innova-
the period 2008 to 2015, the number of issued tion is providing Saudi Arabia with useful lessons
patents produced by KFUPM skyrocketed from for expanding its model across the Kingdom,
three in 2008 to 126 in 2015a 42-fold increase. primarily by aligning national policies with the
Figure 1: Capacity to Innovate

6
Eastern Region
SCORE (OUT OF POSSIBLE 7)
5
5.07 Saudi Average
4
4.14 3.87
3 3.59
3.04
2
2.64
2.19
1.80
1
0
Capacity Granting of IP Availability Number
to Innovate for each of Scientists of Universities
10,000 inhabitants and Engineers
5 The Eastern region is the largest region in terms of area, which amounts to
about 779,000 square kilometers, equaling 36 percent of the total areas of
the Kingdom. The region is divided administratively into the principality of the
eastern region and eleven governess: Dammam, Al Khobar, Al-Ihssa, Jubail, Hafr
al-Batin, Qatif, Al Khafji, Ras Tannura, Baqeeq, Al Nuairiya and Olaya Village.
6 Source: SAGIA, Business Environment Indicator: Eastern Region (2010) in
Arabic. Note: The score is out of a possible 7. The methodology for computing
the scores is similar to that of the World Economic Forums 2010 report.
79
Figure 2: KFUPM Issued Patents and World Ranking
80
Saudi Arabia
Figure 3: University-Industry Linkages
81
requirements for innovation cities to replicate the Despite this, Dhahrans innovation system, like
conditions necessary for the growth of innovation other cities in Saudi Arabia, would benefit from
cities across Saudi Arabia. improvements made to government policies and
Today, policies that the Saudi government is regulations that would encourage key activities.
enacting to advance the Dhahran experience For instance, revising policies to encourage talent
are reflected in the Vision2030 and the trans- recruitment in Saudi Arabia can help attract and
formation programs. One example is the Com- retain specialized skills. Further improving regula-
petitive Acceleration Program, a cooperative tions that restrict the import/export of specialized
strategy between SAGIA and relevant public and research laboratory equipment and material will
private-sector agencies, in which stakeholders also reduce delays, and allow universities and
committed to reaching set targets of competitive companies to conduct the required R&D activi-
indicators to increase the ease of doing business ties. Finally, new financing models that allow small
and enhance Saudi Arabias competitiveness. and medium-sized enterprises to pursue product
The program culminated in enacting policies for engineering and development will enable the
promoting a more efficient market and business manufacturing of promising new technologies
environment for both local businesses and foreign created within the techno-valleys across the King-
investors. Indeed, this is now showing impressive dom.
results.
About the Author
For example, the Dow Chemical Company
recently became the first company to receive a Dr. Hatem Samman is Chief Economist and Economic
Advisor at the Saudi Arabian General Investment Authori-
trading license from the government of Saudi ty. Previously, he was Director and Lead Economist of the
Arabia, allowing 100 percent ownership in the Ideation CenterBooz & Companys (now Strategy &) Middle
countrys trading sector, and expanding Dows East Think Tank, held the position of Vice President at a
long history of partnership and investment in the major Saudi Bank and was Director of Regulatory Affairs
and Strategic Planning at a major regional telecommunica-
Kingdom. The trading license advances Dows tions company. He was Senior Fellow at the University of
ability to deliver high-value, innovative products Minnesota and Consultant at the World Bank, among other
that will benefit Saudi Arabia in the areas of positions. Dr Samman holds a Bachelors degree in Social
sustainable development, energy efficiency, oil Sciences from the University of California, San Diego and a
PhD in Political Economy & Public Policy from the University
and gas, alternative energy, and water. Other of Southern California.
examples include 3M (an American materials
manufacturer) and Huawei (a Chinese telecom-
munications company).
82
United States
UNITED STATES
Sustainable Use of Water in Manufacturing in Milwaukee, Wisconsin
The Challenge
Water is integral to manufacturing operations.
To gain a competitive advantage, companies must
strategically manage water across their supply
chains, innovate to improve efficiency, and ensure
a robust talent pipeline and investment pool
exists.
Renewal and replacement of aging water infra- U.S. Council on
structure is a top issue facing manufacturers and Competitiveness
residential communities in the United States. The
average age of water pipes in America is 47 years
and, as a consequence, 1.7 trillion gallons of water
are lost annually due to leaking pipes. Breakdown
in supply, inadequate treatment, and loss of water gathered more than 50 experts on water and man-
and sewer capacity seriously disrupts industrial ufacturing to identify and discuss common chal-
operations. Addressing U.S. water and sewer infra- lenges and opportunities related to water, energy
structure needs could easily top $2 trillion over the and manufacturing in the United States using the
next 25 years. Milwaukee, Wisconsin region as a case study.
Forty-six percent of water consumed in the Participants in the dialogue spanned various
United States is used in manufacturing pro- private sector companies including IBM, Kohler,
cesses. The need for an ample water supply, Rexnord, MillerCoors and Rockwell Automation;
and efficient use and reuse of water for these representatives from universities such as Michi-
processes creates significant demand for fur- gan State University, Arizona State University and
ther development in water technology and water University of Wisconsin-Madison; national labora-
policy. As the call to reduce energy and water tory participants from Argonne National Labora-
use in manufacturing grows, opportunities arise tory, the National Renewable Energy Laboratory
to develop and deploy new technologies at the and Lawrence Livermore National Laboratory;
nexus of water and energy. and representatives from government and NGOs.
With 86 percent of the state of Wisconsin bor-
The Solution: Expert Dialogue on dered by water, issues at the intersection of water
Water and Manufacturing and manufacturing are a priority. The state has
In February 2016, as part of its Energy and Man- more than 100 years of industrial experience, and
ufacturing Competitiveness Partnership, the U.S. Milwaukees economy was founded on manufac-
Council on Competitiveness, along with partners turing industries that were highly dependent on
Marquette University and A. O. Smith Corporation,
83
the abundance of fresh water, exemplifying and Encourage development and deployment of
emphasizing the importance of access to and technologies and microbiological barriers that
efficient use of water to manufacturers. increase overall water supply by diversifying
The City of Milwaukee has already taken numer- sources, and improving quality and efficiency,
ous steps to improve its water stewardship. such as desalinization, nutrient recovery and
Among these efforts is the production of Milor- wastewater re-use.
ganite, an organic nitrogen fertilizer created from Promote the uptake of sensors and monitoring
solid waste collected from sewage treatment equipment, and the aggregation of big data
plants. Biogasa gaseous fuel, such as meth- across sectors and geographies to improve
ane, produced by the fermentation of organic water management and increase information
matteris also collected for future uses such as available on water quality and efficiency.
thermal energy. In addition, Milwaukee is inte- Increase federal funding available for
grating natural systems with the built environ- water technology test beds to accelerate
ment in projects such as green roof installations, development, and reduce cost and risk
rain barrels and the Menomonee River Concrete associated with deployment of advanced
Removal, which will allow game fish to travel an technologies for improving water quality and
additional 17 miles north to Menomonee Falls efficiency.
River, creating a more natural ecosystem below
the surface of the river. Model water consumption and availability
using high performance computing to address
Despite existing efforts, the dialogue participants gaps in supply and demand, and reduce overall
identified other challenges around water use and costs associated with managing water and
re-use in manufacturing, water use-related risks, energy systems.
and opportunities for developing more efficient
and productive use of water in the manufacturing Engage government and private sector
sector. Specific recommendations included: stakeholders in an enhanced public awareness
campaign to address water conservation
Use a stewardship approach to water needs.
management in which laws and regulations
surrounding water re-use support natural Address the skills gap in the water and
processes whenever possible and treat water manufacturing sector by de-stigmatizing
as the limited resource it is rather than a technical careers, reintroducing hands-on
limitless commodity. training in K-12, and encouraging cross-sector
partnerships between industry and academia.
Integrate natural infrastructure, including
green roof installations, rain barrels and
constructed wetlands into water management
approaches to improve energy efficiency and
water quality, while reducing overall water
infrastructure investment costs.
84
United States
85
Dialogue participants made commitments related port in a global outreach program that works
to the solutions proposed in order to demonstrate to identify and broaden efforts to develop
their validity and promote actionable steps. These sensor technologies that can be employed to
commitments included: monitor fresh and wastewater usage.
The Water Council, a Milwaukee-based Marquette University, one of the nations
non-profit that aligns the regional freshwater leading private universities, is collaborating
research community with water-related with industry to develop cross-functional
industries, launched a water innovation sensors that can be used in water monitoring
scouting program called PROOF, which is equipment. Technologies under development
expected to connect emerging technologies include solid state and acoustic wave sensors,
from government laboratories, universities, micro-electro-mechanical systems (MEMS)
entrepreneurs, etc. to commercialization devices and sensors, optical waveguide-
across industry sectors. based sensors and smart sensor systems
A. O. Smith Corporation, one of the worlds for water monitoring applications. Faculty
leading manufacturers of residential and com- from the Department of Mathematics,
mercial water heaters and boilers is leading Statistics and Computer Sciences are
four specific projects. 1) A collaboration with involved in collaborative efforts at the Global
The Water Council to sponsor the Business Water Center to foster academic-industry
Research Entrepreneurship in Wisconsin partnerships on use of big data in the water
(BREW) will promote start-up businesses sector.
in freshwater technology. A. O. Smith is also The Kohler Company is a leader in kitchen
excited about becoming one of the Founding and bath plumbing fixtures, furniture and tile,
Members of a groundbreaking initiative by engines and generators, and golf and resort.
The Water Council to bridge the gap between In the last 10 years, Kohler has helped U.S.
research and industry. The ICE Institute will consumers reduce water use by 110 billion
accelerate Innovation, Commercialization and gallons, saving $1.3 billion in water, sewer
Exchange (ICE). 2) A. O. Smith leverages the and energy costs, which has extended water
data and capabilities of their newest company, supplies in drought-affected areas. Kohler
Aquasana, to identify regional water issues is committed to helping reduce another 100
and develop approaches to address those billion gallons of water use in the next three
issues. 3) A partnership with the Plumbing years.
Heating-Cooling Contractors Educational
Foundation supports an initiative for training
outreach and recruitment of incoming talent,
specifically in the plumbing field. 4) Along with
other companies, A. O. Smith will provide sup-
86
United States
MillerCoors, the second largest beer company

in America, is implementing the Alliance for
Water Stewardship (AWS) Global Standard at
its Milwaukee brewery in collaboration with
the North American Office of the AWS at the
Global Water Center. The effort complements
the brewerys successful work increasing
the efficiency of water usage, and projects
that enhance lake water quality and promote
the enjoyment of Lake Michigan. Examples
include: supporting Milwaukee Countys
effort to clean up Bradford and South Shore
beaches, providing the Milwaukee Metropolitan
Sewerage District with rain barrels, supporting
the Milwaukee RiverKeepers efforts, and
showcasing green infrastructure (green roof
and rain garden) to thousands of people who
tour the brewery each year.
The U.S. Council on Competitiveness is a nonpartisan

leadership group of CEOs, university presidents, labor leaders
and national laboratory directors working to ensure U.S.
prosperity.
The report on this water and manufacturing sector study
dialogueLeverage: Phase I Sector Study: Water &
Manufacturingcan be reviewed at http://www.compete.org/
reports/all/3231
87
GFCC
Foundational Global Competitiveness Principles
The GFCC developed a set of foundational The Foundational Global

Global Competitiveness Principles, supported Competitiveness Principles
by its network of more than 30 national
competitiveness organizations and deemed Ensure Fiscally Responsible, Transparent
essential for every country. First released in and Ethical Governance. National fiscal
2010 and finalized in 2012, these principles stability, discipline and certainty foster private
offer an overarching framework for national sector and foreign direct investment, economic
policies and programs aimed at fostering expansion, new business formation and job
innovation, competitiveness and prosperity creation. Transparent regulations and tax rules
in the 21st century global economy. enable market efficiency and reduce the cost
of doing business. Government corruption
They emphasize key drivers of competitiveness, reduces the productivity and performance
such as investment in research and development, improvements that come from fair and open
education and training for all citizens, sustain- competition.
able and responsible development of natural
resources, strong intellectual property rights, Fulfill Human Potential. All nations should
open trade and a stable, transparent, efficient and educate and train their citizens without
fair environment for business investment, forma- regard for gender, race, religion, age,
tion and growth. ethnicity or economi status. Worker safety
and international labor standards also are
Pioneered by the GFCC, the Global Compet- important underpinnings for individual and
itiveness Principles represent ideals that can national success.
serve as a beacon for economic progress around
the world. They have been recognized as a best Invest in Research Technology and
practice by other nations, adopted, emulated, pro- Innovation. As the driving force of innovation,
moted and/or referenced by organizations such nations should increase investment in research
as the Organization of American States and the and development, coupled with the domestic
World Economic Forum. deployment of new technologies, to stimulate
increased productivity, standards of living and
Each year, the GFCC revisits its foundational leadership in global markets.
Global Competitiveness Principles and issues
a new statement of Competitiveness Principles Ignite Entrepreneurship. Supporting
that emphasizes the topic highlight by our organi- entrepreneurswho are the source of new
zation in that year. In 2016, the GFCC is focusing ideas, new products and services, new
on cities and sustainability, and we invite you to companies and new industriesis essential to
check and propagate the GFCC principles to economic vitality and improving productivity,
support Inclusiveness, Innovation, Sustainability competitiveness and economic performance.
and Resilience in the City Landscape.
88
Foundational Global Competitiveness Principles
Improve Infrastructure. Investment Protect Intellectual Property. Strong

in a modern, well-maintained resilient intellectual property rights are a prerequisite
infrastructuretransportation, energy, digital to attract high-value investment and innovation
networks and telecommunicationsis in new technology, new product development
critical to encourage domestic and foreign and creative works such as software and
investment, support modern commerce and entertainment.
grow an economy. Expand Access to Global Market
Cybersecurity is essential to the performance Opportunities. Open and transparent
and safety of all economic activity, consumer markets expand global trade and investment,
access to the marketplace and personal and drive economic growth around the world.
privacy protection. Protectionist policies hinder innovation, growth
Establish Public-Private Partnerships. and business performance. Well-defined
Collaboration between the public and private international standards are essential to
sectors is essential to drive innovation, facilitate global commerce.
economic growth and job creation. Private
sector leadership is vital in developing
national policy initiatives to address short- and
long-term competitiveness challenges and
opportunities.
Foster Regional and Metropolitan
Centers of Innovation. Regional clusters
and metropolitan areas connect talent with
science, technology, manufacturing and
service resources, fostering the creativity,
idea generation and innovation that drive
competitiveness.
Encourage Sustainable Growth.
Sustainable growth and responsible
development through increased natural
resource productivity, energy efficiency, and
access to or development of critical materials
will foster innovation, increase standards of
living, help ensure food security and access
to clean water, improve health and enhance
national security.
89
GLOBAL FEDERATION OF COMPETITIVENESS

COUNCILS MEMBERSHIP
MEMBERS SAUDI ARABIA ITALY

AUSTRALIA Saudi Arabian General Investment University of Bologna
Department of Industry, Innovation Authority
KOREA
and Science
UNITED ARAB EMIRATES Ajou University
BRAZIL Competitiveness Office of Abu
Dhabi, Abu Dhabi Department of MALAYSIA
National Confederation of
Economic Development Universiti Teknologi Petronas
IndustryCNI/SENAI/SESI/IEL
UNITED KINGDOM NEW ZEALAND
CANADA
Centre for Competitiveness University of Auckland
Go Productivity
UNITED STATES OF AMERICA NORWAY
ECUADOR
U.S. Council on Competitiveness University of Oslo
Quito Council on Competitiveness
PORTUGAL
EGYPT UNIVERSITY MEMBERS University of Minho
Global Trade Matters
AUSTRALIA
QATAR
GREECE Monash University
Qatar University
Delphi Economic Forum University of Queensland
Weill Cornell Medicine Qatar
INDIA BRAZIL
India Council on Competitiveness SAUDI ARABIA
Pontifical Catholic University of Rio
King Abdullah University of
Grande do Sul
KAZAKHSTAN Science and Technology
Kazakhstan Competitiveness University of So Paulo
Council, National Chamber of SINGAPORE
Commerce CANADA Singapore Management University
University of British Columbia
KOREA SWITZERLAND
University of Western Ontario
Korea Economic Research Institute University of Zurich
Waterloo University
MALAYSIA TAIWAN
National Council of Professors FINLAND National Taiwan University
University of Helsinki
NEW ZEALAND UNITED KINGDOM
BusinessNZ GERMANY Imperial College London
Ludwig-Maximilians-University
Kings College London
QATAR Munich
Qatar Foundation Research and Ulster University
Development HONG KONG
University of Southampton
University of Hong Kong
RUSSIA University of Warwick
Eurasia Competitiveness Institute
90
GFCC Membership
UNITED STATES OF AMERICA COLOMBIA GLOBAL FELLOWS

Arizona State University Consejo Privado de Competitividad Amr Al-Dabbagh
Distinguished Fellow
City University of New York DENMARK
Nathalie Cely
Georgetown University Monday Morning Global Institute
Michigan State University Sustainia Foundation
Luciano Coutinho
Northeastern University Distinguished Fellow
EGYPT
Ohio State University Egyptian National Competitiveness Luis Fernandes
Council Distinguished Fellow
University of California San Diego
University of Chicago IRELAND Nika Gilauri
National Competitiveness Council Distinguished Fellow
University of North Carolina at
Chapel Hill Karen Holbrook
JAPAN Distinguished Fellow
Webster University Council on Competitiveness
Nippon Jerry Hultin
CORPORATE MEMBERS MONGOLIA Joo A. H. Da Jornada
A.T. Kearney Economic Policy and Distinguished Fellow
Bluespace Competitiveness Research Center
Charles Kiefel, OAM
Lockheed Martin MOROCCO Distinguished Fellow
NADIM Kingdom of Morocco Competition Stephen Kingon
Council Distinguished Fellow
INDIVIDUAL MEMBERS NIGERIA Lee Yee Cheong
Yannos Gramatidis National Competitiveness Council Distinguished Fellow
of Nigeria Joan MacNaughton, CB Hon FEI
NETWORK Distinguished Fellow
PANAMA
ARMENIA Centro Nacional de Competitividad Christos Megalou
National Competitiveness Distinguished Fellow
PHILLIPINES
Foundation of Armenia Peter Meyers
National Competitiveness Council
BRAZIL
Financiadora de Estudos e Projetos UNITED ARAB EMIRATES Michiharu Nakamura
FINEP Federal Competitiveness and Distinguished Fellow
Statistics Authority
Liam Nellis
CHILE
Consejo Nacional de Innovacin
para la Competitividad Lucas Papademos
91
Richard Parker, CBE, FREng GFCC TEAM

Distinguished Fellow Charles O. Holiday Jr.
Chairman
Jack Sim
Distinguished Fellow Deborah L. Wince-Smith
President
Rogerio Studart
Distinguished Fellow Roberto dos Reis Alvarez
Executive Director
Kandeh Yumkella
Distinguished Fellow William Bates
Secretary to the Board
Zakri Abdul Hamid
Distinguished Fellow Chad Evans
Treasurer
Mark Esposito
Senior Fellow Kathryn Tinker
Membership and Communications
Banning Garrett
Manager
Senior Fellow
Kwanza Hall
Senior Fellow
Kathryn Hauser
Senior Fellow
Greg Horowitt
Senior Fellow
Susan McCalmont
Senior Fellow
Mark Minevich
Senior Fellow
92
The Global Federation of Competitiveness

Councils (GFCC) is a network of leaders and
organizations from around the world committed
to the implementation of competitiveness
strategies to drive innovation, productivity
and prosperity for nations, regions and cities.
The GFCC develops and implements ideas,
concepts, initiatives and tools to understand
and navigate the complex competitiveness
landscape.
For more information, please visit

www.thegfcc.org.
@thegfcc

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Innovative and

On behalf of the board of directors and members of the Global

Charles O. Holliday, Jr.

UNITED STATES OF AMERICA 83

Foundational Global Competitiveness Principles  88

Global Federation of Competitiveness Councils  90

EXECUTIVE SUMMARY AND OVERVIEW

In Ecuador, the Secretary of Productive Aramco is encouraging development of a

response to emergency events, communication Globally, Webster University makes significant

as an economic and social space that fosters cre- Conceptual Framework

Figure 1: Conceptual Framework

Capacity to attract Enhanced quality Citizen

Global solutions designed by global corporations (7) (8) (9)

Figure 2: Tendencies to Brazilian Integrated Operation Centers

Applications and Benefits of electric tariffs is also possible through variable

Conclusions impact city management, enhancing quality of

How was the challenge overcome? Encourage innovation and company-university

university research (spin-offs) or present in TEC- Acceleration of synergies: this initiative

Number of Participants Entrepreneur Tournament

Again in this context, the synergy TECNOPUC

When the topic of innovation and what it means

LEADERSHIP & MANAGEMENT

HUMAN CAPITAL, INNOVATION & COLABORATION

Drivers of Competitiveness Hierarchy ecosystems that nourish those investments make

To enhance industry-research collaboration, we Quantum technologies

Government GEDI officially launched on September 15, 2016.

Focus of productive planning of the city

Produc've Urban Planning for the produc7ve and sustainable

Consensus produc7on policy

In February 2016, the productive development 3. Methodology of operation

Components of the Competitiveness Agenda of Quito

Components of the Competitiveness Agenda of Quito

Produce Quito Produce

Innovate Quito Innovate

and innovation ambiente, suelo,

Secretarial compe77on Marke7ng Mesa conec7vidad y

Ar7cula7on with other

Quito, Competitive and Global City

About the Author

Webster University can be and has been

people together in connection with one another. About the Author

Figure 1: Total Population & Urbanization Rate of Korea

Figure 2: Koreas U-City

Table 1: Results of the 1st U-City Plan

Initiation Year Target Location Result

Busan Reduced costs by maximizing use of existing infrastructure.

Initiation Year Target Location Result

Figure 3: 1st Comprehensive Plan

1. On top of the urban social infrastructure

2. Build ubiquitous urban social infrastructure using ubiquitous technologies

Integrated Urban Management Center

3. Provide seamless ubiquitous city services

Platform establishes and operates open IoT Evaluation

Table 2: Feasible Components for further Smart City Project

Area Name Overview

Smart Building Monitors information on building management necessary to reduce energy

Table 3: Budget Outline

Project Cost (Million KRW) Period Main Operations

Crime 16,473 2008.08~2014.11 Crime Prevention CCTV 3,476

Table 4: Major Service Areas

Service Area Services

Smart Traffic Real-time traffic information

Concluding Remarks Although it is not straightforward to carry out

1 Samman et al, 2013. The Role of Enterprise Champions in Strengthening 2 Ibid.

UNITED STATES OF AMERICA 83

Foundational Global Competitiveness Principles 88

Global Federation of Competitiveness Councils 90