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Building local mini-economy within planetary boundaries
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Growth is an end in itself, dictates the current economic model. For only growth would keep our economy going and be indispensable to further sustainability. At the same time, our planet is being depleted by this drive for green growth.
Is it time to abandon economic growth as a social ideal? And then what are workable, more social alternatives?
More and more business owners are opting for sustainable operations. They settle for less financial gain to do valuable work with positive social and environmental impact. The rise of the commons movement, housing-, energy- and food cooperatives, as well as social initiatives in health and welfare, show that people want to stand together for values other than financial gain.
Achievable and real alternatives
New economic models offer different perspectives for considering the economy as part of a society. They offer tools to make that economy more equitable and sustainable. Yet the new economic thinking is still often dismissed as unrealistic and unachievable. Only by trying out these theories in practice can we demonstrate that these are real alternatives.
New economic thinking, New economic acting
To experiment with new economic theory and models in practice, the Amsterdam Economic Board has started the New Economic Models exploration. In April, we introduced the living lab project “New Economic Thinking, New Economic Acting” at the Marineterrein in Amsterdam. In this we work on socio-economic experiments, together with AMS Institute, AHK Culture Club, And The People, Bureau Marineterrein, Kennisland, The Next Speaker and the knowledge coalition ‘Art, Tech & Science’.
The Marineterrein is the ideal place to do this because it is an official experiment site. Moreover, companies located here are often already working on circular and social projects. Cultural institutions and organisations at the Marineterrein, in turn, can represent what thriving without economic growth could look like and fuel our desire for a new economy.
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Bouwen aan lokale mini-economie binnen planetaire grenzen
Groei is een doel op zich, dicteert het huidige economische model. Want alleen groei zou onze economie draaiende houden en onmisbaar zijn om verder te verduurzamen. Tegelijkertijd raakt onze planeet uitgeput door die drang naar groene groei.
Wordt het tijd om economische groei als maatschappelijk ideaal los te laten? En wat zijn dan werkbare, socialere alternatieven?
Steeds meer ondernemers kiezen voor een duurzame bedrijfsvoering. Zij nemen genoegen met minder financiële winst om waardevol werk te kunnen doen, met positieve sociale en ecologische impact. De opkomst van de commons-beweging, woon-, energie- en voedselcoöperaties en maatschappelijke initiatieven in zorg en welzijn, laten zien dat mensen zich samen sterk willen maken voor andere waarden dan financieel gewin.
Haalbare en reële alternatieven
Nieuwe economische modellen bieden andere perspectieven om de economie als onderdeel van een samenleving te beschouwen. Ze bieden handvatten om die economie rechtvaardiger en duurzamer in te richten. Toch wordt het nieuwe economisch denken nog vaak weggezet als onrealistisch en niet haalbaar. Alleen door deze theorieën in de praktijk uit te proberen kunnen we aantonen dat dit reële alternatieven zijn.
Nieuw economisch denken, Nieuw economisch doen
Om te kunnen experimenteren met nieuwe economische theorie en modellen in de praktijk, verkent Amsterdam Economic Board deze in de verkenning Nieuwe economische modellen. In april introduceerden we het proeftuinproject ‘Nieuw economisch denken, Nieuw economisch doen’ op het Marineterrein in Amsterdam. Hierin werken we aan sociaaleconomische experimenten, samen met AMS Institute, AHK Culture Club, And The People, Bureau Marineterrein, Kennisland, The Next Speaker en de kenniscoalitie ‘Art, Tech & Science’.
Het Marineterrein is de ideale plek om dit te doen, omdat het een officieel ‘experimentterrein’ is. Bovendien zijn de hier gevestigde bedrijven vaak al bezig met circulaire en sociale projecten. Culturele instellingen en organisaties op het Marineterrein kunnen op hun beurt verbeelden hoe bloei zonder economische groei er uit kan zien en ons verlangen aanwakkeren naar een nieuwe economie.
Samenwerken aan transitievraagstukken; wat is er nodig? - Opbrengsten van het Amsterdam Smart City partnerdiner 2024
Als Amsterdam Smart City netwerk bijten we ons vast in complexe stedelijke transitievraagstukken. Ze zijn complex omdat doorbraken nodig zijn; van kleine doorbraakjes, tot grotere systeem doorbraken. Denk aan bewegingen rond; organisatie-overstijgend werken, domein-overstijgend werken, en van competitief naar coöperatief. Als netwerk zetten we samenwerkingsprojecten op waarin we gaandeweg ondervinden met wat voor barrières we te maken hebben en wat voor doorbraken er nodig zijn.
Tijdens ons jaarlijkse Partnerdiner op 2 april, hadden we het samen met eindverantwoordelijken van onze partnerorganisaties over de strategische dilemma’s die spelen bij transitievraagstukken. Als gespreksstarters gebruikten we onze lopende onderwerpen van 2024: De coöperatieve metropool, de ondergrond, de circulaire metropool en drijvende wijken. De gesprekken aan tafel gingen echter over wat er aan de basis staat van het werken aan transitievraagstukken. Zo ging het bijvoorbeeld over; het samenwerken aan visies en scenario’s, leiderschap, burgerlijke ongehoorzaamheid en de kracht van coöperaties. In dit artikel bespreek ik beknopt een aantal onderwerpen die onder de aandacht werden gebracht door onze gasten.
Belangen en visie organiseren
Bij een vraagstuk of onderwerp als de ondergrond, gaan we het al snel hebben over de data en de oplossingen. Dat is ‘te makkelijk’. Technisch gaat het allemaal wel kunnen, maar als we daar te snel beginnen met de oplossing lopen we over een aantal jaar weer vast. Het is belangrijk om eerst een stapje terug te doen en een gedeeld belang en gedeelde visie te organiseren.
Hoe je belanghebbenden verzamelt, en de methode om tot een gedeelde visie te komen, dat is wat meer aandacht verdient. Neem het ondergrond vraagstuk als voorbeeld. Op welke schaal organiseer je daarvoor de belanghebbenden? Aan de oppervlakte hebben we Gemeentelijke en Provinciale grenzen, maar in de ondergrond liggen netwerken van kabels en leidingen die op andere schaal zijn geïnstalleerd en hebben we te maken met bodemtypologieën met verschillende behoeften.
Samen voorstellen en voorspellen
Dat waar je naartoe wilt werken, dat moet van iedereen voelen. Het is belangrijk om een setting te creëren van gedeeld eigenaarschap, waarin iedereen zich ook gehoord voelt, en dat je voelt dat de mensen met wie je gaat samenwerken ook voor jouw belangen op zullen komen. Om samen tot een visie te komen, is het belangrijk om te werken aan scenario’s en die samen te doorleven. Je moet het dan niet alleen hebben over waar je heen wilt, maar ook uitwerken wat er gebeurt als je niets doet of als het helemaal verkeerd uitpakt.
De scenario’s zouden op waarden moeten rusten. Het beeld wat bij de scenario’s hoort is veranderlijk, maar de waarden niet. Samen ben je continu in samenspraak over wat de waarden betekenen voor het verhaal dat je creëert.
Leiderschap en een interdisciplinaire werkwijze
Transitievraagstukken en bovenstaande aanpakken verdienen een bepaald soort leiderschap. Zo zou een leidinggevende bijvoorbeeld een veranderlijke en faciliterende houding moeten tonen, en moet hij/zij vanuit waarden werken die inspireren en verbinden. Het zou meer moeten gaan over het faciliteren van doeners, het stimuleren van doelgericht samenwerken in plaats van taakgericht en ruimte bieden voor menszijn en persoonlijke expertises. Met dit laatste wordt verwezen naar een stukje burgerlijke ongehoorzaamheid. Om dingen die we belangrijk vinden in gang te zetten moeten we soms even los kunnen denken van onze organisatiestructuren en functies. We zouden wel wat vaker mogen appelleren aan ons menszijn.
Meer faciliteren en minder hiërarchie helpt ons om beleid en praktijk dichter bij elkaar te brengen, en om van competitief naar meer coöperatief te bewegen. Als je naar de uitvoering gaat mag de kracht verplaatsen naar de uitvoerders. De machtsverschuivingen tussen leidinggevenden en de doeners, met specifieke rollen en expertises, mag in een constante wisselwerking rond gaan.
Ook interdisciplinair samenwerken aan transitievraagstukken zal nog meer moeten worden gestimuleerd, en misschien wel de norm moeten worden. Bij overheden en bestuurders bijvoorbeeld, zijn transitie thema’s verdeeld over domeinen als energie, mobiliteit, etc. maar de vraagstukken zelf zijn domein overstijgend. Als voorwaarde zou je kunnen stellen dat je altijd twee transities aan elkaar moet koppelen. We zouden meer inspirerende voorbeelden moeten laten zien waarbij verschillende domeinen en transities aan elkaar worden gekoppeld, door bijvoorbeeld overheden.
Publiek-privaat-civiel
Publieke, private en civiele partijen zouden nog meer naast elkaar aan tafel mogen, in plaats van tegenover elkaar. Bedrijven kunnen verzuild zijn, of zich zo voelen, en zouden nog meer om zich heen kunnen kijken en samenwerken. Niet alleen met overheden, maar ook met civiele organisaties. Er zijn vaak meer gezamenlijke belangen dan we denken.
In een beweging naar niet-competitief samenwerken kunnen coöperaties een belangrijke factor zijn. Wanneer je meer autoriteit bij coöperaties neerlegt, weet je zeker dat er in de basis voor een wijk, een stad, haar inwoners, een publiek belang wordt gewerkt. Er liggen dan ook veel kansen bij een faciliterende houding vanuit de overheid naar coöperaties toe, en in de samenwerking tussen bedrijven en coöperaties.
Er zijn tijdens dit diner veel onderwerpen aan bod gekomen waar we met het netwerk mee aan de slag kunnen in onze programmering. De input wordt gebruikt voor onze lopende vraagstukken en we gaan de komende tijd in gesprek met partners om te kijken of we van start kunnen met verdiepende sessies of het ontwikkelen van methoden op (enkele van) deze onderwerpen.
<em>Wil je doorpraten over deze onderwerpen, met ons - of een van onze partners? Mailen kan naar pelle@amsterdamsmartcity.com*</em>
Science-based targets for nature: Setting ambitious and effective goals for biodiversity
Preserving and reviving nature plays a crucial role in addressing climate change and biodiversity loss. But determining the starting point and measuring progress can be challenging.
Science-based targets offer a starting point to take concrete actions toward a sustainable future.
Setting SBTs enables companies to transform vague intentions into specific commitments. Imagine going from "We should do something with water" to "We aim to reduce water consumption in high-stress regions by 25% before 2030 through rainwater catchment and increased reuse." Science-based targets provide a clear direction and roadmap for achieving such goals.
If you’re interested in learning more about how science-based targets can drive positive change and contribute to a sustainable future, check out Metabolic's latest article. We explore SBTs and their impact on biodiversity and nature.
#Sustainability #ScienceBasedTargets
22. Two '100 smart city missions'- Twice an ill-advised leap forward
The 22nd and penultimate episode in the *Better cities: The contribution of digital technology-*series will discuss two ambitious ‘smart city’plans of two governments and the associated risks.
Recently, the European Commission launched a 100-city plan, the EU Mission on Climate-Neutral and Smart Cities. One hundred European cities that aspire to be climate neutral by 2030 (you read that correctly) can register and count on supplemental funding. I immediately thought of another 100-city plan, India's Smart City Mission. In 2015, Prime Minister Modi announced that in six years 100 Indian cities would become 'smart'. The official term of the project has now ended, and I will examine below whether this goal has been achieved, I discuss the two plans and then explain why I call both of them a leap forward. At the end I will make a few suggestions for how the European mission can still learn from the Indian one.
India's Smart City Mission
The problem
In India, 377 million people live in cities. In 15 years, 200 million will have been added. Already, traffic in Indian cities has come to a complete standstill, each year more than 600,000 people die from air pollution, half of the urban areas have no drinking water connection, waste collection is poor and only 3% of sewage is treated. The rest is discharged into surface water, which is also the main source of drinking water.
The mission
The Smart City Mission was intended to implement substantial improvements on all these problems in 100 cities, which together comprise 30% of the population. In the improvements digital technology had to play an important role.
The 100 cities were selected because of favorable prospects and the quality of the plans, which usually consisted of a long series of projects.
Governance
The regular city governing bodies were deemed incompetent to lead the projects. That is why management boards (‘special purpose vehicles’) have been appointed, operating under company law and led by a CEO, supported by international consultancy firms. All rights and duties of the City Council regarding the execution of the mission were delegated to the appointed boards, including the power to collect taxes! Not surprisingly, this decision has been challenged in many places. Several cities have withdrawn from 'the mission' for this reason.
Financing
To implement their projects, each city would receive $150 million over five consecutive years. This money should be seen as seed capital to be supplemented from additional sources such as public-private partnerships, commercial bank lending, external financing, loans, and foreign investment.
Area-oriented and pan-urban approach
The plans contain two components: an area-oriented and a pan-urban approach. The first aims at adapting, retrofitting or new construction and should relate to a wide range of 'smart services'. For example high-speed internet, waste facilities, parking facilities, energy-efficient buildings, but also replacement of slums by high-rise buildings. The slick 'architectural impressions' that circulated at the beginning of the planning period (see above) mainly concern the area-oriented approach.
The pan-urban approach includes at least one 'smart' facility for a larger part of the city. The choice is often made to improve the transport infrastructure, for example the construction of new roads and highways and the purchase of electric buses. No fewer than 70 cities have built a 'smart' control center based on the example of Rio de Janeiro, which I believe was rather premature.
Progress
Now that the official term of 'the mission' has ended, a first inventory can be made, although observers complain about a lack of transparency about the results. About half of all the 5000 projects that have been started have not (yet) been completed and a significant part of the government funds have not yet been disbursed. This could still happen in the coming years. This is also because attracting external resources has lagged behind expectations. These funds came mainly from governments, and large technology companies. This has had an impact on the implementation of the plans.
The slow progress of most projects is partly because most of the population was barely aware of the mission and that city councils were not always cooperative either.
Impact
It was foreseen that half of the available resources would go to area-oriented projects; this eventually became 75-80%. As a result, on average only 4% of the inhabitants of the cities involved have benefited from 'the mission' and even then it is not clear what the benefits exactly entail. The city of New Delhi covers an area of almost 1500 km2, while the area concerned is only 2.2 km2: So you're not even going to have 100 smart cities. You're going to have 100 smart enclaves within cities around the country, said Shivani Chaudhry, director of the Housing and Land Rights Network.
It soon became clear that the mission would be no more than a drop in the ocean. Instead of $150 million, it would take $10 billion per city, $1000 billion in total, to address all ambitions, according to an official calculation. Deloitte was a little more modest, calculating the need for $150 billion in public money and $120 billion from private sources.
Type of projects
The many topics eligible for funding have resulted in a wide variety of projects. Only one city has put the quality of the environment first. Most cities have initiated projects in the areas of clean energy, improving electricity supply, reducing air pollution, construction of new roads, purchasing electric buses, waste disposal and sanitation. What is also lacking, is a focus on human rights, gender, and the interests of the poorest population groups.
In some places, it has been decided to clear slums and relocate residents to high-rise buildings on the outskirts of the city. Indian master architect Doshi warns that the urban vision behind the smart city plans will destroy the informality and diversity that is the cornerstone of the country's rural and urban society. He challenges planners to shift the emphasis to rural areas and to create sufficient choices and opportunities there.
The European Mission on Climate-neutral and Smart Cities
The problem
Cities produce more than 70% of the world's greenhouse gas emissions and use more than 65% of total energy. In addition, cities in Europe only cover 4% of the total surface area and accommodate 75% of the population. The ecological footprint of the urban population is more than twice what it is entitled to, assuming a proportional distribution of the earth's resources.
The mission
On November 25, 2021, the European Commission called on European cities to express their interest in a new European mission on Climate-neutral and smart cities. The mission aims to have 100 climate-neutral and smart cities by 2030, which will act as a model for all other European cities.
The sectors involved in this transformation process are the built environment, energy production and distribution, transport, waste management, industrial processes and product use, agriculture, forestry, and other land uses and large-scale deployment of digital technology. That is why the European Commission talks of a green and digital twin, or a simultaneous green and digital transformation.
Governance
Reaching the stated goal requires a new way of working and the participation of the urban population, hence the motto 100 climate neutral cities by 2030 - by and for the citizens.
According to the plan's authors, the main obstacle to climate transition is not a lack of climate-friendly and smart technology, but the inability to implement it. The current fragmented form of governance cannot bring about an ambitious climate transition. Crucial to the success of the mission is the involvement of citizens in their various roles as political actors, users, producers, consumers, or owners of buildings and means of transport.
Funding
The additional investment to achieve the mission is estimated at €96 billion for 100 European cities by 2030, with a net positive economic benefit to society of €25 billion that will increase further in the period thereafter. The European Commission will provide €360 million in seed funding.
The overwhelming amount of funding will have to come from banks, private equity, institutional investors, and from the public sector at the local, regional and national level.
What went wrong with the Indian Mission and its follow-up
The gap between ambitions and reality
Almost all comments on 'the mission' emphasize that three necessary conditions were not met from the start, namely a widely accepted governance model, adequate funding, and involvement of the population and local government. There was an unbridgeable gap between ambitions and available resources, with the contribution of external capital being grossly overestimated.
The biggest problem, however, is the gap between the mission's ambitions and the nature of the problems that India it faces: Cities are bursting at the seams because of the millions of poor people who flock to cities every year in search of work and a place to live that find them only in the growing slums. The priorities for which the country must find a solution are therefore: improving life in rural areas, improving housing in the cities, ensuring safe drinking water, waste disposal, sanitation, and purification of wastewater, good (bus) transport and less polluting car traffic. Urgently needed is a sustainable development model that addresses ecological problems, makes urbanization manageable, controls pollution and will use resources efficiently.
Leap forward
The 'Mission' is a leap forward, which does not tackle these problems at the root, but instead seeks a solution in 'smartification'. Policymakers were captivated by the promises made by IBM and other technology companies that ICT is the basis for solving most urban problems. A view that I objected in the third episode of this series. IC solutions have been concentrated in enclaves where businesses and prosperous citizens are welcomed. The Government of India Special Rapporteur on Housing therefore notes that the proposals submitted had a predominant focus on technology rather than prioritizing affordable housing and doubts the correctness of this choice.
Instead of emphasizing the role of digital technology, the focus should have been on equitable, inclusive, and sustainable living areas for all. Not the area-oriented but the pan-urban approach should have prevailed.
Follow-up
Several authors suggest future actions consistent with the above comments:
• Setting a longer time horizon, which is much more in line with the problems as they are felt locally.
• Decentralization, coupled with strengthening local government in combination with citizen participation.
• A more limited number of large-scale pan-urban projects. These projects should have an immediate impact on all 4000 Indian cities and the surrounding countryside.
• More attention for nature and the environment instead of cutting down trees to widen motorways.
• Training programs in the field of urbanization, partly to align urban development with Indian culture.
The European mission revisited
Leap forward
Europe and India are incomparable in many ways, but I do see similarities between the two missions.
With the proclamation of the 'mission', the Indian government wanted to show the ultimate – perhaps desperate – act of determination to confront the country's overwhelming problems. I therefore called this mission a flight forward in which the image of the 'smart city' was used as a catalyst. However, the country’s problems are out of proportion to this, and the other means employed.
It is plausible that the European Union Commission also wanted to take an ultimate act. After the publication of the ambitious European Green Deal, each national governments seems to be drawing its own plan. The ‘100 cities mission’ is perhaps intended as a 'booster', but here too the feasibility of this strategy is doubtful.
Smart and green
The European Union cherishes the image of a 'green and digital twin', a simultaneous green and digital transformation. Both the Government of India and the European Commission consider digital technology an integral part of developing climate neutral cities. I hope to have made it clear in the previous 21 episodes of this series that digital technology will certainly contribute. However, the reduction of greenhouse gases and digitization should not be seen as an extension of each other. Making a city climate neutral requires way more than (digital) technology. Moreover, suitable technology is still partly under development. It is often forgotten that technology is one of the causes of global warming. Using the image of green and smart twins will fuel the tension between the two, just like it happened in India. In that case, it remains to be seen where the priority will lie. In India it was 'smart'.
Funding
Funding of the Indian mission fell short; much is still unclear about funding of the European mission. It is highly questionable whether European states, already faced with strong opposition to the costs of 'climate', will be willing to channel extra resources to cities.
Governance
The European mission wants to be by and for the citizens. But the goal has already been established, namely becoming climate neutral by 2030. A new 'bottom-up' governmental approach would have been to investigate whether there are cities where a sufficiently large part of the population agrees with becoming climate neutral earlier than in 2050 and how much sooner that could be and next, leave it to these cities themselves to figure-out how to do this.
Can Europe still prevent its mission from failing like India's? I propose to look for in the same direction as India seems to be doing now:
• Opt for one unambiguous goal: Reducing greenhouse gases significantly earlier than 2050.
• Challenge a limited number of cities each to form a broad coalition of local stakeholders that share this ambition.
• Make extra resources available, but also ask the cities themselves to make part of the necessary investments.
• Stimulate universities and industry to provide a European response to Big Tech and to make connections with the 'European Green Deal'.
My e-book Smart City Tales contains several descriptions of intended and alleged smart cities, including the much-discussed Saudi Arabian Neom. The Dutch version is here.
Will MaaS reduce the use of cars?
In the 18th episode of the Better Cities - The contribution of technology-series, I answer the question how digital technology in the form of MaaS (Mobility as a Service) will help reduce car use, which is the most important intervention of improving the livability of cities, in addition to providing citizens with a decent income.
Any human activity that causes 1.35 million deaths worldwide, more than 20 million injuries, total damage of $1,600 billion, consumes 50% of urban space and contributes substantially to global warming would be banned immediately. This does not apply to traffic, because it is closely linked to our way of life and to the interests of motordom. For example, in his books Fighting traffic and Autonorame: The illusory promise of high-tech driving, Peter Horton refers to the coteri of the automotive industry, the oil companies and befriended politicians who have been stimulating car use for a century. Without interventions, global car ownership and use will grow exponentially over the next 30 years.
Reduction of car use
In parallel with the growth of car use, trillions have been invested worldwide in ever new and wider roads and in the management of traffic flows with technological means.
It has repeatedly been confirmed that the construction of more roads and traffic-regulating technology have a temporary effect and then further increase car use. Economists call this induced demand. The only effective counter-measures are impeding car use and to discourage the perceived need to use the car, preferably in a non-discriminatory way.
Bringing housing, shopping, and employment closer together (15-minute city) reduces the need to travel by car, but this is a long-term perspective. The most effective policy in the short term is to reduce parking options at home, at work and near shopping facilities and always prioritizing alternative modes of transport (walking, micro-mobility, and public transport). Copenhagen and Amsterdam have been investing in bicycle infrastructure for years and are giving cyclists a green track in many places at the expense of car traffic.
For several years now, Paris has also been introducing measures to discourage car traffic by 1,400 kilometers of cycle paths, ban on petrol and diesel cars in 2030, redesign of intersections with priority for pedestrians, 200 kilometers of extension of the metro system and closure of roads and streets. Meanwhile, car use has fallen from 61% in 2001 to 35% now. Milan has similar plans and in Berlin a group is preparing a referendum in 2023 with the aim of making an area car-free larger than Manhattan. Even in Manhattan and Brooklyn, there is a strong movement to reduce car use through a substantial shift of road capacity from cars to bicycles, pedestrians, and buses.
Public transport
Because of the pandemic, the use of public transport has decreased significantly worldwide as many users worked from home, could not go to school, took the bicycle or a car. Nevertheless, cities continue to promote public transport as a major strategy to reduce car use. In many places in the world, including in Europe, urban development has resulted in a high degree of dispersion of and between places to live, shop, and work. The ease of bridging the 'last mile' will contribute significantly to the increase in the use of public transport. While bicycles play an important role in this in the Netherlands, the ideas elsewhere are based on all forms of 'dockless micromobility’.
Autonomous transport
From a technological point of view, autonomous passenger transport involves type four or five at a taxonomy of automated cars. This includes the Waymo brand developed by Google. In some places in the US, these cars are allowed to drive with a supervisor ('safety driver') on board. Type 5 (fully autonomous driving under all circumstances) does not yet exist at all, and it is highly questionable whether this will ever happen. Besides, it is questionable too whether the automotive industry aspires building such a car at a substantial scale. Given their availability, it is expected that many people will forgo purchasing them and instead use them as a shared car or as a (shared or not) taxi. This will significantly reduce car ownership. To sell as many cars as possible, it is expected that the automotive industry will aim for level three automation, which means that the car can take over the actions of the driver, who must stay vigilant.
The impact on cities of autonomous shared cars and (shared) taxis is highly uncertain. Based on traffic data in the Boston area and surveys of residents, a study by the Boston Consultancy Group shows that approximately 30% of all transport movements (excluding walking) will take place in an autonomous car. But it also appears that users of public transport are a significant part of this group. Most people interviewed were scared using an unmanned shared taxi. Without sharing, there will be more cars on the road and more traffic jams in large parts of the city than now. A scenario study in the city of Porto (Portugal) that assumes that autonomous cars are mainly used as shared taxis and public transport is not cannibalized shows a significant decrease in car traffic.
Considering refraining from car use
Designing an efficient transport system is not that difficult; its acceptance by people is. Many see the car as an extension of the home, in which - even more than at home - they can listen to their favorite music, smoke, make phone calls or meet other persons unnoticed. Considering this, the step to alternative transport such as walking, cycling, or using public transport is a big one.
Most people will only decide to do so if external circumstances give sufficient reason. Hybrid working can lead to people wondering whether keeping an expensive (second) car is still responsible and cycling – in good weather – is also an option. Or they notice that because of restrictions driving a car loses part of its attractiveness and that public transport is not that bad after all. Some employers (Arcadis, for example) also encourage other forms of mobility than the (electric) lease car. <i>This lays the foundation for a 'mind set' in which people begin to break down their mobility needs into different components, each of which is best served by another mode of transport.</i> As soon as they realize that the car is an optimal solution only for part of the journeys, they realize that the price is shockingly high and a shared car is cheaper. For other journeys, a (shared) bicycle or public transport may be considered. Against this background, the concept of Mobility as a Service (MaaS) must be placed.
Mobility as a Service: MaaS
MaaS is an app that offers comprehensive door-to-door proposals for upcoming journeys, ranging from the nearest shared bicycle or scooter for the first mile or alternatively a (shared) taxi, the best available connection to public transport, the best transfer option, to the best option for the last mile. For daily users of the same route, the app provides information about alternatives in the event of disruptions. In the event of a delay in the journey, for example on the way to the airport, an alternative will be arranged if necessary. No worries about departure times, mode of transport, tickets, reservations, and payment. At least, ideally.
These kinds of apps are being developed in many places in the world and by various companies and organizations. First, Big Tech is active, especially Google. Intel also seems to have all the components for a complete MaaS solution, after taking over Moovit, Mobileye and Cubic. In Europe, it is mainly local and regional authorities, transport companies (Transdec, RATP, NS) and the automotive industry (Daimler-Benz and in the Netherlands PON).
The Netherlands follows its own course. The national MaaS program is based on public-private partnership. Seven pilots are ready to take-off. Each of these pilots places a different emphasis: Sustainability, accessibility of rural areas, congestion reduction and public transport promotion, integration of target group transport, public transport for the elderly and cross-border transport.
The pandemic has delayed its start significantly. The Gaiyo pilot in Utrecht (Leidsche Rijn) is the only one that is active for some time, and the results are encouraging. Apart from the national MaS pilots, the RiVier initiative was launched in January 2019; a joint venture of NS, RET and HTM in collaboration with Siemens.
Worth mentioning is an initiative from the European Union (European Institute for Innovation and technology - Urban Mobility), Eindhoven University of Technology, Achmea and Capgemini. 21 partners have now joined, including the municipality of Amsterdam. The aim is a pan-European open mobility service platform, called Urban Mobility Operating System (UMOS). The project aims to provide MaaS for the whole of Europe in the long term. UMOS expects local providers to join this initiative. Unlike most other initiatives, this is a non-profit platform. For the other providers, profitability will mainly be a long-term perspective.
The development of the MaaS app is complex from a technological and organizational point of view. It is therefore not surprising that five years after the first landing there are only partial solutions. <b>The basis for a successful app is the presence of a varied and high-quality range of transport facilities, a centralized information and sales system and standardization of various data and interfaces of all transport companies involved.</b> So far, they have not always been willing to share data. A company like London Transport wants to maintain direct contact with customers, and Uber and Lyft don't want to hand over the algorithms they use to calculate their variable fare. This type of data is indispensable for realizing a real-time offer of several door-to-door transport alternatives for every conceivable route, including pricing, and purchasing tickets. It is hoped that licensing authorities will mandate the provision of all data required for a fully functioning MaaS platform.
One of the most balanced MaaS applications is MaaX developed by Capgemini, the Paris Transport Authority and the RATP. This is comparable to the NS and OV9292 app, supplemented by options for carpooling, taxi transport, shared cars, shared bicycles, scooters, electric scooters, and parking.
Does MaaS is viable?
I believe that MaaS as such will encourage very few motorists to refrain from owning a car. This will mainly have to be done through measures that impede car use or reduce the need for it. Nevertheless, MaaS is useful for those who have just decided to look for alternatives. The app also has added-value for users of public transport, for instance if information in the event of disruptions is made available timely.
It is therefore clear to me that this app should be made available as a form of service, funded by the transport providers and the government and can make significant savings in infrastructure costs if car use decreases.
The above deepens two essays included in my e-book Cities of the Future: Always humane, smart if helpful. The first essay Livability and traffic – The walkable city connects insights about livability with different forms of passenger transport and policy. The second essay Towards zero road casualties: The traffic-safe city discusses policies to make traffic safer and the effect of 'self-driving' cars on road safety. The e-book can be downloaded here by following the link below.
The Creative Industry Program's
The Creative Industry Program's main objective is to enhance creative skills in all segments of the industry, stimulating the emergence of new business opportunities, in addition to offering business representation, professional education and technology for various creative sectors.
The Program works in the development of industries through forums, and through the articulation of a network that includes universities, development agencies, government and private initiative, and creative networks. Internationally, the Creative Industry Program is a reference for countries and international organizations.
Based on the needs and opportunities identified in the economic context, the Program works to develop innovative skills, in order to create a favorable environment for business.
The Creative Industry Program seeks to develop the potential of creative entrepreneurship networks, in addition to promoting distribution through communication channels.
to know more
Send us an email to motivaco@gmail.com
RESILIO and its business case.
It’s all about the money: A Smart RESILIO Blue-Green Roof might sound a little pricey. But is money all what counts? Are these roofs affordable? In this third part of the RESILIO blue-green roofs movie sequence we explain to you the overall value and benefits for the society and how to approach these in a financial matter. Maybe we have to broaden our view on how we assign value to an object and use these outcomes as a solution for financing. Daniel van den Buuse, PhD and Hans de Moel tell us all.
6. The Boston Smart City Playbook
This is the sixth episode of the Better Cities; The Contribution of Digital Technology series. It is about the expectations of the Majors Office of New Urban Mechanics (MONUM) in Boston from representatives of tech companies crowding its doors to sell turnkey "smart" solutions. The Dutch versions of the published posts in this series are here.
Jascha Franklin-Hodge, former head of MONUM, recalls meeting representatives of a Fortune 500 technology company that had tendered to equip all the city's lampposts with cameras and sensors. When asked if this equipment had already proven its worth elsewhere, the answer was that the company would appreciate Boston investigating it. It goes without saying that the city has resolutely rejected this 'offer'. It was one of many exhausting encounters with eager salespeople offering 'promising' technological solutions, with limited knowledge of urban problems. As a result, Franklin-Hodge and his colleague Nigel Jacob decided to incorporate the feedback normally given to these people into a document that they could share with companies. This became the famous Boston Smart City Playbook, with the primary purpose of propagating Boston's intent to develop technology that is responsible, people-centric and problem-driven.
Below I go through the book, paraphrasing (italics) and commenting on each chapter
Stop sending salespeople
The introduction to the booklet sighs, send us someone who knows about cities, someone who wants to talk to the residents about what they like (and don't like!) about Boston. The MONUM team appreciates when technologists come to talk about topics that matter rather than fire well well-prepared pitches. Shared understanding of urban problems and the nature of their solution is the only way to establish a long-term relationship between the company and the city. The team announces to ask examples of how the product has worked or failed elsewhere.
In addition, I believe that representatives of technology companies who believe that a vendor’s pitch will do, sometimes forget that their interlocutors are technologists too, who are often better educated than themselves. However, civil servants often lack knowledge of successful examples from elsewhere, therefore they sincerely hope that representatives of a technology company can provide these. Unfortunately, that rarely turns out to be the case. The best solution is pre-competitive triple-helix collaboration between representatives of municipalities, knowledge institutions and companies. Together they can compensate for each other's knowledge gaps.
Solving real problems for people
Municipal employees often feel that their colleagues from companies lack involvement and knowledge about the concerns of ordinary people. That's why the Playbook expects them to talk to workers, unemployed, entrepreneurs, artists, citizen groups, advocacy groups and architects before visiting MONUM. The team would like to know what companies have learned during this conversation and especially why their products will make a difference.
Such an assignment is not easy. Citizens are easy to speak out about their problems and come up with solutions too. These solutions rarely have a technological component. The tech companies itself must build bridges and ask citizens for their opinion. Even citizens they don't see the value of the proposed technologies, city councils can still be confident in their long-term value.
Don't worship efficiency
Efficiency must be part of the solution to any problem, as cities have finite resources and infinite needs. However, efficiency is never a motive in the phase in which alternative choices are weighed up. Once a choice has been made, the next step is to implement it as efficiently as possible.
Talking prematurely about efficiency often results from ignoring underlying political positions. The question is always: Efficient on the basis of which criteria, for what purposes and in whose interest? As Ben Green wrote in ''The smart enough city' (p. 14): For those on the front lines, words like “better” and “more efficient” are the tip of an iceberg, below which sit the competing interests and conflicting values of the city and the people who live in it. In my opinion, the same applies to the misuse of the adjective 'smart'.
To become a competent partner, representatives of tech companies must not only be familiar with urban problems, but also with current political debates and the mission of mayor and aldermen. Anyone who mentions arguments such as 'cost savings' and 'efficiency gains' as main motives in the discussion about technological solutions for urban problems will immediately be questioned about the real benefits and for whom.
Better decisions, not (just) better data
The price for the purchase of technology must be paid immediately. Often a city can only reap its benefits in the future. The problem is that the success of the technology acquired will depend at least as much on how it is applied. This in turn depends on the behavior of the people involved. The often have to adapt themselves and targeted management is required to bring about behavioral change. Technological innovation usually goes hand in hand with social innovation or at least behavioral change. This could be, for example, breaking through silos between departments whose data must be shared. In essence, the quality of the data depends on its ability to improve decisions. Better decisions, in turn, should pay off in greater satisfaction for all stakeholders involved.
In my opinion, representatives of tech companies do not think enough about the 'soft side' of implementing technological change. In addition, they neglect after-sales contacts, which can provide them with valuable information about the impact of organizational conditions on technological innovation.
Platforms make us go ¯\_(**ツ)_/¯
In 2015, Ross Atkin, a critic of smart cities, wrote his Manifesto for the clever city. In the 'clever city', technology is used radically bottom-up to solve the problems that ordinary citizens experience with as little data as possible and in a way that citizens can understand. In the smart city, 'platforms' are often proposed as networks of sensors that collect huge amounts of data because they can potentially be used to solve problems. But many problems that affect people, such as pollution, stench and particulate matter, have been known for years, as have their causes: factories, heavy traffic and unhealthy homes. Installing a sensor network delays the resolution of these problems and is at the expense of it.
Moreover, because of vendor lock-in municipalities risk being stuck for years to solutions that companies have developed, as long as there are no standards or there is no guarantee of interoperability. Representatives of technology companies should be asked what they believe to be the cheapest solution for collecting critical data and what the interoperability of this solution is.
Towards a "public" privacy policy
Police monitor video cameras throughout the city and transit companies use GPS trackers to detect the location of buses and trains. Since the observation of people in public space is increasing rapidly, the question is what is the bottom-line of privacy of citizens that must always be respected. Representatives of tech companies should be surveyed to make explicit the privacy risks of their technologies and whether these technologies meet data minimization requirements.
In my opinion, it is up to cities to draw up guidelines about internet safety, privacy security and data minimization, but also to make explicit which means are acceptable for crime prevention and law enforcement. The development of such guidelines is also an opportunity for pre-competitive collaboration between cities, companies, and knowledge institutions.
Ben Green, also a former member of the MONUM team and now a teacher at the Ford School of Public Policy, Michigan University, also refers to the Smart City Playbook in his work 'The smart enough city' and emphasizes that the last thing to happen is considering technology as imminent and inevitable, thus beyond dispute and deliberation (p. 7). Technology must always be justified by its proven contribution to human well-being.
Follow up
The Boston Smart City Play Book makes it clear that before they can provide 'solutions', tech companies must become familiar with urban problems, preferably through direct contact with stakeholders and citizens in particular. In addition, cities also want to be involved in the development of these technologies.
The Playbook spawned a series of research and development projects, including the Local Sense Lab, a loose group of sensor technologists developing sensors and other devices of demonstrable value to Boston residents.
Read the Boston Smart City Playbook by following the link below
4. Digital social innovation: For the social good (and a moonshot)
The fourth edition in the series Better cities. The Contribution of Digital Technology is about “digital social innovations” and contains ample examples of how people are finding new ways to use digital means to help society thrive and save the environment.
Digitale sociale innovatie – also referred to as smart city 3.0 – is a modest counterweight to the growing dominance and yet lagging promises of 'Big Tech'. It concerns "a type of social and collaborative innovation in which final users and communities collaborate through digital platforms to produce solutions for a wide range of social needs and at a scale that was unimaginable before the rise of Internet-enabled networking platforms."
Digital innovation in Europe has been boosted by the EU project Growing a digital social Innovation ecosystem for Europa (2015 – 2020), in which De Waag Society in Amsterdam participated for the Netherlands. One of the achievements is a database of more than 3000 organizations and companies. It is a pity that this database is no longer kept up to date after the project has expired and – as I have experienced – quickly loses its accuracy.
Many organizations and projects have interconnections, usually around a 'hub'. In addition to the Waag Society, these are for Europe, Nesta, Fondazione Mondo Digitale and the Institute for Network Cultures. These four organizations are also advisors for new projects. Important websites are: digitalsocial.eu(no longer maintained) and the more business-oriented techforgood.
A diversity of perspectives
To get to know the field of digital innovation better, different angles can be used:
• Attention to a diversity of issues such as energy and climate, air and noise pollution, health care and welfare, economy and work, migration, political involvement, affordable housing, social cohesion, education and skills.
• The multitude of tools ranging from open hardware kits for measuring air pollution, devices for recycling plastic, 3D printers, open data, open hardware and open knowledge. Furthermore, social media, crowdsourcing, crowdfunding, big data, machine learning et cetera.
• The variety of project types: Web services, networks, hardware, research, consultancy, campaigns and events, courses and training, education, and research.
• The diverse nature of the organizations involved: NGOs, not-for-profit organizations, citizens' initiatives, educational and research institutions, municipalities and increasingly social enterprises.
Below, these four perspectives are only discussed indirectly via the selected examples. The emphasis is on a fifth angle, namely the diversity of objectives of the organizations and projects involved. At the end of this article, I will consider how municipalities can stimulate digital social innovation. But I start with the question of what the organizations involved have in common.
A common denominator
A number of organizations drew up the Manifesto for Digital Social Innovation in 2017 and identified central values for digital social innovation: Openness and transparency, democracy and decentralization, experimentation and adoption, digital skills, multidisciplinary and sustainability. These give meaning to the three components of the concept of digital social technology:
Social issues
The multitude of themes of projects in the field of digital social innovation has already been mentioned. Within all these themes, the perspective of social inequality, diversity, human dignity, and gender are playing an important role. In urban planning applications, this partly shifts the focus from the physical environment to the social environment: We're pivoting from a focus on technology and IoT and data to a much more human-centered process, in the words of Emily Yates, smart cities director of Philadelphia.
Innovation
Ben Green writes in his book 'The smart enough city': One of the smart city's greatest and most pernicious tricks is that it .... puts innovation on a pedestal by devaluing traditional practices as emblematic of the undesirable dumb city.(p. 142). In digital social, innovation rather refers to implement, experiment, improve and reassemble.
(Digital) technology
Technology is not a neutral toolbox that can be used or misused for all purposes. Again Ben Green: We must ask, what forms of technology are compatible with the kind of society we want to build (p. 99). Current technologies have been shaped by commercial or military objectives. Technologies that contribute to 'the common good' still need to be partly developed. Supporters of digital social innovation emphasize the importance of a robust European open, universal, distributed, privacy-aware and neutral peer-to-peer network as a platform for all forms of digital social innovation.
Objectives and focus
When it comes to the objective or focus, five types of projects can be distinguished: (1) New production techniques (2) participation (3) cooperation (4 raising awareness and (5) striving for open access.
1. New production techniques
A growing group of 'makers' is revolutionizing open design. 3D production tools CAD/CAM software is not expensive or available in fab labs and libraries. Waag Society in Amsterdam is one of the many institutions that host a fab lab. This is used, among other things, to develop several digital social innovations. One example was a $50 3D-printed prosthesis intended for use in developing countries.
2. Participation
Digital technology can allow citizens to participate in decision-making processes on a large scale. In Finland, citizens are allowed to submit proposals to parliament. Open Ministry supports citizens in making an admissible proposal and furthermore in obtaining the minimum required 50,000 votes. Open Ministry is now part of the European D-CENTproject a decentralized social networking platform that has developed tools for large-scale collaboration and decision making across Europe.
3. Collaboration
It is about enabling people to exchange skills, knowledge, food, clothing, housing, but also includes new forms of crowdfunding and financing based on reputation and trust. The sharing economy is becoming an important economic factor. Thousands of alternative payment methods are also in use worldwide. In East Africa, M-PESA (a mobile financial payment system) opens access to secure financial services for nine million people. Goteo is a social network for crowdfunding and collaborative collaboration that contribute to the common good.
4. Awareness
These are tools that seek to use information to change behavior and mobilize collective action. Tyze is a closed and online community for family, friends, neighbors, and care professionals to strengthen mutual involvement around a client and to make appointments, for example for a visit. Safecast is the name of a home-built Geiger counter with which a worldwide community performs radiation measurements and thus helps to increase awareness in radiation and (soon) the presence of particulate matter.
5. Open Access
The open access movement (including open content, standards, licenses, knowledge and digital rights) aims to empower citizens. The CityService Development Kit (CitySDK) is a system that collects open data from governments to make it available uniformly and in real time. CitySDK helps seven European cities to release their data and provides tools to develop digital services. It also helps cities to anticipate the ever-expanding technological possibilities, for example a map showing all 9,866,539 buildings in the Netherlands, shaded by year of construction. Github is a collaborative platform for millions of open software developers, helping to re-decentralize the way code is built, shared, and maintained.
Cities Support
Cities can support organizations pursuing digital social innovations in tackling problems in many ways. Municipalities that want to do this can benefit from the extensive list of examples in the Digital Social Innovation Ideas Bank, An inspirational resource for local governments.
Funding
Direct support through subsidies, buying shares, loans, social impact bonds, but also competitions and matching, whereby the municipality doubles the capital obtained by the organization, for example through crowdfunding. An example of a project financed by the municipality is Amsterdammers, maak je stad.
Cooperation
Involvement in a project, varying from joint responsibility and cost sharing, to material support by making available space and service s, such as in the case Maker Fairs or the Unusual Suspects Festival. Maker Fairs or the Unusual Suspects Festival. Municipalities can also set up and support a project together, such as Cities for Digital Rights. A good example is the hundreds of commons in Bologna, to which the municipality delegates part of its tasks.
Purchasing Policy
Digital social innovation projects have provided a very wide range of useful software in many areas, including improving communication with citizens and their involvement in policy. Consul was first used in Madrid but has made its way to 33 countries and more than 100 cities and businesses and is used by more than 90 million people. In many cases there is also local supply. An alternative is Citizenlab.
Infrastructure
Municipalities should seriously consider setting up or supporting a fab lab. Fab Foundation is helpful in this regard. Another example is the Things Network and the Smart citizen kit.. Both are open tools that enable citizens and entrepreneurs to build an IoT application at low cost. These facilities can also be used to measure noise nuisance, light pollution, or odors with citizens in a neighborhood, without having to install an expensive sensor network.
Skills Training
Municipalities can offer citizens and students targeted programs for training digital skills, or support organizations that can implement them, through a combination of physical and digital means. One of the options is the lie detector program, developed by a non-profit organization that teaches young children to recognize and resist manipulative information on (social) media.
Incubators and accelerators
We mainly find these types of organizations in the world of start-ups, some of which also have a social impact. Targeted guidance programs are also available for young DSI organizations. In the Netherlands this is the Waag Society in Amsterdam. A typical tech for good incubator in the UK is Bethnal Green Ventures. An organization that has also helped the Dutch company Fairphone to grow. In the Netherlands, various startup in residence programs also play a role in the development of DSI organisations.
A digital-social innovative moonshot to gross human happiness
It is sometimes necessary to think ahead and wake up policymakers, putting aside the question of implementation for a while. A good example of this from a digital social innovation perspective is the moonshot that Jan-Willem Wesselink (Future City Foundation), Petra Claessen (BTG/TGG). Michiel van Willigen and Wim Willems (G40) and Leonie van den Beuken (Amsterdam Smart City) have written in the context of 'Missie Nederland' of de Volkskrant. Many DSI organizations can get started with this piece! I'll end with the main points of this:
By 2030...
… not a single Dutch person is digitally literate anymore, instead every Dutch person is digitally skilled.
… every resident of the Netherlands has access to high-quality internet. This means that every home will be connected to fast fixed and mobile internet and every household will be able to purchase devices that allow access. A good laptop is just as important as a good fridge.
… the internet is being used in a new way. Applications (software and hardware) are created from within the users. With the premise that anyone can use them. Programs and the necessary algorithms are written in such a way that they serve society and not the big-tech business community.
… every resident of the Netherlands has a 'self-sovereign identity' with which they can operate and act digitally within the context of their own opportunities.
… new technology has been developed that gives residents and companies the opportunity to think along and decide about and to co-develop and act on the well-being of regions, cities, and villages.
… all Dutch politicians understand digitization and technology.
… the Dutch business community is leading in the development of these solutions.
… all this leads to more well-being and not just more prosperity.
… the internet is ours again.
A more detailed explanation can be found under this link
3. Ten years of smart city technology marketing
This post is about the rise of the smart city movement, the different forms it has taken and what its future can be. It is the third edition of the series Better cities: The role of digital technologies.
The term smart cities shows up in the last decade of the 20th century. Most definitions refer to the use of (digital) technology as a tool for empowering cities and citizens, and a key to fuel economic growth and to attract investments. Some observants will add as an instrument to generate large profits.
Barcelona, Ottawa, Brisbane, Amsterdam, Kyoto, and Bangalore belong to the forerunners of cities that flagged themselves as ‘smart’. In 2013 approximately 143 ‘self-appointed’ smart cities existed worldwide. To date, this number has exploded over more than 1000.
Five smart city tales
In their article Smart Cities as Company Story telling Ola Söderström et al. document how technology companies crafted the smart city as a fictional story that framed the problems of cities in a way these companies can offer to solve. Over time, the story has multiplied, resulting in what I have called the Smart city tales, a series of narratives used by companies and city representatives. I will address with five dominant ones below: The connected city, the entrepreneurial city, the data-driven city, the digital services city and the consumers’ city.
The connected city
On November 4th 2011, the trademark smarter cities was officially registered as belonging to IBM. It marked a period in which this company became the leader of the smart city technology market. Other companies followed fast, attracted by an expected growth of this market by 20% per year from over $300bn in 2015 to over $750bn to date. In the IBM vision cities are systems of systems: Planning and management services, infrastructural services and human services, each to be differentiated further, to be over-sighted and controlled from one central point, such as the iconic control center that IBM has build in Rio de Janeiro (photo above). All systems can be characterized by three 'I's, which are the hard core of any smart city: Being instrumented, interconnected and intelligent.
The corporate smart city
In many cities in the world, emerging and developing countries in the first place, administrators dream about building smart towns from scratch. They envisioned being 'smart' as a major marketing tool for new business development.
Cisco and Gale, an international property development company, became the developers of New Songdo in South Korea. New Songdo was in the first place meant to become a giant business park and to enable a decent corporate lifestyle and business experience for people from abroad on the first place, offering houses filled with technical gadgets, attractive parks, full-featured office space, outstanding connectivity and accessibility.
Quite some other countries took comparable initiatives in order to attract foreign capital and experts to boost economic growth. For example, India, that has planned to build 100 smart cities.
The data driven city
The third narrative is fueled by the collection and refined analyses of data that technology companies ‘tap’ for commercial reasons from citizens’ Internet and mobile phones communication. Google was the first to discover the unlimited opportunities of integrating its huge knowledge of consumer behavior with city data. Sidewalk Labs - legally operating under the umbrella of Alphabet - responded to an open call for a proposal for redevelopment of Quayside, brownfield land around Toronto's old port, and won the competition. Its plans were on par with contemporary urbanist thinking. However, that was not Sidewalk Labs’ first motive. Instead, its interest was ‘ubiquitous sensing’ of city life’, to expand Google’s already massive collection of personalized profiles with real-time geotagged knowledge of where people are, what they are whishing or doing in order to provide them with commercial information.
As could be expected, privacy issues dominated the discussion over the urbanist merits of the plan and most observers believe that therefore the company put the plug out of the project in May 2020. The official reason was investors’ restraint, due to Covid-19.
The consumers’ smart city
The fourth narrative is focusing on rise of urban tech targeted on consumers. Amazon, Uber and Airbnb are forerunners disrupting traditional sectors like retail, taxi and hotel business. They introduced a platform approach that nearly decimated the middleclass in in the US. Others followed, such as bike- and scooter-sharing companies Bird and Lyme, co-working companies like We Work and meal delivery services like Delivero.
City tech embodies the influence of entrepreneurship backed by venture capitalists and at the same time the necessity for city governments to establish a democratic legitimized framework to manage these initiatives.
The smart services city
Thanks to numerous ‘apps’, cities started to offer a wealth of information and services to citizens concerning employment, housing, administration, mobility, health, security and utilities. These apps enable city administrators, transit authorities, utility services and many others to inform citizens better than before. With these apps, citizens also can raise questions or make a request to repair broken street furniture.
Some cities, for instance Barcelona and Madrid, started to use digital technologies to increase public engagement, or to give people a voice in decision making or budgeting.
All aforementioned narratives suggest a tight link between technology and the wellbeing of citizens, symbolizing a new kind of technology-led urban utopia. In essence, each narrative puts available technology in the center and looks for an acceptable rationale to put it into the market. The fifth one witnesses an upcoming change into a more human-centric direction.
An upcoming techlash or a second wave of smart cities
It is unmistakably that business leaders, having in mind a multi-billion smart city technologies-market overstate the proven benefits of technology. Garbage containers with built-in sensors and adaptive street lighting are not that great after all, and the sensors appearing everywhere raise many questions. According to The Economist, it is not surprising that a techlash is underway. As I accentuated in last week’s post, politicians are becoming more critical regarding behemoths like Google, Amazon and Facebook, because of their treatment of sensitive data, their lack of transparency of algorithm-based decision making, their profits and tax evasion and the gig economy in general. Skepticism within the general public is increasing too.
Nevertheless, a second wave of smart cities is upcoming. The first wave lacked openess for the ethics of urban technology and the governance of urban development. The second wave excels in ethical considerations and intentions to preserve privacy. Intentions alone are insufficient, politics will also have to break the monopolies of Big Tech
Besides, in order to gain trust in the general public, city governors must discuss the city’s real challenges with residents, (knowledge) institutions, and other stakeholder before committing to whatever technology. Governance comes prior to technology. As Francesca Bria, former chief technology officer of Barcelona said: We are reversing the smart city paradigm. Instead of starting from technology and extracting all the data we can before thinking about how to use it, we started aligning the tech agenda with the agenda of the city.
Apart from Barcelona, this also happens in cities such as Amsterdam, Boston, Portland and the Polish city of Lublin. The question is no longer which problems technology is going to solve, but which exactly are these problems, who is trusted to define them, which are their causes, whose intersts are involved, who is most affected, and which ones must be solved most urgently. Only after answering these questions, the discussion can be extended to the contribution of (digital) technology. In a next contribution, I explore digital social innovation, as a contribution to a revised smart city concept.
This post is a brief summary of my article Humane by choice. Smart by default: 39 building blocks for cities in the future. Published in the Journal of the American Institution of Engineers and Technology, June 2020. You will fine a copy of this article below:
2. Scare off the monster behind the curtain: Big Tech’s monopoly
This post is about the omnipotence of Big Tech. So far, resistance mainly results in regulation of its effects. The core of the problem, the monopoly position of the technology giants, is only marginally touched. What is needed is a strict antitrust policy and a government that once again takes a leading role in setting the technology agenda.
A cause of concern
In its recent report, the Dutch Rathenau Institute calls the state of digital technology a cause for concern. The institute advocates a fair data economy and a robust, secure and available Internet for everyone. This is not the case now. In fact, we are getting further and further away from this. The risks are pressing more each day: Inscrutable algorithms, deepfakes and political micro-targeting, inner-city devastation through online shopping, theft of trade secrets, unbridled data collection by Google, Amazon and Facebook, poorly paid taxi drivers by Uber and other service providers of the gig economy, the effect of Airbnb on the hotel industry and the energy consumption of bitcoin and blockchain.
The limits of legislation
Numerous publications are calling on the government to put an end to the growing abuse of digital technology. In his must read 'the New Digital Deal' Bas Boorsma states: In order to deploy digitalization and to manage platforms for the greater good of the individual and society as a whole, new regulatory approaches will be required… (p. 46) . That is also the view of the Rathenau Institute, which lists three spearheads for a digitization strategy: Strong legislative frameworks and supervision, value-based digital innovation based on critical parliamentary debate and a say in this for citizens and professionals.
More than growing inconvenience
In recent years, the European Commission has launched a wide range of legislative proposals, such as the Digital Services Act package, the Digital Market Act and the General Data Protection Regulation (GDPR). However, these measures do not get to the kernel of the problem. The near-monopoly position of Big Tech is the proverbial monster behind the curtain. The Rathenau Institute speaks in furtitive terms of "the growing inconvenience" of reliance on American and Chinese tech giants. Even the International Monetary Fund is clearer in stating that the power of Big Tech inhibits innovation and investment and increases income inequality. Due to the power of the big technology companies, society is losing its grip on technology.
Surveillance capitalisme
To curb the above-mentioned risks, the problem must first be named and measures must then be tailored accordingly. This is done in two recent books, namely Shoshana Zuboff's 'The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power' (2019) and Cory Doctorow's 'How to destroy surveillance capitalism' (2021). Zuboff describes in detail how Google, Amazon and Facebook collect data with only one goal, to entice citizens to buy goods and services: Big Tech's product is persuasion. The services — social media, search engines, maps, messaging, and more — are delivery systems for persuasion.
Big tech's monopoly
The unprecedented power of Big Tech is a result of the fact that these companies have become almost classic monopolies. Until the 1980s, the US had strict antitrust legislation: the Sherman's act, notorious for big business. Ronald Reagan quickly wiped it out in his years as president, and Margareth Thatcher did the same in the UK, Brian Mulroney in Canada and Helmut Kohl in Germany. While Sherman saw monopolies as a threat to the free market, Reagan believed that government interference threatens the free market. Facebook joins in if it sees itself as a 'natural monopoly': You want to be on a network where your friends are also. But you could also reach your friends if there were more networks that are interoperable. Facebook has used all economic, technical and legal means to combat the latter, including takeover of potential competitors: Messenger, Instagram and WhatsApp.
In the early 21st century, there was still a broad belief that emerging digital technology could lead to a better and more networked society. Bas Boorsma: The development of platforms empowered start-ups, small companies and professionals. Many network utopians believed the era of 'creative commons' had arrived and with it, a non-centralized and highly digital form of 'free market egalitarianism' (New Digital Deal, p.52). Nothing has come of this: Digitalization-powered capitalism now possesses a speed, agility and rawness that is unprecedented (New Digital Deal, p.54). Even the startup community is becoming one big R&D lab for Big Tech. Many startups hope to be acquired by one of the tech giants and then cash in on millions. As a result, Big Tech is on its way to acquire a dominant position in urban development, the health sector and education, in addition to the transport sector.
Antitrust legislation
Thanks to its monopoly position, Big Tech can collect unlimited data, even if European legislation imposes restrictions and occasional fines. After all, a lot of data is collected without citizens objecting to it. Mumford had already realized this in 1967: Many consumers see these companies not only as irresistible, but also ultimately beneficial. These two conditions are the germ of what he called the megatechnics bribe.
The only legislation that can break the power of Big Tech is a strong antitrust policy, unbundling the companies, an absolute ban on acquisitions and rigorous taxation.
Technology agenda
Technology does not develop autonomously. At the moment, Big Tech is indisputably setting the technology agenda in the Western Hemisphere. China is a different story. With Mariana Mazzocato, I believe that governments should take back control of technological development, as they did until the end of the last century. Consider the role of institutions such as DARPA in the US, the Fraunhofer Institute in Germany and TNO in the Netherlands. Democratic control is an absolute precondition!
In the chapter 'Digitally just cities' in my e-book 'Cities of the future: Always humane, smart where it helps' (link below), I show, among other things, what Facebook, Amazon and Google could look like after a possible unbundling.
The application deadline is almost here! Join Startup in Residence Amsterdam now
On 4 October 2021, Startup in Residence published 12 new challenges on the themes of sustainability & circularity. The City of Amsterdam is looking for the best entrepreneurs (start-ups, scale-ups, innovative SMEs, and social entrepreneurs) with creative and innovative solutions for the city’s issues. The application deadline is almost here! Finish your application before 24 November 23:59 (CET).
The challenges
Solutions are sought for the following challenges
1. Preventing the build-up of waste around Amsterdam’s temporary canal wall supports
2. Circular joint filling material
3. Smart sustainability monitor in the contract phase of procurement
4. On demand and flexible collection of waste and materials in the centre of Amsterdam
5. Industrial Energy Transition with Hydrogen & CO2
6. Smart options for using dredged sediments from Amsterdam
7. A virtual public transport experience
8. Circular material trade in the Port of Amsterdam
9. On-demand power deployment solutions in the Port of Amsterdam
10. Sustainable use of exhibition design elements
11. Transport of artworks on loan
What's in it for me?
Join the 7th edition of Startup in Residence Sustainability & Circularity and get:
- an intensive six-month training programme;
- support from an experienced mentor;
- access to the entire network of the City of Amsterdam;
- opportunity to test and validate your product or service with and within the City of Amsterdam;
- the City of Amsterdam as your potential launching customer.
Don’t wait, apply now! www.startupinresidence.amsterdam
Prologue to a new series: Better Cities. The role of digital technologies
Next months, I will post a weekly contribution answering the question how digital technologies can contribute to the development of better cities. Here's what to expect from these posts:
According to the WEF Global Risk Report, anyone committed to the contribution of digital technology to solving the problems facing society should realize that technology and the underlying business model itself is one of those problems. The last thing to do is uncritically follow those who see only the blessings of technology. Some of their prophecies will send shivers down your spine, like this one from tech company Siemens: In a few decades, cities will have countless autonomous, intelligently functioning IT systems that are perfectly aware of users' habits and energy consumption and provide optimal service. The aim of such a city is to optimally regulate and control resources through autonomous IT systems. The company precisely articulates the fear expressed by Lewis Mumford who wrote in his seminal book The Myth of the Machine: Emerging new mega-techniques create a uniform, all-enveloping, super-planetary structure, designed for automatic operation in which man will become a passive, purposeless, machine-conditioned animal. This was in 1967, before anyone could even think about the impact of digital technology.
Fortunately, there are of governments, companies and institutions committed to developing and adopting technology to address the challenges the world faces: Energy transition and other impacts of climate change, pressure on mobility, setting up a circular economy; making society inclusive and improving the liveability of cities. However, technology alone cannot reach these goals. Far-reaching social and economic reforms are needed, also to ensure that the benefits of digitization are shared by everyone.
I join those who 'believe' in the potential of digital technology for society, if done in a responsible and value-driven way, but also are skeptical whether this will happen indeed. This ambivalence will not have escaped the notice of those familiar with my previous publications. In my first ebook Smart city tales (2018) I explored the use and abuse of technology in so-called smart cities. In the second ebook Cities of the future, always humane, smart if helpful (2020) I presented the problems of contemporary cities, collected possible solutions and mapped out which digital techniques can contribute. The conclusion was that humane cities are still a long way off.
What you are reading now is the first post (Read the Dutch version here) in a new series that focuses on digital technology itself. In the first part of this series, I discuss the demands that can be placed on the design of digital technology for the sake of better cities. In the second part, I apply these requirements to a broad range of technologies. The integration of digital technology into urban policies will be discussed in part three.
I foresee the publication of about 20 articles. The link below opens a preliminary overview of their topics. I will take the liberty of adapting this plan to the actuality and advancing insight.
Inschrijving voor versnellingsprogramma GO!-NH geopend!
Ben jij een MKB-er, start-up of scale-up die wil bijdragen aan een schone, duurzame en gezonde wereld? Dan weet je als geen ander hoe lastig het soms kan zijn om je idee of product aan de man te brengen. En je bent niet de enige! Provincie Noord-Holland heeft speciaal voor ondernemers zoals jij het GO!-NH versnellingsprogramma ontwikkeld om je te helpen bij het op de markt brengen en opschalen van jouw innovatieve, duurzame product of dienst. Ons doel is om jou te helpen impact te maken op de maatschappij!
GO!-NH biedt drie verschillende trajecten die aansluiten bij de fase en omvang waarin je bedrijf zich bevindt: het Accelerator traject voor MKB bedrijven en start-ups met een idee maar nog geen of beperkte markt, het Growth traject voor bedrijven die in de volgende fase willen groeien, en het Scale traject voor grotere MKB bedrijven en scale-ups die al flinke omzet hebben maar nieuwe markten aan willen boren.
In het voorjaar starten de Accelerator en het Growth traject. Je kunt je vanaf nu aanmelden voor de selectie! Surf voor meer informatie naar de website van GO!-NH: https://go-nh.nl/meer-informatie/
Can Amsterdam even better support growth of its startup ecosystem?
This post is the third and last in a series of articles about the startup ecosystem in Amsterdam Delta (Amsterdam metropolitan region). The first dealt with the dual challenge for start-ups to become socially and environmentally sustainable and to empower employees to be entrepreneurial through shared leadership. The second one was a review of the strengths and weaknesses of the Amsterdam startup ecosystem by the authors of the 2021 Global Startup Ecosystems Ranking.
Weaknesses and strengths
The 2021 Global Startup Ecosystem Report revealed several weaknesses in the Amsterdam startup ecosystem, which – I accentuate - should not overshadow the city’s position of Amsterdam as the world number 13 startup ecosystem. In terms of market reach, the overall score is satisfactory (7), but the Amsterdam Delta startups are primarily focused on global markets and score low on the local market. In the field of talent, the overall score is more than sufficient (7), due to the quality of technology students and graduates, but their number is inadequate, resulting in high vacancies and salary costs. Partly related to this, the growth potential (scalability) of the Amsterdam startup ecosystem is also insufficient, due to a limited reservoir of experienced entrepreneurs. Overall knowledge success is assessed as poor (1!) due to the unsatisfactory number of life science patents.
Amsterdam Policy plan 2019 - 2022
Most of the underlying data of the 2021 report is from 2019 – 2021, a time frame that coincides with the start of the new policy plan for startups in Amsterdam in the period 2019 - 2022. The inventory of challenges in this report mirrors several weaknesses mentioned above. Looking at the future, the report states: We have reached a point where growth of the local ecosystem does not have to mean that the local government wants to encourage as many companies in Amsterdam as possible but encourages activity that adds value to the city in new ways. In the coming years, we must also lay the foundations for a more inclusive society, in which the local startup and scaleup ecosystem also plays a role. A step towards inclusiveness means significantly increasing the business sector’s ambitions for social responsibility. In other words, a focus on quality in general that is aligned with at least the first challenge in the first post I referred to above.
How cities can support their startup ecosystem?
Below, I discuss highlights from the policy report 2019 - 2022 within a broader vision of possibilities for municipalities to support start- and scale-ups, partly based on an earlier edition of a The Global Startup Ecosystem Report.
Financial support
According to the 2021Global Startup Ecosystems Report, the funding of new businesses is not a big problem in Amsterdam Delta, also because of the generous tax facilities(!) in the Netherlands. However, investment relies heavily on local investors and governmental grants: 54% of the capital flowing into the ecosystem comes from domestic sources, 25% from the rest of Europe, and just 21% from the rest of the world.
The City of Amsterdam subsidized the Innovation Center for AI (ICAI) at Amsterdam Science Park, requiring that at least 20% of its revenues will be reserved for innovative SMEs and startups.
While funding is not an overriding problem, Amsterdam can improve its coordinating role in providing financial support, as for example Seoul has done by the creation of the Dream bank, a one-stop agency for all financial matters.
Growth of markets
The market position of Amsterdam start- and scaleups can be improved, especially in the home market, but also internationally. Besides, every new startup must start from scratch by creating a market. An agency called Amsterdam Trade and Innovate has commissioned trade developers to organize domestic and international activities that support promising companies in clusters such as technology, health, life sciences, and creative industry.
Expanding the reservoir of entrepreneurs
Amsterdam focuses on women and young people with a migration background, most of whom never received tech-related training. Initiatives such as House of Skills, Action Plan W&T, House of Digital offer a range of technology-based courses to make up for these shortcomings, alongside startup schools such as BSSA, Growth Tribe and The Talent Institute.
In December 2020, the City of Amsterdam announced it will invest yearly US$ 856,500 in RISE, the Female Hub Amsterdam. There is a high demand in sectors such as artificial intelligence, blockchain, robotics, life science and energy storage, while relatively many university students in technology seem to prefer media studies and gaming and the fintech market is almost satorized. Studying will become more attractive by combining study and jobs and affordable (co-)housing and childcare options, both of which are both are seriously lacking.
In addition, the ‘Warm Welcome’ program aims to attract ambitious tech talent from abroad. Unfortunately, the pandemic has significantly reduced the influx of potential talent from abroad while market opportunities for innovative tech startups and scaleups were improving.
Campuses
Innovative and research-oriented start-ups prefer the proximity of comparable small and medium-sized companies in campuses. They also prefer locations in mixed urban environments. A campus offers space for complementary companies, large and small, and facilities to collaborate, such as shared laboratory spaces. Amsterdam develops urban innovation districts through regional development and transformation. These areas that can accommodate rapid growth and opportunity for clustering ‘anchor companies’, leading (knowledge) institutions, startups, scaleups, incubators and accelerators. The main areas are: West Innovation Park, Amsterdam Sciencepark, Marineterrein , AMC-Amstel III and VU-Kenniskwartier/Zuidas.
Participation in the network of incubators and accelerators
Startups and scaleups need support. Incubators help companies to settle, accelerators help them to grow steadily. One of the best things any city can do is actively participation in these incubators and accelerators. They can become a one shop-stop for all prospective participants, providing virtually all the support start- and scaleups need. 31 of the 89 incubators and accelerators in the Netherlands, are active in the Amsterdam metropolitan area. A rich pallette of incubators and co-working spaces such as TQ, WeWork, Spaces, Startup Village, Rent24 and B.Amsterdam have been set up. Accelerators are Rockstart, Startupbootcamp, Fashion for Good, ACE and Collider.
Within an incubator or accelerator, the municipality can be primary responsible for legal matters, offering work- and living spaces (initially for free and later rented out at attractive rates), trade missions and procurement.
Internships
In some cities, startups can practice aspects of social and environmental sustainability in public administration. An example is the Startup in Residence program that started in Amsterdam and has now been spread over 20 other Dutch cities, regional governments, and ministries. The program is open to both Dutch and foreign entrepreneurs. Professional coaches provide intensive training and support. Workspace is available too. Under certain conditions, local, regional, and national governments become launching customers or partners. A report provides a detailed overview of the program in Amsterdam and its impact on the participants and the community.
Taking care of starters in general
Only a small but previously unknown part of all starters becomes a startup. Moreover, the number of starters outsizes that of startups and some can become valued companies too In the Netherlands, each year more than 100.000 starters are registered with the Chamber of Commerce.
Short evaluation Amsterdam policy plan 2019 - 12022
I doubt whether the current Amsterdam policy on start- and scaleups will result in a better ranking next year, also because in many cities startup ecologies are growing faster. Personally, I believe that consolidating a position in the top 20 is the best possible and still admirable result. This certainly applies if Amsterdam can achieve its ambitions in the field of qualitative rather than quantitative growth. Amsterdam wants to become an inclusive community and the first circular city in the world. The city wants that start- and scaleups becoming forerunners in reaching these objectives. I am partly disappointed in the content of the policy report 2019 - 2022 regarding this ambition. Indeed, becoming a more inclusive community is reflected in supporting the growth of the number female entrepreneurs. However, I looked in vain at policies encourage activity regarding developing start- and scaleups that add value to the city in new ways for instance contributing to the development of the circular economy. These businesses will make the difference in the future startup ecosystem.
I will regularly share ‘snapshots’ of the challenge of bringing socially and ecologically sustainable cities closer using technology if useful. These posts represent findings, updates, and additions to my e-book Humane cities. Always humane. Smart if helpful, chapter 4 in particular. The English version of this book can be downloaded for free below.
Breaking news for Amsterdam: The Global Startup Ecosystem Report 2021 is available
In the recent past, the value of startups in Amsterdam Delta (Amsterdam metropolitan region) has taken a giant leap. In 2015, Amsterdam startups were valued at $11.1 billion. Today, Europe's number 3 ecosystem is worth $83.3 billion. The extraordinary success stories of Adyen and Takeaway have been a major contributor to this success, but its base is much broader. On the annually published Global Startup Ecosystem ranking Amsterdam Delta rose from the 19th place in 2015 to 12th place in 2020. Everyone was curious about the 2021 ranking. Well, as the table shows, Amsterdam Delta has been overtaken by Paris and Tokyo, but only lost one place due to a significant drop in Stockholm.
The value of rankings is easily overestimated. However, the value of startups should not be underestimated. More than 30% of the 4000 startups in the Netherlands are located in the Amsterdam metropolitan region. Together, the Dutch startups have created more than 100,000 jobs and are responsible for 60% of the annual job growth.
Globally, 2020 and 2021 were amazing years for startups as the pandemic fueled technology. According to the Global Startup Ecosystem Report 2021, Internet capacity increased by 35% and global broadband traffic by 51%. Consumers bought 30% more food online. Global venture capital funding nearly doubled to $288 billion in the first half of 2021, compared to the first half of 2020. Startups have benefited from the explosive technology market, supported by significant government support. Following China and the US, the European Union has been generous to startups, and the same goes for its member states. The Dutch government offers tax credits to innovative companies and environmentally friendly investments. The city of Amsterdam promotes startups that support inclusive growth and diversity, for example by subsidizing female entrepreneurs.
The Amsterdam Delta startup ecosystem can be characterized as vibrant. Still other ecosystems in the world are growing faster, including those in some European cities. In the global top ten emerging ecosystems, we find Copenhagen in second place and Barcelona, Madrid, and Zurich in places 5, 8 and 9.
To detect possible vulnerabilities in the Amsterdam Delta startup ecosystem, analyzing of success factors of the 30 highest-ranked ecosystems in the report is informative. In terms of performance, Amsterdam's composite score is in a middle position (6 out of 10 points). In terms of funding, the position is good (8). In terms of market reach, the overall score is satisfactory (7): The Amsterdam Delta startups are primarily focused on global markets and score low on the local market. Like most European ecosystems, Amsterdam Delta scores excellent (9) in connectedness, which is related to its strength on the global market. In terms of talent, the overall score is satisfactory (7), but the components differ considerably. The quality of technology students and graduates is good, but their number is insufficient, resulting in high salary costs. The scalability of the Amsterdam startup ecosystem is also insufficient, due to a lack of experience, which keeps many startups small. The overall knowledge success is assessed as poor (1) because the number of life science patents is disappointing.
When assessing the success factors, it should be considered that the population of Amsterdam Delta is about 10% of the population of London, and in this perspective the need to improve the global 13th place is not urgent. On the contrary, understanding why the Amsterdam Delta is performing so well is more relevant than looking for opportunities to improve it.
The explanation of Amsterdam's success has its roots in the fundamental strength of the Netherlands as a whole, which has at least ten other vibrant startup ecosystems. Against this background, one might be curious about the Global Startup Ecosystem ranking of the Randstad, including Eindhoven as a whole. According to the report, the strength of the Netherlands is its well-educated population, international orientation and English proficiency, excellent infrastructure, an 'extremely high quality of life' and business-friendly laws. Amsterdam is also the headquarters of many international companies, a large pool of potential startup founders.
In a next post, I will focus on Amsterdam's policy towards startups and evaluate whether a higher ranking is within reach or whether more qualitative objectives are preferable, taken into account the considerations in a former post on the Amsterdam Smart City website.
I will regularly share ‘snapshots’ of the challenge of bringing socially and ecologically sustainable cities closer using technology if useful. These posts represent findings, updates, and additions to my e-book Humane cities. Always humane. Smart if helpful. The English version of this book can be downloaded for free below.
A pebble can start a ripple effect
The time to make a change is now. The world is in motion: COVID19 lockdowns changed our perspectives on life as we know it, the cities we live in are exposed to devastating nature extremes this summer and the IPCC report fast-forwarded our sense of urgency. Do you have an awesome idea that can make an impact, then join the AMS Startup Booster to fast-track your idea. Deadline for applications is extended till September 12.
Are you wondering if the AMS Startup Booster can help you turn your business into a successful business. Then please get inspired by the stories of Mublio and Swugo.
Mublio bootstrapped their business and a year later they're selling their first product! Their first product is tailor-made, affordable, built-in cupboards to make efficient use of the space underneath your stairs.
Swugo wants to help reduce CO2 emissions in our urban environment and attribute to getting Amsterdam car-free by electrifying bikes. The Booster helped them to gain access to a European Mobility accelerator where they have extended their potential client base to other European cities.
Rethinking ownership for mission-driven ventures
Mission-driven ventures are a big part of the transition towards a circular economy. However, unlike conventional startups, these ventures face an important challenge: how can they prioritize purpose over profit, while also overcoming the hurdles of venture-building?
Part of the answer lies in rethinking ownership, to welcome investment without compromising long-term impact. Metabolic has recently written an article explaining the concept of "steward ownership" and we'd love to hear your thoughts!
More of a webinar person? Take a look at this Fresh Talk instead: https://lnkd.in/dNJDXVSY
Startups: Between the Curse of Becoming a Taker and the Prospect of Being a Maker
For centuries, entrepreneurship was linked to art and craft and rewarded by personal fulfilment, satisfied customers, and a good life. The term entrepreneur is still associated with giving direction, shape and content to new activities based on personal motivation and skills and thereby creating socially approved value. A description that applies to the self-employed, business entrepreneurs, franchisees or intrapreneurs and includes both commercial, institutional, and artistic activities.
However, there are two problems. Overcoming them opens the way to become a better business.
The plunder of the earth
Nobel laureate Joseph Stiglitz has warned that the creative power of entrepreneurship can easily become destructive. A 'maker' becomes a 'taker' once creating value becomes making money in the first place. Indeed, for centuries, companies have robbed resources around the world, destroyed nature, traded millions of slaves and exploited domestic workers, creating the divide between rich and poor countries.
The creative power of entrepreneurship can also be aimed at sustainable prosperity, for their employees, the country, and the world. In that case, the “purpose” of a company precedes the pursuit of profit. Unfortunately, still a minority of all companies are moving in this direction while others pretending.
The decline of engagement and passion within the workforce
There is more. In developed countries, the blatant exploitation of labour has disappeared. Instead, the majority of employment relegates into low strain jobs. Research by Gallup and Deloite has shown over consecutive years that over 64% of all employees worldwide are not engaged or passionate. Find John Hagel explain this in a short video. The reason is clear. 20th century companies have organized their production according to principles of scalable efficiency and have top-down planning and control. Room for initiative is therefore neither expected nor desired. Moreover, detailed protocols and regulations limit employment for people at a distance from the labour market.
In a rapidly changing world, companies must be adaptive and innovative. They therefore need flexible, interdisciplinary teams with a high degree of self-government and less pay differentials. According to recent research in 17 countries, this type of organizations (8%) outperforms in all respects.
Summarizing, to become a better business requires a double challenge:
· Replacing the dominance of the pursuit of money with a social and environmental purpose.
· Mobilizing the entrepreneurial and other capacities of their whole work force by forms of self-organization and shared leadership.
Why focussing on startups?
As only a limited number of companies meet these conditions, employees consider starting their own business. In the US alone, approximately two million workers give up well-paying jobs every year and become self-employed. 127,000 starters were registered in the Netherlands in 2018. Of them, only a minority will become a startup, which means that they will successfully commercialize a promising technological innovation and grow rapidly on an international level.
Start-ups are potential engines of growth and innovation. In the US, their steady growth is compensating for job losses in the rest of the economy. Dutch startups created 20.000 of jobs in 2018 and 2019. A recent reportoffers excellent documentation of the identity, growth and potential of the 4,311 Dutch startups in 2019, most of which have fewer than 10 employees. 34% of Dutch startups can found in the Amsterdam metropolitan area.
The hope is that start-ups will rise to both challenges by nurturing their social and environmental purpose end fueling the commitment and passion of each employee, and thereby become a better business.
Yet, like any other businesses, startups risk becoming takers rather than makers, trading their social and environmental purpose for the pursuit of money and losing the engagement and passion of their employees. Fortunately, they can prevent this.
Eleven ways to become or stay a better business
1. Embrace self-organization and shared leadership.
2. Involve all employees in the continuous strengthening of the social and environmental purpose of the company.
3. Enable all employees to become shareholders or even better co-owners.
4. Cherish diversity within the employees.
5. Secure shares in a foundation while enabling shareholders to support the purpose of the company.
6. Cap the profit to a level that guarantees the continuity of the company.
7. Ban greed, cancel bonuses, or at most pay a limited and equal allowance to all employees.
8. Place surplus profits in a foundation that spends money in accordance with the purpose of the company.
9. Being a fair taxpayer who refrains from tax avoidance practices.
10.Create a supervisory board to monitor the purpose of the company.
11.Focus the founder/director/CEO role on monitoring the purpose of the company and the commitment of all employees and on fueling the discussion on how to deal with changing external conditions.
Rapid societal changes require a reinventing the concept of entrepreneurship. Because of their flexibility and commitment, startups are apt to embrace the dual ambition of pursuing a social and environmental purpose and of mobilizing all employee’s engagement and passion.
My next post will look at how cities can help start-ups to settle, grow and become better businesses. The history of entrepreneurship, its growing distance from ‘makership’ and its possible revival by start-ups is documented in chapter 4 of my e-book Humane cities. Always humane. Smart if helpful. The English version of this book can be downloaded for free below.
Tools for circular construction
The impact of circular principles on the construction sector will be large and beneficial because buildings are responsible for more than 50% of the total use of materials on earth, including valuable specimen such as steel, copper, aluminium and zinc.
The picture above – the interior of the Circle pavilion of the ABN-AMRO bank in Amsterdam is an example of a new building that uses as many existing components as possible and new components of the building are designed to be reused. Think of:
• 1200 m2 of wooden floors
• Partition walls of a demolished building
• 16.000 garments of employees for isolation purposes
By circular construction we mean designing, building and demolishing a building in such a way that, in addition to the high-quality reuse of materials, justice is done to sustainability ambitions in the field of energy, water, and biodiversity and ecosystems.
New materials are often more expensive than new ones
In case of demolishment, nowadays many components are already reused, but at a very low level, for instance concrete and stones as the foundation of new roads. Apart from the limited necessity to construct many new roads, this type of recycling destroys the intrinsic quality of materials and does not diminish the use of new materials. The biggest problem is that recycled materials are often more expensive than new ones.
Evidently, progress can be made by planning, designing, developing, and building circular buildings. A number of options are mentioned below.
Dedicated urban planning
Challenges for planning are the use of inner-city vacant land and issuing mandatory requirements regarding the construction of new buildings, for instance the use of less cement, glass and steel, the mandatory application of a certain percentage of reused materials, and becoming energy positive or at least energy-neutral. Switching to sustainable timber is an option for 90% of homes and 70% of offices being built.
Mandatory reuse of existing components
Reuse of existing materials means that glass is reused as glass and concrete pillars as pillars. The same applies to doors, frames, carpets, wall-cladding materials and so on. To start with, after demolishment all materials must be selected, cleaned, registered, and stored in new-to-develop warehouses. A materials passport, which contains an overview of all materials and components that are used to construct of a house or building, is a useful tool as well. The obligation to reuse a large percentage of existing components has far-reaching consequences for the design and construction of new houses.
Industrial production and 3D printing
Construction of components in factories, deploying industrial processes, will reduce costs by 30 percent and the delivery time by at least 50 percent. In 2014, the Chinese company WinSun printed and assembled ten houses, each 195 square meters, in 24 hours, for an amount of €5,000 per house[1]. The company used 30 - 60 percent less material than in traditional construction. The “ink” for their 3D printers is a mixture of dry cement and construction waste. WinSun plans to open 100 recycling plants in China to convert waste into cost-efficient ink. This video below demonstrates the printing activities of WinSun
Sharing space
The size of apartments will decrease, partly due to costs, but also because of the presence of shared guest rooms, lounge areas and terraces for working and socializing, spaces for washing and drying laundry. The need for office space will decrease rapidly due to sharing space and working home. Already now, IBM has only one desk available for 12 employees. Given the presence of 300,000 employees, this has led worldwide to savings on real estate of around € 1 billion in the past 10 years.
Modularity and durability
A key barrier for better use of floor space is the lack of flexibility in the design of buildings and room configurations. A modular design, which provides for easy replacement of partitions and placement of complete pre-fab units (kitchens and bathrooms, walls, and roofs as well) facilitates adjustments in case of new construction or as the use of a building changes. DIRTT builds interior components that are modular and standardized and offer maximum interchangeability in both existing and new buildings[2]. This video gives an impression of the production and application of these flexible and inexpensive solutions.
Forget new construction at all
Anyway, a first step is more efficient use of existing buildings and houses.
As families become smaller and offices need less space, existing space becomes underused. Many thousands of one family houses can be transformed in apartments. Well-thought adjustments to the lay-out of existing houses and buildings can improve their efficiency without reducing their functionality and amenity. Look here for inspiring examples.
I will regularly share with you ‘snapshots’ of the challenge to bring social and ecological sustainable cities closer using technology if helpful. These posts represent findings, updates, and supplements of my e-book Humane cities. Always humane. Smart if helpful. The English version of this book can be downloaded for free below.
Note from ASC: What are your thoughts on this? Let Herman know bellow.
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