1. City Innovation Systems:The Next Horizon in Innovation Studies for Southeast Asia Apiwat RatanawarahaPun-Arj ChairatanaPresented at the 8th GLOBELICS International Conference 1-3 November 2010Kuala Lumpur, Malaysia

2. BackgroundTowards Innovative, Liveable, and ProsperousAsian Megacities Project a three-year project funded by the InternationalDevelopment Research Centre (IDRC) 6 countries, 6 megacities in Southeast Asia 2 3. Background Current perspectives on innovation as studied and practiced in Southeast Asia are not sufficient Imported models of national innovation systems from the rich West where contexts and conditions are different Existing S&T agencies set up the standard Triple-Helix structure Focus on industrial and business innovations, not addressing current developmental problems Enterprise development and little on human development Development of NIS has little to do with infrastructure and urbandevelopment Focus on the supply side, but not much on how they are demanded and consumed 4. Cities continue to be the centers of developmentalproblems that need innovative solutions Megacities continue to become bigger even with changing demographic changes ageing, smaller household sizes But urban planning and development practices still rely on the comprehensive/master plan model Focus on existing problems, little on the future Little discussion on systemic learning, risks, future scenarios Tend to ignore production structure and technological and innovation dimensions4 5. Project goals Future innovation policies more comprehensive and inclusive, paying attention to developmental challenges that affect the urban quality of life, particularly for the poor Future urban policies integrate the dynamism of city innovation systems into the urban planning processesIntegration of Future + Urban + Innovation Studies and Policies 6. Methodology 3-phase research process 1. Disentangle ASEAN innovation systems - National and sectoral innovation systems in 6 countries 2. Define city innovations and their systems - Case studies of city innovations in Bangkok, Ho Chi Minh City, Jakarta, Kuala Lumpur, Manila, and Singapore (focus of our presentations today) 3. Design future city innovation systems - Foresight and scenario building - Innovations that address future city scenarios 7. Methodology How do we conduct our research? Questions for building conceptual framework What is a city innovation? What is a city innovation system? What makes it different from national/sectoral /regional systems? What are the components in such a system?7 8. In defining a city innovation People have to be at the center of a city innovation:innovation as if people matter Commercial innovations as well as social innovations Focus on innovations that address urban challenges Individual and community of innovators, not just formalorganizations (firms, govt agencies, universities, etc) 8 9. In analyzing city innovation systems, we start from using theexisting framework used widely in the literature: 1. Key actors/agencies 2. Interactions and linkages among actors 3. Systemic learning 4. Policies and implementation processesPlus what we already know about the six dimensions ofinnovation9 10. Six dimensions of city innovations ParadigmPosition ProcessInstitutionCityProductService Innovation 11. In addition, we proposeHuman-space ecology as a way to analyze cityinnovation systems Cognitive space Information/communication space Physical space 11 12. Working definitions a CITY INNOVATION A new or improved solution that contributes towards enhanced liveability, prosperity, and equity of the city. a CITY INNOVATION SYSTEM The human-space ecology that promotes the creation, adoption, and diffusion of city innovations12 13. Criteria Novelty: A solution that is relatively new to the megacity inquestion. Impacts: A solution that has already had noticeable impactson prosperity and liveability in your megacity OR exhibitspotential to effect substantial changes to prosperity andliveability Equity: A solution that does not worsen the incomedistribution and social inequality in the megacity. A cityinnovation should reach a broader base in the urbanpopulation, rather than benefitting only the rich. Environmental sustainability: A solution that is aligned withthe principle of environmental sustainability.13 14. Economic and financial feasibility: A solution that is economicallyand financially feasible. As we think ahead about how to diffuse acity innovation from one megacity to another and/or to replicate iton a mass scale, the costs of creating, adopting, and diffusing aninnovation becomes critical. Transferability: A solution that is socially, culturally, orgeographically neutral is more likely to diffuse quickly and widely.However, successful implementation of an innovative idea may relyheavily on social and cultural contexts. Political acceptability: Any solution that is to be adoption in a massscale need political acceptance, which means people whose livesare affected participate directly in the decision-making process. 14 15. 1. Analysis of city innovations Case studies of innovative solutions Select areas of urban challenges for comparative studies Select innovative solutions that create value for liveablity, prosperity, and equity in the city in question Data collection: ask experts, documentary research, etc. Analyze them using the city innovation-system framework Creation, adoption, and diffusion processes The value(s) the city innovation creates Liveability , prosperity, equity, security, etc 15 16. Items for case studies Goal achievement Prosperity, equity, liveability Dimensions of innovation Product, process, position, paradigm, service, institution Innovators individual and communities of innovators Human-space ecology of the innovation16 17. 2. Analysis of a city innovation system The framework to analyze city innovation systems: key actors/agencies Interactions and linkages among actors Systemic learning policies and implementation procedures17 18. Meso-level analysis Investment-related policies and institutions Are there investment policies and intermediaries at the city level that support the innovation? particularly those on urban infrastructure for knowledge creation, adoption & diffusion How are city innovations supported financially? Institutional arrangements Those that support the innovation itself Those that link innovation policies w/ other development policies Policy implementation processes that integrate innovation and urban policies at the national and local levels18 19. Micro-level analysis Innovators Who are they? What do they do? Individual, community, and institutional Are they the original owners of ideas? Or the ones who implement and diffuse them? Who else are involved in the process? Leadership Which actors are crucial to determining policy directions and implementation? How so? 19 20. Case StudiesIndonesiaMalaysia PhilippinesSingaporeThailandVietnam1.Maisonette1. Low-cost 1. Gawad1. Medical1. Creative1. Innovationhousing Housing Kalinga tourism industries in housingproject Community housing Projectfor the low2. Creative 2. Cityincome2.Information 1. Redevelop- 2. UP-Ayala precincts and Innovation of-sharingment of KLTechnologyart policiesPublic Arts2. Innovationpractice in City Centre Park in Solidgovernment2. Art-led Waste3. Innovation 3. MedicalCommunityCollection3. Waste Initiative in Tourism Revitalization ServiceBank project CityGovernance 21. Preliminary resultsOverall lessons from the case studies By expanding the analytical scope, we are able to capture thedynamic process that may be more innovative thantraditionally considered (e.g., stand-alone product, process,service innovations) We find co-evolution of various aspects of innovation Clearer pictures about the links between city innovationsand traditional innovations Identification of actors and types of institutions beyond the existing innovation literature21 22. Never just about a new product, process, service, ororganization Always a combination of different aspects of innovation foran innovative idea to materialize Participation of key stakeholders, esp. users, is key Change of perceptions/mindsets is fundamental Acceptance of diversity and differences is important 22 23. Actors Beyond triple helix: Local government Non-governmental organizations Consultants/donors Lobbyists Community and social groups Beyond open innovation: Never without partnerships and cooperation Various forms of, and mechanisms for, negotiation and deliberation are required institutions 23 24. Investment Some innovations require very large investment Infrastructure: large initial costs, public goods and externalities, low margins, long lifespan Irreversibility of investment The Valley of Death before implementation Inherent problems in financing, funding, and delivery of innovative urban solutions Structure for investment decisions are highly complex Multi-party, multi-purpose, multi-modal, multi-strategy24 25. Incentives Reward Market (monetary) incentives Voluntarism/passion Distribution of rewards/benefits from the innovation Punishments Punishments on free riders Partial exclusion from future rewards Forced exit 25 26. Institutions Features of national innovation systems exist Govt agencies, firms, universities, R&D institutes But, still mostly function-based innovation systems Accumulation and adaptation of institutions as thesystem grows Learning Trials & errors not uncommon at the beginning DUI Doing, Using, and Interacting Actors learning through deliberation and negotiation 26 27. Political factors are unavoidable Institutional and political barriers to implementation anddiffusion of innovation are major factors Capturing an appropriate political window ofopportunity is key to implementation of innovative ideas 27 28. In terms of institutions, city innovation systems facetwo levels of dilemma 1st order: provision of a city innovation itself 2nd order: free rider of the mechanisms/institutions that govern such provision We may know what appropriate institutions we need, but we face a tough hurdle, i.e., how to supply them For a city innovation to be long lasting and widely adopted, it has to overcome these dilemma.28 29. Refined definitions A city innovation is a dynamic, deliberative, co-evolutionary process that creates a new location andcontext-specific solution to an existing urbanproblem A city innovation system is a set of institutions thatgovern the ecology for human-space interactionsthat promotes the creation, adoption, and diffusionof city innovations 29 30. Case-study presentations1. Manila Dr. Aida Velasco2. Kuala Lumpur Dr. K. Thiruchelvam3. Bangkok Dr. Pun-arj Chairatana30