smart cities scotland blueprint - scottish cities · information from public and private sources,...

Smart Cities Scotland Blueprint Prepared for: Scottish Cities Alliance

July 2016

UURBAN FORESIGHT REPORT FOR SCOTTISH CITIES ALLIANCE | SMART CITIES SCOTLAND BLUEPRINT 1

EExecutive Summary The Scottish Cities Alliance is a unique collaboration of Scotland’s seven cities and the Scottish Government. This Blueprint provides an initial strategic basis for the Smart Cities area of operational activity within the Alliance, which is referred to as ‘Smart Cities Scotland’. The Blueprint considers what the cities can achieve by working together to advance both individual and joint smart cities activities.

The Blueprint was developed in consultation with all seven Scottish cities, the Scottish Government, Transport Scotland and Scottish Enterprise. Insights were collected through interviews, a workshop, an online survey and a comprehensive desk study which considered priorities established in both local and national strategies.

The Blueprint also builds on earlier and ongoing work within the Alliance’s Operational Plan. The Smart Cities Maturity Model Self-Assessment exercise was designed to establish each city’s overarching ‘smart’ priorities, the results of which were used to produce a seven city-wide Outline Investment Roadmap. Some of the technology and data opportunities identified in the Roadmap are being taken forward in the £10 million European Regional Development Fund (ERDF) Strategic intervention, called “Scotland’s 8th City – The Smart City.”

The Blueprint starts by establishing an overarching ambition for Smart Cities Scotland, defining four high-level goals:

Table 1: Summary of the four high-level goals for Smart Cities Scotland

Citizens and Communities

Citizens across different communities should feel engaged and empowered to live a fulfilling life. This should be achieved by providing access to information, realising needs and bringing together the right resources to meet specific challenges.

Business & Economy

Scotland will be recognised as a healthy, innovative and resourceful place to live and work. By working together to establish an expansive programme to achieve mutual goals, Scotland’s cities will attract new funding and become more attractive to Foreign Direct Investment.

Environment Scottish cities will become smart and sustainable economies powered by renewable energy and using data and technology to drive transformation.

Performance & Operation of Cities

A strategic, evidence-based approach to city performance and operations that uses data and information from public and private sources, achieves the buy-in of all city stakeholders, attracts informed and focused low carbon investment, and improves the quality of life for all.

The Blueprint then sets out five delivery objectives to characterise how cities can work together to advance both individual and joint smart cities initiatives. This places improving the lives of citizens at its heart and establishes that this will be driven by the principles of collaboration & engagement, openness, innovation, sustainability and resource efficiency.

A programme is defined for each of these delivery objectives, prioritising collaborative activities for the Alliance partners to progress. These are referred to as “Pathfinder Programmes” as the intention is that they become exemplars for collaboration between the cities and establish foundations for additional complementary activities in the future.


Table 2: The five delivery objectives for Smart Cities Scotland and linked Pathfinder Programmes

Delivery Objective Pathfinder Programme

Aim

Improving Lives Smart & Healthy Living

Scottish cities will work together to establish a nationwide test-bed for innovations in health and wellbeing, while generating data-led insights on the links between health, economic growth and productivity.

Collaboration & Engagement

Sharing & Learning Platform

A Smart Cities Sharing & Learning Platform is scoped and developed to enable cities and associated partners to: freely exchange information, combine resources to solve problems and track emerging projects, funding and solutions.

Open Data & Transparency

Code for Scotland Moving from passive provision of data to an active engagement with the data community to identify and develop innovative smart city solutions.

Technology & Innovation

MaaS Scotland Attract investment and create opportunities to test, develop and commercialise smart mobility solutions in Scotland’s cities that will be unified by a national Mobility as a Service (MaaS) platform that combines transport options from different providers across Scotland, handling everything from travel planning to payments.

Environmental Sustainability

Circular Economy Use a ‘circular economy’ approach to efficiently manage the flow of resources within and between cities.

The final set of recommendations are related to enhancing the capacity of Scottish cities to deliver smart city activities and to maximise the corresponding social, economic and environmental opportunities. These capacity building measures provide an opportunity to support the successful delivery of the five Pathfinder Programmes and to ‘scale-up’ Smart Cities Scotland, by making ‘smart’ a pervasive concept across cities and enabling the growth and export of innovative solutions. To achieve this, key enabling actions are identified for each of these measures (see Table 3).

The frameworks offered by the Alliance mean that Scottish cities are uniquely placed to realise the opportunities offered by collaborative smart city activities. This will be supported by the strategic approach established by this Blueprint, which will enable cities to work together to attract external investment, stimulate economic activity and create new jobs and business opportunities. This in turn will make Scotland an even better place to live and a more prosperous and successful country.


Table 3: Summary of the four capacity-building measures and linked enabling actions

Measure Ambition Enabling Actions

Leadership and Governance

Improved governance leads to: coordination of smart systems across cities; widespread political and public support; the capture and sharing of data generated across cities which is used to inform the development of new collaborative policies and projects.

Creation of a Smart Cities Scotland Board that brings together leaders from the public, private and voluntary sectors across Scotland.

Creation of a National Smart Cities Champion.

Definition of common Smart Cities roles across each of the the cities and Scottish Government.

Investment Collaboration between the cities can attract funding that the cities would not be able to access individually and support the development and piloting of new financing structures.

Joint bids to create compelling offers and a sufficient scale to access new funding opportunities.

Piloting new financing and revenue-generating models.

Collective engagement with investors.

Collaboration to scale-up and commercialise smart activities to generate returns on investment.

Procurement Provision of the necessary skills, focused resources and new guidelines across the cities. This will be supported by public relations management, community engagement and open dialogues with citizens.

Learning is shared between the cities on experience gained from procuring innovative products or services.

Cities to work together and with Scotland Excel to create and share dedicated smart city procurement resources.

Supplier forums are held across Scotland.

Cities work together to develop challenge-led competitions and pilot new business models for different forms of procurement.

Promotion Smart Cities Scotland identity further establishes Scottish cities as internationally recognised and desired destinations for capital and inward investment.

A more place-based focus in promoting the Smart Cities agenda.

A collaboration agreement is formed between all relevant actors involved in promoting Smart Cities Scotland, including the Scottish Cities Alliance, Scottish Enterprise and Scottish Development International .

Smart Cities to be incorporated into the Alliance’s Pitch Book.

Collate case studies and good practice.

Cities to create joint promotion activities such as exhibiting at conferences and expos.


CContents 1 Introduction ......................................................................................................................... 5

2 Background .......................................................................................................................... 7

2.1 Smart Cities ................................................................................................................................ 7 2.2 Smart Cities Scotland ............................................................................................................... 8 2.3 Methodology for Developing the Blueprint .............................................................................. 10

3 Ambition ............................................................................................................................... 12

3.1 Current Situation and Outlook .................................................................................................. 12 3.2 Moving Forward .......................................................................................................................... 12

4 Working Together ................................................................................................................ 14

4.1 Improving Lives ........................................................................................................................... 14 4.2 Collaboration & Engagement .................................................................................................... 15 4.3 Data & Transparency ................................................................................................................. 16 4.4 Technology & Innovation ........................................................................................................... 18 4.5 Environmental Sustainability .................................................................................................... 19

5 Scaling-Up ............................................................................................................................ 21

5.1 Provide Leadership & Strategic Governance .......................................................................... 21 5.2 Secure Investment ..................................................................................................................... 22 5.3 Encourage Smart Outcome-Focused Procurement ............................................................... 22 5.4 International Promotion............................................................................................................. 23

6 Final Words .......................................................................................................................... 24


11 Introduction The Scottish Cities Alliance is a unique collaboration of Scotland’s seven cities (Aberdeen, Dundee, Edinburgh, Glasgow, Inverness, Perth and Stirling) and the Scottish Government working together to attract external investment, stimulate economic activity and create new jobs and business opportunities.

The Alliance has three key workstreams, which are designed to complement each other: Infrastructure, Low Carbon and Smart Cities. This Blueprint provides an initial strategic basis for the Smart Cities workstream, which is referred to under the identity ‘Smart Cities Scotland’. It establishes what the cities can achieve by working together to advance both individual and joint smart cities activities.

Scottish cities have made considerable progress in adopting smart technologies, using data as an asset, advancing citizen engagement, embracing innovation and establishing new forms of collaboration across the public, private and tertiary sectors. These methods are being used to make services more effective and to make Scottish cities more attractive to investors, residents, visitors and the business community.

This Blueprint supports this activity and guides further progress, considering what the cities can achieve by working together to advance both individual and joint smart cities initiatives. It establishes key collaborative actions and programmes to deliver smart cities activity, and identifies funding mechanisms, delivery structures and monitoring activities to support delivery.

In accordance with approach shown in Figure 1, the Blueprint is structured as follows:

Chapter 2 provides a Background to the Smart Cities Scotland and explains the methodology used to compile this Blueprint.

Chapter 3 outlines the Ambition for Smart Cities Scotland, defining high-level Programme Goals in four key areas: citizens & communities; business & economy; environment; and the performance & operation of cities.

Chapter 4 sets out a strategic approach to Working Together to deliver Smart Cities Scotland, defining five Delivery Objectives for the programme. This places improving the lives of citizens at its heart and establishes that this will be driven by the principles of openness, innovation, resource efficiency, collaboration & engagement. A Pathfinder Programme is defined for each of these five areas, prioritising collaborative activities for the Alliance partners to progress.

Chapter 5 identifies four Capacity Building Measures to define how collaboration at the Alliance-level can further support the acceleration and scale-up of smart city projects across Scottish cities.

Appendix A provides additional information on the five Pathfinder Programmes and a recommended monitoring framework for delivery.

Appendix B presents a comprehensive summary of Smart City Funding sources and mechanisms.


Figure 1: The Smart Cities Scotland Approach


22 Background

2.1 Smart Cities The concept of Smart Cities is not new. Its origins are widely attributed to the Smart Growth movement of the late 1990s, which advocated new policies for urban planning. The phrase was subsequently adopted by a number of technology companies to describe the application of complex information systems to integrate and operate urban infrastructure and services such as buildings, transportation, electrical and water distribution, and public safety. It has since evolved to mean almost any form of technology-based innovation in the planning, development, and operation of cities1.

More recently the concept of smart cities has become somewhat of a call to action, with a focus on achieving dramatic improvements in sustainability and resilience by:

Engaging society;

Applying collaborative leadership methods;

Working across disciplines and city systems; and

Using data and integrated technologies to provide better services and quality of life to those in and involved with the city.

For the Scottish Cities Alliance, a smart city can be defined as the integration of data and digital technologies into a strategic approach to sustainability, citizen wellbeing and economic development. Figure 2 illustrates how this is integrated with the Alliance’s two other workstreams: Infrastructure and Low Carbon.

Figure 2: Integration between Smart Cities and the Scottish Cities Alliance’s workstreams on Infrastructure and Low Carbon

1 Harrison and Donnelly, A Theory of Smart Cities

Smart Cities Accelerated improvements in sustainability and resilience

Sustainability is the destination, smart is the accelerator

Opportunity: improving how cities engage society, apply collaborative leadership methods, work across disciplines and city systems, and how they use data and integrated technologies

to provide better services and quality of life to those in and involved with the city

Integration

Infrastructure Low Carbon


22.2 Smart Cities Scotland Through Smart Cities Scotland, a range of projects are being developed across all seven cities to make them internationally competitive and boost their economic growth:

The UK Future Cities Demonstrator: Smart Cities Scotland builds on the foundation of Glasgow’s world-leading Future City Glasgow programme, which in 2013 was awarded £24 million of funding from Innovate UK (formerly known as the Technology Strategy Board) to become the UK’s official Future Cities Demonstrator.

Smart Cities Maturity Model and Self-Assessment Tool: In 2014, the Scottish Cities Alliance in partnership with the Scottish Government and Urban Tide produced a self-assessment document designed to establish each city's smart priorities.

Smart Cities Outline Investment Roadmap: The results of the Self-Assessment process led to the production of a Smart Cities Outline Investment Roadmap, and the Alliance is now working with the cities to identify collaborative projects and funding streams using the Roadmap and the priority areas identified as a starting point.

Open and Agile Smart Cities Network: The Scottish Cities Alliance joined the OASC network in September 2015 as one of only two national networks of cities. The network is being used to: establish connections to develop the Alliance’s work programme; attract future funding; and play an active role in shaping the development of smart cities standards and approaches across the globe.

Smart Cities Scotland was launched in 2015 as an identity under which all smart cities activity taken forward by the Alliance could sit .

Scotland’s 8th City – the Smart City: In 2015, the Scottish Cities Alliance approved funding to support the establishment of a Programme Management Office which supports the coordination, management and delivery of a £10 million European Regional Development Fund Strategic Intervention known as the 8th City programme. With match funding, the 8th City Programme will support £24 million of projects across the seven Scottish Cities. The programme is organised into seven operation clusters of collaborative activity: energy, health, mobility, public safety, infrastructure, communities and data.

This Smart Cities Blueprint was commissioned by the Alliance in 2016 to give a more strategic approach to Smart Cities Scotland. Its development was led by future cities consultancy Urban Foresight, which worked with the Alliance to engage all seven cities, the Scottish Government, Transport Scotland and Scottish Enterprise.

In summary, all seven Scottish cities are advancing smart city activities, but there is scope for the unique inter-city structures offered by the Alliance to facilitate collaboration to drive further progress. This includes: realising opportunities linked to City-Region Deals, sharing resources and efficiencies, accessing strategic funding opportunities and collectively contributing to National Outcomes. Examples of this activity are summarised in Figure 3, with key milestones in Smart Cities Scotland shown in Figure 4.


ABER

DEEN

CITY

INVE

RNES

S CI

TY

DUND

EE C

ITY

CITY

OF

PERT

H

CITY

OF

EDIN

BURG

H

STIR

LING

CITY

GLAS

GOW

CITY

CITY

REG

ION

PRIO

RITI

ES•

Inve

stm

ent

in tr

ansp

ort

and

digi

tal

infr

astr

uctu

re

•In

nova

tion

in k

ey s

ecto

rs•

Incl

usiv

e gr

owth

in

skill

s an

d em

ploy

men

t•

Inte

rnat

iona

lisat

ion

INVE

STM

ENT

AREA

S•

Gro

wth

sec

tors

•In

fras

truc

ture

•S

kills

and

em

ploy

abili

ty•

Uni

vers

ity C

ity

•In

nova

tion

•C

ultu

ral

attr

actio

ns

EXAM

PLE

SMAR

T CI

TY A

CTIV

ITIE

S•

Dig

ital

Infr

astr

uctu

re a

nd

City

Wir

eles

s

•O

pen

Dat

a P

latfo

rm•

City

Ope

ratio

ns

Cen

tre

CITY

REG

ION

PRIO

RITI

ES•

Rea

lisin

g £1

bn

inve

stm

ent

•M

ost

digi

tally

con

nect

ed

rura

l reg

ion

in E

urop

e•

Cre

atin

g ov

er 3

300

jobs

INVE

STM

ENT

AREA

S•

Ass

iste

d liv

ing

•D

igita

l co

nnec

tivity

•E

duca

tion

•H

ealth

care

•In

nova

tion

•T

ouri

sm

•T

rans

port

EXAM

PLE

SMAR

T CI

TY A

CTIV

ITIE

S•

City

Wir

eles

s

•S

mar

t T

rans

port

•O

pen

Dat

a P

orta

l•

Dig

ital

Hig

hlan

ds

•D

igita

l H

ealth

care

CITY

REG

ION

PRIO

RITI

ES•

Impr

ovin

g di

gita

l co

nnec

tivity

•N

ew A

berd

een

Exh

ibiti

on

and

Con

fere

nce

Cen

tre

•D

iver

sify

ing

loca

l eco

nom

y an

d be

com

e a

low

car

bon

and

sust

aina

ble

city

INVE

STM

ENT

AREA

S•

Dig

ital

conn

ectiv

ity

•E

urop

ean

Offs

hore

Win

d D

eplo

ymen

t C

entr

e•

Dev

elop

men

t of

hy

drog

en

econ

omy

•H

arbo

ur e

xpan

sion

•G

reen

tra

nspo

rt s

olut

ions

EXAM

PLE

SMAR

T CI

TY A

CTIV

ITIE

S•

Inte

llige

nt

stre

et l

ight

ing

•F

ibre

and

ene

rgy

mon

itori

ng•

Hyd

roge

n tr

ansp

ort

CITY

PRI

ORIT

IES

•C

ity D

evel

opm

ent

Fra

mew

ork

•S

tirlin

g G

reen

Net

wor

k co

ncep

t•

Rev

italis

ed c

ultu

ral

quar

ter

•N

ew c

ivic

and

cre

ativ

e ce

ntre

INVE

STM

ENT

AREA

S•

Bui

lt en

viro

nmen

t

•B

usin

ess

Incu

batio

n

•D

igita

l te

chno

logy

•E

duca

tion

•F

ood

and

drin

k•

Inno

vatio

n

•T

ouri

sm a

nd l

eisu

re

EXAM

PLE

SMAR

T CI

TY A

CTIV

ITIE

S•

Dig

ital

Hub

•U

rban

Win

d

•In

telli

gent

S

tree

t Li

ghtin

g•

Ope

n D

ata

CITY

REG

ION

PRIO

RITI

ES•

Inve

stm

ent

in tr

ansp

ort

and

digi

tal

infr

astr

uctu

re

•In

nova

tion

in k

ey s

ecto

rs•

Incl

usiv

e gr

owth

in

skill

s an

d em

ploy

men

t•

Inte

rnat

iona

lisat

ion

INVE

STM

ENT

AREA

S•

Inno

vatio

n

•D

igita

l co

nnec

tivity

•D

unde

e W

ater

fron

t •

Life

sci

ence

s

•T

ackl

ing

unem

ploy

men

t•

Tou

rism

•T

rans

port

EXAM

PLE

SMAR

T CI

TY A

CTIV

ITIE

S•

Dun

dee

Wir

eles

s

•C

ity D

ata

Pla

tform

•T

he M

ILL

(Mob

ility

Inte

grat

ion

Livi

ng L

abor

ator

y)•

Ele

ctri

c V

ehic

le C

harg

ing

Hub

s

•S

ecur

ity &

Ala

rm C

entr

e

CITY

REG

ION

PRIO

RITI

ES•

£1.1

3bn

infr

astr

uctu

re

inno

vatio

n an

d la

bour

mar

ket

inve

stm

ent

fund

with

an

asso

ciat

ed

GV

A u

plift

£2.

2bn

•T

o be

a w

orld

cla

ss c

ity

focu

sed

on e

cono

mic

gro

wth

an

d ta

cklin

g po

vert

y an

d in

equa

lity

INVE

STM

ENT

AREA

S•

Bui

lt E

nvir

onm

ent

•In

nova

tion

•P

ublic

Rea

lm•

Tra

nspo

rt

•F

lood

and

Wat

er

Man

agem

ent

•T

ouri

sm

EXAM

PLE

SMAR

T CI

TY A

CTIV

ITIE

S•

UK

Fut

ure

Citi

es

Dem

onst

rato

r P

rogr

amm

e

•In

telli

gent

C

ity In

fras

truc

ture

•D

igita

l In

nova

tion

Cen

tre

CITY

REG

ION

PRIO

RITI

ES•

£1bn

of

fund

ing

& p

oten

tial

£3.2

bn

priv

ate

inve

stm

ent

•T

o be

the

mos

t co

nnec

ted,

cr

eativ

e an

d in

clus

ive

entr

epre

neur

ial

plac

e in

E

urop

e

INVE

STM

ENT

AREA

S•

Infr

astr

uctu

re

•In

nova

tion

Hub

s

•H

ousi

ng

•C

ultu

re a

nd T

ouri

sm

•C

ross

-cut

ting

prog

ram

mes

: in

clus

ive

grow

th a

nd s

kills

; di

gita

l;an

d lo

w c

arbo

n.

EXAM

PLE

SMAR

T CI

TY A

CTIV

ITIE

S•

Edi

nbur

gh

App

s C

ivic

C

halle

nge

Pro

gram

me

•E

dinb

urgh

Li

ving

Lab

•S

mar

t bu

ildin

g en

ergy

m

anag

emen

t

•C

ity O

pera

tions

: In

telli

gent

lig

htin

g, S

mar

t B

ins

&

CC

TV

•C

ity A

PIs

: B

usT

rack

er&

F

estiv

al E

dinb

urgh

•In

nova

tion

Hub

•In

telli

gent

S

tree

t Li

ghtin

g

•C

onne

cted

di

gita

l in

fras

truc

ture

and

fre

e pu

blic

Wifi

•C

ity M

anag

emen

t O

pera

tions

C

entr

e

•D

istr

ict H

eatin

g &

Ene

rgy

Fro

m W

aste

•C

ity-R

egio

n D

ata

Man

agem

ent

Pla

tform

Tay

Citi

es

Reg

ion

Abe

rdee

n C

ity R

egio

n Edi

nbur

gh

&

Sou

th E

ast

Sco

tland

City

R

egio

n

Gla

sgow

and

C

lyde

Val

ley

City

Reg

ion

Stir

lings

hire

Inve

rnes

s &

H

ighl

and

City

R

egio

n

Figure 3: Smart Cities Scotland investment map


Figure 4: Key milestones in Smart Cities Scotland

22.3 Methodology for Developing the Blueprint The following activities informed the development of the Blueprint:

Desk-based review of: past activity (including cities’ responses to the Smart Cities Maturity Model and Self Assessment Tool, and the Outline Investment Roadmap); activities linked to other Alliance workstreams and activities (Infrastructure, Low Carbon, Hydrogen, Investement Promotion); existing and evolving policies and strategies for Smart Cities and Smart Cities Networks; the developing policy agenda for cities, City-Region Deals and place-making; and current funding and financial instruments.

Interviews with representatives of each of the cities and the Scottish Government to review existing smart cities activities and priorities for collaboration under Smart Cities Scotland.

Workshop that brought together representatives from all seven Scottish cities, the Scottish Government, Transport Scotland and Scottish Enterprise to establish a shared ambition for Smart Cities Scotland and to shape collaborative priorities for Smart Cities Scotland.

Online survey to map current and planned smart cities activity across the cities and establish the value-added by collaboration.

Analysis to identify key collaborative actions, which are presented in this Blueprint as Pathfinder Programmes, which were selected based on a weighted evaluation of criteria to characterise the strategic fit with the cities, the value added by inter-city collaboration and the expected social, economic and environmental impact.

2013 2014 2015 2016

Smart Cities Maturity Model and Self-Assessment Tool

Smart Cities Investment Roadmap

Smart Cities Scotland Blueprint

Development/ Operation

Application

Key Scotland’s 8th City Programme – The Smart City

2017

Launch of Smart Cities Scotland

UK’s Future Cities Demonstrator

Commitment to the Open and Agile Smart Cities Network


Figure 5: Blueprint workshop


33 Ambition Scottish cities face a range of common challenges, prospects for economic growth and opportunities to improve the lives of their citizens. Collaboration on smart solutions to these challenges offers significant opportunities for the cities collectively to benefit. It also offers a compelling opportunity to make Scotland an even better place to live and a more prosperous and successful country.

3.1 Current Situation and Outlook The SWOT analysis below characterises important factors that are likely to impact collaborative activities under Smart Cities Scotland.

Table 4: SWOT analysis of factors influencing Smart Cities Scotland

Strengths Weaknesses

All 7 cities currently engaged in smart city activities and working together under the 8th City Programme.

Experience and international profile in smart cities from Glasgow’s time as UK Future Cities Demonstrator.

Scotland is top ranked UK region for foreign direct investment and related job creation outside London.

Strengths in key sectors such as financial services, digital, life sciences and energy.

World leading universities with strengths in research and well established industry links.

Strong political commitment to the reduction of carbon emissions.

Skilled and highly educated workforce.

Strong history and tradition in innovation.

Access to funding and ability to use available funding to effectively manage collaborative investments.

Public understanding of smart cities.

Highly concentrated pockets of extreme deprivation across cities.

Citizens’ perceptions of empowerment at the local level, with only one in four believing that they could influence decisions affecting their local area2

Relatively small business base with lower rates of business start-ups than the UK as a whole.

International recognition of the unique characteristics of each city and what they deliver for Scotland individually and collectively.

Opportunities Threats

Sharing of resources, risks and rewards between cities.

Collaboration to access new funding and revenue streams.

City Deal investments made “smarter”.

Potential for cities to be given more control over their budgets to tailor investments to local priorities and deliver higher national economic growth.

Developing meaningful links with Europe and globally to influence decisions, learn from other nations and share good practice from Scotland.

Spending cuts driven by reductions in central government funding.

Economic climate and political/competitive pressures that restrict efforts and investments to short-term opportunities.

Increased stress on infrastructure and services by population growth and an aging population.

Air quality is improving in cities, but still represents a significant threat to human health.

Impact of climate change on infrastructure and services.

Economic and environmental impact of traffic congestion.

3.2 Moving Forward Four high-level Goals for Smart Cities Scotland clarify what this programme can achieve, identifying the outcomes that can be expected. These outcomes are expressed in terms of the Scottish

2 Scottish Government (2015) Scottish Household Survey 2014


Government’s National Performance Framework, which defines what the cities are collectively trying to accomplish.

These goals build on the Transformation Programme agenda, with each of the seven cities aiming to do more and better with less. Local authorities, working with linked local partners and stakeholders, have the opportunity to go beyond business as usual, with data, innovation and smart technologies enabling a fundamental redesign of the way in which infrastructure and services are planned and delivered.

Table 5: Programme goals and linked outcomes from the National Performance Framework

Citi

zens

& C

omm

uniti

es

Goal Citizens across different communities should feel engaged and empowered to live a fulfilling life. This should be achieved by providing access to information, realising needs and bringing together the right resources to meet specific challenges. To achieve this, all services need to be recreated as systems of reference, with a common, shared platform that allows safe information sharing that is responsive to citizens’ needs.

National Outcomes

Our young people are successful learners, confident individuals, effective contributors and responsible citizens.

Our children have the best start in life and are ready to succeed. We live longer, healthier lives. We have tackled the significant inequalities in Scottish society. We have improved the life chances for children, young people and families at risk. We have strong, resilient and supportive communities where people take responsibility for

their own actions and how they affect others. We take pride in a strong, fair and inclusive national identity. Our people are able to maintain their independence as they get older and are able to access

appropriate support when they need it.

Busi

ness

& E

cono

my

Goal Scotland will be recognised as a healthy, innovative and resourceful place to live and work. By working together to establish an expansive programme to achieve mutual goals, Scotland’s cities will attract new funding and become more attractive to Foreign Direct Investment. Improved stakeholder engagement will produce joint initiatives, and connections with other local and national cities will enable the import/export of inter-city smart city solutions. This will create jobs and opportunities across Scotland and will be supported by ensuring that skills and training are provided to satisfy the city region need.

National Outcomes

We live in a Scotland that is the most attractive place for doing business in Europe. We realise our full economic potential with more and better employment opportunities for our

people. We are better educated, more skilled and more successful, renowned for our research and

innovation.

Envi

ronm

ent

Goal Scottish cities will become smart and sustainable economies powered by renewable energy and using data and technology to drive transformation. Cities will be empowered with the confidence and the financial and technical instruments necessary to deliver a smart and sustainable agenda for their citizens. Working together, Scotland’s cities will embed sustainability, attract investment and create environmentally-aware citizens.

National Outcomes

We value and enjoy our built and natural environment and protect it and enhance it for future generations.

We reduce the local and global environmental impact of our consumption and production.

Perfo

rman

ce &

O

pera

tion

of C

ities

Goal A strategic, evidence-based approach to city performance and operations that uses data and information from public and private sources, achieves the buy-in of all city stakeholders, attracts informed and focused low carbon investment, and improves the quality of life for all.

National Outcomes

We live in well-designed, sustainable places where we are able to access the amenities and services we need.

Our public services are high quality, continually improving, efficient and responsive to local people's needs.


44 Working Together Five Delivery Objectives define how Scotland’s seven cities can work together and with partners to become smarter. These objectives place improving the lives of citizens at the centre of all smart city activities and show that transformation will be driven by principles of collaboration & engagement, openness, innovation, sustainability and resource efficiency.

Given the breadth of opportunities and challenges facing Scottish cities, a Pathfinder Programme is defined for each of these five areas3, prioritising collaborative activities for the Alliance partners to progress. The intention is that these five programmes become exemplars for collaboration between the cities and establish foundations for additional complementary activities in the future.

4.1 Improving Lives Working together, Scottish cities can more effectively deliver smart infrastructure and services to meet the needs of their citizens, while also enhancing quality of life and contributing to sustainable and inclusive growth at the national level.

This covers a broad range of activities, including: promoting healthy living, independence, confidence and self-esteem; tackling inequality; enhancing participation and access to public services; giving children the best start in life; improving life chances and creating opportunities for citizens to succeed.

Smart city activities can provide benefits in all of these areas, addressing a range of complex socio-economic challenges, and offering new opportunities and positive experiences to citizens. Improving quality of life across all seven cities will also help to retain and attract talented workers, while further strengthening the attractiveness of Scotland to international investors

A key focus is the potential for smart city initiatives to improve the quality and accessibility of essential services for citizens, while also achieving significant savings in time, money and resources required. For example, for some UK Government services, the average cost of a digital transaction is almost 20 times lower than the cost of a telephone transaction, about 30 times lower than the cost of postal transaction and about 50 times lower than a face-to-face transaction.4 Given the scale of public investment in areas such as healthcare, with revenue funding amount to £89m per annum5, smart cities activities can deliver massive savings and real health benefits.

Pathfinder Programme #1: Smart & Healthy Living

Scottish cities will work together to establish a nationwide test-bed for innovations in health and wellbeing, while generating data-led insights on the links between health, economic growth and productivity.

An integrated approach to the use of digital technologies can increase the connectedness of people to information and city functions, improving health and wellbeing, reducing citizen inequalities and supporting a higher quality of life for all citizens. Applications include: promoting active and healthy lifestyles; deploying remote monitoring systems; developing preventative measures for citizens at risk; assistive technologies and supporting independent living; and enhancing community cohesion.

The global telehealth and telecare market was forecast to be to £14.3 billion by 20156 with European markets for assistive living technologies forecasted to reach $525.7 in the same year7,

3 These programmes were selected based on a comprehensive analysis of a range of criteria to characterise the strategic fit with the cities, the value added by inter-city collaboration and the expected social, economic and environmental impact. 4 Cabinet Office and Government Digital Service (2012) Digital Efficiency Report 5 over the course of the Spending Review 2011-12 to 2014-15, source: Scottish Government (2012) ‘eHealth Finance Strategy 2011-17’. 6 Deloitte Health Solutions ( 2012) Primary care: Working differently – telecare and telehealth 7 Frost & Sullivan (2015) European markets for assistive living technologies


Collaborative projects offer an opportunity to deploy solutions at a scale that will provide transformational economic and social impacts. To achieve this, the Pathfinder Programme will focus on the following two areas:

Accelerating the development and deployment of products and services that support a more holistic management of health and wellbeing across Scotland’s cities (including links to the Alliance’s current activity on Assisted Living under the Infrastructure workstream)

Intelligent use of data to generate insights on the interdependencies between health and the economy. This includes links to employment, low pay and how infrastructure and services can be delivered in a way that promote wellbeing. It also includes ways in which datasets can be opened-up and used to assist in achieving these ambitions (see Pathfinder Programme #5 – Code for Scotland).

Case Study: Home Health Monitoring System in the Highlands

NHS Highland’s Technology Enabled Care service has deployed Florence, a home health monitoring system, that enables patient follow up through automated text messaging. After patients have left the hospital they receive a series of text messages specific to their need/condition, following up on their progress/recovery without the need to come in and see a nurse/clinician. Different protocols are co-designed with patients and clinicians covering different areas such as post natal wound care, weight management, heart failure, COPD, smoking cessation, pain management, mental health. Decision points are individually set and healthcare staff are alerted if the responses texted by the patient indicates the need for a face to face intervention/problems. NHS Highland aims to increase the number of areas and patient numbers over the next year.

44.2 Collaboration & Engagement Sharing resources, expertise and rewards, as well collectively engaging citizens, decision-makers and solution-providers, will support the successful implementation, scale-up and commercialisation of smart city projects across Scotland.

The importance of collaborative networks is underlined by the fact that no single city anywhere in the world possesses all of the necessary skills and resources to independently implement a smart city programme. Moreover, the global nature of smart cities means that no single city could logically position itself as a standalone marketplace for investment.

Smart cities invariably end up as ‘islands’, independently implementing technical solutions to local challenges. Such bespoke initiatives can be expensive and difficult to replicate elsewhere, making it problematic to justify investments and to create long-term sustainable markets for solutions developed.

The unique structures offered by the Alliance will enable Scotland’s cities to take a different approach. Inter-city collaboration will enhance the delivery of smart projects and enable more effective engagement with: businesses, investors, non-governmental organisations, the voluntary sector, academia and the general public. It will also provide efficiencies to organisations that work across cities and help businesses to expand their offer across Scotland

However, achieving this will require a significant change in the way that cities currently deliver infrastructure projects and services. Collaborating means moving beyond shared agreements and understanding, to a process of shared creation that results in something new that was not there before8. It means that cities will share risks, responsibilities, rewards, and resources; freeing up time and capacity to focus on the things that they do best.

The current engagement between Scotland’s cities can be characterised as being more cooperative than collaborative. Smart Cities Scotland will therefore work to ensure that the

8 Collaboration for Impact (undated) Where does Collective Impact fit on the Collaboration continuum?


necessary frameworks and approaches are in place to strengthen collaboration and to maximise the benefits that can be realised from inter-city activities.

Pathfinder Programme #2: Sharing & Learning Platform

Scotland’s cities and linked agencies are developing a wealth of knowledge and expertise on how to plan for and deliver smart city activities. Sharing this knowledge across and between cities will support the scale-up and acceleration of smart city activities countrywide. As Scotland’s cities currently have limited access to this knowledge it is recommended that a Sharing & Learning Platform is developed to enable cities and associated partners to: freely exchange information, combine resources to solve problems and track emerging projects, funding and solutions.

It is proposed that the platform combines following core activities:

A searchable web portal that provides case studies, briefings, research findings, and useful data.

Use of social business tools, enabling communication and collaboration across boundaries at a relatively low cost.

A programme of regular learning events/practitioner forums held across the country to facilitate networking, broaden engagement and promote understanding of smart city opportunities. These will be linked to existing activities such as Open Knowledge and Cleanweb events.

Case Study: Care Inspectorate The Hub

The Hub9 provides 'one-stop-shop' access to a range of resources aimed at supporting improvement in the social care and social work sectors in Scotland through the use and sharing of intelligence and research-led practice.

The resources offered include:

A library of good practice guidance

Information on the latest developments in policy and legislation

Video based examples of innovative practice

Guidance to help users carry out their own research

Toolkits and resources aimed at supporting improvement

The Hub also supports a number of the Care Inspectorate's purposes, including:

Acting as a catalyst for change and innovation

Supporting improvement and signposting good practice.

44.3 Data & Transparency Collaboration between Scottish cities will enable better provision of data and information to businesses, citizens and public bodies.

Open data is recognised as an engine for innovation, growth and transparent governance10. The Scottish Government’s Open Data Strategy11 adopts the G8 Open Data Principles and sets an underlying framework for public data in Scotland to be open and available for others to use and reuse. In doing so, Scotland aims to provide a societal asset, which offers significant benefits and enables: improved delivery of services; greater accountability and transparency; and re-use by other actors to unlock innovative applications that provide wider social and economic benefits.

9 http://hub.careinspectorate.com/ 10 European Commission (2011) Open data: An engine for innovation, growth and transparent governance 11 Scottish Government (2015) Open Data Strategy


Many of Scotland’s cities are have an open data policy in place or are developing one. All seven Scottish cities are also signatories to the Open & Agile Smart Cities12 initiative which aims to kickstart the use of a shared set of ways to develop systems once for multiple cities and make them interoperable between cities, and within a city.

Collaboration to create data ecosystems and will enable Scottish cities to:

Adopt common standards and approaches13.

Develop more valuable sources of intelligence by combining data across cites and with additional sources from both the public and private sector.

Influence package vendors to develop interfaces that allow the easy extraction of data.

Develop skills and shared resources for mining and visualising data.

Refine existing solutions and business models to meet current and future needs in Scotland.

Engage the data community to develop innovative smart city solutions, and enable councils that are geographically distant from developers, coders and service-designers to access this talent.

Pathfinder Programme #3: Code for Scotland

Scottish cities are all currently working to develop open data platforms and standards under the 8th City Programme and via their commitment to the Open and Agile Smart Cities Network. Projects within this Pathfinder Programme will represents the next step in that process, helping move from passive provision of data to an active engagement with the data community to identify and develop innovative smart city solutions. Collaboration at the Alliance level will enable further standardisation and interoperability between cities. It will also allow data to flow freely across municipal boundaries, facilitate engagement with developers right across Scotland and support the growth of innovative data-led businesses.

It is proposed that the platform combines the following core activities:

Support for cities and end-users to develop and use data-led solutions through partnerships with universities, businesses and, where desirable, embedded technologists/coders and service designers in residence placed in local authorities.

Challenge-led competitions aligned with priorities defined by the Scottish Government’s national outcomes and shared objectives in city region agendas.

A programme of meet-ups and business support to link cities to data and visualisation communities, and to assist data-led companies to grow. This will build on initiatives such as the IoT Boost undertaken with Innovation Centres Censis and The Data Lab, as well as Informatics Ventures. This should develop alongside and various civic innovation events currently in existence. It will also provide a follow-up pipeline of support to commercialise and export solutions developed.

Case Study: Open Data Scotland

The Open Data Scotland programme was run by Nesta to encourage collaboration between local authorities and digital media developers to provide innovative, digital services to solve real issues. The programme supported four technology developers to join local authority teams in Edinburgh, Aberdeen, East Lothian and Clackmannanshire. This led to the development of new digital services that were built open so that digital frameworks could be copied, modified and scaled. Opening data in this way offers the opportunity to save time and money and create efficiencies, create businesses and increase citizen participation by creating access to public sector information.

A key finding of the programme was that it is not enough to open data, but that supporting its use and application is critical. This recognised that councils do not always have the leadership and resource requirements for stimulating and supporting open data development projects; the skills and expertise to achieve this are not always accessible

12 http://oascities.org 13 with reference to: the ‘Smart City Certification’ being developed by the City Standards Institute in which several of the Scottish cities individually participate; ISO 37120 (Sustainable Development of Communities – indicators for city services and quality of life); PD 8101 (Smart City Planning Guide); and the PAS documents (including forthcoming PAS 183 on Data Standards and Interoperability)


(especially to councils that are not located in major cities); and current approaches to securing skills and expertise may not be sustainable, with councils sometimes relying on developers and coders giving their time freely at hack events.

44.4 Technology & Innovation Scotland has a strong tradition of creativity, ingenuity and invention. Embracing new technology and innovation will enable Scottish cities to work together to deliver infrastructure and services that are more intelligently responsive to the current and future needs of citizens.

This is not about digitalisation of ‘business as usual’, but rather an opportunity to design new innovative goods and services for smart cities. Partnership working will enable Scottish cities to co-create innovative solutions that harness the ideas and energy of businesses, citizens and the country’s world-leading academic institutions.

This will culminate in the creation of a countrywide network of urban living laboratories to enable real-world testing and development of new products and services that are co-designed with citizens. Collaboration between the cities will foster open, problem-solving environments where shared working, interdisciplinary thinking and co-creation can occur. It will also support the scale-up, commercialisation and export of smart city solutions developed in Scotland.

This will: boost the global profile of Scottish cities; create new employment opportunities; attract new knowledge and expertise in strategically important sectors; and give a ‘voice’ to citizens in the development and implementation of projects, including vulnerable members of society and those with specific needs and requirements.

Pathfinder Programme #4: MaaS Scotland

The key concept behind Mobility as a Service (MaaS) is to put the users, both travellers and goods, at the core of transport services, offering them tailor made mobility solutions based on their individual needs. This means that, for the first time, easy access to the most appropriate transport mode or service will be included in a bundle of flexible travel service options for end users14.

Scottish Enterprise and Scottish Development International currently promote Scotland as a countrywide Smart Mobility Living Laboratory. However, Scottish cities have limited direct engagement with this initiative. It is therefore recommended that a national programme is established to pull together cities, universities and businesses to gain early access to the opportunities offered by Smart Mobility/ Mobility as a Service (MaaS).

Mobility is a key priority for Scotland’s cities. All seven cities have current or planned “smart mobility” projects, which Scottish Enterprise define as the opportunity arising from the convergence of transport systems, ICT and energy.

Scottish Enterprise estimate that smart mobility will represent a $13 trillion global opportunity by 202015. Accessing inward investment would deliver improvements in infrastructure; services for citizens; new jobs; and new opportunities for Scottish businesses.

It is proposed that the smart mobility partnership and platform would focus on two key objectives:

Attract investment and create opportunities to test, develop and commercialise smart mobility solutions in Scotland’s cities.

Develop a single MaaS platform that combines transport options from different providers across Scotland, providing a personalised and integrated system that is not restricted by municipal boundaries, handling everything from travel planning to payments

14 European Mobility as a Service Alliance (2015) Press release 15 Scottish Enterprise (2014) The Mobility Integration Challenge


Case Study: Smart Mobility Accounts in Dundee

Transport Scotland’s vision is “That all journeys on Scotland’s bus, rail, ferry, subway and tram networks can be accessed using some form of smart ticketing or payment”16.

In 2014, Dundee College piloted a smart travel product that enabled eligible students to opt for smart travel as their travel bursary as opposed to a spot payment system. The bursary was added to the students’ National Entitlement Card and transport operator National Express enhanced the value by including the mid-term April break without charge, making the product run from the start of term in January through to the end of a course in summer.

The pilot proved succesful for the students, the college and transport operators. It also generated evidence that Smart Travel for students eligible for bursaries leads to improved outcomes in relation to attendance, transport modal shift and wider social inclusion benefits.

Further work undertaken by Dundee City Council in the “Smart to Smart Places” project, which was supported by the Scottish Cities Alliance and the Scottish Government, identified a range of potential smart travel applications for the National Entitlement Card that support access to education and employment, as well as promoting active and independent living, social inclusion and modal shift. This is also being further developed in the city’s ShareMORE project, which is making connections between smart mobility and the sharing economy.

44.5 Environmental Sustainability Scottish cities have a critical role in the country’s transition to a low carbon and resource efficient economy. This includes driving, regulating and supporting such investment and realising associated economic opportunities.

The combined scale of Scottish cities provides a means to achieve significant emissions reductions and attract investment in low carbon infrastructure and transformational programmes. These actions include improved street lighting, energy efficiency retrofitting, district heat and power, hydrogen fuel initiatives, green transport, electric vehicles and sustainable waste management programmes.

These initiatives are all being progressed under the Alliance’s Low Carbon workstream and its work on Hydrogen. Smart Cities Scotland offers the potential to develop and scale-up innovations in this area to help cities meet their contribution toward legislated environmental targets across a range of environmental challenges, including carbon emissions, air quality, recycling rates, and water management.

Pathfinder Programme #5: Circular Economy

A circular economy aims to decouple economic growth from resource consumption. In Scotland, the Circular Economy has the potential to add substantial economic (£3 billion GVA and 5,700 jobs from remanufacture), environmental (11 million tones of CO2 reduction) and social benefits.

Smart solutions within cities are the “glue” to make the Circular Economy vision a reality17. There is an opportunity for innovative ICT solutions and business models to more effectively manage the flow of resources within and between cities. Examples include:

Deploying intelligent assets and connected devices

Promoting and developing digital exchange platforms (e.g. WARP-IT)

Support business growth and innovation (such as social enterprises like NewStart Highlands)

Engage citizens and support behavioural changes necessary to the Circular Economy

This could initially be achieved through the development of City Scans across the Scottish Cities and joint bidding activities to the Circular Economy Investment Fund and the Urban Innovative Actions, which is currently being progressed under the Alliance’s Low Carbon workstream.

16 Transport Scotland (2012) Delivery strategy – smart & integrated ticketing 17 Ellen McArthur Foundation (2016) Intelligent Assets report


Case Study: Peterborough - The UK’s First Circular City

Peterborough has launched a vision to become the UK’s first circular city. Using a citywide circular economy approach to efficiently manage the flow of resources within its geographical boundaries, it is working with businesses and communities to repair, remanufacture, reuse, recycle and recover on a city-wide scale. 18

The initiative, which was launched in November 2015, is being run through Peterborough DNA, the smart city programme delivered by Opportunity Peterborough, the city’s economic development company, in partnership with Peterborough City Council. City leaders, academics and experts are working together to create a roadmap to deliver the circular vision.

The importance of engaging with key local stakeholders on a city-wide scale is recognised, and together with the support of national circular economy experts, is helping develop the roadmap and action plan which is owned and tailored by the various stakeholders. A series of events and collaborative workshops have already enabled engagement with organisations currently embracing the circular concept and helped seek ideas and inspiration from students.

18 Opportunity Peterborough (2015) Peterborough launches vision to become the UK’s first circular City


55 Scaling-Up Four Capacity Building Measures establish how the Alliance partners will work together to: develop shared resources and expertise for the successful delivery of our Pathfinder Programmes; make ‘smart’ a pervasive concept across cities; and enable the growth and export of transformative smart city solutions developed in Scotland. This will also enable cities to collectively make progress in accordance with the Alliance’s Smart Cities Maturity Model.

Figure 6: The five dimensions of the Alliance’s Smart Cities Maturity Model

5.1 Provide Leadership & Strategic Governance Governance at the Alliance-level will allow cities to coordinate smart systems, secure political and public support, capture and share data generated across cities and use it to inform the development of new collaborative policies and projects. This will lead to the definition of shared challenges, provide a mechanism to oversee the delivery of collaborative projects and support the scale-up of successful activities.

Formalising these governance structures will make it easier for cities to secure funding for collaborative projects and provide a means to ensure that delivery can be aligned with both local and national priorities.

This level of governance will also support effective engagement with the business community and national bodies, facilitate cross-sectoral engagement and help to unlock smart city opportunities in linked programmes, such as investments under City-Region deals.

Table 6: Overview of the Leadership & Strategic Governance capacity-building measure

Current situation

Smart city projects in many of the cities have been led by funding rather than being part of a more strategic programme.

Projects are largely focused on meeting local needs rather than supporting national priorities.

Ambition Improved governance leads to: coordination of smart systems across cities; widespread political and public support; the capture and sharing of data generated across cities which is used to inform the development of new collaborative policies and projects.

Enabling Actions

Creation of a Smart Cities Scotland Board that brings together leaders from the public, private and voluntary sectors across Scotland.

Creation of a National Smart Cities Champion.

Definition of common roles across the cities.


55.2 Secure Investment Collaboration between the cities will provide a mechanism to attract investment for pilots and to develop infrastructure and smart solutions across Scotland.

Appendix B presents a comprehensive review of the funding sources available to smart cities. It demonstrates that funding smart city initiatives can be complex and is likely to be achieved through a mix of sources that require a blend of technical and financial knowledge. Collaboration will therefore provide a means to share specialist expertise and resources to develop and implement projects which capitalise on the funding opportunities available.

Collaboration will also lead to the creation of new financing structures and investment propositions. This includes the development of investment platforms for technology companies and other stakeholders.

It will also give cities a greater influence over large funding programmes and a means to maximise investor confidence and to increase the chances of success in competitive processes.

Table 7: Overview of the Investment capacity-building measure

Current situation

Access to funding is a key barrier to smart city activities.

Funding landscape for smart city activities is complex, requiring both technical and financial knowledge for projects to be developed and implemented.

Ambition Collaboration between the cities attracts funding that the cities would not be able to access individually and enables new financing structures to be developed and piloted in Scotland.

Enablers Joint bids to create compelling offers and a sufficient scale to access new funding opportunities.

Piloting new financing and revenue-generating models that benefit from the increased scale offered by collaboration.

Collective engagement with investors.

Collaboration to scale-up and commercialise smart activities to generate returns on investment.

5.3 Encourage Smart Outcome-Focused Procurement Collaboration will help to ensure that Scottish cities can identify and procure the best technical solution for their communities and businesses, demonstrate local economic benefits and realise environmental improvements.

At the most basic level this requires a coordinated approach to share existing experience and learning across local authorities and the wider public sector. However, collaboration can also facilitate the sharing of resources and the creation of joint activities to secure the best outcomes for cities.

Achieving this will require the provision of the necessary skills, focused resources and new guidelines developed across the cities. It will also be supported by public relations management, community engagement and open dialogues with citizens.

Table 8: Overview of the Procurement capacity-building measure

Current situation

Procurement is seen as both a key enabler and key barrier to smart city activities.

Ambition Provision of the necessary skills, focused resources and new guidelines across the cities. This will be supported by public relations management, community engagement and open dialogues with citizens.


Enablers Learning is shared between the cities on experience gained from procuring innovative products or services (such as hydrogen vehicles) and the rationale for why the city decided to select a certain product or supplier.

Cities to work together and with Scotland Excel to create and share dedicated smart city procurement resources, including frameworks, guidance, personnel and the development and training of subject matter experts.

A programme of supplier forums are held across Scotland to promote a better understanding of the cities’ plans and to allow solution providers to demonstrate capabilities.

Cities work together to develop challenge-led competitions and pilot new business models for different forms of procurement.

55.4 International Promotion Smart Cities Scotland offers an opportunity to further establish Scottish cities as internationally recognised and desired destinations for capital and inward investment.

The unique collaboration of seven cities is an internationally significant development in the smart cities field. And although Scotland’s cities may be small by international standards, when combined they have much to offer on the global stage.

This will be supported by developing marketing materials and participating in events to promote Scottish cities as leading locations for trialling and developing new smart city solutions

Working in partnership with Scottish Enterprise and Scottish Development International, the cities and their regions can communicate what they individually and collectively deliver for the nation and their respective smart city aspirations. Global marketing of these strengths will support Scotland’s ambitions to grow and internationalise it’s business base, while also attracting further investment in smart infrastructure and services across the seven cities.

Table 9: Overview of the Promotion capacity-building measure

Current situation

Scotland is the top ranked UK region for foreign direct investment and related job creation outside London.

However, the current top-down promotion of smart cities in Scotland (i.e. when the cities are promoted collectively) could be made more effective by giving greater recognition to the unique characteristics of each city and what they deliver for Scotland both individually and collectively. This would also benefit from drawing in local strengths to add greater colour to the promotion.

Ambition Smart Cities Scotland further establishes Scottish cities as internationally recognised and desired destinations for capital and inward investment.

Enablers Scottish Cities Alliance to engage with Scottish Development International to develop a more place-based focus in promoting the Smart Cities agenda.

A collaboration agreement is formed between all relevant actors involved in promoting Smart Cities Scotland, including the Scottish Cities Alliance, Scottish Enterprise and Scottish Development International.

Smart Cities to be incorporated into the Alliance’s Pitch Book.

Through the Alliance, cities should collate case studies and examples of projects and good practice to support aspirations of Smart Cities Scotland, which could ultimately form the basis of a standalone Smart & Sustainable Pitch Book.

Cities to create joint promotion activities such as exhibiting at conferences and expos.


66 Final Words This Blueprint establishes a joined-up approach for how Scotland’s seven cities can work together to develop, deploy and scale smart cities solutions.

Collaborative smart city activities offer opportunities to save cities money, achieve better outcomes for their citizens and to limit their negative impact on the environment.

With the value of global markets for Smart Cities expected to exceed $1,400 billion by 2020 (from around $600 billion in 2013)19 there are also compelling opportunities to attract external investment, stimulate economic activity and create new jobs and business opportunities.

The frameworks for collaboration offered by the Alliance mean that Scottish cities are uniquely placed to realise these opportunities. This will be supported by the strategic approach established by the Blueprint, which will enable cities to work together to maximise these benefits. This in turn will make Scotland an even better place to live and a more prosperous and successful country.

19 Research cited by BSI (2016) UK plc First and Best A Programme to Shape the UK Smart Cities Market – source: http://www.grandviewresearch.com/industry-analysis/smart-cities-market


PPathfinder Programmes

The following tables provide additional detail on the five Pathfinder Programmes:

Smart & Healthy Living

Sharing & Learning Platform

Code for Scotland

MaaS Scotland

Circular Economy

A ‘Recommended Lead’ is identified for each of these programmes, establishing the organisation(s) that are likely to play a central role in developing these activities further under the framework of Smart Cities Scotland. This includes developing business cases for projects under the five Pathfinders, as well as more general implementation of each of the Programmes.

Su

mm

ary

Sco

ttish

citi

es w

ill w

ork

toge

ther

to e

stab

lish

a na

tionw

ide

test

-bed

for

inno

vatio

ns in

hea

lth a

nd w

ellb

eing

, whi

le g

ener

atin

g da

ta-le

d in

sigh

ts o

n th

e lin

ks b

etw

een

heal

th, e

cono

mic

gro

wth

and

pro

duct

ivity

. A

n in

tegr

ated

app

roac

h to

the

use

of d

igita

l tec

hnol

ogie

s ca

n in

crea

se th

e co

nnec

tedn

ess

of p

eopl

e to

info

rmat

ion

and

city

func

tions

, im

prov

ing

heal

th a

nd w

ellb

eing

, red

ucin

g ci

tizen

ineq

ualit

ies

and

supp

ortin

g a

high

er q

ualit

y of

life

for

all c

itize

ns.

App

licat

ions

incl

ude:

pr

omot

ing

activ

e an

d he

alth

y lif

esty

les;

dep

loyi

ng r

emot

e m

onito

ring

syst

ems;

dev

elop

ing

prev

enta

tive

mea

sure

s fo

r ci

tizen

s a

t ris

k;

supp

ortin

g in

depe

nden

t liv

ing;

and

enh

anci

ng c

omm

unity

coh

esio

n.C

olla

bora

tive

proj

ects

offe

r an

opp

ortu

nity

to d

eplo

y so

lutio

ns a

t a s

cale

that

will

pro

vide

tran

sfor

mat

iona

l eco

nom

ic a

nd s

oci

al im

pact

s.

To

achi

eve

this

, the

Pat

hfin

der P

roje

ct w

ill fo

cus

on th

e fo

llow

ing

two

area

s:•

Acc

eler

atin

g th

e de

velo

pmen

t and

dep

loym

ent o

f pro

duct

s an

d se

rvic

es th

at s

uppo

rt a

mor

e ho

listic

man

agem

ent o

f hea

lth a

nd

wel

lbei

ng a

cros

s Sc

otla

nd’s

citi

es•

Inte

llige

nt u

se o

f dat

a to

gen

erat

e in

sigh

ts o

n th

e in

terd

epen

denc

ies

betw

een

heal

th a

nd th

e ec

onom

y. T

his

incl

udes

link

s to

em

ploy

men

t, lo

w p

ay a

nd h

ow in

fras

truc

ture

and

ser

vice

s ca

n be

del

iver

ed in

a w

ay th

at p

rom

ote

wel

lbei

ng.

Key

sta

keh

old

ers

•H

ealth

and

Soc

ial C

are

Par

tner

ship

s•

Hea

lth c

are

prac

titio

ners

•H

ospi

tals

•S

ocia

l Car

e st

aff

•D

igita

l Hea

lth In

stitu

te

•N

HS

Sco

tland

•S

cotti

sh C

entr

e fo

r T

elec

are

and

Tel

ehea

lth•

Hou

sing

•S

cotti

sh C

are

•C

omm

unity

gro

ups

•U

nive

rsiti

es

Mar

ket f

ailu

res/

issu

es to

be

add

ress

ed•

Infr

astr

uctu

re (e

.g. i

n C

are

Hom

es a

nd S

helte

r ac

com

mod

atio

ns)

•E

cono

my

of s

cale

/sca

ling

up

proj

ects

•A

cces

s to

fund

ing

•T

ake

up o

f dig

ital h

ealth

so

lutio

ns•

Invo

lvem

ent o

f priv

ate

sect

or•

Res

pons

e fr

om b

ack

offic

e in

fras

truc

ture

•

Dis

crep

ancy

in r

egul

atio

ns

Exi

stin

g a

ctiv

ity

in c

itie

s•

Abe

rdee

n: B

ette

r H

ealth

Inte

llige

nce,

Tec

hnol

ogy

Ena

bled

Car

e D

evel

opm

ent P

rogr

amm

e•

Dun

dee:

Tec

hnol

ogy

Ena

bled

Car

e D

evel

opm

ent P

rogr

amm

e, B

iodu

ndee

•E

dinb

urgh

: Tec

hnol

ogy

Ena

bled

Car

e D

evel

opm

ent P

rogr

amm

e•

Gla

sgow

: Act

ive

Tra

vel D

emon

stra

tor,

Tec

hnol

ogy

Ena

bled

Car

e D

evel

opm

ent P

rogr

amm

e•

Inve

rnes

s: T

echn

olog

y E

nabl

ed C

are

Dev

elop

men

t Pro

gram

me,

Flo

renc

e, R

AP

ID, S

UR

S,

Sm

art H

ealth

Car

e (H

IE/N

HS

), U

HI R

ural

Hea

lth a

nd W

ellb

eing

•P

erth

: Tec

hnol

ogy

Ena

bled

Car

e D

evel

opm

ent P

rogr

amm

e, S

erve

r up

grad

es fo

r te

leca

re/h

ealth

ca

pabi

litie

s in

clud

ing

hom

e m

onito

ring

equi

pmen

t and

sm

artp

hone

s•

Stir

ling:

Tec

hnol

ogy

Ena

bled

Car

e D

evel

opm

ent P

rogr

amm

e, D

emen

tia L

ab

Pro

cure

men

t op

tio

n•

Join

t ven

ture

/ com

petit

ive

dial

ogue

•C

halle

nge

fund

for

pilo

ts

and

tria

ls

•S

tart

-ups

and

SM

Es

mar

ket p

lace

•Li

ving

Lab

orat

ory

oppo

rtun

ities

•C

olla

bora

tive

part

ners

hips

fo

rmed

for

bids

to fu

ndin

g co

mpe

titio

ns

Fu

nd

ing

•T

echn

olog

y E

nabl

ed C

are

Dev

elop

men

t Pro

gram

me

•S

ocia

l Im

pact

Bon

ds

•In

nova

te U

K

•N

ES

TA

•S

cotti

sh H

ealth

Inno

vatio

n Lt

d

•H

2020

(S

ocie

tal

Cha

lleng

es)

•E

urop

e H

EA

LTH

pr

ogra

mm

e

•E

urop

e E

IT H

ealth

Go

vern

ance

str

uct

ure

re

com

men

dat

ion

s•

Iden

tify

a S

mar

t Citi

es

repr

esen

tativ

e ac

ross

the

citie

s’ H

ealth

and

Soc

ial

Car

e P

artn

ersh

ips

•M

anag

e pr

ogra

mm

e th

roug

h ex

istin

g A

llian

ce

gove

rnan

ce li

nkin

g in

eH

ealth

gov

erna

nce

in

Sco

tland

and

acr

oss

citie

s

Inte

rnat

ion

al p

rom

oti

on

rec

om

men

dat

ion

s•

Exi

stin

g N

etw

orks

, EIP

SC

C, O

pen

and

Agile

Sm

art C

ities

, ‘Eu

rope

an W

eek

for

Reg

ions

and

Citi

es’ p

artn

ers.

Sm

art

& H

ealt

hy

Liv

ing

R

eco

mm

end

ed le

ad:

Inte

rnat

ion

al m

arke

ts in

tere

sted

in a

so

luti

on

to t

his

act

ivit

y•

Nor

th A

mer

ica

•E

urop

e•

Chi

na•

Dev

elop

ing

coun

trie

s w

ith la

ck o

f in

fras

truc

ture

Med

ium

Ter

m

Lin

ks t

o A

llian

ce a

ctiv

itie

s•

Infr

astr

uctu

re: A

ssis

ted

Livi

ng

Sco

ttish

Citi

es A

llian

ce

Is t

his

a s

ho

rt, m

ediu

m o

r lo

ng

-ter

m

op

po

rtu

nit

y fo

r S

cotl

and

?

Su

mm

ary

Scot

land

’s c

ities

are

eac

h de

velo

ping

a w

ealth

of k

now

ledg

e an

d ex

perti

se o

n ho

w to

pla

n fo

r and

del

iver

sm

art c

ity a

ctiv

ities

. Sha

ring

this

kno

wle

dge

acro

ss a

nd b

etw

een

citie

s w

ill s

uppo

rt th

e sc

ale

-up

and

acce

lera

tion

of s

mar

t city

act

iviti

es c

ount

ryw

ide.

As

Sco

tland

’s

citie

s cu

rren

tly h

ave

limite

d ac

cess

to th

is k

now

ledg

e it

is r

ecom

men

ded

that

a S

harin

g &

Lea

rnin

g P

latfo

rm is

dev

elop

ed to

ena

ble

citie

s an

d as

soci

ated

par

tner

s to

: fre

ely

exch

ange

info

rmat

ion,

com

bine

reso

urce

s to

sol

ve p

robl

ems

and

trac

k em

ergi

ng p

roje

cts

,fu

ndin

g an

d so

lutio

ns.

It is

pro

pose

d th

at th

e pl

atfo

rm c

ombi

nes

follo

win

g co

re a

ctiv

ities

:

•A

sea

rcha

ble

web

por

tal t

hat p

rovi

des

case

stu

dies

, brie

fings

, res

earc

h fin

ding

s, a

nd u

sefu

l dat

a.

•U

se o

f soc

ial b

usin

ess

tool

s, e

nabl

ing

com

mun

icat

ion

and

colla

bora

tion

acro

ss b

ound

arie

s at

a r

elat

ivel

y lo

w c

ost.

•A

pro

gram

me

of r

egul

ar le

arni

ng e

vent

s/pr

actit

ione

r for

ums

held

acr

oss

the

coun

try

to fa

cilit

ate

netw

orki

ng, b

road

en e

ngag

emen

t an

d pr

omot

e un

ders

tand

ing

of s

mar

t city

opp

ortu

nitie

s.

Key

sta

keh

old

ers

•Lo

cal a

utho

ritie

s•

CO

SLA

•S

cotti

sh G

over

nmen

t •

Dig

ital T

rans

form

atio

n S

ervi

ce•

Uni

vers

ities

and

kno

wle

dge

base

Mar

ket f

ailu

res/

issu

es to

be

add

ress

edC

ontr

ibut

ion

to p

ublic

sec

tor

refo

rm:

•Lo

cal c

olla

bora

tion

&

part

ners

hip;

•

Em

pow

erm

ent o

f pub

lic

serv

ice

to w

ork

toge

ther

in

inno

vativ

e w

ays;

•

Pre

vent

ion

of p

robl

ems

aris

ing

by d

ealin

g w

ith th

em

early

on;

•

Foc

us o

n co

ntin

uous

im

prov

emen

t of t

he n

atio

nal

outc

omes

.

Exi

stin

g a

ctiv

ity

in c

itie

s•

Abe

rdee

n: A

berd

een

Hyd

roge

n S

how

case

Eve

nt, A

BE

RIN

•D

unde

e: E

-cos

sefo

rum

•E

dinb

urgh

: IC

T a

nd D

igita

l Str

ateg

y•

Gla

sgow

: Gla

sgow

Fut

ure

City

Dem

onst

rato

r Lea

rnin

g E

vent

, Fut

ure

City

Gla

sgow

Pac

kagi

ng

Up

web

site

•In

vern

ess:

Cod

ers

Use

r G

roup

s, H

ello

Dig

ital,

Dig

ital H

ighl

ands

•P

erth

: Dig

ital L

earn

ing

Initi

ativ

e (D

igita

l Str

ateg

y 20

15-2

0), c

ity c

odin

g ev

ents

Pro

cure

men

t op

tio

n•

Tas

k sh

arin

g ap

proa

ch

acro

ss c

ities

to d

evel

op

cont

ent a

nd o

rgan

ise

even

ts•

Pot

entia

l to

use

free

-to-

acce

ss s

ocia

l bus

ines

s to

ols,

or

utili

seex

istin

g so

ftwar

e lic

ense

s (e

.g.

Kno

wle

dge

Hub

)•

Opt

ion

to p

rocu

re w

eb

port

al o

r de

velo

p in

-hou

se

solu

tion

Fu

nd

ing

•‘In

-kin

d’ fu

ndin

g fro

m c

ities

an

d as

soci

ated

par

tner

s•

Citi

es In

vest

men

t Fun

d

Go

vern

ance

str

uct

ure

re

com

men

dat

ion

s•

Sm

art C

ities

Wor

king

G

roup

to p

lan

and

over

see

the

deliv

ery

of th

e pr

ogra

mm

e•

Pol

itici

ans

and

seni

or

man

ager

s sh

ould

be

enga

ged

to d

emon

stra

te

com

mitm

ent a

nd

lead

ersh

ip•

New

ser

vice

mod

els

will

re

quire

diff

eren

t ski

lls a

nd

capa

bilit

ies

–w

ide

enga

gem

ent n

eede

d.

Inte

rnat

ion

al p

rom

oti

on

rec

om

men

dat

ion

s•

Cas

e st

udie

s to

be

deve

lope

d w

ith S

cotti

sh

Ent

erpr

ise

and

Sco

ttish

Dev

elop

men

t In

tern

atio

nal t

o su

ppor

t int

erna

tiona

l pr

omot

ion

activ

ities

Sm

art

Cit

ies

Sco

tlan

d S

har

ing

& L

earn

ing

Pla

tfo

rmR

eco

mm

end

ed le

ad:

Sco

ttish

Citi

es A

llian

ce

Inte

rnat

ion

al m

arke

ts in

tere

sted

in a

so

luti

on

to t

his

act

ivit

y•

Fin

land

•D

enm

ark

•A

ustr

alia

•

Ger

man

y•

Uni

ted

Sta

tes

Lin

ks t

o A

llian

ce A

ctiv

itie

s •

8thC

ity P

rogr

amm

e•

Infr

astr

uctu

re: C

onne

ctiv

ity•

Low

Car

bon

•H

ydro

gen

•In

vest

men

t Pro

mot

ion

Is t

his

a s

ho

rt, m

ediu

m o

r lo

ng

-ter

m

op

po

rtu

nit

y fo

r S

cotl

and

?

Sho

rt to

Med

ium

-ter

m

Su

mm

ary

Sco

ttish

citi

es a

re a

ll cu

rren

tly w

orki

ng to

dev

elop

ope

n da

ta p

latfo

rms

and

stan

dard

s un

der

the

8th

City

Pro

gram

me.

Thi

s pr

ojec

t re

pres

ents

the

next

ste

p in

that

pro

cess

, mov

ing

from

pas

sive

pro

visi

on o

f dat

a to

an

activ

e en

gage

men

t with

the

data

com

mun

ity to

de

velo

p in

nova

tive

smar

t city

sol

utio

ns. C

olla

bora

tion

at th

e A

llian

ce le

vel w

ill e

nabl

e fu

rthe

r st

anda

rdis

atio

nan

d in

tero

pera

bilit

y be

twee

n ci

ties.

It w

ill a

lso

allo

w d

ata

to fl

ow fr

eely

acr

oss

mun

icip

al b

ound

arie

s, fa

cilit

ate

enga

gem

ent w

ith d

evel

oper

s rig

ht a

cros

s S

cotla

nd a

nd s

uppo

rt th

e gr

owth

of i

nnov

ativ

e da

ta-le

d bu

sine

sses

.

It is

pro

pose

d th

at th

e pr

ogra

mm

eco

mbi

nes

the

follo

win

g m

ain

activ

ities

:

•E

mbe

dded

tech

nolo

gist

s/ c

oder

s in

res

iden

ce p

lace

d in

loca

l aut

horit

ies

to s

uppo

rt c

ities

and

end

-use

rs to

dev

elop

and

use

dat

a-le

d so

lutio

ns

•C

ivic

cha

lleng

es a

ligne

d w

ith n

atio

nal o

utco

mes

and

city

reg

ion

agen

da

•A

pro

gram

me

of m

eet-

ups

and

busi

ness

sup

port

to c

reat

e a

com

mun

ity a

roun

d da

ta a

nd v

isua

lisat

ion,

and

ass

ist d

ata-

led

com

pani

es to

gro

w.

Key

sta

keh

old

ers

•Lo

cal a

utho

ritie

s (in

clud

ing

Abe

rdee

n,

Cla

ckm

anna

nshi

re, E

ast L

othi

an,

Edi

nbur

gh a

nd G

lasg

ow)

and

CO

SLA

•N

ES

TA

•S

cotti

sh E

nter

pris

e, H

ighl

ands

and

Isla

nds

Ent

erpr

ise

•D

igita

l Cat

apul

t, F

utur

e C

ities

Cat

apul

t•

Ope

n D

ata

Inst

itute

•S

ocie

ty o

f IT

Man

ager

s•

Ser

vice

ow

ners

, ser

vice

use

rs, c

oder

s,

fron

t-en

d de

velo

pers

Mar

ket f

ailu

res/

issu

es to

be

add

ress

ed•

Dem

and,

use

and

impa

ct o

f op

en d

ata

•S

cotti

sh G

over

nmen

t C

omm

itmen

t to

G8

Ope

n D

ata

Prin

cipl

es•

Link

s to

nat

iona

l out

com

es

and

sing

le o

utco

me

agre

emen

ts•

Sta

ndar

disa

tion

betw

een

loca

l aut

horit

ies

Exi

stin

g a

ctiv

ity

in c

itie

s•

Abe

rdee

n: C

ode

the

City

, Ope

n D

ata

Sco

tland

, Mat

chT

heC

ity, A

berd

een

Act

ive,

Sco

tGov

Cam

p un

conf

eren

ce.

•D

unde

e: D

esig

n In

Act

ion,

Abe

rtay

Pro

toty

pe F

und,

Dun

dee

Dig

ital O

bser

vato

ry•

Edi

nbur

gh: C

ivic

Cha

lleng

es, I

CT

and

Dig

ital S

trat

egy,

Ope

n D

ata

Sco

tland

, Edi

nbur

gh

Col

lect

ed, E

dinb

urgh

Sto

ries,

’Fas

t Hac

k’, E

dinA

pps

•G

lasg

ow: F

utur

e C

ity H

acka

thon

s, O

pen

Dat

a P

latfo

rm, S

EC

UR

E (

Sta

tistic

s of

Env

ironm

enta

l C

hang

e, R

esou

rces

and

Eco

syst

ems)

•In

vern

ess:

Hig

hlan

ds C

oder

Doj

o•

Stir

ling:

Hac

kath

on w

ith S

tirH

ack

•P

erth

: Cod

e th

e C

ity, C

oder

Doj

o P

erth

.

Pro

cure

men

t op

tio

n•

Exp

lore

opp

ortu

nitie

s to

pa

rtne

r w

ith a

n or

gani

satio

nsu

ch a

s N

ES

TA

•P

rocu

re a

del

iver

y pa

rtne

r (id

eally

link

ed to

the

acad

emic

kno

wle

dge

base

an

d in

tegr

atin

g pu

blic

-pr

ivat

e-vo

lunt

ary

sect

or

expe

rtis

e)

Fu

nd

ing

•E

RD

F•

H20

20/ s

ocie

tal c

halle

nges

•In

terr

eg•

Inno

vate

UK

, IoT

Boo

st•

NE

ST

A•

Citi

es In

vest

men

t Fun

d•

Abe

rtay

Pro

toty

pe F

und

Go

vern

ance

str

uct

ure

re

com

men

dat

ion

s•

Dev

elop

a C

ode

for

Sco

tland

Tas

kfor

ce

brin

ging

toge

ther

re

pres

enta

tives

of

diffe

rent

sta

keho

lder

s to

ov

erse

e de

liver

y of

the

prog

ram

me

•D

eliv

ery

shou

ld h

ave

a st

rong

focu

s on

co-

crea

tion/

end

-use

r en

gage

men

t

Inte

rnat

ion

al p

rom

oti

on

rec

om

men

dat

ion

s•

Exi

stin

g N

etw

orks

: EIP

SC

C, O

pen

and

Agile

Sm

art C

ities

, ‘Eu

rope

an W

eek

for

Reg

ions

and

Citi

es’ p

artn

ers

•F

orm

alis

elin

ks to

sim

ilar

prog

ram

mes

Cod

e fo

r E

urop

e, C

ode

for

Am

eric

a, C

ode

for

Afr

ica

Co

de

for

Sco

tlan

dR

eco

mm

end

ed le

ads:

Sco

ttish

Gov

ernm

ent,

Sco

ttish

Citi

es A

llian

ce

Inte

rnat

ion

al m

arke

ts in

tere

sted

in a

so

luti

on

to t

his

act

ivit

y•

Fin

land

•A

ustr

ia

•T

he N

ethe

rland

s•

Spa

in•

Uni

ted

Sta

tes

•E

ston

ia•

Pol

and

Is t

his

a s

ho

rt, m

ediu

m o

r lo

ng

-ter

m

op

po

rtu

nit

y fo

r S

cotl

and

?

Med

ium

to L

ong-

term

Lin

ks t

o A

llian

ce a

ctiv

itie

s•

8thC

ity P

rogr

amm

eD

ata

Clu

ster

•D

igita

l Con

nect

ivity

Su

mm

ary

Sco

ttish

Ent

erpr

ise/

SD

I cur

rent

ly p

rom

ote

Sco

tland

as

a co

untr

ywid

e S

mar

t Mob

ility

Liv

ing

Labo

rato

ry. H

owev

er, S

cotti

sh c

ities

hav

e lim

ited

dire

ct e

ngag

emen

t with

this

initi

ativ

e. It

is th

eref

ore,

rec

omm

ende

d th

at a

nat

iona

l pro

gram

me

is e

stab

lishe

d to

pul

l tog

ethe

r ci

ties,

uni

vers

ities

and

bus

ines

ses

to g

ain

early

acc

ess

to th

e op

port

uniti

es o

ffere

d by

Sm

art M

obili

ty/ M

obili

ty a

s a

Ser

vic

e (M

aaS

).

Mob

ility

is a

key

prio

rity

for S

cotla

nd’s

citi

es. A

ll se

ven

citie

s ha

ve c

urre

nt o

r pla

nned

“sm

art m

obilit

y” p

roje

cts,

whi

ch S

cotti

sh E

nter

pris

e de

fine

as th

e op

port

unity

aris

ing

from

the

conv

erge

nce

of tr

ansp

ort s

yste

ms,

ICT

and

ene

rgy.

Sco

ttish

Ent

erpr

ise/

SD

I est

imat

e th

at s

mar

t mob

ility

will

rep

rese

nt a

$13

trill

ion

glob

al o

ppor

tuni

ty b

y 20

20.

Acc

essi

ng in

war

d in

vest

men

t wou

ld d

eliv

er im

prov

emen

ts in

infr

astr

uctu

re; s

ervi

ces

for

citiz

ens;

new

jobs

; and

new

opp

ortu

nitie

s fo

r S

cotti

sh b

usin

esse

s.

It is

pro

pose

d th

at th

e sm

art m

obili

ty p

artn

ersh

ip a

nd p

latfo

rm w

ould

focu

s on

two

key

obje

ctiv

es:

•A

ttrac

t inv

estm

ent a

nd c

reat

e op

port

uniti

es to

test

, dev

elop

and

com

mer

cial

ise

smar

t mob

ility

solu

tions

in S

cotla

nd’s

citi

es.

•D

evel

op a

sin

gle

Maa

Spl

atfo

rm th

at c

ombi

nes

tran

spor

t opt

ions

from

diff

eren

t pro

vide

rs a

cros

s S

cotla

nd, p

rovi

ding

a p

erso

nalis

edan

d in

tegr

ated

sys

tem

that

is n

ot r

estr

icte

d by

mun

icip

al b

ound

arie

s, h

andl

ing

ever

ythi

ng fr

om tr

avel

pla

nnin

g to

pay

men

ts.

.

Key

sta

keh

old

ers

•Lo

cal a

utho

ritie

s, S

CO

TS

, CO

SLA

•R

egio

nal T

rans

port

Par

tner

ship

s•

Sco

tland

Dev

elop

men

t Int

erna

tiona

l, U

KT

I•

Uni

vers

ities

•S

cotti

sh G

ov. (

Dig

ital,

Ene

rgy,

Tra

nspo

rt)

•S

cotti

sh E

nter

pris

e M

aaS

clus

ter (

>12

0 co

mpa

nies

from

tran

spor

t, en

ergy

& IC

T)

•M

obili

ty o

pera

tors

(bus

, rai

l, ca

r cl

ubs;

bi

kesh

arin

g; ri

de s

harin

g; ri

de s

ourc

ing;

ta

xis,

ren

tal;

park

ing)

•T

raffi

c S

cotla

nd &

Cha

rgeP

lace

Sco

tland

Mar

ket f

ailu

res/

issu

es to

be

add

ress

ed•

Pre

-com

mer

cial

tech

nolo

gy

and

busi

ness

mod

els

•O

pera

tor

timet

able

d se

rvic

es, n

ot u

ser-

led

•C

itize

n en

gage

men

t•

Con

gest

ion,

clim

ate

chan

ge,

air

pollu

tion,

nat

ural

re

sour

ce d

eple

tion

•T

rans

port

ineq

ualit

ies:

ac

cess

ibili

ty a

nd tr

ansp

ort

pove

rty

Exi

stin

g a

ctiv

ity

in c

itie

s•

Abe

rdee

n: C

omm

on D

atab

ase

Sys

tem

; Car

Clu

b bo

okin

g im

prov

emen

t; J

ourn

ey T

ime

Mon

itorin

g; H

ydro

gen

(H2)

car

clu

b ve

hicl

e; H

2bu

s pr

ojec

t; H

2re

fuel

ing

•D

unde

e: M

obili

ty In

tegr

atio

n Li

ving

Lab

orat

ory

(The

MIL

L);

Sha

reM

OR

E; e

lect

ric ta

xi p

roje

ct; G

o U

ltra

Low

City

Sch

eme;

Blu

etoo

th J

ourn

ey T

ime

Det

ectio

n; N

EC

Dat

a P

latfo

rm; c

ar c

lub

•E

dinb

urgh

: Con

tact

less

Par

king

Met

er p

ilot;

Wi-

Fi o

n bu

ses

and

tram

s; b

us tr

acke

r; c

ar c

lub;

IoT

UK

boo

st c

halle

nges

; EV

•G

lasg

ow: G

lasg

ow O

pera

tions

Cen

tre;

MyG

lasg

owA

pp; s

ocia

l tra

nspo

rt; a

ctiv

e tr

avel

; EV

ch

argi

ng; c

ar c

lub

•In

vern

ess:

sm

art t

rans

port

(8th

City

pro

ject

); c

yclin

g in

fras

truc

ture

; gre

en b

uses

; EV

cha

rgin

g•

Per

th: S

mar

t Car

Par

king

; Sm

art T

icke

ting

Pilo

t; B

luet

ooth

Jou

rney

Tim

e D

etec

tion

; ST

RA

TO

S,

TA

CT

RA

N C

onne

ct (

GoT

oo);

LaM

iLo

(fre

ight

con

solid

atio

n), R

eal T

ime

Tra

vel I

nfor

mat

ion

for

Bus

es•

Stir

ling:

Bik

e H

ub a

nd a

ctiv

e tr

avel

pro

mot

ion;

bik

e sh

arin

g; E

V c

harg

ing

infr

astr

uctu

re

Pro

cure

men

t op

tio

n•

Pro

cure

a d

eliv

ery

lead

(id

eally

col

labo

ratio

n be

twee

n ac

adem

ic

know

ledg

e ba

se a

nd

priv

ate

sect

or e

xper

tise)

•

Cha

lleng

e fu

nd fo

r pi

lots

an

d tr

ials

•Jo

int v

entu

re/ c

ompe

titiv

e di

alog

ue fo

r M

aaS

plat

form

and

larg

e pr

ojec

ts•

Col

labo

rativ

e pa

rtne

rshi

ps

form

ed fo

r bi

ds to

fund

ing

com

petit

ions

Fu

nd

ing

•H

2020

/ soc

ieta

l cha

lleng

es•

City

Dea

ls•

Tra

nspo

rt S

cotla

nd L

ow

Car

bon

Tra

nspo

rt &

Tra

vel

Cha

lleng

e F

und

•T

rans

port

Sco

tland

Sm

art &

In

tegr

ated

Tic

ketin

g S

trat

egic

Inte

rven

tion

•E

RD

F•

Gro

wth

acc

eler

ator

•P

PD

/NP

D

Go

vern

ance

str

uct

ure

re

com

men

dat

ion

s•

Dev

elop

a M

aaS

Sco

tland

B

oard

com

pris

ing

repr

esen

tativ

es o

f the

key

st

akeh

olde

rs•

Str

ong

focu

s on

co-

crea

tion/

end

-use

r en

gage

men

t

Inte

rnat

ion

al p

rom

oti

on

rec

om

men

dat

ion

s•

Sco

ttish

Dev

elop

men

t Int

erna

tiona

l cu

rren

tly p

rom

ote

Sco

tland

as

a co

untr

ywid

e Li

ving

Lab

orat

ory

for

smar

t m

obili

ty•

It is

rec

omm

ende

d th

at th

is m

essa

ging

is

mor

e pl

ace-

base

d, p

rom

otin

g th

e ch

alle

nges

and

opp

ortu

nitie

s of

fere

d by

ea

ch o

f Sco

tland

’s s

even

citi

es•

Bran

d de

velo

pmen

t e.g

. “M

aaS

Scot

land

”

Maa

SS

cotl

and

Rec

om

men

ded

lead

s:S

cotti

sh E

nter

pris

e, T

rans

port

Sco

tland

, Sco

ttish

Citi

es A

llian

ce

Inte

rnat

ion

al m

arke

ts in

tere

sted

in a

so

luti

on

to t

his

act

ivit

y•

Fin

land

•A

ustr

alia

•

Ger

man

y•

Uni

ted

Sta

tes

•Ita

ly•

Spa

in•

Japa

n•

Sou

th K

orea

Lin

ks t

o A

llian

ce a

ctiv

itie

s•

Con

nect

ivity

(di

gita

l and

tr

ansp

ort)

•Lo

w c

arbo

n•

Hyd

roge

n

Is t

his

a s

ho

rt, m

ediu

m o

r lo

ng

-ter

m

op

po

rtu

nit

y fo

r S

cotl

and

?

Med

ium

to L

ong-

term

Su

mm

ary

A c

ircul

ar e

cono

my

aim

s to

dec

oupl

e ec

onom

ic g

row

th fr

om r

esou

rce

cons

umpt

ion.

In S

cotla

nd, t

he C

ircul

ar E

cono

my

has

the

pote

ntia

l to

add

sub

stan

tial e

cono

mic

(£3

billi

on G

VA

and

5,7

00 jo

bs fr

om r

eman

ufac

ture

), e

nviro

nmen

tal (

11 m

illio

n to

nes

of C

O2

redu

ctio

n) a

nd

soci

al b

enef

its. S

mar

t sol

utio

ns w

ithin

citi

es a

re th

e “g

lue”

to m

ake

the

Circ

ular

Eco

nom

y vi

sion

a re

ality

1 . B

y F

ocus

ing

on fo

ur k

ey

prio

rity

area

s id

entif

ied

by th

e S

cotti

sh G

over

nmen

t (F

ood

and

Drin

k, R

eman

ufac

ture

, Con

stru

ctio

n an

d B

uilt

Env

ironm

ent a

nd E

nerg

y In

fras

truc

ture

) the

re is

an

oppo

rtun

ity fo

r S

cotti

sh S

mar

t Citi

es to

:

•D

eplo

y in

telli

gent

ass

ets

and

conn

ecte

d de

vice

s

•D

evel

op d

igita

l and

exc

hang

e pl

atfo

rms

(suc

h as

WA

RP

-it)

•S

uppo

rt b

usin

ess

grow

th a

nd in

nova

tion

(suc

h as

soc

ial e

nter

pris

es e

.gN

ewS

tart

Hig

hlan

ds)

•E

ngag

e ci

tizen

s an

d su

ppor

t beh

avio

ural

chan

ges

nece

ssar

y to

the

Circ

ular

Eco

nom

y

Thi

s co

uld

initi

ally

be

achi

eved

thro

ugh

the

deve

lopm

ent o

f City

Sca

ns a

cros

s th

e S

cotti

sh C

ities

and

join

t bid

ding

act

iviti

es

to th

e C

ircul

ar E

cono

my

Inve

stm

ent F

und

and

the

Urb

an In

nova

tive

Act

ions

.

Key

sta

keh

old

ers

•Lo

cal a

utho

ritie

s•

Sco

ttish

Gov

ernm

ent

•Z

ero

Was

te S

cotla

nd•

Sco

ttish

Ent

erpr

ise,

Hig

hlan

ds a

nd Is

land

s E

nter

pris

e•

Uni

vers

ities

•S

CD

I•

EC

CI

•S

cotti

sh U

nive

rsiti

es In

sigh

ts In

stitu

te•

V&

A D

unde

e•

Elle

n M

cArt

hur

Fou

ndat

ion

An

y m

arke

t fa

ilure

s/ is

sues

to

b

e ad

dre

ssed

•N

oC

ircul

ar E

cono

my

cham

pion

s in

citi

es

•F

lexi

ble

busi

ness

mod

els

that

ca

n re

spon

d to

pric

e va

riabi

lity

and

rapi

d te

chno

logy

evo

lutio

n

•A

war

enes

s an

d E

duca

tion:

bu

sine

sses

and

citi

zens

•D

ata

secu

rity

and

trus

t•

Inte

rope

rabi

lity

of a

sset

s an

d ne

twor

ks

•C

olla

bora

tion

and

data

sha

ring

•P

ublic

Pro

cure

men

tgui

delin

es

Exi

stin

g a

ctiv

ity

in c

itie

s•

Abe

rdee

n:B

ig B

elly

Bin

s, F

leet

Rou

te S

yste

m•

Dun

dee:

Sha

reM

ore,

Dun

dee

Dig

ital O

bser

vato

ry, W

AR

P-it

, Sm

art W

aste

Str

ateg

y•

Edi

nbur

gh: W

AR

P-it

, SH

RU

B (

Uni

vers

ity o

f Edi

nbur

gh)

•G

lasg

ow: C

ity S

can,

City

Dea

l, W

AR

P-it

•

Inve

rnes

s: C

ity D

eal,

WA

RP

-it, N

ewS

tart

Hig

hlan

ds•

Per

th: T

ayE

co V

alle

y, B

inn

Eco

Par

k, S

mar

t Was

te a

nd R

oute

smar

tsys

tem

•S

tirlin

g: E

nerg

y D

ata

Sha

ring,

Tra

ffic

Mod

ellin

g an

d M

onito

ring

•S

cotti

sh C

ities

Alli

ance

: Circ

ular

Eco

nom

y pr

ojec

t

Pro

cure

men

t op

tio

n•

Join

t ven

ture

/ com

petit

ive

dial

ogue

for

part

icul

ar

circ

ular

eco

nom

y pr

ojec

t (e

.g. b

ette

r pr

oduc

t des

ign

in a

cho

sen

sect

or)

•C

halle

nge

fund

for

pilo

ts

and

tria

ls•

Livi

ng L

abor

ator

y op

port

uniti

es

•C

olla

bora

tive

part

ners

hips

fo

rmed

for

bids

to fu

ndin

g co

mpe

titio

ns

Fu

nd

ing

•Z

ero

Was

te S

cotla

nd £

18m

E

RD

F C

ircul

ar E

cono

my

Inve

stm

ent F

und

•C

ircul

arE

cono

my

Urb

an

Inno

vativ

e A

ctio

n •

H20

20th

roug

h C

ircul

ar

Eco

nom

y P

acka

ge•

NE

ST

A•

Inno

vate

UK

Go

vern

ance

str

uct

ure

re

com

men

dat

ion

s•

Iden

tify

a C

ircul

ar E

cono

my

repr

esen

tativ

e in

citi

es•

Iden

tify

CE

1OO

Sco

ttish

C

ities

Alli

ance

re

pres

enta

tive

•D

evel

op a

Circ

ular

E

cono

my

Boa

rd(t

o in

clud

e:

Sco

ttish

Gov

ernm

ent,

Zer

o W

aste

Sco

tland

, Sco

ttish

E

nter

pris

e)•

Str

ong

focu

s on

co-

crea

tion/

end

-use

r en

gage

men

t

Inte

rnat

ion

al p

rom

oti

on

rec

om

men

dat

ion

s•

Exi

stin

g N

etw

orks

: EIP

SC

C, O

pen

and

Agi

le

Sm

art C

ities

, Ope

n D

ays

part

ners

•C

E10

0/E

llen

McA

rthu

r F

ound

atio

n ne

twor

ks

•W

orld

Eco

nom

ic F

orum

–C

ircul

ar E

cono

my

•C

ircul

ar E

urop

e N

etw

ork

•C

lean

Eur

ope

Net

wor

k

•E

urop

ean

Env

ironm

ent A

genc

y

•C

EN

SE

Cir

cula

r E

con

om

yR

eco

mm

end

ed le

ad:

Sco

ttish

Citi

es A

llian

ce

Inte

rnat

ion

al m

arke

ts in

tere

sted

in a

so

luti

on

to t

his

act

ivit

y•

Fin

land

•D

enm

ark

•T

aiw

an•

Spa

in•

Fra

nce

•U

SA

/Nor

th A

mer

ica

•S

outh

Am

eric

a•

Chi

na

Lin

ks t

o A

llian

ceA

ctiv

itie

s •

Dire

ct li

nk to

the

Low

C

arbo

n ac

tiviti

es le

d by

the

Sco

ttish

Citi

es A

llian

ce

Is t

his

a s

ho

rt, m

ediu

m o

r lo

ng

-ter

m

op

po

rtu

nit

y fo

r S

cotl

and

?

Long

-ter

m

1. E

llen

McA

rthu

r F

ound

atio

n (2

016)

Int

ellig

ent A

sset

s re

port


MMonitoring Framework for Pathfinder Programmes

Operational Measures Project Outcomes Linked National Outcomes

Smar

t & H

ealth

y Li

ving

Promoted active and healthy lifestyles.

Deployed remote monitoring services.

Developed preventative measures for at-risk citizens.

Improved health and wellbeing and life expectancy.

Reduction in health inequalities and a higher quality of life achieved.

We live longer healthier lives.

Our people are able to maintain their independence as they get older and are able to access appropriate support when they need it.

Shar

ing

& Le

arni

ng P

latfo

rm

Established an online sharing and learning platform for the cities and its associated partners to network, engage and promote understanding of smart city opportunities and achieved X20 number of users

Setup an online space for access to general information, social business tools, data and research findings.

Delivered a series of learning events and practitioner forums

Increased the number of scaled up smart city activities across Scotland

Improved knowledge exchange is achieved on smart cities.

Scaling up and acceleration of projects is achieved supporting increased spending on research and development and helping to increase the number of businesses and exports.

We live in a Scotland that is the most attractive place for doing Business in Europe.

We realise our full economic potential with more and better employment opportunities for our people.

Cod

e fo

r Sco

tland

Coders, technologists and Service Designers embedded/ engaged with local authorities

Implemented an events & business support programme to develop a community around data/visualisation and assist data driven companies to grow.

Applications, software and datasets from the Scottish public sector made open source.

Smart city solutions developed through data use

Public services are improved.


Maa

S Sc

otla

nd

Funding obtained from X20 number of investors.

Established a collaboration network to mobilise cities, universities and businesses.

Deployed a city-led scheme for funding research, development and testing of Maas pilot projects.

Developed and built a MaaS IT platform to provide the infrastructure for potential roll out of a MaaS application.

Scottish Cities are fully engaged with MaaS as it develops

Economic opportunities are realised through the creation of new products and services related to mobility and cost savings

Improved mobility within cities reduces traffic congestion, transport emissions and traffic accidents and improves air quality

We live in well-designed, sustainable places where we are able to access the amenities and services we need.

We realise our full economic potential.

20 The quantitative indicators provided in this guidance will be further developed in the next phase, as connected to the developing business cases for projects under the Pathfinder Programmes, and more generally in implementing the Blueprint.


Circ

ular

Eco

nom

y

Citizens engaged with through behaviour change initiatives that support ‘circular’ principles.

Developed digital and exchange platforms

Supported businesses to innovate, deploy and grow circular

Number of Smart city solutions linked to the circular economy

Waste per capita reduced and proportion of waste recycled increases

CO2 emissions per capita reduced

We reduce the local and global environmental impact of our consumption and production


We are better educated, more skilled and more successful, renowned for our research and innovation.


Smart City Funding A recent survey demonstrated that the biggest obstacle to the development of Smart Cities is funding21. The same report also shows that “the Smart City financing challenge can only be solved through collaboration”.

This appendix summarises the funding sources and mechanisms for Smart Cities.

Fund

ers

Government

through direct procurement or publicly owned institutions

through government-backed funds (i.e. Low Carbon Networks Fund, European Investment Bank)

Institutional/ infrastructure funds

Utilities

Corporate investment (through private or publicly owned companies)

Sovereign wealth funds

Private equity/ venture funds

Bonds

Crowdfunding

Publ

ic F

undi

ng S

ourc

es

Council tax From 2017 local authorities will have discretion to increase council tax by up to a maximum of 3 per cent per year. This would enable local authorities to raise additional revenue of up to £70 million per year. However, in the context of funding cuts, Council Tax alone is unlikely to be a major source of funding for Smart Cities initiatives but they can be used as leverage for financial instruments.

Non-Domestic Rates

Councils have relatively little control over local business tax income, known as non-domestic rates (NDR). Non-domestic rates income is set centrally and pooled centrally but generated locally and is distributed back to local authorities through the distribution formula agreed with COSLA as part of the local government finance settlement. Each council's share of the estimated non-domestic rate income for the year ahead is distributed proportionately on the basis of council's latest mid-year income returns net of prior year adjustments. NDR can be used to support more innovative financial instruments such as Tax Incremental Financing.

Tax Incremental Financing

A way of funding infrastructure investment that unlocks regeneration and economic growth. TIF seeks to capture locally generated, incremental public sector revenues (e.g. non-domestic rates) that would not have arisen were it not for the delivery of “enabling” public sector infrastructure investment. Captured revenue is then used to repay the debt raised to finance the public sector infrastructure.

Service Fees and Charges

Councils have more control over the income they receive from service fees and charges22. In addition to being a vital source of income for council, charges can be used to influence behaviours – for example, low gym charges can be used to encourage exercise or car parking charges can be used to discourage people from taking their cars into city centres. The introduction of Smart Technologies to redesign services can also lead to savings on existing services which can be reinvested in additional activities leading to greater economic and social impact.

Borrowing The Local Government in Scotland Act 2003, provides local authorities with the power to finance capital expenditure by borrowing without securing Government approval. Local authorities have a statutory duty to set their own maximum capital expenditure limits. These limits must be set with regard to the Chartered Institute of Public Finance & Accountancy (CIPFA) Prudential Code, which requires that capital expenditure undertaken by local authorities must be affordable, prudent and sustainable.

21 Smart Cities in Europe, Enabling Innovation – Osborne Clarke International - 2015 22 Councils’ income from fees and charges was an estimated £1.3 billion in 2012/13 – source: Fiscal Affairs Scotland (2015) Local government funding challenges


City

-Reg

ion

Dea

ls

The 2011 Localism Act included the Core Cities Amendment, which offered local councils the opportunity to submit plans on how they planned to promote local economic growth. If successful, councils would then be invited to negotiate deals with central government for greater local autonomy over financial and planning matters. The City Deals have sought to incentivise local actors to identify and prioritise ‘asks’ of UK and devolved governments, fund, finance and deliver infrastructure and other economic development interventions, and to reform city/city-region governance structures to ‘unlock’ urban growth. City Deals are reworking the role of the UK state internally and through changed central-local and intra-local (city-regional) relations. There is a real opportunity to ensure Smart City initiatives are embedded, and funded, via agreed projects in City Deals.

Soci

al Im

pact

Bon

ds

Social Impact Bonds (SIBs) improve the social outcomes of publicly funded services by making funding conditional on achieving results. Investors pay for the project at the start, and then receive payments based on the results achieved by the project. SIBs are based on achieving social ‘outcomes’ (e.g. improved health). The outcomes are predefined and measurable. Because payment is based on results rather than process, there is more room for innovation and greater freedom to demonstrate solutions that work. The result is better outcomes for the public and reduced costs. SIBs benefits include:

Allowing commissioners to attract private investors to fund early and preventative action on complex and expensive social problems

Enabling new services to be tried without commissioners having to pay if they do not work

Helping services to adapt so that they have a greater emphasis on prevention

Allowing greater flexibility for those providing the services to adapt and change the service according to their experience

Helping charities and social enterprises bid for and manage ‘payment by results’ projects

SIBs take a number of forms, are being delivered by a range of service providers and are supported by a number of social investors including both Foundations and Trusts with a long history of grant giving to achieve social change, and specialist fund managers. Notable investors include Big Society Capital which has invested in seven SIBs, and Bridges Ventures which has also invested in seven and has established the Social Impact Bond Fund specifically to invest in SIBs. The UK has been leading the way in SIB internationally but the majority of projects have been in England where several funds were established to support SIBs. In 2015 the UK Government announced the £80m Life Chances Fund which will be open to applicants across the UK in summer 2016. An example of SIBs in Scotland is the Living Balance, operated by YMCA in Perth to support 300 youth into employment supported by DWP Innovation Fund. The Centre for Social Impact Bonds has produced a range of tools including a template legal contract.

Parti

cipa

tory

Bud

getin

g

Participatory budgeting (PB) is recognised internationally as a way for local people to have a direct say in how, and where, public funds can be used to address local requirements. Different PB models exist, although it normally involves members of the community deciding through a voting process how to spend part of the budget of a public agency such as a local authority. The Scottish Government supports this as a tool for community engagement and as an important resource to build on the wider development of participatory democracy in Scotland. For example, the Scottish Government’s Community Choices Fund was announced on the 26th February 2016. The £2 million fund builds on the £500,000 which has already been invested in PB projects across 20 local authority areas. In the financial year 2016/17 the funds will be prioritised across more deprived areas and will likely achieve further involvement from community organisations and other public bodies.23

23 PB Scotland (2016) Better decisions, local priorities: Cardenden visit for £2m PB funding announcement: http://pbscotland.scot/blog/2016/2/29/better-decisions-local-priorities-cardenden-pb-funding-announcement


Mun

icip

al B

onds

The UK Municipal Bonds Agency Plc was established in June 2014 as a public limited company owned by local councils and the Local Government Association, with the primary purpose of reducing local authority financing costs by:

Issuing bonds in the capital markets and on-lending to councils.

Lending between councils.

Sourcing funding from 3rd party sources, and on-lending to councils.

The Agency helps local councils to finance their investment in projects including infrastructure and housing. It issues bonds to finance local authority projects at a lower cost than the Debt Management Office. This lowers council’s finance costs, which means more can be invested into local economies, infrastructure and housing projects. The Agency also reduces borrowing costs by helping councils borrow from one another and negotiating better rates from lenders. The agency also acts as a centre of expertise, offering tailored lending services.

Proj

ect F

inan

ce

Project Finance structures are a way to encourage investment from the private sector into Smart City initiatives when they can provide an adequate risk-reward proposition. Project Finance use a combination of debt and equity and have been widely used to support renewable energy projects through Energy Service Companies (ESCOs). An energy services company (ESCO) seeks to deliver the same or better service at a lower price and with reduced environmental impact. An upfront contract is agreed between the client and service provider for the service to be delivered at a value lower than the client currently pays and for lower energy use. This leaves the risk of delivery with the ESCO if savings are not realised. These services are provided via long-term, normally lasting between 5 and 25 years, energy service contracts providing enough time for the service provider to make any investment and realise savings, which fall into two broad categories: There may be scope for an ESCO to be established across the Alliance to implement smart city initiatives aimed at reduced energy use. The ESCO would seek to finance the upfront investment to implement the initiatives with realised savings shared between the ESCO and client cities.

Publ

ic P

rivat

e Pa

rtner

ship

s

Public Private Partnerships structures are likely to be the most efficient way to fund smart technology infrastructure programmes in the short to medium-term. PPP (Public Private Partnership) is the general term for partnerships which involve everything from operating facilities and providing services on behalf of the public, to flexible methods of financing these services. Types of PPP in the UK include: joint ventures, concessions, information and communication technology (ICT) PPPs, as well as the more well-known PFI (Private Finance Initiative). PFI is a particular method of financing capital investment which requires that the private sector design, build, finance and operate specific facilities. The Scottish Government no longer uses PFI as a procurement method adopting instead a Non-Profit Distribution (NPD) model. It is important to note that the NPD model is not a “not for profit” model. Contractors and lenders are expected to earn a normal market rate of return as in any other form of privately-financed PPP deal. Rather, the model aims to eliminate uncapped equity returns associated with the traditional PFI model and limit these returns to a reasonable rate set in competition through an open procurement process compliant with EU rules. NPD is being used to fund projects in three main sectors: further education, health and transport. Where the NPD model is to be implemented in a sector for the first time it may need further development to adapt to the specific risks and requirements (e.g. technology, regulation, stakeholder interface) of that sector. Any such development must be done in consultation with the Scottish Futures Trust. There is no specific corporate structure required, however, all successful consortia for NPD projects to date have adopted a structure involving the creation of a special purpose vehicle that is a company limited by (non-dividend bearing) shares. The shares in the Project Company are held by the private sector investors with the exception of one “golden share” held by the Authority which increases transparency and accountability and underpins the NPD principle of enhanced stakeholder involvement.

Gro

wth

Acc

eler

ator

Mod

el The Growth Accelerator Model (GAM) is a funding mechanism for combining public and private investment for new

infrastructure projects. The funded infrastructure should enable economic growth and job creation. This additional economic activity results in a series of income streams, with these income streams flowing to different parties: Local Government, Central Government and private sector investors. The GAM is predicated on diverting a portion of these income streams to repay the initial enabling infrastructure funding. Initially developed for the St James Quarter in Edinburgh, the new Growth Accelerator has been adopted for wider use by the Scottish Government. There are some core principles at the heart of this approach, notably a focus on:

Outcomes that deliver economic growth; and

A payment by results approach that shares risk across the public and private sectors.


Priv

ate

Sect

or R

esou

rces

In order to implement smart initiatives, cities need access to readily available innovative technologies that meet their needs. The lack of proven technology is an obstacle to the roll-out of smart programmes in cities. Funders of innovative smart technologies are different from those that invest in smart city infrastructure. Venture Capital and Private Equity funds are generally the most active investors in smart technology companies along with corporate investors and government-backed funds. A recent report published by the Scottish Government24 reviews the current funding available to SMEs in Scotland. These include:

The Local Authority Loan Funds

The Scottish Investment Bank Co-Investment Funds

The Scottish Loan Fund

Specialist Sector Support Funds such as the Renewable Energy Investment Fund delivered by the Scottish Investment Bank

Funding is also available to Social Enterprises through Social Investment Scotland or the Care and Wellbeing Fund for example. The Scottish Government is currently working on bringing together and simplifying the funding landscape and build on existing finance options to identify new sources of capital available to SMEs. The Programme for Government 2014-15 also announced the establishment of a Scottish Business Development Bank.

UK/

Sco

ttish

Fun

ding

Sch

emes

(Inn

ovat

ion)

Innovate UK The UK’s Innovation Agency and funder of the £24m Glasgow Future Cities demonstrator project. Innovate UK also funds the The Future Cities Catapult, which has been a catalyst to many Smart Cities activities and has fostered partnerships between city leaders, universities and private sector organisations. In addition to the Catapult, Innovate UK administer a number of grants and loans which can support Smart Cities activities. These include the LaunchPads, the Collaborative R&D grants, SBRI and Smart Grants. These are organised around 4 themes namely, Emerging and Enabling Technologies, Health and Life Sciences, Infrastructure Systems and Manufacturing and Materials. Most funding is administered through open competitions. The UK government will be publishing a National Innovation Plan which is likely to impact on the governance and funding of Innovate UK in the future.

NESTA An ‘innovation charity’ and has dedicated Smart Cities programmes. NESTA are recognising the holistic nature of Smart Cities and are supporting many initiatives that include citizens and local communities. NESTA launched the Bloomberg Mayors Challenge in 2013, mange the People Powered Health project and are part of the D-Cents project focusing on democratic engagement platforms. NESTA run the Impact Investment and the NESTA Challenges Funds to tackle major challenges faced by citizens and communities in cities.

Big Lottery Fund Support for community led-initiatives. Grants available in Scotland include the Grant for community-led activity, the Grant for Improving Lives, Our Place and the Scottish Land Fund.

UK/

Sco

ttish

Fun

ding

(Res

earc

h)

Skills Funding Agency

Responsible for funding teaching and learning provision, research and other activities in Scotland’s colleges, universities and higher education institutions. This includes the allocation of the Research Excellence Grant and University Innovation Fund. Funding for research is also available from the seven UK Research Councils. As smart cities programmes fall across themes the appropriate council for funding will depend on the specific project.

Scottish Enterprise’s Research and Development Grant

Supports businesses developing new products, processes and services to improve company competitiveness and to benefit the Scottish economy. Most sectors are eligible and applications from traditional industries, hi-tech businesses and the service sector are equally welcome. Projects typically last 6 to 36 months, and the grant can cover up to 50% of the project costs. The project must represent a significant innovation for the company concerned and significant risks should be associated with the challenge of developing a new product, process or service.

SMART: SCOTLAND

Provides grants to SMEs based in Scotland to help them undertake technical feasibility studies and research and development projects that have a commercial endpoint. The company must be a small or medium sized business, university spin-out or an individual, and based, or planning to set up, in Scotland. The project must exhibit an advance in technological innovation for the UK industry or sector concerned, and the technical risks and challenges associated with defining and developing the technology.

24 Scottish Government (2015) The Market for SME finance in Scotland.


UK/

Sco

ttish

Fun

ding

(Hea

lth)

Wellcome Trust An independent global charitable foundation dedicated to improving health. They provide more than £700 million a year to support innovation in science, the humanities and the social sciences, as well as education, public engagement and the application of research to medicine. There are five funding areas including strategic funding, biomedical science, and humanities and social science; but, those most closely aligned with smart cities are: innovations and public engagement. The Health Innovation Fund25 is a parallel funding partnership between the Wellcome Trust and the Department of Health to stimulate the creation of innovative healthcare products, technologies and interventions for the benefit of patients in the NHS and beyond.

Scottish Health Innovation Ltd

SHIL was established to help protect and develop new innovations that come from healthcare professionals, creating new products and technologies that will improve patient care and generate income for NHS Scotland. SHIL has established over 15 products and five spin-off companies. SHIL could support the development, and the possible commercialisation, of smart health initiatives including helping to source funding.

UK/

Sco

ttish

Fun

ding

(Inf

rast

ruct

ure

& R

esou

rce

Effic

ienc

y)

Infrastructure and Innovation Fund

Aims to stimulate innovative approaches to unlock potential for local renewable energy generation. The fund is open to community groups, registered charities, community benefit societies, community interest companies, local authorities and registered social landlords. Match funding is encouraged but not required. The maximum available grant is £100,000 per project. The grant funding for this programme is currently being reviewed by the Scottish Government and there are currently no dates set for the next IIF funding panel meeting to review grant applications.

Circular Economy Investment Fund

Funding and support available to help small and medium businesses be resource efficient and create a more circular economy. The programme will run between 2016 and 2018 with a focus on priority commercial and industrial sectors: the bio economy (food and drink); built environment (construction and demolition); and, energy infrastructure (oil and gas decommissioning, renewables, transmission). There will also be funding available for key activities such as reuse, remanufacturing, repair and reprocessing.

Scottish Recycling Fund

A £3.8M fund established by Zero Waste Scotland and Scottish Enterprise to develop or expand materials reprocessing capacity and remanufacturing facilities in Scotland. The fund offers loans, repayable over a 3-5-year period on commercial terms, to organisations that are interested in developing the relevant infrastructure in Scotland.

Euro

pean

Stru

ctur

al In

vest

men

t Fun

ds

European Structural and Investment Funds (ESIF) provide EU Member States with financial assistance to deliver the EU2020 strategy of Smart, Sustainable and Inclusive Growth, increasing economic activity and employment across the EU. The funds are focused on EU priorities in areas such as employment, innovation, education, poverty reduction and climate/energy. They also align with Scottish Government priorities to reduce poverty and social exclusion, boost educational attainment and skills development, grow employment levels, economic activity and innovation, and climate change/renewable energy. The Scottish Government is the Managing Authority for the European Regional Development Funds (ERDF) and European Social Funds (ESF) programmes in Scotland. ERDF focuses its investments on several key priority areas including Innovation and Research, the Digital agenda, support for SMEs and the low-carbon economy. It is well suited to support Smart Cities initiatives provided match funding, not already linked to other European funding, is available. The 8th City PMO are currently administering a £10m ERDF Strategic Intervention focused on Smart Cities and there is scope for progressing other ‘smart’ activity via different Strategic Interventions in the 2014 – 2020 ERDF period. The Urban Innovative Actions provide urban areas throughout Europe with resources to test new and unproven solutions to address urban challenges. This has a total ERDF budget of EUR 372 million. It is available to cities of a minimum of 50,000 inhabitants and encourages groupings of urban authorities.

EU P

rogr

amm

es

Connecting Europe Facility

Focusing on energy, low carbon and transport

LIFE The LIFE programme is the EU's funding instrument for the environment. The general objective of LIFE is to contribute to the implementation, updating and development of EU environmental policy and legislation by co-financing pilot or demonstration projects with European added value. The new LIFE Programme starting co-funds projects on air quality and emissions, including urban environment.

HEALTH Financial instrument to implement EU’s Health strategy

25 Health Innovation Challenge Fund:


COSME Programme to support the competitiveness of enterprise and SMEs to address the challenges faced by EU SMEs

INTERREG Cross-border and inter-regional collaboration to share solutions and best practice between cities

URBACT A European exchange and learning programme promoting sustainable urban development, which integrates economic, social and environmental dimensions. It enables cities to work together to develop new, pragmatic and sustainable solutions to major urban challenges, reaffirming the key role they play in facing increasingly complex societal changes. So far 7 000 people from 500 cities, in 29 countries, have participated in the URBACT programme.

Hor

izon

202

0

Europe’s flagship 80 billion EUR programme, designed to support Research, Development and Innovation activities.

Programme Relevant Themes Example of Actions/ Activities

Excellent Science European Research Council (ERC) ERC Grants for researchers and PoC Grant for researchers

Industrial Leadership

Enabling and Industrial Technologies: ICT

Includes calls of Future Internet, content technologies and Information management

Innovation in SMEs COSME – The SME Instrument

Societal Challenges

Health, Demographic Change and Wellbeing

European Innovation Partnership on Active and Healthy Aging – Coordination Action

Personalising Health and Care

Smart, Green and Integrated Transport

Mobility for Growth, Green Vehicles, Fast Track Innovation for Transport

Climate Action, Environment, Resource Efficiency and Raw Materials

Many themes covered including eco-innovation

Europe in a Changing World Covers many topics including: education and skills, public policy, social inclusion/inequalities

Cross Cutting Activities (Focus Areas)

Industry 2020 in the Circular Economy, Internet of Things, Smart and Sustainable Cities

Fast Track to Innovation (FTI)

FTI Pilot Programme Pilot programme to reduce time of ideas to market, encourage industry participation in Research and Innovation. (fits well with CTALC objectives)

European Institute of Innovation and Technology (EIT)

EIT Health Promotes entrepreneurship and innovates in healthy living and active ageing, with the aim to improve quality of life and healthcare across Europe.

EIT Digital Support for SMEs in international customer acquisition and fundraising

EU F

inan

cial

Inst

rum

ents

fo

r Urb

an D

evel

opm

ent JESSICA Joint European Support for Sustainable Investment in City Areas (JESSICA) is a range of

sophisticated financial tools are used including equity investments, loans and guarantees, offering new opportunities for the use of EU Structural Funds and are managed through countries’ Managing Authorities.

ELENA European Local Energy Assistance (ELENA) is funded through the EC’s Intelligent Energy Europe Programme and supports EU cities to implement large energy efficiency and renewable projects. ELENA covers up to 90% of the technical support cost needed to prepare, implement and finance an investment programme.


Inte

grat

ed te

rrito

ry

inve

stm

ent m

echa

nism

The Scottish Cities Alliance is exploring opportunities to pull together several strands of EU funding to create a cities fund to deliver a substantial programme of smart cities initiatives. This is based on the experience of Finnish 6Aika in using the integrated territory investment mechanism. The Alliance is working with partners from four member states to organise an event in October 2016 as part of the European Week of Cities and Regions in Brussels on 11th October 2016. The ultimate aim is to inspire cities to develop a similar approach to Finnish 6Aika and to make recommendations on how European funds could be structured to make the inter-city approach more accessible to inter-city partnerships.


Urban Foresight Limited The Core, Science Central, Bath Lane, Newcastle upon Tyne, NE4 5TF, United Kingdom Registered in England & Wales No. 07705420 VAT No. 179 2207 93 © Urban Foresight Limited, 2016. All rights reserved. ScottishC/O,1CadoganGlasgowG2

7HF

Street uareqS Cadogan

Industry and Development for Council Scottish Alliance Cities

E: [email protected]

T: +44 191 495 7350 W: http://urbanforesight.org

[email protected]

E::T

W:

smartcitiesscotland#@scottishcities

scottishcities.org.ukwww. 9737 222 141 )0( +44

smart cities scotland blueprint - scottish cities · information from public and private sources,...

Documents