Leveraging Cities As Hubs of Innovation and …...LEVERAGING CITIES AS HUBS OF INNOVATION AND...
Transcript of Leveraging Cities As Hubs of Innovation and …...LEVERAGING CITIES AS HUBS OF INNOVATION AND...
LEVERAGING CITIES AS HUBS OF INNOVATION
AND DISRUPTIVE TECHNOLOGIES
Prepared by: Victor Mulas, Technology and Markets Unit,Finance, Competitiveness and Innovation Global Practice (FCI GP)
March 2019
AGENDA
1. Background:
Disruptive Technology Trends
2. Cities as Innovation Hubs:
Cities as hubs of innovation and disruptive technologies
3. The Urban Conundrum:
Embracing disruptive technologies and managing transformation
DISRUPTIVE TECHNOLOGY TRENDS
Photo Source: FastCompany magazine, https://www.fastcompany.com/3028726/for-new-york-citys-tech-industry-is-there-life-after-bloomberg
Tourism Hotel Chains Airbnb
Transportation Taxis Uber/Didi
Entertainment Radio/Television Spotify/Netflix
Education Vocational Training/Higher Education General Assembly/edX
Real Estate N/A WeWork
Finance Institutional Investment Kickstarter/Coinbase
Communications Phone Calls Skype
Retail/Groceries Hypermarket Chains/Malls Amazon/Alibaba
Manufacturing Big Automakers Tesla/Local Motors
Healthcare N/A Editas Med./Organovo
DISRUPTION IS AFFECTING ALL SECTORS IN THE ECONOMY. IT IS NO
LONGER A QUESTION OF WHAT IS TECH, BUT OF WHEN IS TECH
Sector Traditional Model Tech Model
ILLUSTRATIVE
Source: Mulas V., Garret, B., Nedayvoda, A., (unpublished). Anticipating the New Economic Disruption.
TECHNOLOGY STARTUPS ARE DRIVERS OF THE INDUSTRY OF
THE FUTURE
Source: World Bank 2018c, using data from CBInsights Unicorns and Exists (July 2018) and Forbes 2018 500 Largest Public Companies.
The United States and China host most of the global private sector of today’s industries and those of the future. Leading technology startups are emerging in countries different from where traditional global industries are, with countries such as, Colombia, Brazil, Indonesia or South Africa better positioned in
terms of startup unicorns.
160
6152
30 26 22 17 16 11 10 9 8 7 6 5 4 3 2 10
50
100
150
200
Distribution of World’s 500 Largest Public Companies (2018)
261
114
21 14 11 5 4 3 2 10
100
200
300
Number of Technology-enabled Unicorns and Exits (2009-2018)
TOP HUBS OF INNOVATION: CITIES
CITIES ROLE AS INNOVATION AND DISRUPTIVE TECHNOLOGY HUBS
Photo Source: FastCompany magazine, https://www.fastcompany.com/3028726/for-new-york-citys-tech-industry-is-there-life-after-bloomberg
CITIES PLAY A KEY ROLE IN CREATING THE ECOSYSTEMS THAT
FUEL THE TECH NEW INDUSTRY
Source: World Bank 2018c, using data from CBInsights Unicorns (July 2018). Exits not included.
• Cities and metropolitan areas play a critical role in providing large-scale ecosystems to create unicorns.
• Unicorns require a critical mass of quality startups, access to networks of talent and knowledge, top-notch experienced mentors, and access to large-scale domestic and international funding that only a few number of ecosystems can provide per country.
PERCENTAGE OF UNICORNS PER COUNTRY ORIGINATED IN MAJOR ECOSYSTEMS
80%83% 77% 62%
48%
21%
14% 52%
15%
9%38% 38% 62%
87 130 13 13 Unicorns Unicorns Unicorns Unicorns
DISRUPTIVE
TECHNOLOGY HUBS
ARE HYPER-CONNECTED
Note: Dots are either a high-tech startup or an investor. Lines shows investment connections between investors and firms. This map shows gravitational relations from country clusters. Dots are shown closer to those others that are more connected to (in terms of investment and country of origin). Central clusters denotes higher connectivity than external clusters. Source: Pitchbook and database of companies created by WBG.
LEADING DISRUPTIVE
TECHNOLOGY STARTUP HUBS
(AI, ROBOTICS, SPACE-TECH, QUANTUM COMPUTING)
PRELIMINARY
The US Government and the city of Chicago funded the Digital Manufacturing and Design Innovation Institute (DMDII), to collocate academia, industry and startups focused on advanced manufacturing. Advanced manufacturing equipment was provided with funded research projects and program for active collaboration among stakeholders. Singapore has also developed large community spaces to collocate R&D departments from universities, accelerators, VC and startups.
CITIES ARE FOSTERING THE CREATION OF HOME-GROWN
TECHNOLOGY HUBSTWO MAIN UNDERLYING GOALS: COMPETITIVENESS AND JOBS
THE NEW URBAN STARTUP ECOSYSTEM
NEW YORK CITY, USA
Second Largest Ecosystem in the World
VC: USD 2B (2010) → >USD 13B (2017)Unicorns: None (2010) → >15 (2017)Tech Jobs: 58,000 (2013) → > 300,000 (2017)
Strategic Policy Support Program (2008 -> 2019)
VC: Seed Funding catalyzation programTalent: Creation of tech leading campus and network of bootcampsSpace and Support Infrastructure: Network of co-working spaces and acceleratorsCommunity and culture: Promotion campaigns, events and competitions
NEW URBAN DEEP-TECH R&D HUBS:CHICAGO AND SINGAPORE
Models expanding through emerging economies cities: Medellin, Buenos Aires, Cairo.
DISRUPTING CITIES: THE URBAN CONUNDRUM
Photo Source: Innovators magazine, https://www.innovatorsmag.com/ireland-has-
diverse-startup-ecosystem/
TECHNOLOGY TRENDS DISRUPTING CITIES
Technology Trend Application Disruption
Self-driving cars, and new mobility and logistics trends
Adaptative and personalized mobility solutions for passengers and cargo
Public and private transportation and industry
Production and distribution of goods and services
Digital production and distribution of everything
Socio-economic and industry disruption
Rooftop, hydroponic and vertical farming
Food production and distribution on site Food logistics and local economy distribution
Designing, construction and management of buildings
New materials, digital manufacturing production, self-maintenance
Urban planning, construction industry
IoTs and 5G Management and maintenance of private and public infrastructure
Construction and infrastructure services industry
Big data analytics, geo-spatial and data sharing
Automatized and assisted city management; personalized service delivery; rapid and more accurate response.
City management and service delivery
Waste management Personalized and automated sensor sorting and water and energy production
Waste impact; waste industry, electricity industry
Producing and storing energy Personalize production and storage; distributed networks
Electricity industry and infrastructure
Source: elaborated based on IFC (2019) Reinventing Business Through Disruptive Technologies.
DISRUPTION IS HAPPENING:CITIES ARE NATURAL TEST-BEDS FOR DISRUPTIVE TECHNOLOGIES
MANAGING AND LEVERAGING DISRUPTIVE TECHNOLOGIES
URBAN LABS
(BARCELONA, LONDON)
REGULATORY SANDBOXES
(SINGAPORE, WASHINGTON, DC)
CATALYZING URBAN INNOVATION TO ADDRESS URBAN
CHALLENGES
MIMEDELLIN CO-CREATION PLATFORM
(MEDELLIN)
STARTUP IN RESIDENCE PROGRAM
(SAN FRANCISCO, AMSTERDAM)
LEVERAGING CITIES AS HUBS OF INNOVATION
AND DISRUPTIVE TECHNOLOGIES
Prepared by: Victor Mulas, Technology and Markets Unit,Finance, Competitiveness and Innovation Global Practice (FCI GP)
March 2019