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Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life

Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life | 3

This study was prepared by The European House-Ambrosetti for ABB.

The study included the participation of a Steering Committee whose members were:

- Barbara Frei (CEO, ABB SpA and Mediterranean Region Manager)

- Joan Busquets (Professor of Urban Planning and Design, Graduate School of

Design, Harvard University)

- David Gann (Deputy Principal for Research and Business Engagement, and Chair

in Innovation and Technology Management, Imperial College Business School)

- Paolo Borzatta (Senior partner, The European House-Ambrosetti)

Taking part in Steering Committee activities for ABB were:

- Eliana Baruffi (Corporate Communications Manager Mediterranean Region)

- Antonio De Bellis (Head of Smart Grids Mediterranean Region)

Working Group of The European House-Ambrosetti:

- Lorenzo Tavazzi (Director, Strategic Scenarios Department)

- Sara Lelli (Project Manager)

- Fabiola Gnocchi

- Pietro Mininni

- Vanessa Conti

- Loredana Urso

Contributors:

- CERTeT-Università Bocconi

- Fondazione EnergyLab

- CRA – Customized Research & Analysis

Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life | 5 4 | Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life

We would like to thank for their contributions and suggestions:

- Mauro Annunziato (Coordinator, Smart Cities and Ecoindustria - ENEA);

- Mario Calderini (Research and Innovation policy Consultant to the Ministry of

Schools, Higher Education and Research and Coordinator of the “Smart Cities

and Communities” Working Group, Steering Committee for the Agenda Digitale

Italiana);

- Corrado Clini (Minister for the Environment, Land and Sea);

- Graziano Delrio (President, ANCI);

- Marie Donnelly (Director, New and Renewable Sources of Energy, Energy

Efficiency Innovation, Directorate General for Energy, European Commission);

- Andrea Di Palma (Secretary General, ADICONSUM Lazio Region);

- Piero Fassino (Mayor, City of Turin);

- Giovanni Gorno Tempini (CEO, Cassa Depositi e Prestiti);

- Guido Improta (Under Secretary, Ministry of Infrastructure and Transport);

- Stefano Laffi (Professor of Urban Sociology, Università Milano Bicocca);

- Enzo Lavolta (Alderman for Innovation, Development and Environmental

Sustainability, City of Turin; President, Fondazione Torino Smart City);

- Alessandro Leonardi (Director of the “Smart Cities” project, Poste Italiane);

- Carlo Mochi Sismondi (President, Forum PA);

- Ofelia Oliva (National Secretary, ADICONSUM);

- Federico Pedrocchi (Director, Osservatorio Smart Cities SMAU-ANCI);

- Gloria Piaggio (Project Manager, “Genova Smart City”, City of Genoa);

- Andrea Poggio (Vice General Director, Legambiente);

- Carlo Rienzi (President, CODACONS);

- Guido Rivolta (Communications Director, Cassa Depositi e Prestiti);

- Lanfranco Senn (President, MM Metropolitana Milanese; Director CERTeT-Centro

di Ricerca in Economia, Trasporti e Turismo, Università Bocconi);

- Adolfo Spaziani (General Director, Federutility);

- Cesare Trebeschi (Research and Innovation Director, CONFAPI);

- Rosario Trefiletti (President, Federconsumatori);

- Valerio Zingarelli (Chief Technology Officer, EXPO 2015).

© ABB and The European House-Ambrosetti - 2012 For a virtual visit to the world of power and automation.

The content of this report is the exclusive responsibility of The European House-Ambrosetti and may

not coincide with the opinions and viewpoints of the individuals interviewed.

The report is available online at

www.abb.it and www.ambrosetti.eu

Summary

Research concept

Preface 10

10-point summary 12

Executive summary 17

Study goals and approach 17

What Italy must do to become “smarter” 18

What being “smart” means 24

How smart Italy is today and how smart it could be in the future 28

PART ONE – What Italy must do to become "smarter”

Chapter 1 - Our vision of a “smarter” country 33

Chapter 2 - Proposals for making Italy “smarter” 36

Proposal 1: Overall strategy for Italy 37

Proposal 2: Smartness governance 39

Proposal 3: Italian Smart City Innovation Partnership 43

Proposal 4: “Smartest City” award based on a shared model 44

Proposal 5: Fine-tune existing initiatives 46

Proposal 6: ”Quick win” in the short-term 48

Proposal 7: Increase the “really free” time of Italians by 10% in 5 years 50

Chapter 3 - Resistance to be overcome to realize the proposals 53

Chapter 4 - The value of a smarter country 54

Chapter 5 - Convincing the country: building consensus and promoting inclusion 59

Public opinion perception of smart cities 59

Communicating: with whom and how 63

PART TWO – What being “smart” means

Chapter 1 - Smart cities: What are they? 69

Origin and evolution of the concept 69

Characteristics most common today 71

General context: system-wide initiatives to spread smart cities 73

Smart city experiences as currently defined throughout the world 80

Chapter 2 - Our concept of smart city 85

A smart city in a smart country 85

Vision and goals of the smart city 87

Chapter 3 - Why smart cities 90

General context: the needs of our age made critical by the evolving world scenario 90

The contribution of technological innovation in meeting needs 98

PART THREE – How smart Italy is today and how smart it could be in the future

Chapter 1 - The “smartness” of Italy’s main urban centers 105

Overall approach 105

Ranking of Italy’s major cities 108

Chapter 2 - A look to the future 112

Italian cities that can become “smarter” by the year 2030 112

Principal drivers 115

Bibliography and Webography 120


Research concept

- Preface

- 10-point summary

- Executive summary


Preface

Asking ourselves whether developing smart cities could represent an opportunity for

Italy was the first step behind this study.

Answering this question led us to take on many converging and strictly-correlated

trends and technological developments, social expectations, interaction between

the players involved, experiences from abroad, available information and public

involvement, impulses towards sustainable development of society and the rapidity

with which transformations are taking shape.

And the starting point was outlining – within the Steering Committee, both giver and

receiver of inspiration – a shared profile of the smart city concept which was then

submitted to examination by qualified stakeholders and the public. The perspective

on which this study is based is an urban model that assures high standards of the

quality of life for the personal and social growth of individuals and business, thanks

to the sustainable optimization of resources and space.

In our view, Italy must seize the smart city opportunity as a stimulus to launching

a project-oriented and systemic course towards an evolutionary process that is

absolutely necessary, while putting a distinctive Italian stamp on this journey by

taking into consideration the cultural identity, dimension, vocation and special

characteristics of our cities.

Starting from a vision of the future of Italy that unites political, economic and social

projects, it is fundamental that government and institutions commit themselves to

outlining a medium- to long-term strategy that creates the groundwork for evolution

and change. Specifically, identifying goals, priorities, areas for action, monitoring

methods, roles and responsibilities of the players involved, technological directions

and guidelines for standards. All this in support of an economic plan that promotes

adequate investment and, as a consequence, positive spin-offs for the country in

terms of jobs and work. Having outlined the strategy, it will be necessary to define

how to govern this evolution to guarantee stability in the approach and governance.

The model we believe could support this vision must necessarily be a widely

participatory one: there are many players (both public and private) and they

must interact in a concerted, stimulative way to create synergies to optimize the

investments already initiated by a number of different bodies and interests.

Nor should we forget that the evolution of our cities towards a smart model must

necessarily also include profound change in the behavior of individuals and for this it

is important to launch a vast communications effort that will make the public aware

of the benefits and potential opportunities.

This study concludes with concrete proposals to support this process and an initial

evaluation of the benefits that could be obtained from focused, project-specific

investment.

But the real question I would like to conclude with is this: perhaps we should ask

ourselves, in the spirit of a new Renaissance, how much it would cost Italy to not

choose, to not invest in, to not design and plan, to not govern a change that,

despite everyone and everything, is at our door?

Barbara FreiCEO, ABB SpAMediterranean Region Manager


10-point summary

1. “Smart Cities” are an effective response to today’s needs which have

become crucial thanks to the rapid, pressing trends seen throughout the

world.

We are experiencing an era of tremendous change. Major discontinuities are

impacting the geopolitical and economic framework, as well as the daily context

in which we live and work. We are headed towards a “new world” which will

have new needs:

- Development of more integrated and inclusive urban models.

- Strategic management of natural resources.

- New models of mobility.

- Better quality of life.

- Greater valorization of senior citizens.

As always, urban systems – whose sustainability is faced by challenges and

threats – will be at the center of change. Simply repeating in the future what

was done in the past will not be enough. The city must be re-thought, starting

from its basic premises and traditional organizational structures. Smart cities

offer a very promising answer to this need and represent an important step in

the social and cultural change required. More intelligent and efficient urban

systems are not an option – they are an absolute necessity.

2. Innovation is a crucial factor for responding to new needs and quickly

attaining a number of objectives, but it must be approached from an

implementational standpoint.

The development and success of cities have always been inextricably

tied to innovation. In fact, urban technologies, systems and infrastructure

must be continuously adapted to needs as they arise. This connection is

destined to grow in the future and it will be increasingly necessary to not only

connect physical systems and digital technologies, but also interconnect the

technologies themselves. The result of this linking up could be the birth of new

uses for instruments that are already available. However, the challenge will be

guaranteeing that technologies are truly able to provide an effective response

to the problems of citizens and business: there must be a clear plan when

adopting technologies. Smart cities cannot be only a technological challenge.

Above all, they must be a social challenge.

3. In our view, the “smart city” is an urban model that minimizes efforts

around “low level” needs and effectively satisfies “higher level” needs to

guarantee an elevated quality of life while optimizing resources and areas

for sustainability.

A transition is currently underway from satisfying primary, material needs

(physiological, safety, emotional, esteem) typical of consumer societies, to

satisfying “higher” needs typical of global, post-consumer societies: awareness

(individual and of the world), sustainability of choices (satisfying individual needs

while avoiding compromising the ability of future generations to satisfy theirs),

equilibrium, self-actualization and personal growth.

These types of needs can only be satisfied by more advanced smart cities. A

smart city is, for us, an urban model that can guarantee a high quality of life

and personal and social growth of individuals and business, while optimizing

resources and areas for sustainability.

4. The Italian smart city of tomorrow is a challenge to be faced today, an

opportunity to “re-invent” Italy by retrieving a strong concept for the

future, yet without forgetting the past.

Italy is not isolated from the changes in progress. Smart cities – direct

descendents of the Renaissance ideal city – are an opportunity to place

the valorization of urban areas once again at the center of the national

agenda. Even more so in this period when opportunities are scarce. From this

standpoint, the marked fragmentation of smart city initiatives undertaken in Italy

would not seem to work. It risks being “intelligent acupuncture” incapable of

generating complex, broad-based changes – changes which, moreover, do not

need to be futuristic. The competitive advantages emanating from an artistic

and cultural heritage the entire world envies Italy, must evolve from being a valid

tendency and ability to cooperate (when we want to), to becoming a source of

profit. In fact, they will provide the opportunity to formulate a distinctive and

original Italian concept of smart cities.


5. Winning these challenges requires a “smarter” country, but multiple smart

cities do not necessarily make the country smart.

Individual sector-related policies, individual and isolated projects which tend

to be self-organized and individual technologies applied as part of a more

general, highly-diversified array of generically-labeled "smart" initiatives do not

make an area truly smart. Technologies, projects and policies must be part of

a commonly-held idea to avoid the clear risk of weakening the potential of the

concept and undermining efforts towards it. For Italy to benefit overall, critical

mass and cohesion are essential.

6. The challenge calls on the central government to bring together the

various forces involved, provide a focus for disparate initiatives and

“capitalize on” local entities on a range of levels.

By definition, a smart city cannot be a standardized product. It is the result

of a delicate equilibrium of factors which, most of the time, are unique and

unrepeatable. However, systemic guidelines and the means to implement

them (uniform rules, methodology and, above all, standards, to create

technological compatibility promoting smartness among local areas) are

needed. Widespread ferment should be coalesced into a country-wide project

(in other words, a national perspective and related national strategy with a

topdown orientation) which insures:

- Monitoring of focus and coordination to provide long-term support to local

smart-related activities.

- Impartial stimulus and guidance.

- Strong leadership.

- Continuity in basic choices.

7. The success of the project lies in a strategic management approach and,

in particular, through monitoring national trends using a unified reference

model.

The systemic approach must be translated into concrete and measurable

goals (priority macro-goals) for easy verification of results. Key elements in an

optimal reference model – of which a sample application is offered – to evaluate

smart city performance should be:

- A metric of the benefit to citizens, not the city’s (physical/non-physical

facilities, a typical factor used by more traditional methods in measuring and

comparing cities.

- “Smartness” defined in terms of completeness (an award for good results

under all aspects, penalization for excellence in individual areas).

- Identification of relevant key actions to improve performance in order to

develop policy guidelines.

8. A national informational/awareness campaign is urgently needed to reach

a wide base in the short-term because smart-related issues are familiar to

few and risk being perceived as "elitist".

The public is not involved in smart-oriented innovation projects: only 1 Italian

out of 5 knows the meaning of the term "smart city". Given the major social

implications of this area which will revolutionize our way of experiencing cities,

launching any kind of process without the public being adequately informed,

prepared and motivated in terms of the potential and benefits is absolutely

necessary (social networks are the best way to do this). Communication must

emphasize the concept of inclusion. Above all, a “public engagement”

process focused first and foremost on case studies is critical.

9. To become “smarter” Italy must invest 3 percentage points of GDP each

year, from now until 2030, but a “smarter” country is worth up to 10 points

in GDP annually.

The redesign of urban system functions inherent in the smart city concept

activates significant innovative, industrial and financial resources. From

now to 2030, maintaining the current performance level will require (at the very

minimum) that Italy make a 22 billion euro investment in technology each year.

But with questionable results, because many smart-related goals are already

codified by international institutions, which means conforming with these is

inevitable. Transforming Italy into a “smarter” country requires a considerable

commitment: 50 billion euro per year (which drops to 6 billion euro per

year if the initiative is focused on only the 10 main cities). Nonetheless, the

introduction of innovative technologies would trigger a recovery of efficiency,

available time, productivity and a reduction in transaction costs that translate

into additional growth for the country of 8-10 GDP points a year (without

counting non-quantifiable returns in terms of international competitiveness

and image, social cohesion, creativity, innovation, spread of knowledge and

livability).


Executive summary

Study goals and approach

1. The entire world is currently experiencing an epoch-making social/economic

transition and those countries that will emerge from it are those capable of

“intelligently” approaching fundamental economic, social and governance

issues.

As part of this process, smart cities will become – and to an extent already are

– the leit motiv for the future.

Intelligence is, in fact, the evolutionary phase that our urban systems have

been lacking. But being “smarter” has become urgent if we want to respond to

the changes currently in progress and meet newly-emerging needs, as well as

guide the traditional model of society (today in crisis) towards a new economic

and social reality.

2. Although local government has been involved in independent initiatives for

some time, on a national level Italy has gotten a late start in this area and its

small number of large metropolises would seem to be a weakness.

3. But in reality, this presumed weakness is a point of strength. In a context like

Italy’s, it would be absurd to think of transforming its urban centers – seeped

in a heritage going back millennia – into futuristic megalopolises. It has a

cultural and artistic heritage envied by all, together with one of the most solid

foundations of social capital anywhere in the world – both aspects which

should actually be exploited. In fact, they offer the opportunity to formulate a

unique and original concept of smart cities within the context of a “smarter”

country, today indispensable to merge the competitiveness of the country as a

whole with the well-being of its citizens.

4. A “smarter” country is not optional, it is a necessity because the world will

change in any case, whatever choices we make (or fail to make). Initiatives

can be taken on different levels, but failing to take action means condemning

ourselves to gradual decline on the world scene and continuing to delay is also,

implicitly, a type of choice.

5. This study was undertaken to contribute to the debate and initiatives involving

the opportunities the smart city concept offers Italy, and it includes a strategic

perspective that both political leaders and the public will find useful as they

work together to make the choices required.

This study is part

of a research initiative

by The European

House-Ambrosetti

for the improvement

of the Italian economy

A country that is

“smarter” brings together

competitiveness of the

country as a whole with the

well-being of its citizens:

today, this is a choice that

must be made

Through this study ABB

is continuing its analysis

of strategic sectors

initiated with the 2011/2012

study “Trends in global

energy efficiency”

10. Towards these goals we have formulated 7 proposals that constitute a

basic plan of action.

- Proposal 1: Define a vision for Italy and a strategy for attaining it, while

reaffirming the guiding role of the national government.

- Proposal 2: Prepare a national governance plan for smart-related issues

which provides guidelines for action and coordinates cross-group interests.

- Proposal 3: Launch the Italian version of the European partnership model for

smart city innovation.

- Proposal 4: Create an award for the first 5 cities that attain the maximum

level of “smartness”, measured in terms of actual benefits for their citizens.

- Proposal 5: Formally commit to ending or definitively concluding a number

of still-incomplete initiatives directly and/or indirectly connected to the smart

city concept.

- Proposal 6: Promote (already) available and low-cost smart solutions that can

produce significant progress in the short term.

- Proposal 7: Set a challenging goal (for example, increase the “really free”

time of Italians by 10% in 5 years) to overcome the "elitist” perception of

smartrelated issues, influence expectations and create consensus.

DREAMCOUNTRY CITY PRESENT


What Italy must do to become “smarter”

6. Cities have always been at the center of change, leading protagonists in the

economic and social development of our planet, but never before the sources

of opportunity and challenge they are today.

7. Balancing the inevitable and hoped-for development of local areas and urban

systems with a model that is truly sustainable is the strategic challenge of

tomorrow. It is clear that simply repeating what was done in the past will not be

enough. The city must be re-thought.

8. Smart cities offer a very promising answer to this need and represent an

important step in the social and cultural change required.

The smart city approach has its roots in the concept of ideal cities that reached

its height during the Italian Renaissance, an age which united beauty, social

organization and enlightened government. In fact, smart cities incorporate

and amplify the positive aspects of city living and eliminate the negative ones,

thanks to "intelligent" planning of key spheres. Urban systems of this type are

not an option – they are an absolute necessity.

9. In Italy, the seeds of change seem to have been sown, for example, the interest

of many local governments in this area, launching of initiatives and debate on

national level. However, the overall impression is one of:

- High fragmentation and dispersion of initiatives.

- Tendency to organize initiatives in isolation.

- Extremely disparate nature of solutions under the generic heading of “smart”.

The clear risk is that of weakening the potential of the concept and undermining

efforts towards it.

10. In our view, efforts should be placed, first of all, in coalescing the widespread

ferment for a country-wide project (in other words, a national perspective and

related national strategy) that is centrally coordinated and which:

- expresses a common focus for a “smarter” country and establishes shared

goals;

- clarifies the role of each institutional level while sanctioning strong leadership;

- guarantees the continuity of basic choices, beyond established terms of

office (at all levels);

- may be set by each local government – or coalition of local authorities – on

the basis of the specific characteristics and interests of the local area.

The world is undergoing

profound and rapid change

and urban systems face

challenges and threats

to their sustainability

Central government has a

clear policy role: coalesce

efforts and provide a focus

for the various initiatives

11. Alongside a centralized focus, the means to achieve this are also needed:

uniform rules, methodology and, above all, standards, to provide for

compatibility of smart technologies between local areas, preventing duplication

of systems, services and bureaucracy that vary from city to city and have

trouble communicating with each other.

12. This formed the basis for the elaboration of 7 proposals aimed at optimizing

conditions for Italian cities to become "smarter" in the years to come. These

proposals should be seen from the standpoint of their potential effects on the

country’s entire economic/social system:

- Initiatives to remove those factors that inhibit competition on an international

level (Proposals 5 and 6).

- Initiatives to bridge the gap with leading countries in this sector internationally

(Proposals 3 and 4).

- Initiatives to create competitive advantages (Proposals 2 and 7).

In addition to the above, there is a proposal that forms the basis for the entire

plan (Proposal 1).

Proposal 1: Overall strategy for Italy

- Define a vision for the country and a strategy for attaining it (political, social

and economic project for Italy), within an international context.

- Confirm the role of the national government as the central coordinating body

and promoter of the general context (rules, method, etc.).

Figure 1

Country

City system1

City system2

Smart city 1

Smart city 2

Smart city 3

Smart city 4

Shared goalsStrategic choicesRemoving obstacles

Fine-tuning goal(characteristics, roles,location, etc.)

Hierarchy coordinationBuilding synergies

Top-down coordination approach

7 operating proposals

were formulated to make

the country “smarter”


Proposal 2: Smartness governance

- Prepare a national governance plan for smart-related issues which provides

guidelines for action and defines a unified approach for all smartness-related

questions.

- Bring together the special interests of national and local institutions and

business, making them more synergic and coordinated.

Proposal 3: Italian smart city innovation partnership

- Launch the Italian version of the European partnership model for smart

city innovation and concentrate available resources on a limited number of

highpotential projects.

- Stimulate teamwork between business, local government and financial

institutions.

Proposal 4: “Smartest City” award based on a shared model

- Create an award for the first 5 cities that attain the maximum level of

“smartness”, measured in terms of actual benefits for their citizens.

- Create competition among local areas and foster sharing of experiences,

while at the same time enhancing awareness of the “smart” issue throughout

Italy.

Proposal 5: Fine-tune existing initiatives

- Formally commit to ending or definitively concluding a number of

stillincomplete initiatives directly and/or indirectly connected to the smart city

concept.

- Insure that all initiatives – often stalled over the years for lack of coordination

and/or communication between institutional players – are moving in the same

direction.

Proposal 6: ”Quick win” in the short-term

- Quickly produce tangible results by promoting (already) available and low cost

smart solutions.

- Send a clear message to the public about the benefits that can be obtained,

through concrete demonstrations of what is possible (actions speak louder

than words).

Proposal 7: Increase the “really free” time of Italians by 10% in 5 years

- Set a challenging (performance) goal in an area that is clearly advantageous

for citizens in order to demonstrate to them in a concrete and tangible way

the potential benefits of the smart concept for their lives.

- Show the seriousness of governmental commitment.

13. It is likely that psychological resistance to change could arise during the

implementation of the above proposals:

- Limited ability to "work together" through sectorial and horizontal integration

of the various players involved. This aspect impacts most on Proposals 1, 3,

4, and 7.

- Opposition of “interest groups” to potential changes in laws, despite the

awareness that current legislation does not provide adequate support for the

technological changes smart cities require (in particular, for Proposal 6).

- Tendency to be caught up in their own "particular" situation and to continue

to defend their own interests instead of creating cohesion around important

and common issues (useless infighting). This risk is particularly high for

Proposals 2 and 5.

14. The innovation produced by smart cities can be seen on a number of different

levels:

- Activation of manufacturing supply chains.

- Regaining efficiency.

- Time savings for citizens, business and public administration.

- Cascading multiplier effect for infrastructure and system investment.

15. To become “smarter” Italy must invest 3 percentage points of GDP each year,

from now until 2030, but a “smarter” country is worth up to 10 points in

GDP annually.

The smart country approach outlined here is modular: in other words, it offers

the system the possibility of opting for intermediate trajectories in terms of

immediate smart-based evolution of all Italian urban centers.

When taking action,

probable resistance to

change should be taken

into consideration

Smart cities offer

revolutionary opportunities

for economic, social and

technological change


16. Additional benefits, not quantified in this report, are:

- Country image and international competitiveness.

- New impulse towards social cohesion and local identity.

- Greater spread and availability of knowledge, increase in creativity and

innovation.

- Overall livability of urban centers.

17. For the opportunity represented by smart solutions to be fully accepted, a

mass-based awareness-raising and communication effort is urgently

required.

18. In fact, according to the results of a specially-prepared survey,² 4 Italians out

of 5 do not know what a smart city is. Nonetheless, just being aware of the

concept influences the level of openness to it, a sign that the idea is a valid

one.

The overwhelming majority

of the population has no

idea what a smart city is:

this opportunity must be

communicated

Area RETURNS(Efficiency recovery on current costs – billion €/year)Optimizationmargin

Smart 2030

Italy*** 10 cities****

Energy 20-30%(a) 8,9-13,3 0,013-0,019

Construction 10-50%(b) 4,4-20 0,0063-0,029

Mobility 10-20%(c) 44,5-55,5 0,064-0,08

Resources 10-15%(d) 1,6-2 0,0023-0,0029

Public (e) 2,4 0,0035

Public Administration (f) 2,3 0,0033

Spinoffs for national industry/economy (g) 64,3 9,3

TOTAL 128-160 9,3-9,4

% GDP 8-10% 0,6%

Area INVESTMENTS(billion €/year)Current trend 2030 Smart 2030

Italy* 10 cities** Italy*** 10 cities****

Energy 9,5 1,4 8,9 1,3

Construction 2,4 0,3 7,2 1,0

Mobility 5,4 0,8 8,2 1,2

Resources 4,7 0,1 4,3 0,6

TOTAL 22,0 2,6 28,6 4,1

Total smartness investment/year 50,6 6,7

% GDP 3,2% 0,4%

(*) Minimum amount of investment required for the current performance level of the country. (**) Minimum amount of investment required for the current performance level in the top ten most populous Italian cities.(***) Investment for smart evolution of the country. (****) Investment for smart evolution of the top ten most populous Italian cities.

Figure 2Source: TEH-Ambrosetti based on Energy Lab Foundation data, 2012

Investment and returns for a smarter country ¹

1 (a) Estimates for savings from the adoption of measurement technologies for consumption and quality of electrical power supplied. Source: website of the Ministry of the Environment; (b) Estimates for (partial or full) residential energy renewal initiatives. Source: ENEA, “Rapporto annuale efficienza energetica”, 2011; (c) Estimates for the application of Intelligent Transport Systems. Source: European Commission, “Intelligent Transport Systems in Action, action plan and legal framework for the deployment of intelligent transport systems (ITS) in Europe”, 2011. (d) Savings estimates from the adoption of water consumption measurement technologies and estimates for energy recovery from waste. Sources: The Climate Group, Arup, Accenture, Horizon, University of Nottingham, “The new economics of cities”, 2011; Nomisma Energia, “Potenzialità e benefici dall’impiego dei Combustibili Solidi Secondari nell’industria”, 2011; (e) Time savings from digital public services, including transport-related cost/time savings. Only those citizens with internet connection. This estimate does not take into consideration less crowding in public offices, less traffic and, as a consequence, the decrease in pollution made possible through the lower use of vehicles. Source: I-com, “R-innovare l’Italia”, 2012; (f) Estimates of cost savings for personnel and supplies through digitalization of the following municipal services: multichannel payments, vital certificates and sending of computerized documents to the business affairs desk. Source: Osservatorio eGovernment, 2012; (g) Average annual amount from direct and indirect effects on Italian manufacturing supply chains that could be activated, 2013-2030. Source: Energy Lab calculations, July 2012.

2 The survey was conducted by CRA-Customized Research Analysis in July 2012 using the Telepanel method, with a sample of 2,130 individuals based on the entire Italian population over 14 years of age.

Given the major social implications of this area, launching any kind of process

without the public being adequately informed, prepared and motivated in

terms of the potential and benefits is absolutely necessary (social networks

are the best way to do this). Communication must emphasize the concept

of inclusion. Above all, a “public engagement” process focused first and

foremost on case studies is critical.

Familiarity with the “smart city” concept

Yes 8%

No 78%

Don’t recall 14%

Figure 3Source: TEH-Ambrosetti based on CRA data, 2012

Have you ever heard the term “smart city”?


What being “smart” means

19. There is no single, generally-accepted definition of smart city. Over the last

decade, the term “smart” has indicated in turn a digital city, a socially-inclusive

city and a city that insures improved quality of life.

20. Today, it has taken on multiple meanings that vary depending on who

is proposing it. The only unifying factor seems to be the concept of

sustainability.

A smart city is a

sustainable city –

for everyone

Main definitions of smart city by stakeholder category and focus area

Mobility ICT Environmentalsustainability(energy,construction,land, water)

Qualityof life

Smart society(education,health care,participatorygovernance)

Government

EU SEt plan ■

EU Smart Cities and Communities Initiatives ■ ■ ■

Digital agenda for Italy ■ ■ ■ ■ ■

MIUR calls for bids ■ ■ ■ ■

Academia

Vienna polytechnic ■ ■ ■ ■ ■

MIt SENSEable Lab ■ ■ ■ ■

Caragliu et al. (2009) ■ ■ ■ ■ ■

Harvard ■ ■ ■ ■ ■

Business

ABB ■ ■ ■ ■

Alcatel ■ ■ ■ ■

IBM ■ ■ ■ ■

Siemens ■ ■ ■

Cisco ■ ■ ■ ■ ■

Accenture ■ ■ ■

Figure 4

21. Like the various definitions, the initiatives for spreading the concept are also

proliferating, both internationally and within Italy (although with some delay).

22. European initiatives include:

- Covenant of Mayors: an independent initiative of European municipalities

launched in 2008 with 4,200 participating towns and cities (including over

2,000 in Italy); its goal is to reduce CO2 emissions more than 20% by 2020.

- Strategic Energy Technology Plan (SET Plan): strategy which identifies the

priority actions to be taken to accelerate development of low carbon

emissions energy technologies.

- Smart Cities and Communities Initiative: industrial initiative, outlined in

the SET Plan, to support the realization of projects in three areas (electrical

and transportation networks and energy efficiency in the building sector) in

dozens of European cities committed to reducing greenhouse gas emissions

40% by 2020.

- Smart Cities and Communities European Innovation Partnership:

formed to contribute to the creation of multi-sector strategic partnerships

between European cities and business, it involves the transportation, energy

and ICT sectors.

23. On an Italian level:

- The Ministry of Education, Higher Education and Research has issued to-

date two calls for bids involving smart cities, with funding totaling 920.5

million euro. The specifications for these calls for bids are in the process of

being drawn up.³

- Piano Nazionale per le Città (National Plan for Cities), prepared by the

Ministry for Infrastructure and Transport as of August 2012; with a budget of

2 billion euro, it is aimed at urban renewal.

- And finally, through its activities, ANCI (Associazione Nazionale Comuni

Italiani – National Association of Italian Municipalities) is offering to head up

nation-wide action to make successful experiences available to all, and

provide support to towns and cities in a range of areas.

24. Throughout the world, there are many examples of smart city solutions – or at

least those identified as such. However, an all-round smart city does not seem

to exist yet, only applications of the concept in specific and limited areas.

25. Smart cities can also represent an opportunity for Italy, as long as technology,

projects and policies are placed at the service of a strong, shared idea of the

future of Italy.

This vision must take into account the fact that society is changing.

A transition is currently underway from satisfying primary, material needs

(physiological, safety, emotional, esteem) typical of consumer societies, to

satisfying “higher” needs typical of global, post-consumer societies:

- Awareness (individual and of the world).

- Sustainability of choices (satisfying individual needs while avoiding

compromising the ability of future generations to satisfy theirs).

- Self-actualization.

- Personal growth.

These types of needs can only be satisfied by more advanced smart cities.

3 The Steering Committee for the Digital Agenda for Italy has produced a series of strategic documents on this issue that are part of the proposals to the national government for the DigItalia decree.

A smart city minimizes

the effort for “low” needs

and (efficiently) satisfies

“higher” needs


A smart city can respond

to new needs made crucial

by rapid, inevitable global

trends

A smart city is, for us, an urban model that can guarantee a high quality of life

and personal and social growth of individuals and business, while optimizing

resources and areas for sustainability.

26. Smart cities are the response to new strategic needs that will impact on what

cities of tomorrow will be like. In fact, new needs are taking shape, made

crucial by rapid, inevitable global trends:

- More integrated and inclusive urban models are needed because

development is increasingly urban-centric.

- Strategic management of natural resources is vital because current

consumption models are accentuating the scarcity of some resources.

- New models of mobility should be developed because taking on new

challenges using past methodologies and approaches is a losing strategy.

- To face the acceleration and complexity in daily life, there is strong demand

for enhanced quality of life in all its forms.

- The opportunity also exists to actively build on the potential of senior citizens

who are independent and living longer.

27. Technology and innovation have always played a central role in the

development of cities and it is clear that this role will grow in the future: not

only integration of modern digital technologies into physical spaces, but

also the interconnection of technologies with each other will open up new

opportunities.

However, the challenge will be guaranteeing that technologies are truly able to

provide an effective response to the problems of citizens and business: there

must be a clear plan when adopting technologies. Smart cities cannot be only

a technological challenge, above all they must be a social challenge.

Innovation is a crucial

factor for responding

to new needs, but must

be interpreted from

an implementational

standpoint

PhysiologicalBasic needs: air, food, water, shelter, heat, sex, sleep, etc.

SafetyProtection, safety, law and order, limits, stability, etc.

Belonging and loveFamily, affection, relationships, group, etc.

EsteemResults, status, responsibility, reputation

AwarenessKnowledge (individual

and of the world), sustainability

AestheticAttractiveness, equilibrium, etc.

Self-actualization Personal growth

and fulfillment

Strategic objectives in the 1800s and 1900s

New strategic needs to be fulfilled

Figure 5Source: TEH-Ambrosetti based on Maslow A., 1943

Hierarchy of needs (Maslow) and relation to strategic goals of individual country systems


Ranking of main urban centers (scale 0-100)

City Smartness indicator

1 Milan ✔ 50.8

2 Rome ✔ 49.7

3 Venice ✔ 42.5

4 Bolzano ! 36.0

5 Bologna ! 34.3

6 Genoa ! 34.2

7 trieste ✘ 33.1

8 turin ✘ 33.0

9 Palermo ✘ 32.7

10 Naples ✘ 31.4

11 Verona ✘ 31.1

12 Florence ✘ 28.2

13 Bari ✘ 22.6

Figure 7Source: prepared by CERTeT-Bocconi for The European House-Ambrosetti. 2012

Legend:

✘ : highly problematic

! : moderately problematic

✔: no problem areas within the factors examined

How smart Italy is today and how smart it could be in the future

28. The smart city is the result of a radical, all-round transformation process of

the urban system. A strategic approach is essential. We need an effective

vision translated into a limited number of measurable goals (to avoid becoming

abstract visionaries and losing focus).

29. We have developed a reference framework (priority macro-goals and result

indicators) to evaluate smart city performance on the basis of a unified

approach, and to offer a tool to support the choices of city governments.

A “smarter” country is an

evolutionary path that must

be monitored utilizing a

unified reference model

30. The key elements of this approach are:

- A "smartness” metric that expresses benefit to citizens, not the city’s

(physical/non-physical) facilities, a typical factor used by more traditional

methods in measuring and comparing cities.

- The use of key actions to improve urban performance in order to produce

policy-related information for developing strategic initiatives.

- Logic from which to define the complete, all-round smartness of an urban

system (penalizing excellence in individual aspects alone).

31. As an example, when the model is applied to major Italian cities, Milan, Rome

and Venice receive high marks.

32. Analyzing individual indicators provides an interesting view of the potential

for optimization from a smart perspective of the urban systems examined,

with ample margins regarding integrated and inclusive mobility, resource

sustainability, urban greenery and conservation of the ecosystem.

On a policy level, what emerges is the opportunity for development of “smart”

mobility plans that induce a cultural change, first and foremost. Just as

important are energy policies and related technologies.

Figure 6

GoalsWhat results do we want

for each aspect of smartness?

Performance indicatorsTo what extent is smartness

improving the lives of citizens?

Means of actionWhat can influence results?

Vision and strategyWhat future do we want

and how do we achieve it?

Strategic initiativesfor leadership

Identify smart-related factors with the greatest impact

on citizens’ lives and the national/local

measures required

Reference framework


PART ONE

What Italy must do to become "smarter”

- Our vision of a “smarter” country

- Proposals for making Italy “smarter”

- Resistance to be overcome to realize the proposals

- The value of a smarter country

- Convincing the country: building consensus and promoting inclusion

Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life | PART ONE 31 30 PART ONE | Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life

Chapter 1Our vision of a “smarter” country¹

- Intelligence is the evolutionary phase that our urban systems have been

lacking. But being “smarter” has become urgent if we want to respond to the

changes currently in progress and meet newly-emerging needs, as well as

guide the traditional model of society (today in crisis) towards a new social

reality.

- Seven operational proposals have been formulated that would make Italy

“smarter” and which, taken together, constitute an organic action plan.

- When taking action, probable psychological resistance to change should be

taken into consideration, specifically:

- Limited ability to "work together”

- Opposition of “interest groups” to changes in laws

- Useless infighting (defense of a specific aspect, rather than cohesion around

shared issues)

- The "smart country" approach is scalable in terms of the amount of

investment, but it cannot be avoided.The world will change in any case,

whatever choices we make (or fail to make).

- To become “smarter” Italy needs to invest 3 percentage points of GDP each

year, from now until 2030, but a “smarter” country is worth up to 10 points in

GDP annually.

- Four Italians out of five do not know what a smart city is. It is an issue only

a small group of people is concerned about and risks being perceived as

"elitist".This opens a major window of opportunity for a national informational/

awareness campaign channeled primarily through specific cases and social

media (broad-ranging, cost-effectiveness, rapidity).

Part one: key messages

1. Cities have always been at the center of change, leading protagonists in the

economic and social development of our planet. In fact, the major historical

shifts and revolutions have always seen cities in the fore2.

2. However, urban centers have never been the source of both opportunities

and challenges they are today. Globalization, demographic change and

technological innovations are quantitatively and, above all, qualitatively,

transforming the very function of cities.

3. The future trend is towards even greater development of urban agglomerations

which will become – even more so than they are today – the pillars of growth

and progress3. Therefore, the footprint of cities will be increasingly preponderant

and central.

4. The strategic requirement is succeeding in balancing the inevitable and hoped-

for development of local areas and urban systems with a model that is truly

sustainable. It is clear that simply repeating what was done in the past will

not be enough to guarantee those who interact with them on a daily basis an

economically and socially attractive environment4. Therefore, the city must

be re-thought, starting from its basic premises and traditional organizational

structures.

5. Smart cities offer a very promising answer to this need and represent an

important step in the cultural change required. More intelligent and efficient

urban systems are not an option – they are an absolute necessity.

Intelligence is the evolutionary phase that our urban agglomerations have been

lacking, but it is urgent if we want to guide the traditional model of society

– based on the rigid Fordist model today in crisis – towards a new social reality

more in line with changed needs.

6. Smart cities incorporate and amplify the positive aspects of city living and

eliminate the negative ones, thanks to "intelligent" planning of key spheres.

7. In this report, by “smart city” we mean an urban model that assures high

standards of the quality of life for the personal and social growth of individuals

and business, thanks to the sustainable optimization of resources and space.

Therefore, the smart city is a place with a number of positive aspects. For

example, a city where:

- the electrical grid is more stable, secure, efficient and sustainable thanks

to systems which reduce energy consumption without compromising

performance;

1 This section summarizes the concepts explained in more detail in Section 2 of the second part of this brief. Please refer to it for additional information. 2 From the Neolithic age to the merchant class in medieval cities around the first millennium or the Industrial Revolution, just to give a few examples. For a more detailed discussion

of our vision of the smart city, please see Part II, Section 2.3 According to United Nations estimates, over the next 20 years, cities will generate 75% of world GDP, be home to more than 2/3 of the population and absorb 90% of resources.

In comparison, fifty years ago throughout the world, no more than one person out of four lived in a city. In Europe and North America, 80% of the population already lives in cities, but it is estimated that this could soon reach a level of 88%. Source: United Nations, World Urbanization Prospects, the 2009 Revision.

4 In recent years, global trends have created a sort of hierarchy between cities around the world within which they compete for access to human and natural resources. Therefore, safeguarding the competitiveness of each urban system depends not only on the ability to meet challenges, but also the capacity to stand out and (last but not least) guarantee constant growth.

The world is undergoing

profound and rapid change

and urban systems face

challenges and threats to

their sustainability

Smart cities are a potential

answer to emerging needs

For us, the smart city is an

urban model that improves

the perception and

experience urban dwellers

have of living in the city


- people can get around easily thanks to advanced systems that streamline

traffic during the rush hour and with maximum integration between the

various modes of transport;

- remote control systems with sensors provide no-waste control of street

lamps or irrigation systems in parks;

- there is no need to wait in line at the bank, post office or public offices –

everything can be done by computer;

- medical visits can be scheduled and paid for by computer, as can all

municipal services;

- leaks in the water mains can be detected and messages can be sent from

trash bins when they are almost full.

But the key to realizing this scenario is the adoption of a holistic approach:

different aspects – until recently considered separately – must be rethought

within a single framework and made to interact5.

8. In essence, the smart city is the vision of an ideal city and, as such, has

its roots in ancient times. Since its inception, the European world has been

pervaded by the theme of the ideal city: from Plato’s polis to the “ideal cities”

of the Italian Renaissance which share with the smart cities of today the same

potential for revolutionary innovation – the role of the nexus for man’s activity

through history in a fruitful union of functional, aesthetic and social needs6.

9. Although with its aspects and characteristics, Italy is not isolated from the

changes and challenges currently underway, and many of these it shares with

other areas of the Old World7. The challenge is one of those inherent in being

part of the developed world, and is even accepted here across the board.

Proof can be seen in the interest of numerous local authorities in this issue.

10. A number of steps have already been taken in this direction on an official

level. For example, the Italian implementation of the recent EC “Smart city and

Communities” program by the special working group set up within the Steering

Committee for the Digital Agenda (Cabina Regia dell’Agenda Digitale) is giving

the smart city issue national importance and is contributing to initiating thinking

and debate around it.

11. So, the seeds of change have been planted. However, there is a clear sense

of fragmentation and dispersion regarding initiatives, a tendency to organize

initiatives in isolation and a very mixed array of solutions generically labeled

as "smart"8. All with the risk of weakening the potential of the concept and

undermining efforts towards it

12. Winning competitive challenges requires critical mass and cohesion: it requires

a smarter country. The mere sum of individual smart cities/regions, each one

resolving problems as needed, is not likely to produce a smarter country.

13. In our view, efforts should be placed, first of all, in coalescing the widespread

ferment for a country-wide project that is centrally coordinated and which:

- expresses a common focus for a “smarter” country and sanctions shared

goals;

- clarifies the role of each institutional level;

- guarantees the continuity of basic choices beyond established terms of

office (at all levels);

5 Please refer to Part II of this brief for a more in-depth look at technological aspects. 6 Contrary to this, much of the current literature related to smart cities tends to present them in an apocalyptic light, as the only possible solution to preventing the catastrophes of

tomorrow (overcrowded and unlivable cities, inexistent resources and disastrous climatic conditions). 7 To name a few, deep-seated historical roots, limited number of large metropolises, a dense network of small- and medium-sized cities each with its own established cultural

identity and diffuse values of tradition, solidarity and inclusiveness.8 Individual services, with high added value do not make a city "smart". The full range of services must be approached from an integrated standpoint. See: A. Fuggetta, “Com’è smart la città”, www.lavoce.info, March 2012.

The "smart city” is the

modern-day incarnation of

the Renaissance vision of

the ideal city

The Italian smart city of the

future is a challenge to be

faced today

Winning these challenges

requires a “smarter”

country, but multiple smart

cities do not necessarily

make a country smart

Central government has a

clear policy role: coalesce

efforts and provide a focus

for the various initiatives

Local systems must be

"exploited"

- may be set by each local government – or coalition of local authorities – on

the basis of the specific characteristics and interests of the local area.

14. Firmly at the top of the central level is also the creation of context conditions.

For local government to be able to create the best possible smart urban

systems for the future, it needs:

- regulations (limited in number but certain, i.e., consistent and with

penalties for non-compliance, and for which there can be no exceptions,

unless the reasons are made absolutely clear);

- guidance on method (common standards which, for example, lead to

overcoming the Italian tendency of “every man for himself”);

- tools (sets of comparative indicators, sharing of the most interesting

experiences, creation of systems of initiatives previously pursued

autonomously, etc.).

15. And, finally, no less important, the strengthening of synergies between

the various local stakeholders. From the standpoint of recovering Italy’s

competitiveness, the interaction between local interests is essential. As long

as the platforms, services and technologies between neighboring cities cannot

interact, any effort to optimize the system overall will remain useless.

There must be a cross-

city dialogue between

platforms, services and

smart technologies

Figura 1

Country

City system1

City system2

Smart city 1

Smart city 2

Smart city 3

Smart city 4






16. The proposals illustrated below provide an action-oriented approach to some

key problem areas in Italy, with the objective of creating the most optimal

conditions for Italian cities to become “smart cities” over coming years.

17. The proposals bring together and organize all the suggestions and thinking that

emerged from the studies of the Working Group and interaction with a number

of individuals:

- the Steering Committee9 was responsible for providing guidelines for the

study and observations to be taken into consideration.

- Experts and opinion leaders from Italy and abroad.

18. The study also included three specific reports, the findings of which are

discussed in Parts I and III of this brief:

- A detailed analysis of the investment required to develop smart cities in Italy.

- A survey of public sentiment in Italy towards smart cities.

- A scientific study of the relationship between smart city performance

indicators and smart city drivers which led to the development of a summary

indicator for Italy's major cities.

19. As was said previously, smart city choices are system choices. Therefore,

these proposals should be seen from the standpoint of their potential effects

on the country’s entire economic/social system:

- Initiatives to remove those factors that inhibit competition (the “pathologies”);

these are base-line conditions, without which it would be difficult to compete

successfully on an international level, but they do not provide competitive

advantages (Proposals 5 and 6).

- Initiatives to bridge the gap with leading countries in this sector internationally

(Proposals 3 and 4).

- Initiatives to create competitive advantages; to create the conditions to

acquire a defendable medium/long-term leadership position (Proposals 2 and 7).

20. In addition to the above, there is a proposal that forms the basis for the entire

plan (Proposal 1).

21. For the country over all, the implementation of this organic system of smart-

related proposals would mean, conservatively, up to a 10-point increase in GDP

per year (see Section 4).

Proposal 1: Overall strategy for Italy

Define a vision for Italy and a strategy for attaining it, while reaffirming the

guiding role of the national government.

22. Goals

- Provide the country with a shared identity that describes a future vision of

Italy and acts as a driver for initiative through providing coherent means to

ensure continuity of action, irrespective of change in government.

- Confirm the role of the national government as the central coordinating body

and promoter of the general context.

- Mobilize and motivate the country towards a common vision that provides

citizens, business and institutions with a "high-level" goal on which to base

potential sacrifices.

23. Corollary to this proposed action is a major communications initiative to boost

awareness and involve the population (as well as communicate the vision

outside of Italy).

24. Reason for the proposal. This proposal represents a mandatory pre-condition:

strategic management of the country is an essential pre-requisite for choices

regarding urban policy10. Without a clear, shared and valid vision, optimizing

the resources and strategies made available will be difficult because of the lack

of a "finish line".

25. For years in all major respects – from economic to social choices –

fragmentation and overlapping of initiatives, continual changes in orientation

and overall difficulty in planning the future have been the order of the day in

Italy.

26. The country is in the midst of one of the most serious crises in its history. It

must appear credible to financial markets and European institutions, but above

all to its itself. Establishing in which “direction to steer the boat” is the first

major step towards:

• Rebuilding faltering credibility.

• Reaffirming the leadership role of central government.

• Restoring joint concerted and effective action.

• Guaranteeing the country support from all aspects of the national government

apparatus in pursuing its objectives¹¹.

Chapter 22. Proposals for making Italy “smarter”

9 The names of Steering Committee members appear on the inside front cover of this brief.

10 It should be noted that, unlike other countries, Italy does not yet have a defined national urban policy (apart from the “Piano per le città”, the urban renewal plan launched in August 2012).

11 In addition, this theme is already potentially at the center of the initiatives of the new political approach to give the nation a future and not just react on the basis of crisis mana-gement.

7 operating proposals were

formulated to make the

country “smarter”

Taken together, the

proposals offer an

articulated and complete

answer to critical nodal

points

Prerequisite: create a

vision for Italy


27. The proposal. It involves developing THE political, economic and social plan

for Italy. A desired, shared outlook for the future towards which to strive and

that acts as a guide for choosing priorities, areas of intervention and strategic

modalities for the growth of the country, as well as on which to coherently

concentrate resources towards a common goal.

28. Among other things, the vision must define:

- which social and economic model to promote;

- which key values to protect;

- which sectors to develop (and how);

- what strategic competences to develop (to support development).

29. These choices and decisions must then be organized into a plan with set times

and a few, clear, high-level goals relating to new critical strategic needs

that are measurable and continuous. Given the importance for the nation, it

would be good if the highest representatives of the state (first and foremost the

President of the Republic, symbol of national unity and interest) were active in

stimulating the launching of this process.

30. Examples exist in the English-speaking world and in Asia of countries that

have developed a 10-15 year national vision/outlook and, with this in mind, are

pursuing their development goals with the support of their citizens (see Figure 3

below). Italy must also bridge this strategic gap.

Strategic visions of selected countries in the world.

Country Summary of Vision

ChinaBecome the no. 1 economy in the world by 2030, building a modern, harmonious, creative and high-

income society

France Regain a leading position in all sectors, including economic, cultural, political and defense

Great BritainBe an entrepreneurial, ambitious, open and tolerant country, a world leader in terms of innovation,

education and creativity by 2020

IrelandBe a dynamic country, participatory society and economy concerned with social justice, where

economic development is concerned about the environment and is competitive on a global level

TurkeyBecome the no. 1 regional power for Central Asia and North Africa and be among the top 10

economies in the world by 2023

United StatesThe “American Dream”: through hard work, courage and determination, anyone can attain a better

standard of living and economic prosperity

Sweden Be pioneers in the transition to a sustainable society

Figure 2Source: TEH-Ambrosetti based on a number of sources¹²

12 For additional information, see also: Davutoğlu A., "Vision 2023: Turkey’s Foreign Policy Objectives", speech by the Foreign Affairs Minister at The Road to 2023 Conference, London 2011; George A., Britain 2020 – David Cameron’s vision?, 2010; Lyons R. (National Competitiveness Council and Forfás), From Emigration to Innovation: Ireland’s National Vision & Strategy in the 21st Century, 2006; Regeringskansliet (Swedish government), Strategic Challenges, 2006; Turkish Prime Minister, 9th Development Plan 2007-2013, 2006; World Bank, China 2030. Building a Modern, Harmonious and Creative High-Income Society, 2012; Communist Party of China (CPC) Central Committee, 12th Five-Year Plan for National Economic and Social Development (FYP) 2011-2015.

31. It is fundamental that this be a "country vision", in other words shared by the

majority of the population, not just the views of a single group. In each country,

many groups have proposed “visions FOR the country”, but to be the “vision OF

the country” requires it being accepted and internalized by the vast majority.

In actuality, today this is probably only true for China, the United States, France

and (perhaps) Turkey. Nor can it be said that Europe has its own vision. In fact,

this IS the European problem.

32. The vision must promote action irrespective of the political ups-and-downs

of the country. The creation of a special, bipartisan Commission could be

useful to bring together individuals with a mix of high-level expertise on basic

development issues to develop recommendations and proposals for the

country13. All as part of an open and participatory process to bring together

the contributions and consensus of main sector players (government, the

economy and civil society).

Proposal 2: Smartness governance

Prepare a national governance plan for smart-related issues which provides

guidelines for action and coordinates cross-group interests

33. Goals

- Rationalize those working with smart-related issues through providing focus

and defining the roles and functions of each player in a clear, recognizable

manner.

- Define and implement a set of shared rules and priorities – a “common

level playing field” – for all issues pertaining to “smartness” that are binding

irrespective of changes in government, in order to allow all stakeholders to be

able to move within a fixed context.

- Bring together the special interests of national and local institutions and

business, making them more synergic and coordinated.

- Bring together expertise from a range of sectors (legislative, technological,

etc.) to successfully manage the “smart” transition.

13 An example could be the Attali Commission in France. Created in 2007 by President Sarkozy, it consisted of 42 members selected by the president, all with different types of training, experience and political orientation, including 7 foreigners. In four months it produced the report entitled 300 Decisions for Changing France.

Unified coordination of

"smart” issues


34. Reason for the proposal. The primary motivation behind this proposal is the

ascertainment of the number of stakeholders who, in a range of ways and without

any apparent, systematic coherence, are active in this area (see Figure 4 below).

37. The proposal. It involves creating an organic governance framework with

national jurisdiction over the multiple facets of the smart concept (energy,

mobility, construction, public health, environment, etc.).

38. Clearly, the choice of the most appropriate form of governance must be made

by the national government. The task of governance will be to:

- Provide unified expression of the country's needs.

- Satisfy these needs through appropriate action within a set timeframe.

- Create the conditions for effective operational back-up for local institutions.

- Optimize available resources.

- Take on responsibility for system-related choices and assess their adequacy

in meeting objectives (accountability and measurability).

39. There are many possible configurations. However, it is unlikely that this

governance could be guaranteed by approaches such as steering committees,

working roundtables or authorities. It must be able to have a real impact on

the status quo and not be exposed to pressures that could risk weakening its

ability to operate. There can be no risk that the decisions taken are the fruit of

(Italian-style) compromise between the various powers and interests.

40. The already-existing Agenzia Digitale Italiana (Italian Digital Agency) – created

by the Development Decree of June 15, 2012 but still awaiting governance –

could probably play that role, although subject to the conditions laid out above

and cognizant that, although important, the digital aspect is just one of many

facets of the smart city. In light of current discussion (see box below), the

body’s actual efficacy must also be monitored carefully. Much will depend on

who is chosen to lead it and the amount of real independence it is granted.

41. Within the context of a smart country, through its own practices, the central

government must be the first to demonstrate what becoming “smarter”

means. From this standpoint, it would be important to define a number of

target system macros, such as (for example):

- Make it possible to renew drivers licenses online within the next two years.

- Provide a combined national health service and municipal ID card within a

year.

42. Together with the decision regarding its governance, its program will also be

specified. In fact, the concept of “smartness” was initiated abroad in contexts

(megalopolises) very different from those in Italy. Therefore, it must be given

an Italian profile which, in line with initiatives already in progress, is based on

a bottom up approach of small steps, but within a top down vision of 10-15

years.

14 Even the European Commission has, until now, acted in a disparate manner with initiatives emanating singly from different Directorate Generals (Energy, Connect, Transport, Business and Industry, Research and Innovation), with a lack of coordination between the tenders issued. July 2012 saw, finally, the launching of the first joint initiative bringing together, at least, the Energy, Transport and Connect Directorate Generals.

35. In the absence of any unified definition of the "smart" concept (see Part II of this

brief), stakeholders pursue their own individual interpretations through their own

initiatives and means. In short, there is much confusion around this theme.

The efficacy of initiatives risks being undermined, as well as the necessary

coherence between the initiatives, with repercussions on overall effectiveness.

Not to mention the risk of overlap and dispersion of resources14.

36. A process intended to affect the entire country cannot be run by a universe of

different entities. There can only be one source of direction. Just as there can

only be one interpretation of the concept of “smartness”.

STAKEHOLDERS

LAWS and REGULATIONS

Privacy

MIUR bid contracts

Digital Agenda

Zoning regulations

National broadband plan

National logistics plan

E-Goverment plan

National plan for cities

Action Plan for energy efficiencyBuilding

and urban planning

Digital public admin.

Mobility

Energy efficiency

…

…

INSTRUMENTS

SMART

MINISTRIESMIURMISEMIT

Environment - InteriorLocal Affairs

Governmental Affairs

REGIONAL/LOCAL BODIES

Conference of Autonomous

Regions and Provinces Regions

Municipalities

OTHER CENTRAL BODIES

ANCI Legambiente Adiconsum

LARGE COMPANIESw/non-integrated projects

(Italian mail, Telecom, ENEL, ENI, FS, ecc.)

SMEw/isolated

individual projects

BUSINESS ASSOCIATIONS

ConfindustriaConfcommercio UnioncamereFederutility

RESEARCHENEA

Universities

The various stakeholders and initiatives in Italy

Figure 3


43. Among the characteristics of the “Italian way to smart cities” could be:

- The key role of social interaction (social capital as a “catalyst”).

- Attention to capitalizing on the cultural identity of Italian cities (much more

significant than in other countries where the population is virtually completely

concentrated in the capital cities).

- Attention to the size-related aspects of Italian cities (few large

metropolitan areas, many medium-sized cities and numerous clusters of small

municipalities found in some areas)15.

- The potential areas of excellence in smart solutions for sectors in which Italy

is a world leader include:

- Tourism

- Preservation of cultural heritage

- Food sector

Proposal 3: Italian Smart City Innovation Partnership

Launch the Italian version of the European partnership model for smart city

innovation

44. Goals

- Encourage the development of strategic partnerships within a win-win

approach between business, local government and financial institutions to

spread innovation and stimulate teamwork.

- Concentrate available resources in a limited number of high-potential

projects (that will act as drivers for replicating the experience).

45. Reason for the proposal. This proposal is inspired by the essence of the

smart city concept itself (concerted approach, broad range of participants) as

an opportunity to develop an array of urban governance methods and best

practices.

46. Today, more often than not, cities that want to adopt smart-oriented

technologies are faced with obstacles in the process of purchasing innovation

(processes that are strict, binding and not in line with corporate timeframes).

Added to this are (deep-seated) problems in overcoming individualism and

being able to “work as a team” for a “greater” objective. The economic crisis,

spending cuts and the Italian government’s austerity measures further inhibit

business and local government from working together, while at the same time

making financial institutions less willing to provide backing. What is needed is an

external push to get these groups working together.

47. The proposal. It involves activating partnerships between a limited number of

reliable parties that are capable of supporting initiatives aimed at representing a real

technological leap and expressing the best in the private and public sectors16.

48. For some years, the basic concept behind the proposed instrument has

characterized virtually all new forms of public incentive for innovation. However,

there are some new aspects:

- The actuation of the partnership is monitored by a top-level Advisory

Board that meets twice a year. The Advisory Board is comprised of

individuals outside the political sphere17 who – in a national and international

environment – are able to indicate future guidelines in their respective

sectors, while also contextualizing the future of Italy in a wider global

perspective and, in the wake of these considerations, can select the projects

(top corporate management, mayors, exponents of major national smart

initiatives, representatives of financial institutions, and guided by the leader of

the national smart city governance).

AGENCY FOR A DIGITAL ITALY

Created by the Development Decree approved by the Italian Cabinet on June 15, 2012, the Agency is a fundamental driver for achieving the goals

set out in Europe 2020. It has a number of crucial tasks:

- develop the latest-generation networks;

- guarantee the security and compatibility of public administration data;

- develop the Digital Agenda (planned for September 2012).

The new Agency incorporates the functions performed until now by three different bodies – DigitPA, Agenzia per la diffusione delle tecnologie per

l’innovation and the Dipartimento per la digitalizzazione; the first two will be disbanded and the third reorganized.

It will have 150 employees and will be led by a general director appointed to a 3-year term by the Prime Minister, in conjunction with the Ministers

of Economic Development; the Economy; Higher Education and Research; and Public Affairs.

Although strategies and concrete goals have yet to be defined, the wide range of functions it encompasses, coordination with other bodies

involved in digitalization and innovation processes in Italy (Agcom, Dipartimento per la Comunicazione del MISE, etc.) and large number of points

of reference (monitoring the Agency is the responsibility of all the ministries named above), has given rise to heated discussion.. The fear is that it

will become an arena for ministries, with the risk of it being subject to multiple vetoes.

15 For example, this is reflected in modes of action: if a technology promoting smartness requires a certain critical mass, the initiative must be focused on a cluster of cities, rather than single points within the local area.

16 For more information about the European smart city innovation partnership model, refer to Part II, Section 1.17 Being outside the political sphere is a fundamental and absolutely necessary aspect. The task of politicians is to make sure that the commitments made by the partners are

implemented, but in no way must they become part of the management and operational aspects of the partnership to avoid the risk of businesses backing out.

Help businesses, local

authorities and financing

bodies to “create a team”

to develop tomorrow’s

urban systems


- The partnership must involve:

- cities/territories in different areas of the country (at least 2) to assure the

spread of the solutions;

- companies from different sectors (at least 3), in conformity with the

holistic smart approach, to stimulate cross-sector cooperation and

convergence of industrial interests (within this context, Italian clusters

could be capitalized on in order to develop entire smart regions).

- Industry must absolutely agree to the adoption of open standards; these are

fundamental both because technologies must make the development of

smart cities work and promote it throughout the country, and prevent local

authorities being tied to a specific supplier.

49. This must all be combined with:

- Public/private financing schemes that assure a long-term corporate

commitment with suitable return on investment.

- Local authority asset management that creates room for investment.

- Monitoring systems that provide an on-going assessment of the efficacy of

the measures implemented.

Proposal 4: “smartest city” award based on a shared model

Create an award for the first 5 cities that attain the maximum level of

“smartness”, measured in terms of actual benefits for their citizens.

50. Goals

- Create competition between local areas to exploit and promote national

excellence to trigger emulative processes.

- Offer a distinctive "plus" to the Italian system and increase the country's

awareness of "smartness".

51. Reason for the proposal. As part of increasing awareness of local government

and the population of smart-related issues, the “technique” of the prize

could contribute to increasing the activism of local areas and the spread of

solutions. The proposal draws inspiration from numerous existing national and

international prizes and awards (see figure below), with the following unique

attributes:

- Awarding smartness as a whole, not individual aspects.

- Evaluating the level of smartness through a metric that conceptually

expresses use/benefit levels for citizens rather than levels of urban system

(physical/non-physical) resources, as is normally the case.

Reward those cities most

efficient in implementing

smart concepts

52. The proposal. It involves creating an award process of the highest level of

prestige and communicative impact to trigger competition for excellence

between local regions, combined with a system to assess smart performance

shared by the various stakeholders. The parameters would be the same for the

entire country and it would be centered on actual benefits for the citizenry.

53. The award process would include:

- A competition declared by the Office of the Prime Minister, to lend support

and prestige to the award, and further distinguish it from existing awards.

- A prize awarded jointly by national smart city governance body and the

Italian association of municipalities, the Associazione Nazionale dei Comuni

Italiani (ANCI), to underscore its importance for Italian urban centers.

- A prize consisting of the creation of a case study documentary of the

winning cities:

- By a famous director.

- Sponsored by a group of private local interests.

- With the purpose of highlighting and channeling the experience on a

national and international scale (synergies and returns for winning areas,

e.g., in terms of tourism).

Some smart city awards in Italy and abroad.

Award Promoter Goals Themes Type of award

Barcelona SmartCity

International Award

City of Barcelona,

Barcelona Digital Technology

Centre

Projects which contribute to

improving municipal services of

Barcelona

- Electric urban mobility

- Environmental quality

- Public lighting

€ 4.000

1 year pilot project at

22@Barcelona District

The Smart City

Global Award

Smart City Expo & World Congress City/project that contributes most

to the evolution of the smart city

concept

- ICT

- Energy, environment

- Mobility

- Urban planning

- Government and financing

- Quality of life and population

Funds:

City: €15,000

Project: €8,000

Explanation during the conference.

Presentation at the next Smart City

Expo & World Congress..

Premio Areté

Urban Innovation

Premio Areté with Nuvola Verde

and Fondazione Torino Smart City

City in the forefront of smart

communications

- Responsible communications

(deep-seated and active

relationship with citizens)

Inaugural lecture during Le Città

Visibili – Smart Festival (Turin)

Premio Smart City

Roadshow

SMAU and ANCI (in collaboration

with the Milan Polytechnic School

of Management)

Innovative projects for smart cities

underway in Italian cities included

in the Roadshow

N.A. Plaque

Possibility of being invited to

take part in international events

(Smart City Expo World Congress-

Barcelona and Cebit-Hanover)

Figure 4


54. Considering the key role of the local public administration in the process of

change (it is THE driver for change), there could also be other types of awards

for local government employees. For example (and given the lack of motivation

affecting this sector) it could include focused strategic trips:

- Co-sponsored by individual municipalities and the Department of Public

Affairs.

- Aimed at 2 or 3 secondary-level managers in the local public administration

to promote greater involvement on not just a decision-making, but also

operational level.

- With the purpose of studying smart-related best practices throughout

the world through contact with counterparts to boost motivation, receive

useful input for new successful strategies and broaden opportunities for

professional and personal growth.

Proposal 5: Fine-tune existing initiatives

Formally commit to ending or definitively concluding a number of still-

incomplete initiatives directly and/or indirectly connected to the smart city

concept.

55. Goals

- Rationalize current initiatives by putting a brake on the unfocused and

unoptimized use of public resources to recover credibility with public opinion.

- Insure that all initiatives – often stalled over the years for lack of coordination

and/or communication between institutional players – are moving in the same

direction.

56. Corollary to the proposal is speeding up a number of initiatives that are

indispensable to implementing smart solutions (e.g, wide band and ultra wide

band technologies18, the Digital Agenda19, and online payment systems).

57. Reason for the proposal. For decades, numerous projects in Italy have shared

a common fate. They are launched, perhaps with great fanfare, and then

abandoned – more or less silently – along the way, due to changes in what

party is in power, bureaucratic rivalry, lack of funds, etc.

58. A specific example: the electronic municipal ID card that dates back to 1997,

the year in which the Bassanini law called for the introduction of an ID card as

well as the development of e-government services. And it seems that its arrival

is still far off.

59. As part of a smart country, this type of document is of major importance,

especially if combined with a number of functions other than simply that of

an ID (access to healthcare services, access to personal data/information,

access to e-government services, etc.). Concluding major smart initiatives

before initiating new ones or, alternately, deciding to definitely abandon them,

represents a responsible act for the country as a whole.

End resource waste

through focused

decision-making

18 In Italy, fixed wideband coverage is 10% less than French or German levels. Resources are lacking for the National Wideband plan, the first fundamental step in eliminating the digital divide by 2013. 500 million euro have been allocated, but it is estimated that a similar amount will still be required. Policies that stimulate private investment are needed quickly. Source: Glocus, Smart specialised strategy: 7 azioni chiave per attuare l’Agenda Digitale, July 2012.19 The Steering Committee has been active since 2012 and the original expiration date for the approval of the Digitalia decree was set for the end of June. It will most probably slide to September 2012.

60. The proposal. It is a sort of “clean-up” operation to optimize the system,

before launching any other type of initiative.

60. Italy has the resources to successfully carry out this rationalization process,

however there is a lack of will and determination among the ruling class.

Given this, it would be a good idea if it were supervised by the Office of the

Prime Minister to provide enhanced credibility to the commitment.

Figure 5

The epic of the electronic ID

2001 - First electronic ID comes into use, entire country by 2005

2005 - “Starting in 2006, paper documentation will be eliminated” – Production by “Innovazione e Progetti”, cost of €30 ea. (shareholders: Poligrafico dello Stato, Poste Italiane, Finmeccanica)

2006 - New government, new cost: €20 ea. – Closing of “Innovazione e Progetti”; responsibility transferred to Poligrafico dello Stato; Finmeccanica takes Poligrafico to court and wins. Process forced to stop

2009 - “By the end of 2011, all municipalities must adopt the electronic ID”

2012 - “The electronic ID is still part of the government’s program”

11 years, €60 million, only 4 million electronic IDs in use (200 cities out of 8,000)


62. The body best positioned to implement this process is the newly-formed

Agenzia per l’Italia Digitale, for example, as part of its functions to design and

coordinate strategic initiatives and those of primary national interest for the

more efficient supply of e-government services to the public and business20.

Proposal 6: ”Quick win” in the short-term

Promote (already) available and low-cost smart solutions that can produce

significant progress in the short term.

63. Goals

- Rapidly produce tangible results.

- Send a clear message to the public about the benefits that can be obtained,

through concrete demonstrations of what is possible (actions speak louder

than words).

64. Reason for the proposal. Investing exclusively in long-term change risks being

too short-sighted. To support both the evolution of the “macro” project and

consensus for the initiative (years of false hopes and vain promises have made

public opinion skeptical) requires results, including in the short-term. What are

needed are solutions that:

- Are concrete and immediately available with low levels of investment.

- Can bring tangible and easily-verifiable effects.

- Can resolve problems the public feels are important.

- Are replicable or applicable in a range of scales.

- Can promote a learning process.

65. The proposal. It involves selecting and promoting (through legislated rather

than economic-financial means or direct action) the spread of potentially

successful low-cost solutions that support the long-term strategy.

66. Simply gathering and publishing in a single platform and with a single point of

access the entire wealth of tools, data and information of government bodies

could have a two-fold effect:

- Make smart services available to the public.

- Generate business through free use of standardized public data (for

example, creation of Apps by young creatives)²¹.

67. An additional quick win solution of primary importance for smart cities is

connected to energy efficiency in a number of areas (construction, industry,

transport).

68. Buildings absorb about 40% of the energy consumed, above all for heating,

air conditioning, lighting and running electrical appliances. The application of

technologies such as domotics (home automation) and intelligent building

automation systems provide significant savings through more rational

temperature and lighting management, making a tangible reduction in electricity

consumption in offices, schools, hotels, homes, hospitals and infrastructure.

Put aside the policy of

making announcements

and instead take action

immediately

20 Within this context, it would also be useful to monitor the extent to which the public administration is actually using those instruments already available, such as certified e-mail, electronic signature, etc., with sanctions for those administrations that do not comply.

21 At this time, neither the Italia.gov.it nor the dati.gov.it websites for interactive use of public services and data can be said to be usable for this purpose.

THE BRITISH GOVERNMENT DIGITAL SERVICES WEBSITE

Starting in 2004, Great Britain launched the digital integration of all government services in a single Internet website (Direct.gov.uk), including

smartphone access (and, for a certain period, also teletext).

Divided into different areas (health, taxes, public safety, the environment, transportation, tourism, etc.), the site makes it easy and quick to access

any type of document and/or information regarding public services (it brings together information from 18 ministries). The site can be used to:

- Carry out a number of different procedures online (drivers license and passport renewal, report the loss of personal data certificates, submit tax

returns, pay automobile taxes, request parking permits, look for a job, etc.).

- Access (standard format) public data through a single platform.

- Receive information, current news and advice of all kinds.

In addition to being divided by areas of interest, the site is also organized into areas for specific groups of users (e.g., young people, parents,

foreign nationals, etc.).

It is estimated that Direct.gov is utilized by an average of 10 million users a month.

ENERGY EFFICIENCY: SUCCESSFUL EXAMPLES

Milan Trade Fair

Coupling inverters to the air circulation units in the main pavilions of the Rho-Pero complex has allowed the organization to save about 17,000

euro per year and reduce maintenance costs and noise levels (-16dBA).

ASL Rimini

Improving the performance of 150 hospital electric motors – in operation 24/7 to assure air circulation and impede contamination – has led to an

annual drop in consumption of 3.5% (calculated from the actual utilities bill) and lower CO2 emissions (-91,000 kg), making it possible to recover

investment costs in 3 years.

Nerviano Medical Sciences

Applying inverters to refrigeration, heating and humidity/ temperature maintenance levels in sterile research and production areas with the goal of

cutting speed by half during night hours (a process that took half a day to install) has resulted in an energy saving of 500 MWh per year and pay-

back in just over 6 months.

Source: ABB


69. For Italian industry, electricity consumption now represents 35% of total

costs. In Italy, as in many parts of the world, energy use in industry is far

from efficient. Intervening to optimize production processes through the

application of modern control and automation systems, the application of high-

performance motors and drives on all processes that generate “movement”

represent an immediate solution with rapid return on investment (normally

less than a year, and with savings up to 10% with motors and up to 50% with

inverters).

70. The same logic is applicable to sea transport, where innovative engines and

propulsion systems can drastically reduce consumption. Initiatives regarding

port infrastructure can easily influence the quality of life around ports and

reduce environmental and noise pollution. In fact, with a minimal cost, solutions

can be installed that connect ships to power grids on land while they are

docked, avoiding the use of polluting on-board diesel generators to produce

their own energy. In rail transport, technologies to transfer energy from the

electrical grid to the railway, as well as technologies installed on-board trains,

can optimize consumption.

71. Given the fact that the quality of life in cities today is in large part determined

by mobility, eMobility is unquestionably one of the new approaches that could

bring significant benefits in the short-term. However, the spread of electrical

vehicles means that there must be suitable places for them to recharge (rapid

and normal charging stations). Promoting them could be rapid nonetheless,

and virtually cost-free for the government, given the competing interest from

electricity companies and car manufacturers in this business.

Proposal 7: Increase the “really free” time of Italians by 10% in 5 years

Set a challenging goal to overcome the "elitist" perception of smart-related

issues, influence expectations and create consensus

72. Goals

- Provide citizens with concrete and tangible evidence of the potential benefits

the smart concept could have for their lives.

- Demonstrate the seriousness of government commitment while putting the

public at the center of official action.

73. Reason for the proposal. In the process of changing needs currently under

way, quality of life is increasingly the basic driver and free time is a key

factor: our most precious capital. Consequently, within the context of effective

smartness governance, it can be used as an effective yardstick for serious and

ambitious commitment by government.

74. At least half the Italian population would be willing to trade much – if not

everything – for just a few more “really free” hours (i.e., time for themselves,

once they have completed household chores, personal grooming, travel,

paperwork, etc.). But currently, this need is not being responded to.

75. According to the Italian bureau of statistics, ISTAT, in the last 20 years, the

amount of time dedicated to physical needs (sleep, eating) have decreased, but

at the same time, travel time and time at work have increased, with the result

that personal time has gained nothing22. On the contrary, just a few years ago,

60% of Italian managers declared they were little or not at all satisfied with the

free time they had available23. There is also an increasingly widespread trend

among employees to put free time at the top of their list of requests, rather than

benefits of various kinds.

Create a pact with urban

residents to make a real

(positive) impact on their

lives

45 23,9 15,4 9,1 6,6

Physiological(sleeping, eating, personal grooming)

Break-down of the 24 hours of an average weekday for members of the population over the age of 15 (in %)

Work Free time

Household chores

Travel

Figure 6Source: ISTAT, “Cambiamenti nei tempi di vita e attività del tempo libero”, 2011

Free time today

76. On an international level, Italy is at a disadvantage regarding average free time

compared with other rival countries (see Part II for more detailed information).

Italian inefficiency in activities required for normal daily life is, therefore,

comparatively higher.

22 Source: ISTAT, “Cambiamenti nei tempi di vita e attività del tempo libero”, December 2011.23 Online survey of a sampling of 2,650 managers members of Federmanager. Source: Carella G., “L’importanza del tempo nel lavoro e nella vita”, Il Dirigente, no. 11, 2007.


77. The proposal. It involves setting a performance goal, rather than specific

actions, to be met within a pre-set period of time which is binding (for example,

5 years)24. In essence, a type of Europe 2020 goal focused around a factor of

direct relevance to the well-being of citizens.

78. Pursuing this goal implies a combination of smart initiatives that impact

on a range of aspects that would lead to re-modeling the entire social

organization of the country:

- Travel time

- Work day

- Methods of working (telecommuting, video-conferencing, etc.)

- Relationship with the bureaucracy (simplification, online, etc.)

- Learning methods (distance learning)

- Healthcare tools (telemedicine)

- Urban planning (residential areas, service centers, etc.)

79. In addition to benefits in terms of quality of life, there could also be significant

cost savings for the country. A recent study estimated the direct monetary

impact from mass application of organizational modes based on telecommuting

(telework) and telemedicine for the chronically ill to be between 6.1 (assuming

25% of those potentially eligible utilized it) and 12.3 billion euro per year (if

50% of those potentially eligible utilized it)25.

24 The goal and timeframe are purely hypothetical. The intent is to propose an approach, not provide specific measures.25 This is a conservative estimate. For telecommuting, the potential base is composed of those who take more than 31 minutes to reach their jobs; for telemedicine, the estimate

is based on the hypothesis of using a video connection for regular check-ups of the chronically ill (savings in travel and waiting times). Source: I-com, “R-Innovare l’Italia. Una stima dei possibili benefici per i cittadini di una P.A. digitale”, 2012.

26 The Italian political/cultural context – typically characterized by a high level of stakeholder fragmentation into groups with contingent and conflicting goals, strong tendency towards partisanship and little propensity for mediation – offers fertile ground for these tendencies.27 This expression comes from Alessandro Manzoni’s classic of Italian literature, I Promessi Sposi (The Betrothed), in which the hero, Renzo Tramaglino, goes to the lawer, Dr.

Azzeccagarbugli, for advice, taking with him in payment four live chickens. Bound together at the feet and carried upside-down, they are unaware that they share a common destiny (the soup pot) and continue to peck furiously at each other.

Chapter 3Resistance to be overcome to realize the proposals

80. To render activity more effective, we believe it important to note in advance a

number of potential obstacles to implementing the suggested proposals. These

are not so much technical obstacles (for example, modifying the regulatory

framework, incentive mechanisms, etc.), but rather psychological resistance

to change. What is intended is to identify the main warning signs in advance in

order to facilitate the planning of actions to be taken and their management.

81. There are essentially three, given in rising order of importance for

implementation of the proposals:

- The “principal” obstacle that typically leads to the failure of system-wide

projects in Italy – the limited propensity to think according to an integrated

approach and, as a result, the limited ability to “work together” through

sector-wide and horizontal integration of different players (cities, business,

government institutions). This aspect impacts most on Proposals 1, 3, 4, and 7.

- The opposition of “interest groups” – whose actions are largely invisible

because they are not regulated by Italian law – to potential regulatory

changes, despite the awareness that the current framework is inadequate

to supporting the technological evolution required by smart cities26.

This offers the greatest risk for Proposal 6. Overcoming it requires a

concerted cultural effort to regain a sense of the common good and get

beyond a situation in which there is a lack of political debate.

- Useless infighting and the tendency to be caught up in "particular"

individual situations and to continue to defend individual interests instead

of creating cohesion around important and common issues (the Renzo's

chickens syndrome)27. This risk is especially high for Proposals 2 and 5.

The only thing that could counteract this is for all stakeholders involved to

take a strong position in favor of cooperation among equals, supported by

decisive government mediation.

When taking action,

probable resistance to

change should be taken

into consideration


82. Implementing the seven proposals outlined above would mean providing

incentive for the development of smart cities in Italy within a context of the

country regaining overall competitiveness, efficiency and efficacy.

83. On the hypothesis that from now until 2030 this would provide for the gradual

development of a certain number of smart cities in Italy, it is possible to quantify

how much this would translate into strategic structural benefits for the

country.

There are various levels of potential spin-offs:

- Direct impacts, the result of activating the industrial supply chains

connected to creating goods and services for smart cities.

- Indirect and induced impacts generated in the economic system through

the adoption of smart solutions in a number of areas, in terms of:

- Regaining efficiency.

- Enhancing time savings for citizens, business and public administration.

- Cascading multiplier effect for infrastructure and system investment.

84. The smart city requires a redesign of all urban system functions. This activates

significant innovative, industrial and financial energy within a process

that also carries with it major opportunities for recovering urban resources/

patrimony.

85. In collaboration with the Energy Lab Foundation, a model was developed

to examine industrial aspects and the activation of national supply chains

correlated to the development of smart cities in Italy.

The model focused attention on four major urban areas involved in

technology-related infrastructural initiatives as part of the evolution towards the

smart city paradigm: energy, mobility, resources and construction.

For each of these areas, the following were identified:

- The main technological infrastructure required.

- Current level of penetration of each type of infrastructure in Italy today.

- Scenario of the long-term technological maturation for each type of

infrastructure.

- Penetration goals for 2030 for each type of technology infrastructure defined

on the basis of system goals dictated by national/international institutions or

(where these are not available), commonly-accepted sector expectations.

Taken together, these goals outline the ideal for a smarter country.

Chapter 4The value of a smarter country

Smart cities offer

revolutionary opportunities

for economic, social and

technological change

Investment is scalable,

but not avoidable

We have identified

and quantified the

infrastructure development

opportunities offered by

smart cities

Current and projected scenario for a smarter country.

Area Indicator Long-term goal Penetration as of 2012

Goal2030

Source of goal

Energy Production from renewable sources

75% energy produced from renewable sources by 2050 28% 56% European Commission, Energy Roadmap 2050

Smart grid infrastructures

100% Advanced Meter Readers installed by 2050 5% 49% Goal commonly accepted by sector

Energy efficiency in industry

100% high-efficiency motors and inverters, integration and optimization of industrial processes by 2050

4% 48% Goal commonly accepted by sector

Constru-ction

Construction infrastructures

100% optimization insulation of existing buildings (external insulation, high-tech materials) by 2100

100% latest-generation lighting systems by 2040100% condensation boilers by 2060100% latest-generation heating, ventilation and cooling

systems by 2080100% smart management of building systems by 2100


Smart appliances 100% smart appliances by 2100 2% 45% Estimates by sector association – Associazione Nazionale Produttori di Apparecchi Domestici e Professionali

Mobility Transport infrastructure

100% infrastructure for electric/hybrid recharging and smart lighting systems by 2030


Vehicles 25% ic, full hybrid and biofuel vehicles circulating by 2050

0% 25% International Energy Agency, Technology Roadmap "Electric and plug-in hybrid vehicles"

Intelligent Traffic System

100% Intelligent Traffic System al 2030 10% 100% Goal commonly accepted by sector

Resources Water management

80% smart meters for water and automation and control of the entire grid by 2030


Waste management

100% smart technologies for collection/disposal and automation and control of the entire grid by 203090% waste-to-energy by 2030



86. The smart country approach outlined here is modular. In other words, it

offers the decision-making system the possibility of opting for intermediate

trajectories in terms of immediate smart-based evolution of all Italian urban

centers.

The system goal – including in the wake of the current crisis – could be

less-ambitious and be based on specific clusters of cities (for example, the

top 50 Italian cities by population or wealth produced) to act as "islands of

innovation".

Yet remaining fully aware that this choice must be made: a smarter country

is not an option, it is a necessity because the world will change in any case,

irrespective of what we choose (or fail to choose). Initiatives can be taken

on different levels, but failing to take action means condemning ourselves to

gradual decline on the world scene and continuing to delay is, implicitly, a type

of choice.


2013 2030

Smart country Investment = +€ 515 bln

Per

form

ance

sm

art Step-by-step process is possible,

opting for intermediary trajectories

Top 20 smart cities Investment = +€ 93 bln

Top 10 smart cities Investment = +€ 75 bln

Status quo Investment = € 319 bln

Forecast decline in absence of investment


Potential smartness trajectories for Italy

87. Two hypothetical scenarios were formulated for 2030:

- Current trend scenario, intended as the minimum technological investments

the country must make between now and 2030 to maintain the current level

of performance (“business as usual”).

- Smart scenario, intended as the additional investments required between

now and 2030 to pursue the goals shown in Figure 7, thus making the

country “smarter” (i.e., in addition to “business as usual”).

Each of the scenarios above has, in turn, two sub-scenarios which differ in

terms of the extent of cities involved:

- All-Italy scenario – involves all the urban systems in the country.

- 10-city scenario – involves the top ten Italian cities in terms of number of

inhabitants (Rome, Milan, Naples, Turin, Palermo, Genoa, Bologna, Florence,

Bari and Catania).

88. Results show that maintaining the technological status quo over the period

2013-2030 will cost the country – at the very lowest, i.e., limited to the

technology categories identified here – 22 billion euro per year (decreasing

to 2.6 billion euro per year if restricted to the top ten cities). However with

questionable results, because many smart-related goals are already codified by

international institutions, which means conforming with these is inevitable.

To become “smarter”

requires investing 3 GDP

percentage points each

year from now until 2030 …

…but a smarter country

would translate into up to

10 GDP points a year

89. Transforming Italy into a “smart” country by 2030 requires a considerable

commitment: an additional investment of 4 to 28 billion euro per year over

the "business as usual" scenario, depending on the development trajectory

selected, for total spending, therefore, of between 6 and 50 billion euro per

year to 203028.

90. The costs are very high, but the benefits of a system-oriented innovation plan of

this caliber are much more significant than could be imagined. In fact, massive

introduction of innovative technologies acts as a driver for a powerful recovery

in efficiency and productivity and considerable reduction in transaction

costs. This would translate into additional GDP growth for the country of 8-10

points per year for the All-Italy scenario, and just over a half point in GDP

per year for the 10-city scenario.

28 Technology costs were estimated taking into consideration a learning curve. The investments reflect the probable step-wise increment in initiatives. 29 (a) Estimates for savings from the adoption of measurement technologies for consumption and quality of electrical power supplied. Source: website of the Ministry of the

Environment; (b) Estimates for (partial or full) residential energy renewal initiatives. Source: ENEA, “Rapporto annuale efficienza energetica”, 2011; (c) Estimates for the application of Intelligent Transport Systems. Source: European Commission, “Intelligent Transport Systems in Action, action plan and legal framework for the deployment of intelligent transport systems (ITS) in Europe”, 2011. (d) Savings estimates from the adoption of water consumption measurement technologies and estimates for energy recovery from waste. Sources: The Climate Group, Arup, Accenture, Horizon, University of Nottingham, “The new economics of cities”, 2011; Nomisma Energia, “Potenzialità e benefici dall’impiego dei Combustibili Solidi Secondari nell’industria”, 2011; (e) Time savings from digital public services, including transport-related cost/time savings. Only those citizens with internet connection. This estimate does not take into consideration less crowding in public offices, less traffic and, as a consequence, the decrease in pollution made possible through the lower use of vehicles. Source: I-com, “R-innovare l’Italia”, 2012; (f) Estimates of cost savings for personnel and supplies through digitalization of the following municipal services: multichannel payments, vital certificates and sending of computerized documents to the business affairs desk. Source: Osservatorio eGovernment, 2012; (g) Average annual amount from direct and indirect effects on Italian manufacturing supply chains that could be activated, 2013-2030. Source: Energy Lab calculations, July 2012.

Area RETURNS (Enhanced efficiency compared with current costs Billion €/year)Optimization margin

Smart 2030

Italy*** 10 cities****

Energy 20-30%(a) 8,9-13,3 0,013-0,019

Construction 10-50%(b) 4,4-20 0,0063-0,029

Mobility 10-20%(c) 44,5-55,5 0,064-0,08

Natural resources

10-15%(d) 1,6-2 0,0023-0,0029

Residents (e) 2,4 0,0035

Public Administration (f) 2,3 0,0033

Eonomic spin-offs for industry nationally (g) 64,3 9,3

TOTAL 128-160 9,3-9,4

% GDP 8-10% 0,6%

Area INVESTMENT(Billion €/year)Trend 2030 Smart 2030

Italy* 10 cities** Italy*** 10 cities****

Energy 9,5 1,4 8,9 1,3

Construction 2,4 0,3 7,2 1,0

Mobility 5,4 0,8 8,2 1,2

Natural resources

4,7 0,1 4,3 0,6

TOTAL 22,0 2,6 28,6 4,1

Total annual investment for smartness 50,6 6,7

% GDP 3,2% 0,4%

(*) Minimum amount of investment required for the current performance level of the country.

(**) Minimum amount of investment required for the current performance level in the top ten most populous Italian cities. (***) Investment for smart evolution of the country. (****) Investment for smart evolution of the top ten most populous Italian cities.


Investment and returns for a smarter country29


91. Although not claiming to be complete, the figure above summarizes the primary

areas in which efficiency could be recovered, calculated on the basis of the

optimization differentials by authoritative sources found in the literature.

The resources that would be freed up can be divided into three major

categories:

- Streamlining initiatives in different sectors (energy consumption, transport

safety, pollution, insulation and integrated building management, water

consumption, waste-to-energy, etc.).

- Greater free time for citizens following the availability of online public

services (including transport cost/time savings) and related cost savings for

local government (personnel and supplies).

- Indirect and induced effects of activating national industrial supply

chains30.

92. Added to these are intangible benefits, for example in terms of:

- Country image and international competitiveness.

- New impulse towards social cohesion and local identity.

- Greater spread and availability of knowledge, increase in creativity and

innovation.

- Overall livability of urban centers.

It is most likely that building a modern and innovative nation, improving life style and

combatting the crisis also involve these aspects.

30 These effects were calculated on the basis of a conservative multiplier of 2.1 which increases to 3.1 if dynamic effects are considered (i.e., increase in wealth from increased entrepreneurial activity, attractiveness and competitiveness of the sector overall).

31 The re-interpretation of the smart city as a win-win strategy was made by Roberto Pagani. Source: Pagani, R. “L’urbe diventa smart”, QualEnergia, no. 2, 2012.32 Proof of the relevance of this latter aspect is the launching of a special award (Premio Areté Urban Innovation), that deals specifically with smart issues. 33 The survey was conducted by CRA-Customized Research Analysis in July 2012, using the telepanel method. A formal questionnaire was submitted to a statistically-

representative panel of the Italian population using a computer connected by modem to the CRA data processing center. This method provides greater accuracy in the responses (the individual interviewed chooses the moment in which to respond), greater spontaneity thanks to the absence of outside interference (interviewer) and offers the same speed and reach as telephone interviews.

Chapter 5Convincing the country: building consensus and promoting inclusion

Cities – and, more specifically, urban policy – have always been a sensitive

topic that typically polarizes public opinion and often divides different social

groups. This is even more so today. Internally, cities are becoming increasingly

complex; externally they have become crossroads of global economic and

cultural relations.

93. Within this context, smart cities offer yet another challenge and potential

source of debate and conflict, irrespective of its essence, a win-win strategy

(good for individuals as well as the community)³¹.

Channeling the first message (if gotten wrong, it can trigger an unstoppable

contest of refusal among communities) and the ability to spread the new

culture or urban living will be fundamental³².

94. Given this, closer scrutiny of the way smart cities are perceived by the

population at-large was felt necessary. A special survey conducted using a

sample of 2,130 representative of the entire Italian population over the age of

14 made it possible to explore these issues³³.

Public opinion perception of smart cities

95. As noted in the previous section, the world of smart solutions could represent

a tremendous opportunity for Italy. However, for it to be fully accepted, a major

consciousness-raising and communications effort to the “core” of the country

would seem indispensable.

96. In fact, the survey indicates that 4 Italians out of 5 have never heard about

smart cities. The public is completely unaware of the characteristics and

benefits of this model.

Only the younger (age 25-34) and better-educated (college degree) age

bracket know something about this question. This opens, therefore, significant

opportunity for cognitive-informational initiatives to avoid it appearing elitist

(which would not be desirable given its profoundly social nature).

Public sentiment

regarding smart cities

was surveyed

The overwhelming majority

of the population has no

idea what a smart city is:

this opportunity must be

communicated


Yes 8%

No 78%

Don't remember 14%


Familiarity with the “smart city” concept

Have you ever heard of smart city?

Improve the traffic situation and viability 10

10

9

9

8

8

7

7

6

6

5

5

4

2

2

1

Improve security and control in all areas of the city

Improve waste recycling

Reduce energy consumption without compromising performance

Lower mass transit costs

Facilitate mobility for weaker segments of the population

Lower pollution produced by heating

Provide incentives to adopt electric vehicles

Increase the speed and punctuality of mass transit

Increase green areas and create new parks

Build new bicycle paths

Increase online services of the public administration

Increase public involvement in issues related to this

Prohibit access of private vehicles in certain areas or at certain times of the day

Improve the quality of arts and culture

Introduce online payment for urban services


Actions considered more effective in improving the quality of life in cities

What actions do you consider most effective in improving the quality of life in your city? Give the action you consider most effective first. (in percentages)

Urgent

Useful/urgent 56%

Very useful in the long-term

Interesting to produce analysis

and experimentation

A waste of time

and money

Not very concrete, there are more urgent problems

10%

24%22%

28%

16%


Propensity of the population towards smart cities

By “smart city” is meant an urban model that can guarantee a high quality of life and personal and social growth while optimizing resources and spaces for sustainability, people and business. Do you think projects connected to this theme would be …

97. The spread of smart cities must necessarily include a certain propensity on the

part of the population to live in this kind of city, especially since the model is

closely connected to improving the perception and experience urban dwellers

have of living in the city.

98. The results concerning this aspect are reassuring. 56% of those interviewed

said they were in favor of a smart city urban model. The youngest age bracket

(age 14-24) was most favorable, as were those who already knew this

concept, proof of its validity.

Just being aware of the

concept influences the

level of openness to it, a

sign that the idea is a valid

one

99. Key factors in public perception of cities would seem to be primarily:

- Mobility

- Safety

- Optimized management and sustainability of resources

Mobility, in particular, is the absolute priority. It would seem to be on an

equal footing with safety, but it is actually more important if we consider

that two of the first five actions given for improving quality of life directly or

indirectly involve mobility and its planning.

Analyzing survey responses by age bracket reveals a number of trends:

- Young people under age 25 are the ones most concerned with mobility

and energy efficiency.

- The age bracket between 25 and 45 is more interested in an improvement

of online public services (in fact, this is the part of the population with

the least amount of free time and a pressing need to simplify daily life).

- Those over fifty request greater safety, enhanced mobility for weaker

sections of the population and efficient urban services.

Mobility and resource

management are the issues

of most concern today


100. But perceptions change as a shift is made from today into tomorrow. Asked to

project each of the factors given in the figure above ten years from now, the

only factor of the previous top five to remain is environmental sustainability

(defined in terms of renewable energy sources, energy efficiency and

electricity-based transport).

Heading up the list in the future are social issues (in terms of hospital care

and relaunching of schools and universities). On the contrary, there does

not seem to be much consensus around the digital world (new cell phone

applications, smartphones, tablets, etc.).

Tremendous attention

to environmental

sustainability and

social aspects from the

standpoint of the future

If the solution offered

answers a real need, there

is no risk of opposition

More responsive hospital services

Spread of alternative energy sources in manufacturing

Relaunching of schools and universities

Spread of energy efficiency solutions

Mass transit system

Spread of electric cars

Spread of free WI-FI

Spread of new transport-related technologies

Free time activities (museums, theater, etc.)

Advanced and smart traffic management information systems

Organization of major cultural events

Multimedia access to cultural heritage

Organization of major events for businesses

Commercial activity

New digital applications (smartphones, tablets)

Creation of new political movements

21 27 52 7,2

Average value scale 1-10

6,8

6,7

6,7

6,6

6,5

6,4

6,2

6,0

6,0

5,7

5,7

5,6

5,4

5,3

5,1

26 33 41

28 29 43

28 32 40

30 31 39

32 31 37

37 36 27

40 34 26

42 36 22

43 36 21

44 36 20

50 33 17

51 29 20

69

1-5 6-7 8-10

19 12

35 28 37

34 33 33

Figure 13Fonte: TEH-Ambrosetti su dati CRA, 2012

Impact of some factors on the improvement of quality of life in cities over the next 10 years.

In your opinion, how much impact could each of the factors given below have on the quality of life in your city over the next 10 years? (scale of 1 to 10; 1 indicates it will have no impact, 10 that it will have tremendous impact; in percentages)

Favorable because it would

be possible to improve circulation 30%

Favorable, because these systems

would improve safety/security 35%

Against, because it is unacceptable

for everyone to be monitored 35%

Total in favor 65%


Acceptance level of technology infrastructure by the public

To have a city it is easier to get around and live in, it could be useful to adopt a number of practical measures, such as equipping all private and public vehicles on the road with GPS devices. In terms of this, you would be...

101. Life in a smart city necessarily involves the spread of technology infrastructure

and “ad hoc” systems. For this reason the survey also assessed this aspect.

Specifically, it examined the willingness of those interviewed to accept GPS

tracking systems being installed in their own cars.

The results were positive. They show that the so-called “Big Brother

syndrome” is not a risk factor. 65% of those interviewed declared they were

favorable, despite potential infringement on personal freedom (e.g., privacy)

and proving the key role of two factors:

- Smart solutions must respond to a perceived need (allowing it to be met).

- Smart solution benefits must be clearly perceptible to the public.

Communicating: with whom and how

102. Strongly emerging from the survey is the idea that the theme of smart cities

must be communicated to the country and, above all, the benefits they

represent. Today, only a small group of people are concerned about these

aspects. Therefore, the optimum conditions exist for communicating, in

“virgin territory” free of preconceptions.

102. It is urgent and fundamental that a national information campaign about

smart cities be planned and implemented which:

- Explains the concept and transmits the future vision for the country (see

Proposal 1 in Part I).

- Generates awareness about the benefits.

- Manages public opinion consensus, overcoming any potential perception of

it being an "elitist" issue.

- Spreads among the public a broad-based sense of involvement and of

creating a new way of urban living.

A nation-wide informational

campaign on this theme is

urgently needed


104. The smart city theme is one with a strong social connotation. It is

something that will revolutionize the way people live in and experience cities.

It is unthinkable that a process involving such a major change in the lives

of citizens (who will be the end users of the solutions made available) be

launched without them being adequately informed, prepared and motivated

about the potential and benefits to be gained. Information is key for both

achieving consensus and spreading the benefits to all.

105. The information campaign must clearly and forcefully communicate the

concept of inclusion and the government has a primary role in illustrating

inclusiveness through its choices.

The public needs to be involved from the very beginning (participation and

“inclusiveness”). Projects that arrive from on-high are rarely a success.

From this standpoint, it is just as important to develop the smart city concept

on the basis of the needs of the various sectors of the population. As seen

from the survey results, younger age brackets are more interested in taking on

certain issues, while older sectors of the population are interested in others.

106. Even if it only applies to a minority of the population (see survey results),

there is a risk that some citizens will see certain solutions as being invasive.

Therefore, the proper methods must be identified to make sure that everyone

feels the need to be part of a smart city (taking part freely, not having it

imposed).

107. Transmitting to citizens a concept of smartness too technologically-centered

could communicate feelings of “coldness” and “impersonality”, causing

“closing off” and “isolation”.

Communication must work from a positive and reassuring standpoint while

insisting primarily on those aspects connected with social interaction and

quality of life. The individual must not be perceived as a unit of measure, and

efforts must be made to avoid smartness becoming a tool of isolation and

sterilization, rather than community.

108. As a result, action must be taken on two fronts:

- Acculturation of the population regarding the smart city theme through a

promotional campaign.

- Public engagement, not from the standpoint of imposition or old-style

“toeing the line”, but in terms of “becoming personally involved”. Within

this context, highlighting and spreading existing positive experiences would

be welcome (bottom-up logic). A key step in the success of the operation is

the active involvement of consumer associations in the process from the

very beginning.

The concept of inclusion

must be emphasized

strongly

The new way of

experiencing the city,

social interaction and

quality of life must be

“pushed”

109. This type of awareness campaign means talking to the “core” of the country,

reaching a large number of people in a short amount of time and at low cost.

Social media are one of the best tools towards this end. They are transversal

(they permeate opinion and information flows between users/people and

act as real drivers for word of mouth, the oldest and most effective form of

marketing), are low cost and are fast:

- 86% of Italians use them (79% in the United States)34.

- Its public is also adult and of all ages: the primary age group is adults

between 35 and 44 years of age (24.2%), followed by 25-34 year olds

(19.4%) and those 45-54 (19%)35.

- Reaching 50 million actual contacts takes three years via internet

campaigns, compared with 34 years by radio and 13 years using television.

Social media are the

fastest, cheapest and

broadest means for

communicating on a

nationwide-basis

34-35 Source: Nielsen, State of the Media: The Social Media Report, 2011.


PART TWO

What being “smart” means

- Smart cities: What are they?

- Our concept of smart city

- Why smart cities

Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life | PART TWO 67 66 PART TWO | Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life

Chapter 1Smart cities: What are they?

- The smart city approach has its roots in the concept of ideal cities that

reached its apex during the marriage of beauty, social organization and

enlightened government known as the Italian Renaissance.

- There is no single, generally-accepted definition of smart city. Over the last

decade, the term “smart” has indicated in turn a digital city, a socially-inclusive

city and a city that insures improved quality of life.

- Smart city = Sustainable city: this is the only common factor among the

principal definitions offered to-date.

- Initiatives aimed at spreading the smart city concept are proliferating, both

internationally and within Italy (although with some delay).

- In practice, we are not seeing "all-round" smart cities (except for greenfield

projects), just application of the concept to specific and limited areas.

- Technologies, projects and policies must be put at the service of a strong and

shared idea of the future for Italy, an idea rooted in what has been inherited

from the past (an "Italian way" for the smart city).

- A smart city minimizes the effort for “low” needs and (efficiently) satisfies

“higher” needs. A smart city is, for us, an urban model that can guarantee a

high quality of life and personal and social growth of individuals and business,

while optimizing resources and areas for sustainability.

- We are living through a period of extraordinary change from which new

strategic needs are emerging. Smart cities can offer effective answers to

these needs. More intelligent urban systems are not an option: they are an

absolute necessity.

- The development and success of cities have always been inextricably tied to

technological innovation.This connection is destined to grow in the future

and it will be increasingly necessary to not only connect physical spaces and

digital infrastructures, but also interconnect the technologies themselves. The

result of this linking up could be the birth of new uses for instruments that are

already available.

Part two: key messages

Origin and evolution of the concept

1. We are increasingly hearing people talk about smart cities. However, this

expression risks remaining generic and without a common vision shared on

a global scale. In fact, the term “smart” has become trendy, a word used by

sector specialists to denote the possibility of improved quality of services.

2. The development of the vision of smart cities can be found in the fertile

terrain of the Renaissance. The ideal cities of the Italian Renaissance (Pienza,

Sabbioneta, Ferrara, Urbino, etc.) were born out of exactly the same level of

motivation as the ideal cities today's smart cities want to represent in terms

of totally revolutionizing modern-day architecture and urban planning. Cities

in which the harmony and beauty of urban architecture is coupled with a

farsighted perspective in governmental policy and for the daily lives of the civic

community – a delicate interplay of equilibriums that brings together functional,

aesthetic and public needs and aspirations.

3. However, recent thinking on smart cities originated in the last century, in the

1990s, primarily among technology and marketing experts as part of the

liberalization of telecommunications and the rise of Internet services.

4. Specifically, the term "smart city" was coined in the United States.

Two well-known multinationals – as part of the marketing strategy for their own

products and services – developed the vision of an ideal city that would be

highly-automated with ICT infrastructures as the key to urban smartness1.

5. Over time, the term smart city became synonymous with a city characterized

by intelligent and widespread use of digital technologies. In other words, the

availability and good use of information were what made a city smart2.

6. In reality, this definition of the smart city concept risks reducing an overall

approach to one specific aspect. An intelligent city encompasses many more

meanings, as subsequent evolution has brought to light. Many stressed that if

technological innovations were not “part of an overall and systemic vision of the

city of the future, they would remain fragments, pieces of a mosaic in which the

overall design could not be seen.”3

1 The two multinationals were IBM and Cisco. 2 In fact, the central role of ICT reflects this period in time. It was in the early 1990s that ICT technologies reached the general public in Europe. In this sense, a concept similar to

that of the smart city is the "sentient city", i.e., a city capable of remembering, anticipating and correlating thanks to the flow of data generated. Source: Niger S., “La città del futuro: smart city, smart community, sentient city”, www.astrid-online.it, May 2012.

3 Source: Mochi Sismondi C., “Non facciamo diventare la Smart City una moda ‘vuota’”, Forum PA editorial, July 2012.

The vision of the smart

city, as an ideal city, draws

its inspiration from the

Renaissance

The smart city as

a digital city


7. It was the Vienna Polytechnic in collaboration with Lubiana University and the

Delft Polytechnic that developed one of the definitions of smart city that seem

to have guided the first change in perspective: six axes along which the level

of smartness of 70 medium-sized European cities could be evaluated4. Not just

data and information, but also mobility, environmental quality, governance of

the urban system, economic context, involvement in social life and livability.

4 Source: Giffinger R., Fertner C., Kramar H., Kalasek R., Pichler-Milanovic N., Meijers E., Smart cities. Ranking of European medium-sized cities, Final Report, 2007.5 Source: Caragliu A., Del Bo C., Nijkamp P., Smart cities in Europe, Series Research Memoranda 0048, VU University Amsterdam, Faculty of Economics, Business Administra-

tion and Econometrics, 2009.6 In fact, a smart city is much more than a city equipped with a wireless communications system. Naturally, enhanced connectivity facilitates the spread and utilization of certain services, but WI-FI networks are not a factor that can generate innovative services in themselves.

The smart city as a more

livable and inclusive city

11. In this process, even supranational institutions, in the search for a new vision of

the future that can guarantee new well-being and development, saw the smart

city as a concrete, positive solution and made it the object of community-wide

policies and priorities. In Europe today, smart cities are important, for example,

in the Europe 2020 agenda and Digital Agenda for Europe7.

12. So, step-by-step, the definition of smart city generally accepted today was

arrived at: a place which is the integrated result of "hardware" and "software"

aspects that can be combined to provide a better quality of life for those living

there.

Characteristics most common today

13. Today, there are many different definitions of smart city, mostly determined by

the point of view of who is offering it.

14. If we attempt to categorize the definitions on the basis of type of proposing

stakeholder (government, academia or business) and focus area (figure below),

the following emerges8:

- Environmental sustainability is the only aspect common to all definitions. In

fact, this area is extremely transversal by its very nature. It also reflects

current orientations: a correct and efficient use of resources is increasingly

becoming a priority, especially for future generations who will be living in cities.

- The aspect of quality of life, as well as the more marked social aspects

(such as education, participatory governance and public health) are present

explicitly only in definitions offered by academia, which also seem to be the

most systemic.

- Interpretations from European bodies tend to be more restrictive. The focus

is on network infrastructures (energy, mobility and – in the most recent

measures launched – also ICT), proposing a “wired” urban development

model in which connectivity is considered a short-term growth factor.

Aspects relating to quality of life are given a back seat.

The smart city as a place

dedicated to quality of life

A smart city is a

sustainable city, for

everyone

7 The Digital Agenda for Europe, one of the seven flagships of Europe 2020, was launched by the European Commission in May 2010 to accelerate the spread of information technologies and communications and exploit the advantages of the digital single market for the public and businesses. Initiatives to create smart cities are among the priorities indicated in the Agenda.

8 Government/institutional definitions will be examined in the next section which is dedicated to system-wide initiatives to spread smart cities.

8. In fact, these six axes brought the concept of smart city within the orbit of Neo-

classical economic theory on regional and urban development. Although they

did not represent anything new for those involved in local/regional development,

they did constitute the first attempt to measure the level of smartness and

indicate to government and institutions the potential drivers to modify it.

9. In the wake of this interpretation, also significant was the idea that "a city may

be defined smart when investment in human and social capital, and traditional

(transport) and modern (ICT) infrastructures feed sustainable economic

development and a high quality of life, together with wise management of

natural resources through a participatory method of government5.”

10. The smart aspect became progressively connected not only with the presence

of digital infrastructure, but also – and above all – the role of human, social

and relational capital as an important factor in urban growth6.

Evolution of smart city definitions

Figure 1

Early 2000 Mid 2000 2010

Now it is clear that …

Focus on "hardware"

(ICT technology infrastructure)

Focus on "software"

(social and human capital, participation)

"hardware" &

"software"

Smart city asdigital city

Smart city aswith higher

quality of life

Smart city associally

inclusive city

Supranational bodies are

more attuned to sectorial

aspects


- What emerges is the idea that people living in cities are "progressive", that

they learn and adapt to new technological solutions, are also involved in

innovation processes and have an active role in what is called participatory

democracy10.

- ICT technologies are a common element in a number of interpretations even

if, as is obvious, they tend to be found most in those businesses for which it

represents a product/service.

9 Sources of government/institutional definitions: European Commission, The European Strategic Energy Technology Plan. Towards a low-carbon future, 2010; European Com-mission, Smart Cities and Communities – European Innovation Partnership, July 10, 2012; www.agenda-digitale.it; Italian Ministry of Schools, Higher Education and Research, Smart Cities and Communities and Social Innovation call for proposals, March 2012. Sources of academic definitions: Giffinger R., Fertner C., Kramar H., Kalasek R., Pichler-Milanovic N., Meijers E., Smart cities. Ranking of European medium-sized cities, Final Report, 2007; http://senseable.mit.edu; Caragliu, A., Del Bo C., Nijkamp P., Smart cities in Europe, Research Memoranda Series 0048 (VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics), 2009; Moss Kanter R., Litow S.S., “Informed and Interconnected: A Manifesto for Smarter Cities”, Working Progress, 09-141, 2009. Sources of definitions from the business world: http://www.abb.com; Alcatel Lucent, “Getting smart about smart cities”, 2012; http://www-05.ibm.com/innovation/it/smartercity/; Mulligan L. (Head of Mobility and Sustainability, Siemens Ltd), “Smart cities and sustainable technology”, 2010; http://www.cisco.com/web/strategy/smart_connected_communities.html; Berthon B., Guittat P. “Ascesa della città intelligente”, in Outlook, no.2, 2011.

10 By participatory democracy is meant “a relationship between society and institutions" that involves "action of direct expression by the former in the processes of action of the latter". (Source: Allegretti, U. “Verso una nuova forma di democrazia: la democrazia partecipativa”, in Democrazia e diritto, no. 3, pp. 7-13, 2006).

11 In addition to municipalities, provinces, regions and networks of local authorities may also be part of the Covenant.12 European Commission support through the Directorate General for Energy consists of availability of financial instruments (through the European Investment Bank, structural funds, etc.), providing an office for coordination and a website, and making available instruments and models.

The Covenant of Mayors

was the first city-related

initiative launched on a

European level

General context: system-wide initiatives to spread smart cities

15. Initiatives aimed at spreading the smart city concept are proliferating, both

internationally and within Italy (although with some delay).

16. On a European level, the “fuse” was the Covenant of Mayors, an independent

initiative by European municipalities to reduce CO2 emissions over 20% by

2020 through energy efficiency and measures to promote renewable energy11.

17. Launched in January 2008, the Covenant is supported by the European

Commission as part of efforts to meet the objectives of the 20-20-20

strategy12. As of today, 4,200 European municipalities have joined the initiative

(representing approximately 165 million residents), of which over 2,000 are

Italian cities.

Main definitions of smart city by stakeholder category and focus area9

Mobility ICT Environmental sustainability(energy, buildings, soil, water)

Qualityof life

Smart society (education, healthcare, participatory governance)

Institutions

EU SET plan ■

Eu Smart Cities and Communities Initiatives ■ ■ ■

Digital agenda for Italy ■ ■ ■ ■ ■

Miur calls for proposals ■ ■ ■ ■

Academia

Vienna Polytechnic ■ ■ ■ ■ ■

MIT SENSEable Lab ■ ■ ■ ■

Caragliu et al. (2009) ■ ■ ■ ■ ■

Harvard ■ ■ ■ ■ ■

Business

ABB ■ ■ ■ ■

Alcatel ■ ■ ■ ■

IBM ■ ■ ■ ■

Siemens ■ ■ ■

Cisco ■ ■ ■ ■ ■

Accenture ■ ■ ■

Figure 2

Phases in the Covenant of Mayors and resulting commitments.

Figure 3 Source: Covenant of Mayors, 2012

Development of the base inventory for emissions and SEAP

Creation of a suitable administrative structure

Monitoring progress

Implementation of the Sustainable Energy Action Plan

PHASE 3: Periodic presentation of implementation reports

- 20% CO2 by 2020

PHASE 2: Presentation of the Sustainable Energy Action Plan

PHASE 1: Signing of the Covenant of Mayors

18. For the signatory cities of the Covenant, initiatives are primarily concentrated on:

- Clean mobility

- Energy requalification of public and private buildings

- Raising public awareness of energy consumption issues


19. Municipalities signing the Covenant of Mayors commit to drawing up their

own Sustainable Energy Action Plan (SEAP), i.e., an instrument that follows

the roadmap to meet goals. But in reality, of the more than 1600 action plans

presented by signatory cities, only 319 have been accepted by the European

Commission.

20. In principle, the plans should include initiatives in the following areas:

- Urbanized environment (including newly-constructed buildings and

large-scale renovation)

- Urban infrastructures (remote control heating systems, public lighting, smart

grids, etc.)

- Urban and territorial planning

- Decentralized sources of renewable energy

- Public and private transportation policies and urban mobility

- Involvement of city residents and, more generally, participation of society at

large

- Smart energy behavior by the public, consumers and companies

21. Signers of the Covenant of Mayors do not enjoy any direct financing.

However, municipalities that take part do have the opportunity to use funds

from theEuropean Investment Bank and/or other European Union funds

(for example, the 2007-2013 structural funds) or other innovative financial

instruments for specific initiatives.

22. The Covenant of Mayors initiative is not an isolated one. It interacts with an

array of other projects, policies and initiatives of various kinds. First of all, the

Strategic Energy Technology Plan (SET Plan), which provides guidelines for

developing measures to meet the Agenda 2020 goals13.

23. Adopted in 2008, the SET Plan was designed to accelerate development of low

carbon emission energy technologies. It consists of:

- An instrument for implementing the energy policy lines indicated by the

European Council.

- An organizational instrument towards a more functional structure

for European cooperation and integration within the energy sector (more

coordinated energy planning).

13 In reality, the time frame of the SET Plan extends to 2050, the date by which the plan proposes to reduce greenhouse gas emissions to a maximum of 90% through the development of new methods and technologies for the production and use of low-CO2 emission energy.

24. The SET Plan identifies a series of priority actions to be implemented over the

coming 10 years (and although with a different time frame, for 2020 and 2050).

To implement these actions, it proposes a number of industrial initiatives

focused on sectors in which cooperation on an EC-wide level could provide

clear added value.

25. One of these initiatives is aimed at the smart city theme and concentrates on

the aspects tied to energy efficiency because this is the easiest and cheapest

solution for reducing CO2 emissions14. The SET Plan is, thus, the framework for

European smart city policy.

14 European industrial initiatives are designed to reinforce industrial research and innovation in the energy sector through generation of critical mass, both in terms of activity and number of companies. The SET Plan includes a total of 9 initiatives: wind power, solar power, electricity grids, nuclear fission, bio-energy, nuclear fusion, coal, hydrogen and liquid fuels and energy efficiency (Energy Efficiency – The Smart Cities Initiative). 15 Source: European Union, European Initiative on Smart Cities.16 Among the other Italian cities which applied where Turin, Milan and Bari.

“Smart Cities and

Communities Initiative”

for more energy-ambitious

cities

European smart city policy

has its roots in the SET

Plan

European Commission declarations on the smart city theme (October 2009-February 2011).

October 2009

“Smart Cities and Communities” is the proper initiative to guarantee more sustainable and efficient energy production and use in cities

October 2010

“Smart Cities and Communities" is identified as the initiative for realizing the Europe 2020 strategy

November 2010

“Smart Cities and Communities” is a project whose goals are energy efficiency and wide-scale distribution of low carbon emission technologies

Febrary 2011

The European Council invites the European Commission to launch an industrial initiative with special focus on energy saving solutions

Figure 4Source: European Commission website

26. The purpose of the “Smart Cities and Communities Initiative” is to provide at

least partial support to projects of 20-25 European cities which show the will

to go beyond the European Union’s climatic and energy goals to attain a 40%

reduction in greenhouse gas emissions by 202015. The projects are expected to

concentrate on three main areas:

- Electricity grids

- Transport

- Energy efficiency in construction

27. The call for proposals, issued in June 2011 with 80 million euro available in

total, included among the winners the city of Genoa16, the only city to be

awarded in all three areas with the following projects:


17 Source: Granelli, A., Città intelligenti. Una via italiana alle smart cities, Sossella Editore, 2012, p. 45.18 “Smart Cities and Communities and Social Innovation” call for proposals - D.D. 2 March 2012 prot. no. 84/Ric.19 MIUR ministerial acts - D.D. 391/Ric. dated 5 July 2012.20 The deadline for presenting project concepts is November 9, 2012, while Social Innovation Projects can be presented up to December 7, 2012.

31. On an Italian level there are many initiatives undertaken centrally to support

the promotion and spread of the smart city concept. The most important

have the Ministry of Schools, Higher Education and Research (Ministero

dell'Istruzione, Università e Ricerca - MIUR) in the forefront.

32. The approach tends to be very broad (some local administrations say even too

broad). The smart city definition adopted by Francesco Profumo, the Minister

of Schools, Higher Education and Research, is:

“an abstract projection of an idea of the city of the future which refers to

an applicative and conceptual perimeter that encloses a broad and varied

range of applications and verticalizations, as are the sectors to which the

technologies involved in its realization belong [… its full implementation requires

the] construction of a new genre of commonwealth, a great technological and

intangible infrastructure that allows people and things to communicate through

integrating information and generating smartness, to produce inclusion and

improve our daily lives.17”

33. Until now, the Ministry’s activity (while awaiting the DigItalia decree and related

initiatives involving smart-related themes) has consisted of two calls for

proposals.

- March 201218: allocation of 200 million euro for projects involving

Smart Cities in southern Italy, accompanied by 40 million euro for

“Social Innovation Projects” for young people aged 30 and under in the four

convergence regions (Calabria, Campania, Puglia and Sicily).

- July 201219: 655.5 million euro (170 million in funding and 485.5 million in

low-cost credit) for projects in the “Smart Cities and Communities and Social

Innovation” sector throughout all of Italy. A part of the allocated funds – 25

million euro – is earmarked for young people aged 30 and under who want

to present “Social Innovation Projects”20.

34. Initiatives must be aimed at resolving problems on an urban and metropolitan

scale in the sixteen areas identified by the MIUR:

- Local safety and security

- Aging society

- Inclusion and welfare technologies

- Domotics

- Justice

- Education

- Waste management

European partnerships for

smart city innovation to

stimulate a team approach

In Italy, the first step was

taken by MIUR

- Transform (a joint project with Amsterdam, Hamburg, Lyon, Vienna and

Copenhagen as part of "sustainable strategic planning of cities”):

674,000 euro in financing.

- Celsius (as part of “heating and cooling”, coordinated by Goteborg):

2.4 million euro in financing to create an energy grid.

- R2Cities (as part of the “building energy streamlining” initiative coordinated

by the Spanish Fundacion Cartif): 2.486 million euro in financing which will

be used for energy requalification of the Begato dam.

28. In 2011 the European Commission also launched the “Smart Cities and

Communities European Innovation Partnership” initiative which, in its first

year (2012), received funding of 80 million euro for the energy and transport

sectors. For 2013 the budget was increased to 365 million euro and will also

include the ICT sector.

29. The goal of this new initiative is to contribute to the creation of strategic

partnerships between companies and European cities to develop and

implement the urban systems and infrastructures of tomorrow. The funds will be

used to co-finance projects involving:

- Smart buildings and neighborhood projects

- Smart supplying and projects to meet demand

- Urban mobility projects

- Smart and sustainable digital infrastructures

The call for proposals is reserved solely to industrial consortia that operate

in all three sectors: energy, ICT and transport. The consortia must include

partners from three member states and/or associated countries, and must

work with at least two cities. These criteria are meant to guarantee that the

demonstration projects presented and selected are market-oriented and can be

replicated in other cities.

30. Again on a European level, additional calls for research proposals have been

launched that also include smart city themes:

- 9 billion euro to conclude the Seventh Framework Program 2007-2013.

- 80 billion euro with the new EC program, Horizon 2020 (new Framework

Programme for Research and Innovation 2014-2020).

Added to these are:

- “Smart Cities and Regions” call for proposals (February 2012) for the

development of local smart grids (energy and environmental aspects taken

together with digital technology support).

- Pilot initiatives around “Internet of the Future” which, by 2015, should take

the shape of around ten local projects.


26 All the urban renewal/requalification contracts taken together constitute the National Plan for Cities.: the proposals will be evaluated on the basis of the following criteria whether construction work can begin immediately; how and to what extent public and private financing will be involved and activation of a public financing multiplier effect (estimated at 1:3) compared with private investment; reduction of problematic housing situations and marginalization and social decay; improvement in infrastructure, including in terms of upgrading the efficiency of urban transport systems; improvement in urban quality and the social and environmental fabric.27 The decree also affects urban requalification projects, providing 224 million euro for the National Plan for Cities implementation fund. An additional 68 million euro will be given for renewal of unassigned former public housing units.28 Source: ANCI, Nationwide project “Le città ad alto potenziale di innovazione”, 2012.

The program of works to be undertaken, assessed by a steering committee

on the basis of project proposals submitted by cities, aims at mobilizing

around 2 billion euro from both public and private sources. An ”urban renewal/

requalification contract”26 will enumerate in detail the commitments undertaken

by each party involved in the implementation27.

The figure below summarizes the steps of the process which begins with

proposing the "urban renewal/requalification contract" to the steering

committee by the city involved, and concludes with its signing, as well as the

elements that must be present in the “urban renewal/requalification contract”

21 Each “Project Concept” may be presented by a maximum of eight promoters and the overall cost of the project must be between 12 and 22 million euro. Proposals must involve industrial research activity that includes experimental development for new products, processes and services that can also contribute to growth in human capital specialized in the service economy as a precondition for triggering “smart growth” mechanisms on a nation-wide scale. The projects must use predominantly ICT technologies and research results must be validated through experimentation conducted with the collaboration of the administrations involved.22 Source: Ministero dell’Istruzione, dell’Università e della Ricerca, Decreto Direttoriale no. 257, Avviso per lo sviluppo e il potenziamento dei cluster tecnologici nazionali, May 30,

2012.23 For further information, please refer to the box in Part I, Section 2 of this brief.24 Social impact bonds are financial instruments used by the public sector to obtain private financing. Remuneration of capital invested through this instrument is tied to the meeting of a preset social result. In a correctly-implemented social impact bond model, attainment of the preset social result would in fact mean a savings for the public administration and, therefore, a margin that could be used for paying back investors.25 Source: Corriere Comunicazioni, “Calderini (MIUR): Finanziare le smart city con i social bond”, July 19, 2012

- Marine technologies

- Health

- Land transport and mobility

- Last-mile logistics

- Smart grids

- Sustainable architecture and materials

- Cultural heritage management

- Water resource management

- Cloud computing technologies for smart government21

35. In addition, in May 2012, an additional call for proposals was launched that

aims at upgrading high-tech districts by creating seven "national clusters" that

bring together public/private competencies (business, university and research

bodies) in different territories, pertaining to energy, agri-food, aerospace and

green chemistry sectors22.

36. Government action is also intended to define the context conditions for the

calls for proposals. The Steering Committee for the Digital Agenda for Italy23

has produced a series of strategic documents on Smart Cities and Communities

that will be part of the government’s proposals in the DigItalia Decree (expected

in all likelihood in September 2012). The documents should also involve the

question of financing smart city projects, a key issue in this period of economic/

financial crisis. Innovative financial solutions that would also make it possible to

involve private financing – for example “social impact bonds”24 – would be in

addition to instruments already made available through public financing25.

37. A further initiative regarding cities was contained in the Development Decree

which became law on August 3, 2012. It is the National Plan for Cities (Piano

Nazionale per le Città) prepared by the Ministry for Infrastructure and Transport.

Although not directly tied to the smart city theme, the plan takes on the question

of development and urban requalification, an aspect implicitly relevant for a

smart city.

Phases of the urban renewal/requalification contract: from proposal to signing.

Figure 5

Sending of the urban

renewal contract proposal from the

cities to the Steering

Committee

Selection of proposals on

the basis of preset criteria

Definition of investments that can be activated in urban centers, selected by the

Steering Committee

Proposal (to the Ministry of Infrastructure and

Transport) of where Fund resources will

be used

Promotion, together with the city involved, of

the signing of the urban renewal

contract

Elements that must be present in the urban renewal/requalification contract:

Urban characteristics and environment to be transformed

and exploited

Required financing and investment,

both public and privateStakeholders Timeframe

of the initiativesTechnical-administrative

feasibility

38. Another important initiative within the national context is that promoted by

ANCI (Associazione Nazionale Comuni Italiani), the association of Italian

municipalities. Its declared goal is to act as the leader in launching

system-wide action to “allow Italian cities to free up their as-yet latent

potential for development and innovation”28. Specifically, through a series of

The ANCI project for

Italy for cities with high-

innovation potential and

the Osservatorio Nazionale

Smart City


29 Literally, “Source City”. For additional information: www.masdar.ae.

analysis-centered initiatives, pooling of on-going experiences, modelization of

initiatives and identification of financing sources, ANCI proposes to create an

action framework to favor the concretization of advanced solutions.

39. Alongside this initiative, ANCI has also recently created the Osservatorio

Nazionale Smart City (Smart City National Observatory) in collaboration with the

MIUR and other ministries involved.

Smart city experiences as currently defined throughout the world

40. Throughout the world, there are many examples of smart city solutions – or

at least those identified as such. Amsterdam, Curitiba and Seattle are cited in

virtually all publications on this theme.

41. However, an all-round, 360° smart city does not seem to exist yet. Just looking

at those mentioned above:

- Amsterdam is typically smart in mobility and energy efficiency of buildings.

- Curitiba is also very good in terms of mobility, together with waste

management.

- Seattle is smart regarding energy savings.

None of the three is smart in all three areas.

42. In terms of the forces that impact on the process (public, private or a mix of

public/private players) and development model (projects developed in existing

cities/districts or all-new ones), there are potentially different types of smart

intervention approaches, and for each of these concrete examples exist.

43. In essence, smart cities can develop according to two models: greenfield

(newly-created cities) or brownfield (existing cities). An example of the former is

Masdar29 which, by the year 2020, will be built just a few kilometers from the

center of Abu Dhabi and 15 km from Dubai.

Masdar City is a project, worth 22 billion dollars total, of the Masdar company

– a large-scale enterprise active in the renewable energy sector owned by

Mubadala Development Company, the real estate and economic development

company of the Abu Dhabi government.

The project was initiated in 2008 and is expected to complete in 2020, even if

part of the city is already inhabited. At full steam, there should be around 50,000

residents plus 60,000 people who will commute to the city each day to work

in its 1,000 businesses, most of which tied to high-technology and renewable

energy sources.

Once completed, this smart city will cover a surface area of 640 hectares and

will consume 75% less energy than a traditional city of comparable size. The city

strategy calls for zero emissions, zero waste and 80% recycled water (figure

below)

Masdar will be the first

newly-constructed smart

city

44. By their very nature, greenfield smart cities are emblematic because they are –

perhaps the only – examples of cities that are smart from every standpoint. More

often, on the other hand, smart cities involve smart interventions within pre-

existing contexts. This means proceeding step-by-step, focusing on selected

aspects.

45. In the area of mobility, Hong Kong is unquestionably a textbook case. The

results it has obtained were made possible by a clear and integrated vision of the

city’s mobility problems. A prime example is the penetration index of the Octopus

Main types of smart city projects

Who is guiding the process

Development model

Existing cities/districts New cities/districts

Public City initiative

Brazil: Curitiba (City and IPPUC - Curitiba

Research and Urban Planning Institute)

Top-down government initiative

Abu Dhabi: Masdar (Mubadala Development

Company, investment vehicle created by the Abu

Dhabi government Abu Dhabi)

Public-Private Joint business-local entity renewal

United States: Seattle City Lights (City,

Microsoft, University of Washington)

Joint business-local entity initiative

Sweden: Stockholm Royal Seaport (Royal

Institute of Technology, Fortum, ABB)

Private Corporate “flagship projects”

Germany: T-city in Friedrichshafen (ABB,

Deutsche Telekom and Alcatel Lucent)

Private initiative

South Korea: Songdo International Business Di-

strict (Cisco, 3M, Gale International and Posco)

Figure 6

The Masdar strategy and some of its implementation initiatives

Figure 7

Zero emissionsZero waste

80% of water recycled

Per capita energy consumption has been set (30 kw of electricity

and 80 liters of water per day)

An ecological footprint limit has been set for each citizen

Transport will be completely green with electric taxis

that move on magnets

80% of energy from solar sources

Rain collectors, desalinization plants and gray water irrigation systems will be included

99% of waste will be recycled or utilized in compost

Hong Kong: solving

mobility problems through

the introduction of a smart

card


mobility card which is extraordinary compared with other countries and cities.

In Hong Kong, 84% of the population (approx. 6 million residents) use public

transport, bicycles or go by foot. Card penetration for public transport (2.9

cards per resident) is the highest in the world. It can be used on buses, trams,

ferries, the subway and high-speed and long-distance trains.

Records (NEHR) represent a flagship project in the country, with the following

goals:

- Improve the quality of healthcare

- Reduce healthcare costs

- Promote more effective health policies

NEHR is designed to provide a holistic view of a patient’s medical records.

Thanks to this, doctors and authorized healthcare professionals have real-time

access to all clinically-relevant information for a patient (personal information,

clinical diagnoses, drug history, etc.), with the potential of reducing both costs

(in terms of duplicate or useless tests) and possibility of error.

The project was announced in 2009, with the first test phase launched in April

2011 and since June 2012 the project has been fully operational in all public

health facilities.

47. One city certainly at the forefront of digital technologies for the public is

London:

- It is the home of a smart city research center at Imperial College and

sponsored by the Research Council. The research center has a 5.9

million pound grant and its purpose is to develop more efficient systems

in transport, bureaucratic management, business and academia, using the

city as a laboratory for the digitalization of utilities and services.

- In conjunction with the Olympics, the city has launched the largest free

WI-FI area in Europe, in partnership with O2.

- At the Greenwich peninsula, the Urban Operating System (UOS™) was

tested, an operating system designed to supply the smart city of the

future that aims at connecting essential services including water, transport

and energy30.

- The city makes available a dedicated website (http://data.london.gov.uk) with

all public data which either singly or together is subject to surveys on its

use by individuals and companies. The result is hybrid applications created

by users, as in the case of arson incidents in London

(http://www.maptube.org/home.aspx).

48. Amsterdam represents one of the most complete examples of a brownfield

smart city in the world today.

It offers innovative solutions in terms of energy efficiency, sustainable

mobility and urban requalification (figure below)31.

The plan, launched in 2009, was the result of collaboration between Liander

(Dutch gas and electricity company), Amsterdam Innovation Motor (agency

that promotes and supports research and innovation for the business within

London in the forefront in

making digital technologies

available to the public

30 The system was developed by Living Plan IT (together with Hitachi Consulting, Philips, McLaren Electronic Systems, Buro Happold, Critical Software and 8over8 Limited) with the goal of connecting buildings, streetlamps and urban systems. Specifically, in a newly-constructed building, Living Plan IT intends installing thousands of sensors to monitor external and internal conditions with the goal of creating smart lighting and more efficient heating systems.31 For more information, see http://www.amsterdamsmartcity.com.

0,4

0,2

0

2,2

2,0

1,6

1,4

1,0

Mobility card penetration

Services1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

•

• ••• •

••

•

•

•

•

••••

• •

••

•

• •• • • •VenturaMexico

Bangkok

Wels

SteyrNottingham

San Paulo

Brisbane IstanbulLione

Netherlands

Paris

Boston

Lisbon

Taipei

SeulLondonHong Kong

Singapore

Klagenfurt

Buenos Aires Tokio

Shangai

Peckin

WashingtonSan Francisco

MinneapolisChicago

San Diego Stockholm

Los AngelesMelbourne

Urban mobility smart card penetration and number of services included in the cards.

Figure 8Source: The European House-Ambrosetti, 2011

One of the key elements in the card’s penetration success is its integration

potential with other services: in fact, it can also be used as a credit card and

provides discounts in many stores.

46. In the vanguard of smart services for the public is Singapore. The city has a

very strong approach in terms of e-health and the National Electronic Health

Singapore: real-time

access to full patient

history is possible

Amsterdam: by 2025,

40% reduction in CO2

emissions


the urban area of Amsterdam) and the Municipality of Amsterdam. Over the

subsequent three years, it called for raising public and private financing of 1.1

billion euro.

The results of the Amsterdam Smart City actions will also contribute to meeting

the goals of the “New Amsterdam Climate”, the action plan which, by 2025,

calls for a 40% reduction in CO2 emissions through targeted projects in private

construction, transport and organization of urban spaces.

The involvement of citizens was fundamental in realizing the strategy’s

initiatives, culminating in a moment of visibility with the transformation of

Utrechtsestraat in the first sustainable and joint commercial street in Europe.

Chapter 2Our concept of smart city

A smart city in a smart country

49. Smart cities can be an opportunity not only in other countries – as the cases

above show – but also for Italy. However, the theme must be presented from

the right perspective.

50. It would be difficult for the models and/or solutions developed elsewhere in

radically different circumstances to produce the desired fruit if simply applied,

as is, in Italy. Nor would it prove effective to just respond to European or

national calls for proposals as an easy way to alleviate the increasing financial

pressure on local authorities.

51. On the contrary, smart cities – as the direct descendents of ideal cities in the

spirit of the Italian Renaissance – must be seen as an opportunity to once

again put the valorization of urban areas at the center of the economic,

social and political agenda by launching a process of profound, positive and

farsighted reflection about the future of Italy's cities. Even more so in this period

when opportunities are scarce. But it is exactly in moments of uncertainty

that we especially need a vision which makes it possible to seize the (few)

opportunities that do exist.

52. From this standpoint, the marked fragmentation of smart city initiatives

undertaken in Italy would seem disfunctional. Dozens of Italian cities have

launched or intend launching smart programs32, but, as correctly noted by

recent commentators – they risk being “smart acupuncture”, incapable of

generating complex, broad-based change that could benefit the entire country33.

53. Individual sector-related policies, individual projects and individual applied

technologies do not make an area truly smart. Although fundamental,

technologies, projects and policies will produce results if and only if they are at

the service of a common idea that enhances potential.

54. And this idea does not need to be futuristic. On the contrary, in a context like

Italy’s, it would be absurd to think of transforming its urban centers – seeped in

a heritage going back millennia – into futuristic megalopolises. The competitive

advantages emanating from an artistic and cultural heritage the entire world

envies Italy, must evolve from being a valid tendency and ability to cooperate

(when we want to), to becoming a source of profit. In fact, they will provide the

opportunity to formulate a distinctive and original concept of smart city within

the context of a “smarter” country34.

Smart cities are an

opportunity to “reinvent”

Italy

No “smart acupuncture”

Technology, projects and

policies must be put at the

service of a strong idea

of the future, but without

forgetting the past

32 For example, without citing all: Bari, Bologna, Florence, Genoa, Milan, Naples, Pavia, Piacenza, Reggio Emilia, Turin, Trento, Trieste, Venice and Verona. 33 A number of commentators have expressed this concept, including Silvestrini G., “Rinnovabili smart”, in QualEnergia, no. 3, 2012; Oliva F., Campos Venuti, G., Gasparrini, C., Relazione della Commissione per la valutazione urbanistica delle criticità e delle prospettive per la ricostruzione e lo sviluppo della città de L’Aquila, June 2012.34 Within a constantly-changing world, the smart approach – if examined from a country-wide perspective – could also be useful for the processes of change required for European integration, as well as administrative and institutional decentralization.

Some smart projects implemented and/or being implemented in Amsterdam

Energy efficiency

Sustainable Mobility

Urban requalification

- Energy management systems (energy and emissions saving: -14% per residence) to optimize consumption and collect clean energy produced by small installations located throughout the city

- Special terms for financing to purchase solutions to reduce residential consumption

- 300 new recharging columns for electric vehicles and outlets for boats

- Bike sharing and bike rental (the first projects to promote bicycle use were in the 1960s; today there are approx. 500 km of bike paths and lanes and 70,000 bicycles)

- Requalification of the old Houthaven port (development of peninsulas that extend from the land towards the sea; there will be approx. 2,000 residences, grouped into 70 apartment buildings that will also house schools, hotels and stores, healthcare and recreation centers)

Figure 9

Forty businessmen from the neighborhood took part in mapping emissions and

gradual installation of smart meters and smart plugs to reduce consumption.

The city also has energy-saving street lighting systems and tram stops, solar

powered smart trash bins that independently compact rubbish and inverse

osmosis public fountains.


55. For this to occur and for Italy to benefit overall, critical mass and cohesion are

essential. These “ingredients” can only result from a top-down approach that

guarantees:

- Monitoring of focus (what we want to be when we’re “grown up”) and

coordination to provide long-term support to local smart-related activities.

- Awareness-raising and proactivity from central government (to stimulate and

provide impartial guidance).

- Action by political figures who can create across-the-board consensus

(strong leadership).

- Continuity of basic choices to overcome the risk that changes in national

and local government call into question what was previously agreed upon.

56. Within this perspective, in addition to formulating system guidelines, the task

of central government is to create the context conditions to facilitate the

development of smart cities. It involves providing the “instruments”, even more

than defining priorities, with the proviso that each local area must translate the

goals agreed upon into the local context.

57. By definition, a smart city cannot be a standardized product to be replicated

anywhere and under the same conditions. It is the result of a delicate

equilibrium of factors which, most of the time, are unique and unrepeatable.

From this standpoint, all that can be done is formulate system-wide guidelines

and the instruments they require, refraining from going beyond this.

58. The contextual conditions to be set are essentially:

Normative framework:

- a limited number of rules that are certain, with penalties for non-compliance

and which do not change in continuation;

- for which there can be no exceptions, unless the reasons are made

absolutely clear;

- which tend to regulate the most interesting cases, not necessarily all cases.

Methodological guidelines: common standards to avoid fragmentation and

the inability to work together, difficulties in governing, in-fighting (for example,

use of social capital as a “catalyzing agent”).

Instruments: For example:

- sets of comparative indicators to monitor actual smart-related progress,

including given the substantial investment involved;

- sharing the most interesting experiences;

- creating systems of initiatives previously pursued autonomously from an

integrated planning standpoint.

59. The critical nodal point of this process remains the issue of integration and,

above all, compatibility (with uniform standards) of technologies that promote

smartness AMONG local areas.

60. There is a multiplication of systems, services and bureaucracy that vary from

city to city and have trouble communicating with each other. Examples of

real synergy are few and far between. Unfortunately, parochial, self-referential

outlooks still impact on the collaboration between public administrations,

including on a local level. Even a move away from this would be proof of a form

of smartness in the interests of the country.

Vision and goals of the smart city

The strategic goals and vision of Italy – just as the cities that make it up – must

keep abreast of the times and be functional with them. The transformation currently

underway, with the acceleration of all trends and pervasive spread of technology

(communications, first and foremost), is epoch-making. Throughout the world

(in both developed and non-developed areas), a transition is currently underway

from satisfying primary, material needs typical of consumer societies, to satisfying

“higher” needs typical of global, post-consumer societies.

To contribute to the future

of the country as the sum

of its local areas, the

strong idea for the future

must be developed

top-down

A smart city minimizes

the effort for “low” needs

and (efficiently) satisfies

“higher” needs

A smarter country needs

integrated systems and

interoperability among

smart cities

The task of the government

is to guide and “capitalize

on” local entities at all

levels

Figure 10

Country

City system1

City system2

Smart city 1

Smart city 2

Smart city 3

Smart city 4






61. The Maslow hierarchy (figure below) illustrates this evolution well35. business, even if it is often under-estimated (perhaps also because of being

used to be “immersed in beauty”, unlike in other countries). According to a

recent CENSIS survey, everything that is beautiful in Italy (food, monuments,

tourism, works of art, etc.) produce added value equal to 74.2 billion euro

(4.7% of GDP)36.

66. These types of needs can only be satisfied by more advanced smart cities.

The organization of society and its institutions must take this into consideration

by innovating the goals of its system, frameworks and structures.

67. On the basis of this, for us, a smart city is:

68. It is, therefore, a city in which:

- Water and electricity wastage is avoided thanks to advanced sensing

and monitoring systems, remote control systems and sensors on public

streetlights, irrigation systems, etc.

- Industrial and residential emissions are optimized thanks to solutions which

reduce the impact of air conditioning and heating systems.

- Renewable energy sources are integrated into the energy system and energy

efficient solutions are applied in the industrial, residential, infrastructure and

transport sectors.

- Getting around is facilitated thanks to the control of traffic flows and mobility

information; public transport is innovative and sustainable; historic city

centers are pedestrian areas; and intermodality is promoted through non-

polluting modes of transport (electric cars and bicycles, for example).

- Less waste is produced, it is recycled and energy is generated from it.

- Medical visits can be scheduled and paid for by computer, as can all

municipal services, thus generating more personal free time.

- There is no need to wait in line at the bank, post office or public offices –

everything can be done by computer.

- The city’s real estate assets are constantly maintained and managed using

the most advanced technologies.

- The city’s green areas are protected and abandoned areas are reclaimed.

- The city is a laboratory of ideas, a fertile environment for learning, creativity

and innovation, pursued from an inclusive approach.

35 Different versions of the Maslow hierarchy exist. The original one dates from 1943 and has five levels of need (biological and physiological, safety, love and relationships, self-esteem and self-actualization). The version with seven needs shown here, is the result of a re-working in the 1970s. Source: Maslow, A. H., “A theory of Human Motivation”, Psychological Review, vol. 50, no. 4, 1943, 370-96.

36 Source: Arachi, A., “Il valore della bellezza in Italia: 74 miliardi”, Corriere della Sera, July 11, 2012.

An urban model that can guarantee better quality of life and personal and social growth of individuals and business through optimizing

resources and spaces for sustainability

PhysiologicalBasic needs: air, food, water, shelter, heat, sex, sleep, etc.

SafetyProtection, safety, law and order, limits, stability, etc.

Belonging and loveFamily, affection, relationships, group, etc.

EsteemResults, status, responsibility, reputation

Awareness Knowledge (individual and of the world), sustainability

AestheticAttractiveness, equilibrium, etc.

Self-actualization

Personal growth and fulfillment

Strategic objectives in the 1800s and 1900s

New strategic needs to be fulfilled

Figure 11Source: TEH-Ambrosetti based on Maslow A., 1943

Hierarchy of needs (Maslow) and relation to strategic goals of individual country systems

62. From this perspective, for a need on a higher hierarchical level to emerge,

those on the lower levels must have been satisfied.

63. Satisfying the “base” needs (first four levels on the pyramid) – in past

centuries, the strategic goal of every community – is today taken as given.

Although with different nuances, physiological needs, safety, protection, love

and respect are generally satisfied by today’s urban centers. Therefore, given

the goal, efforts to attain these needs must be minimized.

64. The new strategic needs to be met today concern awareness (individual and of

the world), sustainability of choices (satisfying individual needs while avoiding

compromising the ability of future generations to satisfy theirs), equilibrium and

personal growth.

65. Important in this is living in a context which offers stimuli and experiences. For

example, “beauty”, seen as an instrument of social-cultural growth deriving

from living in an Italian city. It is a need that is felt today and one that generates


Chapter 3Why smart cities

General context: the needs of our age made critical by the evolving world scenario

69. We are experiencing an era of tremendous change. Current trends create

major discontinuities that impact the geopolitical and economic framework, as

well as the daily context in which we live and work.

70. These trends converge to redefine the medium- to long-term global

competitive scenario. We are navigating towards a “new world” profoundly

different from the one (even just) a decade ago. A world in which new needs

will emerge that were once non-existent or at least dormant.

71. The epicenter of the transformation lies in two “drivers for change”. They

are large global “waves” propagated over long-term spans of time that cut

across geographical areas and sectors, and, as they interact, they create the

dynamics that will be the key competitive element of the years to come37:

- increasingly widespread and deep-seated connectivity;

- the worldwide change in the social/demographic mix.

72. Connectivity. On one hand, the importance of physical and time distances

will be rescaled, and on the other new modes of relating and socializing

between individuals, business and the community will develop38.

73. The enormous availability of data and information, free and in real time,

will clash with the need to manage them, both in terms of individuals and

organizations.

74. The worldwide change in the social/demographic mix. Counteracting

the growth in world population, headed by emerging countries, will be the

appearance of new demographic trends in more developed countries (aging

population, falling birthrate, longer life expectancy).

75. Social/demographic rebalancing will have a significant impact on cities:

growing urbanization (this trend will be examined in more detail later) and

growing and different needs of the over-65 population which will become

increasingly important (this trend will also be analyzed further on).

76. From the interaction of these two drivers for change emerge current major

trends, each of which can be more or less traced (in terms of its effects and

origins) to one or the other of the drivers, as illustrated below.

77. From some of these trends it is expected that new social needs are likely

to be generated, needs that could significantly impact on how urban

conurbations will develop in the near future. These are, specifically:

- Urbanization

- Longevity

- Growing scarcity of natural resources

- Acceleration and increasing complexity of society and the economy

- Mobility

78. Urbanization. In 2007, on a global level, the urban population surpassed the

rural. It is expected that in 2050, the Earth will host 9 billion people (+32.4%

since 2010) and, at that time, cities will be home to about 70% of them39. By

2030, nearly one-fourth of the world population will live in the world’s 600

largest cities40.

79. The context is, therefore, a challenging one: such a densely-populated world

will develop urban conurbations of all kinds, causing evident upheaval in the

daily lives of each of us. A key factor will therefore be the intelligence with

which will be able to coordinate ourselves and adapt to these changes.

37 See the Ambrosetti Club study on the theme, I nuovi megatrend che impattano sul business e sulle nostre vite, 2011.38 The “community” effect and the network approach – both physical and virtual – have become an integral and necessary part of daily life.

39 This is especially true for emerging countries where, over 40 years, the urban population is expected to grow on average by nearly 70% (65% in Asia and 72% in Africa).40 Sources: TEH-Ambrosetti elaborations based on United Nations (Population Division - UN-Habitat) and World Bank data.

Two drivers for change and

five trends will influence

the development of the

cities of tomorrow

Connectivity cuts across

all social and relational

aspects

Two billion new urban

residents by 2030 Appearance of new needs

made crucial by rapid,

inevitable global trends

Connectivity increasingly diffuse and

deep-seatedCommunity

culture

New axes of global

trade Encounter between cultural models

Enhanced longevity

Growing urbanizationGrowing

scarcity of resources

Acceleration of innovation

Intensification of economic

interconnection

Redistribution of wealth and political power

Change in world social-

demographic mix

Reference framework: Drivers for Change and Megatrends.

Figure 12Source: TEH-Ambrosetti, I nuovi megatrend che impattano sul business e sulle nostre vite, 2011


80. In Italy, approximately one person out of two (44.6% of the population) lives

in municipalities with high urbanization, in line with the European average

(47%)41. In contrast, the share of the Italian population that lives in areas with

a medium level of urbanization is more than 14 percentage points higher than

the European average (25%).

81. According to CENSIS, the type prevalent in Italy today in terms of housing

and business density, are the mega urban conurbations. The result of

urbanization “run wild”, 14 of these conurbations can be identified; they

account for 1/5 of the national surface area and in them are concentrated over

36 million people (61%), 3.3 million businesses (63%) and around 600,000

technologically advanced production units (71%)42.

82. The administrative boundaries of Italian cities no longer seem to correspond

to the physical, social, economic and cultural reality of urban development.

Uncontrolled expansion of urban systems is one of the main threats to

sustainable territorial development. This, together with demographic changes

and lack of economic growth, contribute to amplifying social polarization and

emargination. New integrated and inclusive urban models under all aspects

(social, economic and cultural) are needed.

83. The smart city, the place in which the quality of life of its residents is the

primary indicator and “openness” and “integration” are the cornerstones,

certainly stands to fully take on this role.

84. Longevity. In 1974, life expectancy at birth in developed countries was

between 72 and 75 years of age, while today it is between 77 and 83. In

just over 35 years, it has increased by nearly 8 years, thanks to progress in

medical science. Specifically, in Italy, between 1960 and 2010 it has grown by

a full 10 years – the highest increase recorded in Southern Europe.

85. By 2030, the Italian population over 65 will increased by 6% and those over

80 in Italy will be 700% more numerous than in the 1951 census. On the

opposite end, the population under 59 will decrease by 8%. Strong pressure

on healthcare expenditure, both public and private, can certainly be foreseen43.

86. Compared with the past, the senior population will be more active and

independent. In fact, already today – unlike in the past – it is already capable

of being much more active. Those over 85 who travel have increased by 70%

from 2004 to the present44. Two senior citizens out of five clearly state that

they “would like to do more”45, continuing to contribute to creating wealth,

although in different ways. There are, therefore, significant margins for

taking advantage of this age bracket of the population where it is not affected

by serious illnesses.

87. The smart city can represent the occasion to experiment with low-cost

services, products, technologies and policies for senior citizens. An extremely

important and across-the-board challenge involving the entire country.

88. Growing scarcity of natural resources. Population growth and consumption

models that have taken hold in recent decades are accentuating the scarcity

of some resources.

41 By “municipalities with high urbanization” is meant densely-populated areas, comprised of aggregations of territorially contiguous local units with a density greater than 500 inhabitants per km2 and with an overall population of at least 50,000 inhabitants. Source: ISTAT, 14° Censimento generale della popolazione e delle abitazioni, 2001.

42 In essence, they consist of: 2 “mega regions” (Lombardy and Veneto) with a number of provinces; 6 metropolitan areas (Turin, Rome, Verona, Naples, Palermo and Cagliari); 4 linear coastal systems (Liguria, Upper-Adriatic, Lower-Adriatic and Eastern Sicily); 2 “territorial poles” (Emilia and Tuscany). Source: CENSIS, 42° Rapporto sulla situazione sociale del Paese, 2008.

43 In the major industrialized economies, it is expected that in 2020 healthcare expenditure will be, on average, between 9% and 19% of GDP. In the case of Italy, this could rise to 10.2%. Source: TEH-Ambrosetti elaborations on OECD data, 2011 and TEH-Ambrosetti projections for 2020 based on CAGR 1990-2008.44 Source: CENSIS, 2010.45 Source: IX Rapporto Censis/Salute-La Repubblica, 2010.

Urban-centric development

poses the issue of inclusion

which a smart city must

fully respond to

Life expectancy at birth

in Italy has increased by

10 years in the last half-

century

People are living longer

while remaining more

active and independent

Los Angeles

Mexico City

Guatemala City

Bogota

Lima

San Paolo

Belo Horizonte

Rio de Janeiro

Luanda

Ginshasa

Abidjan

Lagos

Buenos Aires

Santiago

Chigago

Toronto

New York

LondonRhine Ruhr North

Moscow

Istanbul

Cairo

JiddaRiyadin

Bangalore BangkokMumbaiPune

Hyderabad

Karaki

AhmedabadSurat

Madras

Calcutta

Yangon

BandungJakarta

TokioShenyang

Beijing

Osaka

ManilaHanoi

SeoulWuhan

Chittagon

TiajinDelhiLahoreKabul

Dhaka

Ho Chi Minh City

Hong KongShanghai

Teneran

Rhine Ruhr Total

Paris

Baghdad

5 - < 8 milions

8 - < 10 milions

≥ 10 milions

3025201510 5

Urban population (millions)

Urbanization phenomenon on a global level.

Figure 13Source: TEH-Ambrosetti elaborations based on United Nations, Population Division data, 2011


Evolution in life expectancy at birth 1960-2100.

Figure 14Source: United Nations, World Population Prospects: The 2010 Revision

Italy 1960-2010:+10 years

(largest increase in southern Europe)

100

95

90

85

80

75

70

65

60

55

501960 2010 2060 2100

World

Italy

Southern Europe

Europe

Life

exp

ecta

ncy

at

bir

th (

years

)

89. Uncontrolled urban expansion46 is becoming increasingly significant. In Italy,

an average of over 500 square kilometers are consumed each year47. Over

the next twenty years, the land surface occupied by urban areas will grow by

about 600,000 hectares, 75 hectares per day (i.e., a square of 6,400 km2)48.

90. In terms of energy, Italy is heavily energy dependent (84% – in particular on

countries that are not that politically stable), with a mix of electricity generation

skewed towards fossil fuels (approximately 80%, compared with the European

average of 55%) and in particular gas and oil, sources that are expensive and

subject to price fluctuations. Without considering that we are among the top

importer countries of electrical energy in the world, with obvious ramifications

on electrical energy prices49.

91. Just over 14% of final energy consumption comes from renewable sources,

but progress in the recent past has been significant: we were at 8% in 200050.

Today, there are over 400,000 renewable energy source installations in over

95% of the country’s cities51.

92. Italy is one of the European countries in serious water stress (along with

Spain, Cyprus and Malta), i.e., with a quantity of fresh water resources utilized

compared with the total of over 40%. The European average is 13%. Added to

this is the difference in the per capita water availability: in the north of Italy it is

double that in the south and nearly three-and-a-half times that of the islands52.

46 Uncontrolled urban expansion occurs when land consumption and transformation for urban use exceeds the level of population growth for a given area and specific period of time.

47 In practice, this is as if every four months, a city the size of the urbanized area of the Municipality of Milan sprang up. Source: Legambiente, Rapporto annuale Ambiente Italia, 2011.48 Source: FAI-WWF, Terra rubata. Viaggio nell’Italia che scompare, 2012.49 Sources: International Energy Agency, Eurostat, Terna, 2012.50 Source: Terna51 Sources: GSE;,Terna, ENEA, Legambiente, Comuni rinnovabili 2012.52 Statistics for the efficiency of use of water resources also show significant waste. Domestic use in Italy is one of the highest in Europe. And it is not expected that the situation will improve: estimates for water consumption from now until 2020 indicate an average increase of approx. 3%, with peaks of 4.3% and 7.2% in the south of Italy and the islands. Source: ANEA (Associazione Nazionale Autorità ed Enti di Ambito) and Utilitatis, Blue Book, 2010.

< 5%

< 10%

< 20%

< 30%

< 40%

> 40%

Level of renewable energy sources against total energy consumption in Europe

Figure 15Source: Eurostat 2010

93. Prudent management of resource use – much more strategic than currently –

is absolutely required. Therefore, sustainability-oriented modes of resource

consumption will be increasingly relevant.

94. Acceleration and increasing complexity of society and the economy.

Short life-cycles – of goods/services, knowledge, technologies, etc. – and

rapid evolution in lifestyles and other social dynamics would seem to now be

the norm.

95. The life cycles of goods are becoming shorter. An example is what occurred

in the music media industry, faced with a total re-thinking of the business

model (from physical product to digital output). Over the last 60 years, we

have gone from approximately 30 years of life for vinyl records, to 15 years for

music cassettes and 10 years for CDs. It would be reasonable to ask what the

life will be of i-Pods.

Faster and more complex

lives increase demand for

quality of life

Italy is experiencing a

fragile energy situation,

excessive land use and

serious water stress


53 From an experiment undertaken internationally in 32 cities. Considering the average time recorded to cover 0.02 km, the top 5 “fastest” cities in the world are: Singapore (10.55”), Copenhagen (10.82”), Madrid (10.89”), Guangzhou (10.94”) and Dublin (11.03”). Source: TEH-Ambrosetti re-elaboration based on British Council data.

54 Source: Patronato INCA-CIA, Confederazione Nazionale Agricoltori. With an average life span of 80 years, about two years are spent in line at public offices to take care of bureaucratic questions (payments, pension/social security business, income tax forms, etc.). 55 Source: FIASO (Federazione Italiana Aziende Sanitarie e Ospedaliere) survey, March 2012.56 Source: “Italiani senza tempo libero: siamo gli ultimi in Europa”, La Repubblica, April 6, 2006.

Reduction in product life cycles: example of the music media industry.

Figure 16Source: TEH-Ambrosetti

~ 30 years ~ 15 years ~ 10 years ?

96. The acceleration in lifestyle also reflects people’s habits. The “speed” of

pedestrians throughout the world has increased an average of 10% over

10 years ago53. We live in a world in which there is never enough time to do

everything.

97. The comparison between acceleration and chaotic complexity of the lives of

each individual is interesting. Each Italian spends one week a year standing in

line in public offices, while a quarter of the population feels stressed by work54.

Stress accounts for about 60% of work absenteeism for illness in Italy55.

98. In addition, free time in Italy has increased only 14 minutes a week since

1990. A disturbing statistic if compared to the average increase in Europe

during the same period of 120 minutes per week, and even more so if

compared to the United States with 300 minutes per week56.

99. Hand-in-hand with acceleration and complexity emerges an increasingly

pressing demand for simplification, de-bureaucratization and instruments

that help to regain free time and improve quality of life.

100. Mobility. Italy is, today, one of the countries in the European Union with

the highest density of internal traffic: 80% of passenger and freight traffic

is by road and it is no. 2 in Europe for level of motorization. It is estimated

that in the next 20 years there will be a further 50% increase in freight and

passenger traffic.

101. Mobility that is straight-jacketed creates costs for the country because it has

major repercussions on such aspects as “time lost” (individuals and goods),

safety (accidents), pollution and consumption (gas, lubricants, etc.).

102. It is estimated that approximately 4.5 billion hours are lost each year in Italy

due to congestion. Ninety-nine percent involve automobile travel, with the

remaining 1% due to delays in train and air travel57.

57 Source: ACI Survey, 2009.58 The survey involved direct readings taken in the early months of 2009 and analysis of data from GPS devices installed in vehicles insured with satellite policies.59 In Turin, this drops to 55 minutes and in Genoa to 47 minutes.60 The survey was based on interviews with 8,042 commuters in 20 cities around the world. Source: IBM Parking Survey, 2011.61 Source: Eurostat, 2012.

140

130

120

110

100

90

80

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

90,2

100

85,988,7

94,7

101,9

114,8

119,4

128,3

117,8

113,6

GDP (constant prices as of 2000)Mobility demandLinear (mobility demand)

Mobility demand in Italy, 2000-2010.

Figure 17Source: TEH-Ambrosetti based on IUAV, ISFORT, Eurostat data

103. In a special survey carried out in 2009, the Italian Automobile Club (ACI) was

able to quantify the cost of traffic congestion in a sampling of four cities:

Rome, Turin, Milan and Genoa58. The statistics are alarming. In large cities, the

average car trip is 60 minutes59 and half of this is lost in slowed or stopped

traffic. This equals more than a month of working hours per year for each

citizen.

104. IBM carried out a survey in 20 cities on 6 continents to provide a picture of

parking-related problems. Over 30% of city traffic is caused by drivers looking

for a parking place, an activity which for one driver out of five in Milan requires

30 to 40 minutes60.

105. Nor are things any better regarding safety (noticeably reduced, but still at

a level of 66 road accident deaths per million inhabitants, compared with a

European average of 62)61, or in terms of pollution. According to surveys by

the European Environment Agency, 17 Italian cities appear among the 30

most polluted cities in Europe.

Current growth trends in

transport are unsustainable

in the mid-to long-term;

there will be a need for new

models of mobility


106. Current mobility models are no longer sustainable, especially given a level

of demand that has been growing for some time and an expansion in time

and space of travel. They exhibit a series of structural problems that create a

competitive disadvantage for the country. Even more than in the past, efficient

systems of transport and connectivity are fundamental to responding to new

modes of living and working.

The contribution of technological innovation in meeting needs

107. Within the context of what could be considered epoch-making changes and

new emerging needs, technology and innovation play a central role.

108. However, two factors characterize our age:

- Acceleration, including in innovation.

- Continuous technological progress at a multiplied rate compared to even

the recent past.

109. These trends are progressively intensifying, accelerating the frequency and

depth of change on a global level. From this standpoint, it is significant to

note that in the world, starting in 2000, two highly-interrelated trends have

appeared and persist (see figure below):

- Increase in the real value of global expenditure in science and technology

(+59% over the decade 2000-2010).

- More uniform distribution of this expenditure among the countries in the

world, including the emergence of new reference players62.

110. By its very nature, the metropolitan space is the most suitable for taking

advantage of new technological opportunities and knowledge. Urban

technologies, systems and infrastructure must be continuously adapted to

needs as they arise.

111. Historically, technological innovation applied to the networks and systems of

urban areas has been a crucial factor in the development of cities. Presumably,

it will be even more so in the cities of tomorrow. The figure below provides a

number of key technologies shown to be useful in the growth and success of

urban centers, together with examples of cities in which the development of

specific technologies has played a crucial role.

Innovation is the challenge

of our age

The world geography of

technological innovation is

changing

62 Among the emerging players, China unquestionably occupies a central position. In its most-recent 5-year plan, the Chinese government has clearly placed development and the country's autonomous innovative capacity among its top 5 strategic priorities (its vision is to become a country capable of “producing” Nobel winners).

World expenditure in science and technology as % of annual total and reference areas;

the size of the maps is proportional to real values

Figure 18Source: AFRL

Canada 2%

2010

2000

Central/South America

2%

USA 35%

European Union23%

Africa<1% Australia

2%

Japan12%

India4%

Taiwan1%

S. Korea4%

China12%

2%

2% 26%

3%

42%

<1%

<2%

2%

3%

1%2% 16%

1%

Technologies and development of cities.

Figure 19Source: Gann, Dodgson, Bhardway, “Physical-digital integration in city infrastructure”, IBM Journal, vol. 55, nos.1-2, 2011

70%

60%

50%

40%

30%

20%

10%

1800 1900 2000 2050

% o

f w

orld

pop

ulat

ion

in c

ities

Key

Tec

hnol

ogie

s

PhysicalSystems

% of world population in cities

Digital Systems

WaterpowerCanals

(Manchester 1760-1830)(Glasgow 1770-1890)

(Berlin 1890-1930)(Detroit 1890-1915)

(San Francisco/Palo Alto 1960-1990)

(London, New York,Tokyo 1985-2008)

Steam enginesRailwaysSanitation

ElectricityLightingRail systemsHigh-riseTelegraph

AutosAirlinesHighwaysOilFood ProcessingTelephony

Internet servicesIntelligent buildingsTelecomComputers

Complex systemintegration

Sensor networks

Cloud computing

Environmentaltechnology

Technological innovation

is a crucial factor in

responding to the changing

needs of cities


112. It is clear that the integration of modern digital technologies into existing

physical systems will unlock new opportunities. Above all, it will make it

possible to accelerate meeting some goals, including in the short-term.

A specific example: so-called “smart buildings” in which a special system

integrates the automation functions of the building to optimize energy

management, allowing users to interact with systems for lighting, power

supply, heating and cooling, surveillance, etc. This is even more true in a

country such as Italy where the limits of expansion of urban areas have been

reached.

113. However, the challenge will be guaranteeing that technologies are truly able

to provide an effective response to the problems of citizens and business.

Essential, first of all, is understanding their problems and defining the goals

to be pursued. Only following this can technology enter into the picture (in

terms of identifying the most appropriate technological products to meet the

goals).

114. Many of the key technologies shown in the figure above are, in fact, systems

(transport, water, energy and electricity management, buildings). Traditionally,

these systems were developed and managed independently, despite the fact

they are strongly interconnected63.

Adopting technologies

requires a clear plan;

technology cannot “run the

show”

63 The transport system is intimately linked to the energy supply system, just as better telecommunications infrastructures increase the opportunity for telecommuting or telemedicine.

64 The first efforts in this area date back to 1999 by a research consortium based at the Massachusetts Institute of Technology. However, the concept made its first official appearance on the world scene only in 2005 with the publication of the report, The Internet of Things, prepared by the International Telecommunication Union (ITU).65 Examples are everywhere: from gym shoes that transmit time, speed and distance for real time races with other people, to the black box of satellite car alarm systems that records driving habits, making it possible to fine-tune insurance premiums.

EUROPEAN PROJECTS FOR THE INTERNET OF THINGS

There are already many projects working in this direction in Europe.

Some of them are directly focused on smart cities:

- Smart Santander, actually an experiment, in which the city of Santander has become a laboratory to show what it really means for citizens

to live in a “smart space” equipped with sensors and networks aimed at improving living conditions. Using a web/Apps, anyone can access

constantly-updated data maps.

- Peripheria, to spread and improve use of information technologies by citizens, local administrations and businesses to develop sustainable life

styles, through a new network of medium-sized European cities, in partnership with five countries (Portugal, Greece, Germany, Sweden and

Italy). The city of Genoa has joined this project.

Others are working at a higher level:

- IoT-A (Internet of Things Architecture), launched in 2010 to develop an architecture reference model that makes it possible to connect with the

Internet from any kind of device with any kind of technology, making compatibility problems obsolete.

Through infrastructure projects like IoT-A (20 partners and over 12 million euro in funding) the European infrastructure for the “Internet of Things”

is being constructed, onto which theme-related platforms will gradually be based.

115. It is by recognizing these interconnections that enhanced advantages can be

gained today. The so-called ”Internet of Things” encapsulates this concept64.

Objects today acquire intelligence: they have an identity, can be localized

and have the ability to interact with the surrounding environment and process

data. This is thanks to microcalculators placed inside them that allow them to

communicate with the outside world via radio, creating wireless networks that

are connected, in turn, to the Internet65.

116. These applications are designed to allow anyone – through wide band, mobile

technologies and sensor networks – to receive and exchange information

at any time and through any type of device, as long as solutions for multi-

sensorial spaces, infomobility, telecommuting, telemedicine, etc. are designed

and created using compatible and neutral platforms. Any other type of

design would mean users would be faced with a series of “useless” computer

silos, keeping them from being able to take full advantage of the city.

117. Excessive use of technologies could certainly cause some disturbance, but

would be more than compensated by the advantages. For example, the

presence of 10,000 surveillance cameras on the streets of London improves

security, but could violate personal rights. The same is true for data about

individual movements and consumer choices: they could easily be used for

motives that went against the interests of individuals. Therefore, identifying the

right balance between security and individual freedom is critical.

118. Smart cities cannot be only a technological challenge, above all they must

be a social challenge. The key infrastructure of a smart city is its citizens.

Smartness lies in connecting people and things by means of technology and,

through this, increase their well-being and quality of life.

Technologies in and of

themselves will not be

enough to solve problems,

but the opportunity for

tremendous change is

unquestionable

Security must be

guaranteed and

technologies need to be

adapted to the real needs

of individuals


102 PART THREE | Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life | PART THREE 103

PART THREE

How smart Italy is today and how smart it could be in the future

- The “smartness” of Italy’s main urban centers

- A look to the future


Chapter 1The “smartness” of Italy’s main urban centers

- The smart city is the result of a radical, all-round transformation process of

the urban system. A strategic approach is essential. We need an effective

vision translated into a limited number of measurable goals (to avoid becoming

abstract visionaries and losing focus).

- We have developed a reference framework (priority macro-goals and result

indicators) to evaluate smart city performance on the basis of a unified

approach.

- The key elements of this approach are:

A "smartness” metric that expresses benefit to citizens, not the city’s

(physical/non-physical) facilities, typical factors used by more traditional

methods in measuring and comparing cities.

The use of drivers to improve urban performance in order to produce

policy-related information for developing strategic initiatives.

Logic from which to define the complete, all-round smartness of an urban

system (penalizing excellence in individual aspects alone).

- As an example, when the model is applied to major Italian cities, Milan, Rome

and Venice receive high marks.

- Analyzing individual indicators provides an interesting view of the potential

for optimization from a smart perspective of the urban systems examined,

with ample margins regarding integrated and inclusive mobility, resource

sustainability, urban greenery and conservation of the ecosystem.

- On a policy level, what emerges is the opportunity for development of “smart”

mobility plans that induce a cultural change, first and foremost. Just as

important are energy policies and related technologies.

Part three: key messages

1. The smart city is the result of a holistic, differentiated transformation

processthat integrates every aspect of urban growth processes.

The will to change is fundamental (having a valid vision – see . Part II,

Section 2), but just as indispensable is being able to translate the vision into

concrete and measurable goals and, subsequently, assessing results to:

- Verify progress

- Ascertain the efficacy of the measures taken

- Implement any corrective action required

2. Prompted by this belief and on the basis of the interpretation of the concept of

smart city offered in this brief (see Part II), it was felt that it would be important

to propose – even if only by way of example – a plausible hypothesis of a

unified strategic framework for smart cities that would make it possible to

assess individual urban systems according to a common approach.

3. Local authorities themselves also increasingly feel the need for a reference

framework to assess progress and/or problems encountered in the

transformation towards smartness.

In fact, a spontaneous initiative on an international level has recently been

launched that brings together a number of cities – including some Italy cities1 –

with the goal of developing a “reference protocol” for cities throughout the

world that can be used to evaluate and improve performance. Within this

context, our effort is designed to offer a concrete, positive contribution to the

process currently underway.

Overall approach

4. The basic goal is to develop a compound indicator that can measure the

smartness level of a representative sampling of Italian cities, in which the concept

of smartness refers to the ability of the urban fabric – not just infrastructure and

services, but also, and above all, the social and economic fabric – to free up

and manage resources in an efficient and shared way (including through the

application of innovative processes and technological options).

5. The approach adopted focuses on three thematic areas that are especially

relevant in terms of influence on the smartness level and, consequently, on the

competitiveness of the urban environment:

1 The Italian cities involved are, to-date, Rome, Milan, Venice, Genoa, Leghorn and Turin. Launched in 2012, the “City Protocol” initiative is promoted by the city of Barcelona and is based on the idea of building a common lexicon between cities on the model of the “Internet Protocol” which allows different platforms to communicate with each other in all parts of the world.

We have developed an

illustrative reference frame

work to evaluate smart city

performance


- Mobility management, because it is clear that mobility-related choices

are of central importance to citizens, but just as interesting is the potential

– in terms of the impact on "smart" life in cities - tied to technological

development and regulatory innovation in managing flows and services.

- Resource management, because resource utilization and the sustainability

of their generation and fruition are an important measure of the smartness of

an urban system where problematic areas can emerge in a more dramatic way.

- Quality of life in the city, to capture those environmental and social aspects

that characterize the daily life of people in an urban setting.

7. The decision to opt for performance indicators reflects the intent to capture

the extent actions and results are concretely met ("performance"). In fact,

the services offered or specific infrastructure (typical factors that are key in

more traditional measurement and comparison methods of urban areas) do not

necessarily translate into real benefits for the daily lives of urban residents.

Therefore, the method proposed sets a value that is not primarily descriptive,

but valuational and designed to support the choices of city governments.

A smartness metric that

express benefit to citizens,

not the city’s (physical/

non-physical) facilities

8. Each of the indicators has been paired with two drivers2 considered to be

relevant to improving the performance of the urban environment, with a two-fold

purpose (figure below):

- Foster a critical analysis of potential relationships between these drivers and

performance.

- Provide information useful for developing strategic actions to improve the

urban environment from a smart standpoint.

The process of choosing the drivers was based on the need to discover

aspects of the base resources of each thematic area, bearing in mind that:

- They should represent tangible elements for citizens.

- At the same time, they should be used to create a favorable environment to

spread smart approaches.

Figure 2

GoalsWhat results do we want

for each aspect of smartness?

Performance indicatorsTo what extent is smartness

improving the lives of citizens?

DriversWhat can influence results?

Vision and strategyWhat future do we want

and how do we achieve it?

Strategic initiativesfor leadership

Identify smart-related factors with the greatest impact

on citizens’ lives and the national/local

measures required

Reference framework

System of indicators

Theme Result macro goal Performance indicator

Mobility management "Travel more safely" Accident rate(No. of accidents/100,000 inhabitants)

"Greater access to global networks" Global connectivity(Intercontinental + continental connectivity, weighted average)

"Be able to move seamlessly" Seamless mobility Mass transit demand + Car sharing + Bike sharing + Average speed of surface mass transport * City Logistics initiative bonus

Resource management "Use energy in the most efficient way" Energy intensity(avg. Kwh per capita)

"Live in a greener city" Density of urban greenery (Sqm of urban greenery per capita)

"Guarantee resource quality and reproducibility for future generations"

Renewable energy consumption(Gross production from renewable sources / electric energy gross internal consumption)

Quality of life for citizens "Live in a city with less air pollution" Air pollution(Composite index: average concentration PM10 and NO2)

"More and better free time" Free time (% of free time)

"Live in an attractive and creative city" Creativity(Creativity index)

Figure 1

6. Taking the point of view of someone who lives in a city, a number of priority

result macro-goals were identified for each thematic area, and each of the

macro-goals was paired with performance indicators designed to reflect

them, with corresponding proxies that include minimum result thresholds

(see figure below).

2 Obviously, the intent behind analysis of the relationships between drivers and performance indicators is not, and could not legitimately be, that of establishing strict causal corre-lations between these variables, but rather to suggest potential lines of analysis to be considered within each specific local context.


Smartness performance indicators and drivers

Theme Performance indicator Driver

Mobility management Accident rate Vehicle density

Extent of limited traffic zones

Global connectivity Minimum time required to reach an intercontinental hub

Number of destinations from airport

Seamless mobility Commuter parking

Bicycle lanes

Resource management Energy intensity Energy policy index

Remote control heating systems

Density of urban greenery Public expenditure for environmental protection

Waste recycling

Renewable energy consumption Extent of solar panels

GWh of energy produced from renewable sources /

total GWh produced

Quality of life for citizens Air pollution Ecomanagement index

Fleet of Euro 5, electric and hybrid vehicles

Free time Index of speed in public offices

Availability of home banking

Creativity Public spending on education

Number of public schools of art

Figure 3

Ranking of Italy’s major cities

10. A key aspect of the approach adopted is how smartness is defined. From the

standpoint used in this brief, it must permeate the entire urban system.

Consequently, in creating the city ranking, one of the smart criteria was

completeness, i.e., the ability to generate an "intelligent" environment in all

areas of the city's social and economic life. On the other hand, emerging as an

example of excellence in just one area while being “not smart” in other areas of

urban life, was penalized3.

… therefore, larger cities

have an advantage

A city is smart only if it

obtains good results in all

aspects …

3 Anytime a city was below the minimum proxy level of the indicator it was penalized – using a logistic-type formula – when it was inserted into the sum to calculate the final smartness indicator. The minimum thresholds were set via a qualitative assessment which was not simply a comparison of the partial results for each city, but rather a critical assessment of the existence and intensity of smart practices in each city and for each aspect considered. In addition, where applicable, the assessment also included specific best practices as benchmarks for individual aspects. When assembling the final indicator, the three thematic areas were attributed the same weight. The indicators were normalized on a scale of 0-100 (100=maximum value in the dataset, even if not included among the cities examined).

4 The indicators were normalized on a scale of 0-100 (100=maximum value in the dataset, even if not included among the cities examined).

11. For illustrative purposes, the method was applied to the 13 most-populous

Italian cities (figure below).

Since the results favor reaching satisfactory smartness levels in all three areas

considered, the largest urban areas are unquestionably privileged, where

attention to issues regarding a city that is smart and sustainable and with

high-level livability is more strategic and where more dynamic environments

are generated, including in terms of offering innovative answers to the evolving

needs of its citizens.

Ranking of main urban centers (scale 0-100)

City Smartness indicator

1 Milan ✔ 50,8

2 Rome ✔ 49,7

3 Venice ✔ 42,5

4 Bolzano ! 36,0

5 Bologna ! 34,3

6 Genoa ! 34,2

7 Trieste ✘ 33,1

8 Turin ✘ 33,0

9 Palermo ✘ 32,7

10 Naples ✘ 31,4

11 Verona ✘ 31,1

12 Florence ✘ 28,2

13 Bari ✘ 22,6

Figure 4Source: prepared by CERTeT-Bocconi for The European House-Ambrosetti, 2012

Legend:

✘ : highly problematic

! : moderately problematic

✔: no problem areas within the factors examined4

12. Using this approach, the smartest city is Milan. There are many reasons for

this:

- A mobility system that includes different sustainable and innovative options

with high rates of usage (with the exception of car sharing).

- Connection with global networks, in particular thanks to the presence of an

intercontinental airport.

- High quality of life, also thanks to the widespread presence of creative

activities and a good level of available free time for residents.

- Satisfactory results in terms of efficient management of resources, in

particular thanks to a low energy intensity of the urban fabric.

The only negative aspect based on the set of indicators used here are problems

involving air quality.

Milan and Rome are on the

right track for all-round

“smartness”

9. From this perspective, together with CERTeT-Bocconi, we developed a study on

the current level of smartness in Italy's major urban centers.


13. A close second is Rome with characteristics very similar to those of Milan in

terms of overall results in the three thematic reference areas.

In terms of mobility, Rome is more connected globally thanks to:

- The central position of its intercontinental airport within traffic flows.

- Lower level of road accidents.

However, it is less-efficient in terms of integration of local mobility system.

Its results are also less-positive in terms of quality of life, mainly due to a lower

creativity index.

14. According to calculations, the third smartest city in Italy is Venice-Mestre, with,

in particular, an excellent level of smart mobility5.

Specifically, high usage of public transport and car sharing are key aspects of

the city’s high ranking immediately behind Italy's two largest metropolitan areas.

This success is not only due to the special morphology and geography of the

urban fabric but also the development of policies aimed at citizens adopting a

more sustainable approach when organizing their own personal mobility.

Resource management is less efficient where, in particular, the limited

availability of urban green areas and low contribution of renewable energy

sources to meeting the city’s requirements, prevent it from attaining adequate

smartness levels.

15. A second group of cities has attained good results overall, even if the cities

have not met the thresholds set for qualifying as “smart cities”. This group

involves Bolzano, Bologna and Genoa.

Specifically, the first two cities have a high score in terms of the quality of life

indicator. For Bologna, thanks to the contribution of the free time variable, and

in the case of Bolzano, for its especially positive air quality index.

16. The final group of cities is comprised of Trieste, Turin, Palermo, Naples, Verona,

Florence and Bari, and they represent the less-smart cities among those

examined in this study.

Of these, Turin attained smart results for mobility, especially in terms of

integrated mobility and the use of available shared services.

Palermo and Naples are paired thanks to their contribution to the resource

management index, especially for low energy consumption.

17. It should be stressed that this comparison is intended for illustrative purposes

only, with all the limitations this implies, such as:

5 Note that, statistically, the Municipality of Venice extends to the hinterland of Mestre where two-thirds of Venice's population resides. In terms of urban fabric, Mestre is located on the terra firma. Therefore, some of the analysis results which refer generically to Venice must be interpreted in light of this factor.

6 When available, the time span analyzed here was approx. ten years, normally from 2000 to 2010.

- Unavailability of recent statistics (for the last year) in order to fully reflect the

results of smart initiatives already being implemented in the various sample

cities6.

- The necessary core sampling of indicators which sometimes resulted in a

slight distortion in favor of larger cities (for example, public transport use).

- Hopefully in the future, as the smart concept takes hold, new indicators

will be available to reflect aspects which are not represented in the current

system, or only to a limited extent. For example, in place of the density

of urban green areas, the ideal measure of smart performance would be

an index of per capita resident use of green areas which is not currently

available.


18. If examined from a different standpoint and different level of detail, the

indicators utilized provide an interesting view of the potential for optimization

of the urban systems examined from a smart perspective.

Of course, the real advantage inherent in the smartness concept itself has

been stressed strongly on a number of sides. The new technologies capable

of making today’s cities "smarter" are often soft, not very invasive (networks,

digital, widespread use of electronics, etc.) and, therefore, generally more

appropriate to Italy’s delicate urban centers, custodians of inestimable

historical wealth and beauty.

From this standpoint, even a city such as Venice has the potential for smart

optimization.

Italian cities that can become “smarter” by the year 2030

19. Shifting from analysis of an aggregate level of smartness to the individual

indicators that comprise it, a number of useful points emerge which can be

broken down by thematic area.

20. Mobility management. According to this approach, an efficient mobility system

answers three macro-goals of priority results (see Figure 1):

- Safety e security

- Accessibility and connectivity (internal and global)

- Usability and inclusiveness (also in terms of sustainability)

The cross-section offered by each of the aspects above makes it possible to

intuit many areas of optimization and improvement (figure below):

- In terms of safety and security, the greatest potential for improvement can be

seen for Bari, Milan and Florence.

- For connectivity, Bari, Palermo, Bolzano, Trieste and Genoa offer the greatest

potential for improvement.

- And finally, integrated, inclusive mobility should ideally be placed at the top of

the agendas of many Italian cities, including Naples, Palermo, Bari, Florence,

Bolzano, Trieste and, to a partial extent, in Bologna which is currently at the

limit of the minimum threshold.

21. Resource management. Within the context of this study, a smart resource

management system should provide:

- Efficiency (in terms of consumption choices)

- Urban/street furniture (quality and size of public areas)

- Sustainability (quality and reproducibility)

The figure below presents a clear picture: optimization margins are

concentrated primarily on two of the three aspects considered.

Specifically:

- In terms of efficiency in consumption choices, the sample variability is fairly

low and trends in recent years do not show any substantial reduction in the

intensity levels of these cities. However, further room for maneuver does exist

for Rome, Bologna, Bolzano, Florence, Palermo and Bari.

- The area of urban/street furniture offers considerable potential for 10 cities

out of 13 (all except Rome, Naples and Palermo) and involves drawing up

rules and plans for urban development calling for increasing attention to

common areas and their use within a sustainable context. Opportunities

would seem greatest for Venice, Trieste, Bolzano and Bari.

- The same is true for sustainability where Rome, Genoa, Palermo, Naples

and Bari offer considerable potential. An initial step by them to seize this

opportunity for improvement could be the application of more efficient

Chapter 2A look to the future

Smartness does not require

invasive technologies:

even a city like Venice can

become “smarter”

Smartness in mobility management (scale 0-100)

Safety Connectivity Inclusiveness

Rome 62,5 96,7 43,7

Milan 31,3 80,5 66,6

Venice 50,0 37,2 69,6

Turin 66,7 14,6 40,7

Trieste 100,0 2,6 32,5

Genoa 55,6 8,6 38,3

Bologna 41,7 23,6 34,4

Naples 83,3 18,9 22,4

Palermo 96,2 7,3 23,8

Florence 33,3 16,1 33,1

Bolzano 41,0 - 33,0

Verona 40,0 13,0 24,8

Bari 27,8 6,1 26,7


Legend: highly problematic moderately problematic


energy standards for newly constructed areas (in terms of consumption and

microgeneration), together with improvement in power grids to be designed

and implemented from a smart standpoint (smart grids)7.

7 Genoa and Bari already actually have projects in terms of energy, but available statistics obviously do not reflect this aspect. However, it is confirmation of the correct choices made by these local administrations.

have enough time – can be explained by the definition of "free time" inherent

in the statistic utilized (the range of activities included under free time do not

fully reflect it).

- In terms of social-cultural life, Bari, Naples, Genoa, Palermo, Trieste, Turin

and Florence offer the greatest opportunities for improvement.

Smartness in resource management (scale 0-100)

Efficiency Urban/street furniture

Sustainability

Rome 65,6 38,2 1,9

Milan 78,4 16,3 6,3

Venice 76,9 3,3 5,2

Turin 76,6 20,0 8,7

Trieste 75,2 5,4 7,2

Genoa 80,1 14,3 1,6

Bologna 68,5 13,7 2,8

Naples 83,6 33,6 3,1

Palermo 74,4 44,4 2,1

Florence 72,7 10,4 11,2

Bolzano 71,4 5,4 29,3

Verona 87,8 11,6 5,2

Bari 74,8 5,5 3,9


Legend: criticità elevata criticità media Smartness of urban quality of life (scale 0-100)

Defend the ecosystem

Free time Social-cultural activities

Rome 40.9 72,7 78,2

Milan 34,1 77,4 94,4

Venice 43,3 75,0 65,7

Turin 32,3 71,5 55,3

Trieste 54,4 73,8 50,6

Genoa 53,8 100,0 29,9

Bologna 46,4 79,9 71,2

Naples 40,7 88,9 27,8

Palermo 39,9 88,9 40,9

Florence 38,8 81,0 59,4

Bolzano 58,6 72,7 71,4

Verona 42,4 75,0 70,5

Bari 62,5 85,0 22,3


Legend: highly problematic moderately problematic

22. Quality of life for citizens. This aspect refers to a series of “soft” aspects of

the city that allow people to live and act within a favorable urban context from

an environmental, social and interrelational standpoint.

The key goals identified regarding this are:

- Protecting the ecosystem (environmental health, pollution, etc.).

- (Real) personal time available.

- Social-cultural life (creativity, openness, diversity).

23. The values for the urban quality of life sub-categories indicate the following

areas for optimization:

- Protecting the ecosystem is one of the aspects with greatest potential for

improvement in most of the cities examined, although with relative advantage

for Turin, Milan, Palermo and Florence.

- On the other hand, personal free time would seem to offer less potential. This

seemingly contradictory finding – given the widespread sense that we never

Principal drivers

24. A critical reading of the relationships between drivers for generating smartness

and performance in the urban environment (see Figure 3) allows for some policy

considerations in order to better exploit the potential for optimization described

above.

25. As already noted, although it is not possible to find strict causal relationships,

nonetheless there are interesting connections, just as it is interesting to note the

lack of connections where they might have been expected.


26. For example, this is the case of one of the key aspects of urban quality of life

– air pollution – which includes the “spread of non-polluting vehicles” and “Eco

Management index” drivers8 (previous figure).

- The spread of non-polluting vehicles does not seem connected at all to

levels of air pollution, proving the need for a more integrated approach

to sustainability, in addition to the fact the spread of non-polluting vehicles

(especially electric and hybrid) is still too limited to have a determining effect.

- With the exception of Turin and Bari, all the cities with a smart performance

regarding air pollution include quite widespread Eco Management

practices within their local administrations (irrespective of the fact that this is

an area with limited impact).

27. Other policy considerations can be drawn regarding mobility.

For safety (accident rate), equipment-related drivers (vehicle density and limited

traffic zones) have limited potential as means for developing incisive action. In

fact, there do not seem to be any significant levels of correlation9.

Greater impact could be generated through stricter enforcement and control

policies, together with innovative action for traffic management and enhanced

capacity for dialogue between vehicles and between vehicles and the

infrastructure network.

Mobility usability and inclusiveness (figure below), offers more food for

thought and regarding this only the city of Venice shows significant correlations

between drivers and results.

Part of the success of this lagoon city in smart-related mobility is tied to the

area’s unique geographical features which have generated the development

and success of services with a high potential for integration and, at the same

time, development of mobility patterns and infrastructure oriented towards

interchange and sustainability.

Through a successful process, these conditions have reinforced the central

nature of a basic mobility model with significant smart aspects, thus outlining

the way towards a constantly-innovative approach to the challenges and

opportunities posed by mobility.

8 The index reflects the ecological initiatives in processes and spaces for which local administrations are responsible, such as using recycled paper, ecological government cars, municipal environmental certification, etc.

9 The only apparent exception is Rome because of its large surface area that impacts on the measurement of vehicle density. Turin is also an unusual case where high vehicle density corresponds to a reduced level in accidents, even without any significant traffic limitations.

70

60

50

40

30

20

10

10 20 30 40 50 60 70 80

Euro 5, electric and hybrid vehicles per 1000 vehicles

Bari

Palermo

Trieste

Genoa

Bolzano

Verona

Turin

RomeFlorence

Milan

Bologna

Naples

Venice

Eco

man

agem

ent

ind

ex (s

cale

0-1

00)

“A city with less air pollution” driver


The size of the circles reflects the performance indicator (air pollution).

160

140

120

100

80

60

40

20

-20

5 10 15 20

Bicycle lanes (km/10.000 inhabitants)

PalermoFlorence

Naples Trieste

Bolzano

VeronaTurin

Rome

Venice

Milan

Bologna

Par

k an

d R

ide

(per

10

00

veh

)

Genoa

Bari

“Moving in a more integrated way” driver


The size of the circles reflects the performance indicator (seamless mobility).


From the standpoint of policy to be extended to all cities in the sample group,

a scheme for development and balanced growth of smart mobility can be

proposed that:

- Takes into consideration technological aspects and, more generally,

innovation in services offered.

- Above all, creates the conditions for a cultural change in the perception

of the relation between individuals and urban mobility, ridding it of

conceptual and informational barriers, including through low-cost and “soft”

infrastructural initiatives that can improve access to more-sustainable modes

of transport and services.

28. From the standpoint of energy management, a large group of cities in northern

Italy (Bologna, Bolzano, Genoa, Milan, Turin, Venice and Verona) show that

significant energy polices have been adopted10.

The majority of these (Turin, Verona, Bologna, Milan and Genoa) also have

remote control heating systems within their territories, although with different

coverage levels (higher for Verona and Turin). As could be expected, this all has

a favorable impact on the level of energy management efficiency in these areas.

If compared with what emerges in terms of resource sustainability, Bari

remains a special case. In this city, energy policy plays a primary role, yet

the development of renewable sources is embryonic compared to the actual

potential.

Finally, in terms of the need for a “greener” urban environment, the drivers taken

into consideration (public spending for environmental protection and waste

recycling) provide an important measure of local environmental policies (figure

below):

- Significant attention to waste recycling across the various performance

results.

- Tendency towards an inverse correlation between the two drivers (in

most cases, the higher the waste recycling, the lower the spending for

environmental protection) due to increasing efficiency of waste recycling

management models.

The city of Bolzano is a special case in which not very positive performance in

terms of urban green areas corresponds to high levels of waste recycling and

also spending on environmental protection.

There could be two reasons for this departure from the general trend:

- The performance indicator level is limited to taking into consideration only

those resources within municipal boundaries, whereas with Bolzano, the lack

of parks and gardens of significant size within the city is counterbalanced by

nature areas in bordering towns.

- The availability of different financing methods and the importance of tourism

and nature to the area have created a situation in which local investment in

environmental protection is coupled with high levels of waste recycling.

10 Measured using the energy policy index developed by Legambiente which synthesizes such factors as availability of economic incentives and energy saving measures, the spread of renewable energy sources, availability of simplified procedures for solar heat/photovoltaic installation, implementation of energy saving measures, presence of a energy manager, etc.

250

200

150

100

50

15 20 25 30 35 40 45105

0

50

Waste recycling (% of total waste produced, average value 2008-2010)

Palermo

Florence

NaplesTrieste

Bolzano

VeronaTurin

Roma Venice

MilanBologna

Pub

lic s

pen

din

g fo

r en

viro

nmen

tal p

rote

ctio

n (E

uros

per

cap

ita,

aver

age

valu

e 20

07-2

009)

Genoa

Bari

“Living in a greener city” driver


The size of the circles reflects the performance indicator (density of urban green areas).

120 | Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life Smart Cities in Italy: an opportunity in the spirit of the Renaissance for a new quality of life | 121

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