Executive summary smart city

Smart City – A Stronghold in The Copenhagen Region Executive Summary May 2014

SPI is co-financed by:

Copenhagen Capacity · Nørregade 7B · DK-1165 Copenhagen K t +45 33 22 02 22 · www.copcap.com · info@copcap.com

Executive Summary The Copenhagen region is a breeding ground for Smart City solutions. This study aims to map industries that are currently active in the Smart City value chain in Copenhagen, and to pinpoint the factors that make the region attractive for international companies wishing to capitalise on a market that is expected to explode as cities around the globe start to address the challenges posed by climate change and resource depletion.

The findings of the study are presented in a report that sums up information drawn from 57 in-depth interviews and a survey of 83 companies and stakeholders involved in Smart City activities in the Copenhagen region. In this report, survey findings and results are supplemented by supportive data from Statistics Denmark.

The study was conducted in 2014 by Copenhagen Capacity as part of the proactive investment promotion project “SPI”, involving 15 municipalities in the region.

Smart City definition The study defines Smart City solutions as data-driven and based on the integration of multiple technologies. An important characteristic of Smart Cities is intelligent resource optimisation by means of Smart Grids that manage the production and consumption of electricity, water and heating.

Findings of the study Growing international awareness of the potential of Smart City concepts presents great opportunities for cities and companies that are able to create solutions on an extremely complex and unstructured background. This is a well-established strength of companies in the Copenhagen region, building their Smart City business on the ideal combination of competencies, infrastructure, data access and a culture of cross-sectorial collaboration.

Copenhagen aims to become the world’s first carbon-neutral city by 2025, and Denmark is determined to become fully independent of fossil fuels by 2050. These ambitious objectives and a determined political focus on sustainability in national and local governments create profound political motivation for developing and testing Smart City solutions in a large scale in the Copenhagen region.

244 companies in the region were identified as being actively involved in a Smart City context. System solutions constitute a key competence, which is extremely relevant in relation to the nature of Smart City challenges.

2

Smart City © Copenhagen Capacity

Unique data access and model framework conditions are turning Copenhagen into a laboratory for smart technologies to build, monitor and manage the neural pathways of big cities. For decades, Danish authorities have collected basic data about individuals, businesses, property etc. in order to be able to digitalise services across administrations and sectors. A new government programme provides free access to public data sources in order to drive innovation, growth and job creation. This availability of high-quality basic data creates a unique basis for the development of smart solutions to the challenges of urban development.

In a Danish setting, small as well as large industry players find ideal conditions for research and the development and testing of Smart City solutions. For this reason, Copenhagen attracts large international companies just as it has become an incubator for Smart City start-ups. Small companies make up 76% of the industry. In an international perspective, they are interesting as investment objects or bridgeheads for collaboration with public authorities in Denmark.

As opposed to almost anywhere else in the world, Smart Grid projects in the Copenhagen region are driven by cross-sectorial partnerships involving companies, industry associations, universities, sector research agencies and public authorities. This is quite extraordinary in an international context.

Denmark has one of the most diverse and yet integrated energy systems anywhere in the world. There is a long tradition for early adoption of renewable energy sources and the integration of green technologies into all stages of the Smart Grid value chain. In recent years, more than one third of all EU Smart Grid research projects have taken place in Denmark.

For a city to be smart it must perform efficiently and much more importantly, it must cater to the complex needs of its citizens. Thus, the involvement of citizens in the process of making smart cities is crucial. Copenhagen holds a long tradition of taking a holistic approach to urban development and allowing concerns for people, businesses and the environment to go hand in hand. Easy user involvement in urban planning and development and a population of early adopters of new technologies adds to the attraction of the Copenhagen region as an interesting place for international companies working to develop and test Smart City technologies.

Since Smart City development is still in the early stages in Copenhagen, it will, however, be necessary for actors on the Smart City scene to not only focus on existing capabilities but also on developing these in order to release the full potential of the region as a Smart City showcase. ’Silo thinking’ is a barrier to the adoption of smart city solutions. A reorganisation of local government administrations can facilitate collaboration with cities, business and academia to include Smart City visions in local planning activities to a greater extent. More visionary innovators and developers capable of maneuvering in political environments would support this objective.

3

Smart City Š Copenhagen Capacity

Why Copenhagen attracts companies in search of excellent Smart City solutions • Sustainability and climate change is on the political agenda of all local governments in Denmark, creating a natural motivation for developing smart cities.

• Advanced digitalisation and technology readiness levels and a population of early adopters make the region highly suited for testing consumer apps.

• Government-industry-academia collaboration is characterised by open partnerships capable of handling the extreme complexity of Smart City challenges.

• Significant test & demo projects are located within the region via strategic alliances with large multinational players.

• Longstanding traditions of citizen dialogue and involvement in city design and planning serve the development of highly efficient Smart City solutions.

• Open access to public data sources provides an outstanding platform for developing Smart City solutions.

4

Smart City © Copenhagen Capacity

• The region provides an ideal environment for Smart City start-ups.

• All stages of the Smart Grid value chain exist in the region and can be activated in conjunction with one of the most diverse and yet integrated energy systems in the world.