Smart cities and Urban entrepreneurship: the study of Chicago and Medini

Smart cities and Urban entrepreneurship: the study of Chicago and Medini Stefania Sini Abstract: Cities have become hyperconnected and smart, and everyday produce and consume a big amount of data. The growing availability of data facilitates the development of products and services for the city and, thanks to the platforms that facilitate collaboration, co-creation and novel entrepreneurial initiatives, cities are enforcing their role as catalysts of innovation. The article presents two case studies of smart cities: the city of Chicago in the United States and the newly emerging city of Medini in Malaysia. Chicago supports a broad civic tech community and a rich ecosystem of innovation and has set the basis for the development of products and services for the city, in conjunctions with open data initiatives. Medini has the objective of creating a smart city with key values conceptualized as safe, connected, livable and efficient. The case studies provide valuable examples of the approaches and challenges on the employment of open data for developing products and services for smart cities and on the positive impact on urban development of urban entrepreneurship and open innovation.

Keywords: smart cities; open data; urban entrepreneurship; civic innovation

1. Introduction The pervasiveness of information and communication technologies have made cities hyperconnected and have dramatically increased the amount of data produced and consumed. The Internet of Things has generated networked systems of sensors and actuators: these systems create a continuous flow of data that provides a dynamic representation of urban contexts, and allows to embed intelligence into the vital systems of cities. Moreover, the increasing accessibility to these data has brought new opportunities for facilitating effective collaborations and entrepreneurial initiatives oriented to develop products and services for cities. Increasingly, the strategies and the projects that give meaning and value to data are providing results that are beneficial to cities.

This article presents a study on smart cities that describes how two diverse contexts, the city of Chicago in the United States and the newly emerging city of Medini in Malaysia, are employing new forms of urban entrepreneurship to develop products and services for cities to increase the quality of life of citizens. Chicago supports the creation of a broad civic tech community and a rich ecosystem of innovation, sourcing open data initiatives, to improve services and facilitate economic recovery. Medini has the objective of creating a smart city with key values conceptualized as safe, connected, livable and efficient. It has recently launched the Medini Innovention Challenge to facilitate the commercialization of smart city ideas.

2. Materials and Methods The research consists in a comparative study that analyzes, describes and compares two case study: the city of Chicago and new city of Medini. First, the analysis introduces the open data initiatives in United States and Malaysia: it provides an overview on the level of involvement and development of the two countries in regards of open data initiatives and constitutes a reference for the understanding of the context in which smart cities initiatives were developed. Secondly, the analysis presents the two case studies with the description of the initiatives related to smart cities that each city promoted. Finally, in the discussion and conclusion section, the two case studies are compared and conclusion

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are drawn. The research methodology employs a qualitative method and the results of the analysis are grounded on the description of each case study. The results underline the most significant aspects of each case studies and identify the driving elements that facilitated the cities to become smarter.

The two case studies have been selected because they are both urban contexts that employ advanced information and communication technologies to experiment new approaches and projects to become smarter cities. The case of Chicago constitutes an example of a developed urban context in which diverse approaches, including the release and re-use of open data and open innovation methods that support urban and civic innovation, are employed to enforce the role of Chicago as a globally recognized example of a smart city. The case study of Medini constitutes an example of a newly formed urban context in which the paradigm of the smart city has been set as one of the fundamental models that guided its plan and inform its ongoing development. The emerging urban context of Medini employs open innovation methodologies and, although it is still not supporting the release and re-use of open data, represents a positive example of a newly developed smart city. The juxtaposition of the case studies offers the opportunity to look at how urban contexts, at diverse and, at some degree, opposite stages on their growth, are embracing the paradigm of the smart city and supporting initiatives oriented to facilitate urban entrepreneurship and urban innovation.

Both cases studies provide valuable approaches and challenges to the topic of smart cities, and suggest how tangible interventions that promote urban entrepreneurship and innovation could have a positive impact on urban development. The conclusions of the study provide suggestions on governance structures and methodologies, mainly targeting municipalities and local governments, to frame and implement open data initiatives and programs oriented to foster urban and civic innovation.

In the following sections, several initiatives on open data, in relation to the contexts of United States and Malaysia, are described; then the case studies of Chicago and Medini are presented. In the case of Medini, although the vision proposed by Medini Smart City does not involve any initiatives on open data, we suggest how the culture and the initiatives that gravitate around this concept could open up new opportunities for local development and innovation.

3. Results 3.1. Open Data in United States and Malaysia Open data and all the related initiatives that emerge in different urban contexts are increasingly gaining a fundamental role in enabling new opportunities for smart cities.

The culture of open data promotes transparency on governmental activities, facilitates engagement among citizens and opens up new opportunities for collaboration and innovation.

In the context of United States, transparency, participation and collaboration are the key principles for fostering openness in Governments, as stated in the Memorandum on Transparency and Open Government [1].

Transparency ensures the disclosure of data produced by governmental departments and agencies, and information about their operations and decisions; participation facilitates the involvement of citizens in policymaking and, therefore, increases the

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effectiveness of governmental strategies and initiatives; collaboration among governmental departments and agencies, as well among businesses, professionals, non-profits and citizens, enhanced by new tools, methods and systems, opens up new opportunities for civic engagement and civic innovation.

The initiatives on open data in United States are aligned with the vision promoted by the Open Data Charter [2], which constitutes an international perspective, shared among several National and Local Governments, on the role of open data in developing open and inclusive Governments. The Open Data Charter set six principles: Open Data by Default, Timely and Comprehensive, Accessible and Usable, Comparable and Interoperable, For Improved Governance and Citizen Engagement, For Inclusive Development and Innovation [3]. These principles reaffirm the commitment of Governments to proactively share information on line and to facilitate their accessibility and reusability, moreover they recognize the potential of open data to inspire creative and innovative opportunities that could have a positive economic and social impact and contribute to solve complex problems.

Several Open Government Action Plans released by the White House [4] underline the fact that the culture of open data sparks innovation, and suggest that the large amount of open data released through Data.gov can be reused to develop innovative solutions; furthermore, these innovative solutions can be facilitated through challenge, prizes and competitions. These plans suggest Governmental agencies should promote collaboration among Federal and non-Federal agencies, non-profits, private entities, academic and university communities, and more generally citizens, and implement platforms to support collaboration and co-creation; they should apply open innovation methods, such as challenges and prizes through Challenge.gov, citizens science programs and crowdsourcing.

The context of United States constitutes a best practice in the field of open data and open government, as also highlighted by the Open Data Barometer. The Open Data Barometer [5] provides an estimation of the performance of Nations in implementing initiatives on open data, in accordance with the principles affirmed in the Open Data Charter.

The evaluation is based on a set of indicators that measure the Readiness of open data initiatives, the Implementation of open data programs and the Impact of open data on the political, economic and societal dimensions [5]. According to the Open Data Barometer, United States are ranked number 4 among the National Governments that are publishing data and deploying them to implement initiatives that foster innovation and have a positive impact on the society.

In the context of Malaysia, the culture of open data is a recent interest of the National Government. In the Open Data Barometer, Malaysia is ranked number 53; therefore, Malaysia is not considered a context in which the full potential of the open data initiatives and programs is realized, and it is in the early stages of publications of open data and implementation of the related initiatives and programs (Figure 1).

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Figure 1. Performances of Malaysia and United States on the Readiness, Implementation and Impact of the open data Initiatives and programs. Source: World Wide Web Foundation, Open Data Barometer Global Report (Fourth Edition), http://www.opendatabarometer.org.

The initiatives on open data in Malaysia are led by the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU). In 2014, MAMPU launched the beta version of the web portal data.gov.my and is currently working on its improvement [6]. The Implementation Plan for the web portal and the overall initiative on open data include: short-term actions, such as the Open Data Hackathon, the collaboration with the Open Data Institute and the World Bank that ensures the release of the annual Open Data Barometer, and the improvement of the number of available dataset; long-term strategies, such as the implementation and adoption of open government policies, the support of the reuse of open data through new products and services, and the increase of the transparency and accountability of the Government [7].

In 2015 MAMPU released a set of guidelines to implement open data initiatives and programs [8], which provides the general framework and the procedures through which public agencies could implement the access and facilitate the re-use of open data. The guidelines suggest to implement open data initiatives and programs through two main steps: i) Preparation of the dataset, which involves data classification, assessment and publication; ii) Governance of the open data initiatives and programs, which involves drafting the strategies and implementing the initiatives and programs, organizing the resources to support them, such as a task force, monitoring the usage of open data, assessing that the policies, frameworks and guidelines provided by the Open Data Committee at the National level are fulfilled.

In addition, the non-profit Sinar Project [9] has developed an independent open data portal, with the intent to increase the awareness of the importance of open data among citizens. The initiative has the scope to not only implement the access and re-use of open data, but also to promote openness in Malaysian Government and strengthen the impact of the values of transparency, participation and collaboration in its policies. This open data portal is run by the CKAN (Comprehensive Knowledge Archive Network), an open source data portal software developed by the global non-profit Open Knowledge [10]. The CKAN has been used as a tool for developing open data portals within several governments, institutions, and organizations around the world [11].

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According to the East Asia and the Pacific Regional Report [12] released by the Open Data Barometer, the performance of Malaysia in fulfilling the objectives set by the Open Data Charter has decreased in 2015, compared to the one that was observed in 2014. The report analyses the performance of twelve countries in the East Asian and in the Pacific Regions and defines a ranking, based on the same criteria used to assess the performance of Nations globally (Figure 2). In Asian and Pacific regions, Australia and New Zealand are the countries with the highest rank; Japan, South Korea, Singapore and Philippines perform positively, and the highest improvement is performed by Philippines; the performance of other countries does not show improvement, or shows decrease. In the case of Malaysia, as previously introduced, the performance observed in 2015 is in decline compared to the one observed in 2014. In order to provide a possible explanation to the decrease of the performance in developing open data initiatives and programs, the report highlights the fact that, counterintuitively and opposed to the performance observed globally, the countries that have better performances are not always the one with higher income. For example, Malaysia, classified as upper medium income, has a lower performance compared to other countries that are classified as low middle income. According to the assessment made by the Open data Barometer, Malaysia’s performance is lower than the average performance of the East Asia and Pacific Regions for all the indicators, Readiness, Implementation and Impact. The report identifies and synthesizes the reasons of this phenomenon in the weak governmental and political support to the initiative on open data and in the absence of a framework that facilitates the secure and effective use of open data. That is made clearer by considering the sub-indexes that structure the Readiness, these include: Government policies, Government action, Entrepreneurs & business, Citizens & civil society. These sub-indexes look at the political, organizational, technical, legal, social and economic context and highlight the relation between open data policies and the right to information, as well as the protection of personal data. Moreover, it should be noted that Malaysia has not yet officially adopted the Open Data Charter and is therefore delaying the process to improve its performance on the open data initiatives and programs [13].

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Figure 2. Performances of the countries in the East Asia and Pacific Regions on the Readiness, Implementation and Impact of the open data Initiatives and programs. Source: World Wide Web Foundation, Open Data Barometer Global Report (Fourth Edition), http://www.opendatabarometer.org.

3.2. Chicago 3.2.1. Chicago Open Data The City of Chicago has started several initiatives to support and promote the culture of open data and enhance transparency, participation and collaboration among the Chicago Government. The aim of these initiatives is, on one side, to make data and information about the city and its administration more accessible for all, on the other side, allow entrepreneurs, developers, professionals, non-profits, researchers and citizens to use these data to develop independent applications and services that improve the quality of life of citizens. The City of Chicago - Data Portal [14] is the web platform through which a rich dataset is available: data are available in a machine- readable format and therefore they are completely reusable; there are also APIs that facilitate their reuse.

The Mayor of Chicago Rahm Emanuel, previously Chief of Staff at the White House, from the first days of its mandate gave open data a high priority and invested a lot of efforts for its development, believing it would generate a positive impact in the economic recovery of the city. With the Executive Order on Open Data Policy [15] [16] the

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Department of Innovation and Technology, which operated from 2008, was improved and the positions of Chief Data Officer (CDO) and Chief Information Officer (CIO) were introduced in order to leverage the use of data and information and communication technologies within the city administration and management. CDO and CIO together coordinated the development and improvement of the data portal and cooperated to expand and strengthen the network of partners involved in the open data initiatives and programs as well as the involvement of citizens, necessary to generate an authentic process of civic innovation. They worked to build the collaboration between the City of Chicago and several stakeholders: foundations, non-profits, entrepreneurs, investors, professionals, researchers and more in general all the tech community in Chicago.

The rich community of experts operating in the field of data analytics, informatics and urban technologies in Chicago was crucial to the development of the initiatives on open data because provided a significant contribution through consulting, promoting and actively participating in the initiatives that supported the development of applications and services for the improvement of the quality of life of citizens through the use of data available in the City of Chicago - Data Portal.

The Mayoral office took advantage of the initiatives programmed by the previous administration, under which, in 2010, the first initiatives on open data officially started [17] [18]. Foundations made and important contribution to the growing of the open data initiatives and programs because they ensured necessary funding for supporting research projects. Some of the most known foundations in United States are involved with the open data initiatives in Chicago: the MacArthur Foundation, which in conjunction with the Chicago Community Trust and the City of Chicago financed Smart Chicago, one of the first and most active organizations that operated in the field of technologies and civic innovation and currently merged into a new platform named City Tech; the Sunlight Foundation, founded in 2006 and devoted to the promotion of transparency in governmental agencies through the use of information and communication technologies; the Knight Foundation, interested in civic innovation, in advanced media and journalism and in open information systems for communities engagement. The Knight Foundation, in conjunction with the McCormick Foundation and the National Science Foundation, financed the platform EveryBlock [19], a civic media that shares hyperlocal contents, including open data released from the local governments, aggregated in neighborhoods. EveryBlock was born in Chicago and was active in other four cities of the United States; currently it is merged into another platform, Nextdoor, a private social network for neighborhoods. Moreover, the Knight Foundation financed the Northwestern University Knight Lab, involved in the promotion of new ideas and applications that experiment the use of new information and communication technologies.

Smart Chicago [20], currently merged into City Tech constituted a reference for nonprofits, startups, universities, investors, professionals, citizens or, more generally, the civic tech community in Chicago, and a connector between all these entities and the administration of the City of Chicago. It worked to improve the quality of life of Chicagoans through the use of new technologies, to increase citizens’ ability to use Internet and to facilitate the creation of services that combine the opportunities made available through the Internet, the new technologies and the open data released by the local administration.

The vision and the initiatives developed by Smart Chicago continue and are implemented

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within City Tech: this new project facilitates the experimentation of urban technologies, supporting entrepreneurs to develop product and services and engaging with the residents to ensure these products and services have a positive impact on the community [21].

The highly collaborative relationship between the Department of Innovation and Technology of the City of Chicago and Smart Chicago [17] [22] had a positive impact on the implementation of the initiatives and programs on open data because it increases the opportunities for a genuine civic engagement and accelerated the creation of applications and services with the data released by the City of Chicago - Data Portal. In order to foster collaboration among different agents in the ecosystem of civic innovation in Chicago, Smart Chicago organized several initiatives and events, such as the Chicago School of Data, the OpenGovChicago Meetup and the Connect Chicago Meetup. Other well-known events among the civic tech community in Chicago are the Chi Hack Nights [23] - formerly known as Open Gov Hack Nights - weekly organized by Open City [24], a community that builds projects and applications with open data. During the Chi Hack Nights designers, planners, developers, experts in data analysis and processing, politicians and, more generally, active participants in the civic tech community in Chicago, as well as citizens interested to know more about the use of open data or just curious about the growing phenomenon of civic hacking, meet together and share their knowledge and skills. Moreover, civic projects are discussed and implemented and all the advances in the development and design of the applications and services are openly shared. One of the sponsors of the Chi Hack Nights is Code for America, a non-profit that connects governments and citizens with the scientific and tech community in different cities in United States and promotes the creations and implementation of civic applications that improve the quality of governmental services. Code for America offers educational programs such as fellowships for collaborating with local governments, Civic startups program, and it is involved in the organization of Civic Hackathons.

The Chi Hack Nights and all the other events connected with the civic tech community in Chicago are tools for diverse, strictly connected and interrelated finalities: they promote the City of Chicago - Data Portal and the culture of open data; they share knowledge and methods for the reuse of open data into novel applications and services; they facilitate the development of creative projects with a strongly collaborative and open approach; they promote the diffusion of the concept of civic innovation; they stimulate citizens engagement. In this sense, citizens are incentivized to become civic hackers or, in other words, to acquire essential or advanced expertise for interpreting data or reusing them into innovative, creative, meaningful and productive ways.

3.2.2. Chicago Entrepreneurial Hub The complex ecosystem of urban and civic innovation in Chicago requires physical spaces that, together with digital platforms, facilitate the knowledge spillover around civic innovation, strengthen the network of people involved in the civic tech community and provide a place that amplify collaboration. The spaces of collaboration and innovation, such as co-working spaces and innovation hubs, constitute a diffused network of hybrid places whose function is to support the sharing of knowledge and skills and the development of entrepreneurial, research and creative projects, often during their early stages. Therefore, these spaces not only offer workstations, often used by startuppers or

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entrepreneurs that want to expand their activities, but they also constitute catalysts for collaborative projects.

The 1871 is the Technology and Entrepreneurship hub of Chicago [25] that houses numerous incubators and accelerators for digital startups and hosts several activities lead by the civic tech community, such as the before mentioned Chi Hack Nights and Civic Hackathons. It is structured as a non-profit, supported by several public and private sponsors, and it constitutes the flagship project of the Chicagoland Entrepreneurial Center (CEC), a non-profit organization that promotes and supports entrepreneurship. The 1871 holds a significant iconic value for the economic recovery of the city and is a fundamental resource for nurturing and advancing the debate and the experimentation around the Open Data project and the novel opportunities for creating urban and civic innovation.

3.3. Medini Medini is a new urban township located in Iskandar Puteri, a new planned urban development area in the Southeast of Malaysia, and constitutes a strategic hub because of its favorable location. The overall urban area is part of Iskandar Malaysia, the regional development area located in the economic corridor in the region of Johor, which constitutes an important node within South East Asia. According to the Comprehensive Development Plan, Iskandar Malaysia will become a sustainable metropolitan area by 2025, thanks to the involvement of numerous public and private entities. Medini has been established in 2007 through a partnership between several global partners: i) a Federal Agency, the Iskandar Regional Development Authority [26]; ii) a Public Listed Company, UEM Sunrise [27], responsible for the entire master development of Iskandar Puteri; iii) two Government Linked Companies, the Iskandar Investment [28], linked to Federal, State and Local shareholders and responsible for the overall growth of the area, and Medini Iskandar Malaysia [29], linked with the international shareholders United World Infrastructure [30] and Mitsui & Co. [31], responsible for the provision of infrastructures and city services.

The initiative that promotes Medini as a smart city stresses the importance of connectedness, liveability, efficiency and safety in generating smart and sustainable urban environments, and it is aligned with the main strategies on smart or intelligent cities that are applied in different contexts globally. In these strategies, as well as in the vision of Medini Smart City, information and communication technologies are the enablers of new services for citizens, and occupy a crucial role in fostering collaboration and innovation.

The Medini Innovention Challenge is one of the actions undertaken by Medini in order to further its vision and strategy in becoming a model of smart city. The intent of the Challenge is to collect ideas on smart cities, which can be applied to the context of Medini, from students in private and public Southeast Asian Universities. The most creative and innovative ideas are selected and have the opportunity to be implemented and commercialized. Therefore, the Medini Innovention Challenge has three key scopes: i) facilitating the knowledge transfer on the topic of smart cities; ii) helping inventors to transform their ideas into products and services; iii) supporting the collaboration between Industry and Academia [32]. Moreover, the competition has an impact in shaping the vision and strategies for Medini Smart City, based on the perspective on smart cities brought by the people who inhabit and experience the Southeast Asian context [33].

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The positive response to the initiative of Medini Innovention Challenge shows that, although Medini is a new township still in the process of defining its own identity, the employment of open innovation methods for refining its strategies to become a smart city, such as competitions, challenges and prices, constitutes a successful approach.

However, the challenge, as well as the overall initiative of Medini Smart City, do not include any particular strategy related to open data; therefore, there are still several actions that have to be taken in order to fully exploit the opportunities and advantages offered by open innovation.

4. Discussion Chicago is certainly a successful and inspiring example of how open data can be effectively used to improve urban services, increase civic engagement and facilitate urban and civic innovation. Its ecosystem of innovation offers the ideal platform for experimenting, within a complex urban context, how the pervasiveness of information and communication technologies and the increasing amount of available data help cities to improve efficiency in the management of resources and increase context-awareness. The extensive recourse to open innovation methods enables wide collaborations and provides the ideal environment for co-creating solutions that are widely shared among citizens. The increasing number of entrepreneurial initiatives related to the growing civic tech community in Chicago, such as the Civic startup programs, as well as the increasing investments in digital startups demonstrate a diffused interest in how open data can effectively transform and improve the urban context and facilitate its economic recovery. Novel forms of urban and civic entrepreneurships provide viable options for the productive reuse of open data, facilitate public-private partnerships and sustain decentralized processes of development.

In addition, the case study of Chicago highlights the fundamental role of entrepreneurial or innovation hubs, such as the entrepreneurial hub of Chicago, the 1871, in fostering urban and civic innovation and, therefore, support socio-economic growth.

Medini, although is on the first stages of its urban growth, demonstrates an interest in open innovation approaches, and has set the basis for fostering novel forms of urban entrepreneurship. The Medini Innovention Challenge constitutes a good example in the application of open innovation methods that facilitate collaborations and the co- creation of novel solutions for smart cities. However, the challenge, as well as the overall initiative of Medini Smart City, does not include any actions related to open data, hence limiting its efficacy in fully and successfully nurturing open innovation and inclusive forms of urban entrepreneurship. Although this limitation, the emerging city of Medini is on the right way for supporting and developing the concept of smart city, and we believe that in the near future it will be able to embrace both the concepts and the actions proper of the initiatives and programs on open data that are increasingly diffused globally. In addition, the use of open data in initiatives related to smart cities, could facilitate the creation of a culture towards the values of transparency, participation, and collaboration and, therefore, open government. The creation of awareness on the benefits that derive from the effective use of open data in generating solution for smarter cities enhances the effectiveness of the overall initiative on open data in Malaysia, and it could also support the improvement of the governmental and political system toward a more open configuration.

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The case studies presented provide two different applications of the concept of smart city that demonstrate how this concept is successfully applied to different urban contexts.

We observed that the deployment of open innovation methods for nurturing urban entrepreneurship, and therefore facilitate urban innovation, are effective strategies for improving local development. In this perspective, Chicago constitutes an inspiring example that leads and advances the global debate and experimentation on the use of open data and in the application of open innovation methods; Medini represents an example of how emerging urban contexts could embrace and adopt these methods to sustain growth and development. In both case studies public-private partnerships are fundamental in setting the basis for innovative projects: in the case of Chicago the diversified and complex ecosystem of innovation constitutes the ideal context for collaborations and co-creation among the stakeholders, including citizens; in the case of Medini the presence of numerous investors somewhat limits the employment of open data and the full potential of open innovation methods.

Acknowledgments: The case study of Chicago has been developed by Stefania Sini within the PhD Program in Architecture at Università di Cagliari, Cagliari, Italy and is included in the PhD thesis titled "Centers of knowledge: urban devices for the creation of smart cities” [34]. Stefania Sini thanks the Department of Civil and Environmental Engineering and Architecture at the Università di Cagliari and the IIT - Institute of Design, Chicago, Illinois, where she spent a period of research as Visiting Scholar, for their support in conducting the research on smart cities and in developing the case study of Chicago. The author thanks Imagineering Institute in Medini, Malaysia, to have supported her research and expand the study on smart cities with the case study of Medini.

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