Imacs 2016 imecs 2016 Proceedings (Preliminary version) of the 4
CREATION OF START CITY IN LVIV AS A MODEL FOR REGIONAL DEVELOPMENT
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- 137.Introduction
- 138.1 The Smart City Concept
- 139.2 The European model of the Smart City
- 140.3 The Smart Cities of Visegrad countries
- 141.4 The Lviv Smart City
- 142.Conclusion
- 143.Acknowledgment
CREATION OF START CITY IN LVIV AS A MODEL FOR REGIONAL DEVELOPMENT136.Yuliia KlebanAbstract The phenomenon of a smart city is studied in the paper. Based on the experience of other countries, the smart city is considered an innovative approach to the traditional view on the urban life. The European model of smart cities is taken as the main methodology, e.g. smart economy, smart governance, smart living, smart people, smart environment, and smart mobility. There were studied the smart cities in the Visegrad countries: Czech Republic, Hungary, Poland and Slovakia. The point of view of the smart city is motivated by the regional policy that is becoming a dominative one in Ukraine. The paper discusses the structure of the smart city and its main elements. The smart city may help to spur an entrepreneurship activity in the cities of Ukraine. Thus, the smart city framework is considered in the paper as a future for the Ukrainian cities, for instance, Lviv. Key words: smart city, level of urbanisation, intelligent community, city systems, ICT. JEL Code: A13, L90, O18, R12 137.IntroductionThe smart city concept is close to the paradigm of regional development and urban studies. According to the United Nations World Urbanisation Prospects 2014 report, the 54 % of the population in the world live in the cities. The urban population was 30% in 1950. It is expected to increase to 66 % in 2050. Part of the world already is experiencing the urbanization process. The level of urbanization is high both in North America (82 %) and in Europe (73 %) in 2014. All parts of the world are forecasted to urbanize further over the coming decades. Africa and Asia are urbanizing faster than the other regions and are projected to become 56 % and 64 % urban, respectively, by 2050. Thus, the demand for the urban studies is only to be higher. The new models and methodologies would be required. The smart city concept is a good model for addressing such global issues locally (Bélissent, J., 2014). Based on the location of Ukraine in Europe and the European Union-oriented international policy, the study is conducted on the experience of the countries neighbors’ like Poland, Slovakia, Hungary and Czech Republic. The regional development is a core element in the contemporary Ukrainian state policy. Thus, cities in Ukraine will play a new role in the society. The current paper goal is to discuss an idea and prerequisites to create a smart city in Lviv (West of Ukraine, close to Polish border). Lviv is a well-known city for its history, architecture and potential in IT sector of both Ukraine and Europe. Currently, there are many projects in the city of Lviv designed for the purpose of creating a smart city. The current paper explains what have been done already and the forecasts for the further projects to be supported. 138.1 The Smart City ConceptForecasted population increase and urbanization will add 2.5 billion people to the world’s urban population by 2050 (United Nations World Urbanisation Prospects, 2014). Close to half of the world’s urban citizens reside in relatively small towns of less than 500,000 inhabitants, while only around one in eight live in the 28 mega-cities with more than 10 million inhabitants. As the world continues to urbanize, sustainable development challenges will be increasingly concentrated in cities with medium size of the population. It is commonly argued that the best way for a city to develop and become a sustainable location for living all over the world is to be smart. The study of the Centre for cities (London, UK) covers the concept of “smart”. “Smart” means the opportunities for the local communities to receive better public services, run the sustainable economic growth. Thus, the smart cities use within its structure the new technologies. The information and communication, economic, social and environmental changes in smart city are the results of the data application (Smart Cities, 2014). The Forrester research (Bélissent, 2010) explains that information and communication technologies are providing the critical infrastructure components and services of a city — administration, education, healthcare, public safety, real estate, transportation, and utilities with more awareness, interactiveness, and efficiency (Bélissent, J., 2014). Each system that makes up a city’s infrastructure can be made smarter by enabling real-time interaction — either human or machine — to facilitate decision-making based on the data produced. In the system of systems that is a city (Bélissent, 2010), the potential for efficiency grows as more systems interconnect and interact. Computing technology transforms a city’s core systems, enabling them to capture, analyze, and act on the data they produce. As a result, a smart city can optimize the use of and return from limited resources (Bélissent, J., 2014). The data on Visegrad group countries and Ukraine shows that the world urbanization trend is also expected. The level of urbanization is to increase in the Visegrad countries and Ukraine, and in some cases reaching almost world level of 80 % forecast. The highest level in 2030 is for the Czech Republic 78 % than for Hungary 75.5 % and Ukraine 75.3 %, and the lowest for Poland 65 % and Slovakia 59 %. Tab. 1: The Urbanisation level in Visegrad countries and Ukraine.
Source: UN HABITAT, State of the world’s cities 2012/2013 It is also projected that the share of youth will be on average higher. According to the statistic data, there is 44.9 million of the population in Ukraine, including 7 millions of youth (aged 10-24) or 6 %. The data for the Czech Republic is 10.7 million and 1.6 million (15 %), in Hungary is 9.9 million and 1.6 million (16 %), in Poland is 38.2 million and 6.4 million (17 %) and in Slovakia is 5.5 million and 0.9 million (17 %) (United Nations Population Fund state of world population) respectively. The youth is considered as a potential for the economic and social development. Each country is expected to build the appropriate infrastructure and prerequisites for the young people to fulfill their needs. The possible model is a smart city concept. The cities where youth lives in are to become supportive in terms of education, health, security, social standards, innovation. Berry and Glaeser (2005) show, for example, that the most rapid urban growth rates have been achieved in cities where a high share of educated labour force is available. In particular (Berry and Glaeser, 2005) model the relation between human capital and urban development by assuming that innovation is driven by entrepreneurs who innovate in industries and products which require an increasingly more skilled labour force. Thus, if the amount of youth will remain significant or continues to increase, then those entrepreneurs are be represented by the younger generation. In the center of the prosperity of the city, according to the United Nations methodology (United Nations Human Settlements Programme, State of the world’s cities, 2012/2013), are five elements: the infrastructure, the productivity, the environmental sustainability, the equity and social inclusion, the quality of life. The approach of authors (Caragliu, A., Del bo, C., & Nijkamp, P., 2009) is the positive correlation between the wealth of a city and the main factors. Those factors are 1) the presence of a creative class, 2) the quality of and dedicated attention to the urban environment, 3) the level of education, 4) multimodal accessibility, and 5) the use of Information and Communication Technologies (ICTs) for public administration. The authors summarize the idea of the smart city as a system of clever solutions which enhance the city life through quantitative and qualitative improvement in productivity. In order to create the smart city the common assets are needed, like Living Labs assets, Future Internet Research and Experimental facilities, as well as methodologies, tools and user communities (Komninos N., 2012). Often the concept of the smart city is used in another term like an intelligent city. The Intelligent Community Forum (ICF) is an organisation that conducts the studies about the creation of Intelligent Communities (Intelligent Community Indicators, 2014). The ICF has also used a number of success factors for Intelligent Communities in both industrialized and developing nations. This vision includes collaboration and leadership. The collaboration means the cooperation among government, businesses, universities, and institutions. The leadership requires the appropriate share of persons that can identify challenges, set priorities, communicate a compelling vision and foster a sense of urgency in achieving it. The authors are seeing the smart city as a combination of the elements (Caragliu, A., Del bo, C., & Nijkamp, P., 2009): the networked infrastructure, the business-oriented cities, the social inclusion, the high-tech and creative industries, the ability to learn, adapt and innovate, social and environmental sustainability. 139.2 The European model of the Smart CityThe European Union promotes the project of the smart cities. For instance, the Digital Agenda initiative of the European Commission promotes Smart Cities and the Future Internet. The Vienna University of Technology (TUWIEN) team works on the issue of smart cities. In cooperation with different partners and in the run of distinct projects financed by private or public stakeholders and actors the European Smart City Model (European smart cities, 2014) was developed. Basically, it provides an integrative approach to profile and benchmark European medium-sized cities and is regarded as an instrument for effective learning processes regarding urban innovations in specific fields of urban development. The European Smart City model includes the elements: smart economy, smart governance, smart living, smart people, smart environment, and smart mobility. The each element is studied according to the developed methodology. The smart economy element is calculated on the indicators: Innovative spirit; Entrepreneurship; Economic image & trademarks; Productivity; Flexibility of the labour market; International embeddedness. The smart people element is calculated on the indicators: Level of qualification; Lifelong learning; Ethnic plurality; Open-mindedness. The smart governance element is calculated on the indicators: Participation public life; Public and social services; Transparent governance. The smart mobility element is calculated on the indicators: Local accessibility; (Inter-) national accessibility; Availability of IT-infrastructure; Sustainability of the transport system. The smart environment element is calculated on the indicators: Environmental conditions; Air quality (no pollution); Ecological awareness; Sustainable resource management. The smart living element is calculated on the indicators: Cultural facilities; Health conditions; Individual security; Housing quality; Education facilities; Touristic attractiveness; Economic welfare. The elements are based – respectively – on theories of regional competitiveness, transport and ICT economics, natural resources, human and social capital, quality of life, and participation of societies in cities. The authors using the methodology of the Centre of Regional Science at the Vienna University of Technology, provide the definition of a smart city. According to that a smart city is a the combination of investments in human and social capital and traditional (transport) and modern (ICT) communication infrastructure that fuel sustainable economic growth and a high quality of life, with a wise management of natural resources, through participatory governance (Caragliu, A., Del bo, C., & Nijkamp, P., 2009). In 2011, the European Commission has launched a Smart Cities and Communities Initiative with mostly attention to the energy efficiency issue. In Europe, now only big cities but as well the medium-size and peripheral cities are following the idea of the smart city. There are positive outcomes when following this idea, like mobilizing citizens, enterprises and research organizations for starting up new development initiatives (Komninos, N., 2012. 140.3 The Smart Cities of Visegrad countriesThe current paper studies the smart cities in the Visegrad countries. The indicators on the smart city elements were chosen based on the approach (Caragliu, A., Del bo, C., & Nijkamp, P., 2009). The Visegrad group cities are presented in the tables 2 and 3. Table 2 is the information about the smart cities of medium size. Each element of the smart city model is present in the dimension from -2 to 2 which mean the lowest and the highest level of smartness respectively. Thus, it can differentiate between the cities the level of the smart economy (business-oriented cities, high-tech and creative industries). Tab. 2: The 14 smart cities among Visegrad countires (Cities from 100 000 to 500 000 inhabitants).
Source: European smart cities. (2014). The highest one is in Czech Republic, Plzen and the lowest in Slovakia, Nitra. The smart people indicator (ability to learn, adapt and innovate) shows that the citizens are the readiest in Plzen in terms of ICT use and innovation, thus in Hungary, Gyor the least. The smart governance (number of government forms that can be downloaded from the website of the municipal authority, the number of administrative forms which can be submitted electronically, e.g. e-government), is the best in Slovakia, Miskolc, and the lowest level is in Czech Republic, Plzen. The smart mobility (the number of roads, railway, etc.) that is relatively the same among the countries on the first view is organised the proper way in the Czech Republic, Usti nad Labem. The lowest level of smartness in terms of mobility is in Hungary, Pecs. The smart environment is significant indicator according to the sustainable development issue. The smartest in the environment (social and environmental sustainability) is Slovakia (Nitra) and the least is Poland (Suwalki). The smart living (urban infrastructure) is the best in the Czech Republic, Plzen and the lowest in Hungary, Miskolc. Thus, on the average level the smartest medium size city in Visegrad countries is Plzen in the Czech Republic. There was also studied the level of smartness of the big cities among the group. Relatively to the Ukrainian cities, the both types of the cities are interesting to study. Due to the statistic data available, the information on Hungary is not presented. Thus, on average the smartest is Brno in the Czech Republic and the least is Lodz in Poland.
Source: European smart cities. (2014). 141.4 The Lviv Smart CityThe case of Ukraine in the terms of smart cities building is interesting as the country is reforming several sectors like city infrastructure, provision of public services, security, enhancing social standards, etc. The IT sector influence on the world market and on Ukraine is significant (IT Ukraine from A to Z., April 2016). The future of the markets is designed taking into consideration the total use of IT based things. The report on the Ukrainian IT shows that Ukraine is becoming the tech nation. Ukraine has the largest and fastest-growing number of IT professionals in Europe; its IT engineering workforce is expected to double to over 200,000 by 2020. There are more than 1,000 IT service companies. Ukrainian outsourcing companies offer a wide range of engineering capabilities. Most of them have already switched to agile development over the past few years. Ukraine is home to over 100 R&D subsidiaries of global companies from a variety of industries, including telecoms, software, gaming, and e-commerce. The export volume of Ukraine’s software development and IT services reached some $2.3 billion in 2014, showing double-digit growth year after year (IT Ukraine from A to Z., 2016). The idea discussed by Berry and Glaeser (2005) may be partly applicable in the example of the city of Lviv. The city of Lviv is known for its high level of education. Nowadays, the first three universities in the country rank are located in Lviv. The IT sector in Lviv is becoming significant because of the available potential of the skilled labour force. Lviv youth is becoming more entrepreneurship oriented. The high-quality level of the IT education provides the skilled labour force for new entities, startups. The current projects in the city are also oriented on this trend. For example, there is a program at the Ukrainian Catholic University; Lviv Polytechnic University is launching a new program on Internet of things. Thus, the city of Lviv is attracting now even more skilled labour force. For example, during the internal migration within Ukraine, there are people who have chosen Lviv for their new location for living. The city is working on the development of the innovative infrastructure. There several creative hubs like Business-incubator Startup Depot, Beta place co-working, Coworking Godo, Communa co-working, Come in Café, IHUB business incubator, OkFactory co-working place. The creative class in Lviv is growing fast and has all the prerequisites to become a critical mass for the smart city creation. The local community projects are also already oriented toward smart city elements. The citizens of Lviv are becoming very active in terms of the local and urban development which means the smart city concept is a appropriate core model for the projects. The project “Community in Action” is conducted by the Institute of the city and financed by the EU program “Neighborhood Civil Society Facility 2012 and Non-State Actors and Local Authorities in Development (NSA∓LA) 2012 and 2013”. The aim of the project is to stimulate local communities of the city of Lviv to become more active, e.g. the local activists’ cooperation, to build a fruitful collaboration between the citizens and the local authorities in the processes like planning and decision-making. Looking at the technology solutions that make city systems smarter (Belissent, J., 2010)., e.g. public safety, energy, waste management, education, city management, building management, transportation, healthcare, citizen services, there are both running projects and future projects in Lviv. The transportation system with the support of the IT sector will use sensors and analytics to predict the arrival of a bus or train, and notify passengers via SMS or through information boards at city bus and train stations. The parking information is expected to become available in response to an SMS query or information signs advertising free parking spaces using sensors to detect available spaces. The healthcare projects already are covering electronics records management, health information exchanges, hospital and clinic asset management, and supply chain optimization and will cover the innovative telemedicine applications. The education system needs a lot of enhancing projects, e.g. access to educational content and improved collaboration among students and faculty through connectivity, content management, and unified communication technologies. In the area of public safety, the solutions are used sensor-activated video surveillance cameras, video analytics, and workflow to identify and route suspicious or anomalous observations to the appropriate authorities. The building Management is a critical issue in the city of Lviv. There is now a huge boom on the market of the new apartment blocks. Optimized and modernized heating, ventilation, and air conditioning alone can significantly reduce building energy consumption. There are the city council projects of the e-government and they are working further on the issue. The waste management project is crucial in city and has to be totally renewed. The IT sector of Lvi may provide the following services to the city: 1) Consulting services for city governments, 2) Networking, telecommunications, and other hardware infrastructure, 3) Middleware infrastructure, 4) Sector-specific applications and solutions, 5) Smart city governance and city management, 6) Systems integration and 7) Telecom and managed services.
The opportunities of the existing city of Lviv in terms of creating the smart city is do follow the steps. Firstly it is important to evaluate the existing infrastructure in all the elements like Smart economy, Smart people, Smart governance, Smart mobility, Smart environment and Smart living. The each element requires designing overall architecture of the system that has to be built or enhanced. It is significant throughout the every step to identify immediate needs and prioritize smart city initiatives. Then, the next is to develop and deploy prioritized projects. In terms of the Ukrainian economy, the funding options are the most crucial but when the appropriate business models are identified the financing can be found. For example, the proved option is to explore partnerships in public and private sectors, and even more with the approach of public-private-people partnerships. There is also some side back effect of the smart city creation. The debate on the possible class inequality effects of policies oriented towards creating smart cities is, however, still not resolved. In the case of Lviv, there are ideas among the population that the significant success of the IT sector may lead to the social polarization. The economic history already knows the example of „Holland disease“which may occur in Lviv.
144.ReferencesBélissent, J. (2014). Getting Clever About Smart Cities: New Opportunities Require New Business Models. [ONLINE] Available http://193.40.244.77/iot/wp-content/uploads/2014/02/getting_clever_about_smart_cities_new_opportunities.pdf [Accessed 1 April 16]. Berry, C. R. and Glaeser, E.L. (2005). “The divergence of human capital levels across cities”, Papers in Regional Science, 84(3), 407-444. Caragliu, A., Del bo, C., & Nijkamp, P. (2009). Smart cities in Europe. 3rd Central European Conference in Regional Science – CERS, 2009, 45-59. [ONLINE] Available http://www.inta-aivn.org/images/cc/Urbanism/background documents/01_03_Nijkamp.pdf [Accessed 1 April 16]. European smart cities. (2014). [ONLINE] Available http://www.smart-cities.eu/ [Accessed 1 April 16]. Intelligent Community Indicators. (n.d.). [ONLINE] Available https://www.intelligentcommunity.org [Accessed 1 April 16]. IT Ukraine from A to Z. (April 2016). [ONLINE] Available http://www.uadn.net/files/ukraine_it.pdf [Accessed 1 April 16]. Komninos, N. (2012). Fireball White Paper Smart Cities as Innovation Ecosystems Sustained by the Future Internet (H. Schaffers, Ed.). Smart Cities. (2014, May). Centre for Cities. [ONLINE] Available http://www.centreforcities.org/wp-content/uploads/2014/08/14-05-29-Smart-Cities-briefing.pdf [Accessed 1 April 16]. United Nations World Urbanisation Prospects, 2014 revision. (2014). [ONLINE] Available http://esa.un.org/unpd/wup/Publications/Files/WUP2014-Highlights.pdf [Accessed 1 April 16]. United Nations Human Settlements Programme, State of the world’s cities 2012/2013. (2012/2013). [ONLINE] Available https://sustainabledevelopment.un.org/content/documents/745habitat.pdf [Accessed 1 April 16]. United Nations Population Fund state of world population 2014. (2014). [ONLINE] Available http://www.unfpa.org/sites/default/files/pub-pdf/EN-SWOP14-Report_FINAL-web.pdf [Accessed 1 April 16].
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