Smart Cities: Finland's Leading Role in Sustainable Solutions

Smart cities 02/06/2021 1

PART I: GENERAL INFORMATION 02/06/2021 2

Key points and main messages The world is urbanising, but we can t grow our cities as we have in the past due to sustainability and demographic challenges. The solution is smart cities: using new technologies and concepts to improve business opportunities and quality of life. Finland s approach to smart cities is digitalisation and sustainability with the citizen in the centre. This helps to build sustainable economic growth while promoting a functional and safe society. Finland has been building smart cities before there was a name for them. Our climate, love of technology and Nordic welfare state model have all played a role. Many of the prerequisites for smart city solutions are already in place in Finland, such as being a wellbeing state, having modern infrastructure, high-quality mobile connectivity and favourable regulations from public authorities. For example, Finnish open data rules are some of the most progressive in the world. Mobility, energy and the built environment are typical elements of a Finnish smart city. Additionally, Finland has stressed digital services, infrastructure, health, education and heavy industry. Sustainability is taken into account in every smart city concept. One key to the Finnish smart city concept is the ecosystem. Companies, governments, academia and private citizens work together to co-create solutions. Finland has been the proving ground for some smart city solutions which have since spread over the world, such as Mobility-as-a-Service. Finland is a small country which is internationally focused. Our homegrown solutions need to go abroad to grow. We are also constantly seeking international partners where we can work together. If you are searching for smart city solutions, Finland is the place to be! How to portray Finland? Position Finland as having extensive technical know-how in smart city solutions. Highlight the fact that Finnish cities have the necessary foundations in digital and real- world infrastructures as well as the regulatory framework. Profile Finland as the perfect place to find existing or develop new sustainable smart city solutions. 02/06/2021 3

Elevator pitch: Smart cities 1/2 The world is urbanising, but demographic and environmental constraints mean we can t grow cities as we have in the past. They must be sustainable, more efficient and dedicated to the wellbeing of their inhabitants. This can be done by developing smart cities. There is no single definition of smart city. A smart city can be considered as an urban environment which uses digital technologies and data for the benefit of its citizens and businesses. Finland s approach to smart city development is unique because it involves a partnership between companies, universities, governments and citizens. Finland is the world s happiest nation and most trusted society. Combine this with world- leading innovation capabilities and you have future-proof solutions and cutting-edge technology competitiveness. This is not just about technology, but is a very human- centric approach to smart city development. Helsinki gets a lot of attention, but other cities have special strengths in smart city development. For example, Tampere has developed smart mobility solutions, Oulu is creating a smart port system, Lahti has pioneered smart industrial solutions and Turku is excelling in sustainability. Finland is a small country with an international focus. Our homegrown solutions need to go abroad to grow. We are also constantly seeking international partners where we can work together. 02/06/2021 4

Elevator pitch: Smart cities 2/2 Image: Business Finland The building blocks of the Finnish smart city approach are: Digital services including public services like filing taxes online or giving opinions on government policy, as well as private services such as cybersecurity or food delivery Digital infrastructure and open platforms such as MyHelsinki data sharing Mobility like Tampere s smart tram or the Whim app which uses Mobility-as-a-Service Built Environment including Building Information Modeling (BIM) and smart buildings Energy like renewables, flexible generation, district heating and smart grids Water and waste treatment including industrial IoT solutions Education traditional schooling, remote learning, continuous education and more Health including information, services and products Port a merging of maritime, logistics, customs and energy sectors Manufacturing such as IoT applications and circular solutions Finland s smart, safe and sustainable society is being built through digitalisation, environmental friendliness and a focus on the citizen. 02/06/2021 5

Smart cities background 1/2 The world continues to urbanise, which is generally viewed favourably. Cities tend to be more efficient than rural areas for both public services and private economic activity. Cities can also give their inhabitants more cultural and entertainment choices. However, demographic and sustainability challenges mean that our cities cannot continue to develop as they have in the past. They must be more efficient, more sustainable and more focused on human health and wellbeing. One way of doing this is by the urban evolution to smart cities. There is no single universally agreed upon definition of smart city . The EU defines a smart city as a place where traditional networks and services are made more efficient with the use of digital and telecommunication technologies for the benefit of its inhabitants and business. Finland s approach to smart city development includes world-leading innovation, sustainability and a focus on the person. Finns are the happiest country in the world and trust their society. These factors have led to our ability to create future-proof solutions and cutting-edge technology for the benefit of people. In a way, Finland has been developing smart cities before there was a term to describe them. The harsh winters mean that Finnish buildings are extremely efficient and make use of innovative solutions such as smart meters and district heating. Thanks in part to Nokia s success in the 1980s and 1990s, Finland has built a rigorous mobile communication infrastructure. The Nordic welfare state model stresses efficient public services like health and education which make use of the best technologies. With no traditional fossil fuel deposits like coal or oil, Finland has developed more renewable energy such as biomass. Today this urban development approach has been refined for the 21st Century. Finland seeks to use smart, safe and sustainable solutions to provide a higher standard of living for people. Solutions use digital infrastructure, data sharing and the open platform economy. In fact, the open source revolution was popularized from Finland with the Linux operating system. Mobility, energy and the built environment are typical elements of a smart city. Additionally, Finland has stressed digital services, infrastructure, health and education. Heavy industry is also important, such as with smart, connected manufacturing and smart ports. A theme running through almost every smart city concept is sustainability. 02/06/2021 6

Smart cities background 2/2 One unique thing about the Finnish smart city approach is how development is carried out. It happens in a co-creation process among relevant partners in an ecosystem, such as companies, the government, universities and citizens. The proper foundation must be in place before smart city development can take place. In Finland, this includes encouragement from policy makers. Examples include open data rules, dependable mobile networks, robust infrastructures and favourable regulations for autonomous cars and drones. Piloting and experimentation is an important part of development. These might be in a neighbourhood, factory, company or even building. For example, the City of Vantaa built and piloted a new digital education platform that will be scaled to the whole country. In another example, the Finnish Whim app trialed their Mobility-as-a-Service (MaaS) concept here and rapidly expanded around the world. Finland remains on the cutting edge of smart city innovations. Many Finnish solutions have already been tested and are in commercial roll-out. Finland is also a fantastic place for international companies to develop new solutions. The government provides incentives, academics are eager to work with corporations, and the citizens are happy to be part of the development process. 02/06/2021 7

Facts and stats (1/2) Helsinki is #2 in the 2020 Global Smart City Index. The city was #8 in 2019. 73% of Helsinki residents say the availability of online information has increased their trust in authorities. 65% of Helsinki residents say they would allow the use of their personal data to improve traffic congestion. Turku is phasing out coal by 2025 and aims to be carbon neutral by 2029. Finland plans to be carbon neutral by 2035. Finland has one of the world s best education systems. Finland was ranked #1 in primary education by the WEF in 2017-2018. The Economist said Finland was #1 in the world in their Educating for the Future Index 2019. Bloomberg ranked Finland #7 in the world in their 2020 Innovation Index. Finland has a strong, technologically advanced and stable economy. The WEF ranked the soundness of Finland s banks as #1 in the world in 2019. Finland is #1 in digital competitiveness in the EU according to the Digital Economy and Society Index 2019. Finland is #1 in the world in the availability of the latest technologies, according to the WEF s Competitiveness Index 2017-2018. Finland is #1 for the best business environment in the world, according to the Global innovation Index 2019. Finland excels in equality and well-being. Finland is the happiest country in the world, according to the UN s World Happiness Report 2020. Finland is #1 on the Good Country Index, a ranking of who contributes the most to the common good. Finland is one of the world leader s in freedom of speech, democracy and the rule of law. Freedom House says Finland is #1 in their Freedom in the World 2020 report. Finland is #2 in Reporters Without Borders Press Freedom Index 2020. Finland is #1 in Europe when it comes to trusting their fellow citizens, according to the Eurobarometer. The Fragile States Index 2020 says Finland is the most stable country in the world. Finland is one of the best-governed countries in the world, according to the Legatum Prosperity Index 2019. 02/06/2021 8

Facts and stats (2/2) Finland is fully committed to achieving long-term environmental sustainability. About 99% of municipal waste is recovered in Finland, according to Statistics Finland. The majority goes through energy recovery processes, while the rest goes through material recovery, such as recycling. Greenhouse gas emissions have fallen from 71.2 million tonnes in 1990 to 56.4 million tonnes in 2018, according to Statistics Finland. The current Government plans for Finland to be carbon neutral by 2035, one of the most ambitious goals in the world. The City of Turku has a goal of being carbon neutral by 2029 as part of their 800th anniversary celebration. Finland was the first country in the world to have a roadmap to a circular economy. 02/06/2021 9

Some Finnish smart city companies Business Finland has a comprehensive company search function where you can browse or look for specific industrial segments. The list below contains just a few interesting Finnish companies. Cargotec enables smart cargo flow and logistics. Halton develops indoor air quality solutions. KONE manufactures elevators, escalators, entry systems and related software. Leanheat develops IoT-based indoor climate control system. Netox is a cybersecurity company who has provided smart city applications. Nokia develops 5G, networks and mobile phones. Operon Group treats waste water. Pilaster helps new or renovated buildings to increase energy efficiency. Quuppa provides real-time indoor positioning systems. RoadCloud collects road condition data for maintenance, monitoring or self-driving applications. Silo AI builds machine learning systems for infrastructure, transportation, logistics and other sectors. Sitowise focuses on building design, infrastructure design and digital solutions. Solita does consulting, service design, software development and the cloud. Uros specialises in Internet of Things (IoT) connectivity, cloud-based services and hardware. Vaisala develops weather, environmental and industrial measurements, including sensors for NASA s Mars Rover Perseverance. Valmet provides automation solutions for industrial applications. Visit measures and analyses crowds, such as people in shopping centres. Wapice builds IoT solutions and software for industrial clients. W rtsil develops smart energy and smart marine systems. Whim is Mobility as a Service (MaaS) which provides all transport services in one step, such as a city bike, bus ticket and taxi ride. YIT is the largest construction company in Finland. 02/06/2021 10

Some Finnish smart city organisations Note: Many activities run for a limited time. Doublecheck it is still active. Forum Virium is the City of Helsinki s innovation company. It is involved in practically every smart city project the City of Helsinki participates in. The Helsinki Smart Region initiative, run by the Helsinki-Uusimaa Regional Council, is primarily a marketing program to attract companies to the area. The Port Oulu Smarter aims to digitalise harbours. BuildingSMART Finland is a construction industry group to promote Building Information Modeling (BIM). KiraHUB is an association which promotes sustainable development in the built environment. Currently they seem to be reorganising. 6Aika is a partnership for sustainable urban development which is made up of the six largest cities in Finland: Helsinki, Espoo, Vantaa, Tampere, Turku and Oulu. Many, but not all, of 6Aika s activities could be considered smart city . Helsinki Business Hub is a promotional group for the capital area. They have unmatched contacts and information for someone looking for partners or seeking to do business in the area. Demos Helsinki is a consultancy and think tank. They have helped governments and corporations on smart city projects, giving advice or even administering programs. Smart Tampere. Note that current funding is scheduled to end in 2021. Their SmartTram ecosystem, which is tied to their new trams, is not regularly updated. Smart Otaniemi was a test platform funded by Business Finland. It does not seem to be active, but the website still contains good information. Vastuu Group is an umbrella organisation for companies working in the built environment. They help with practicalities such as red tape. VTT helps to research and commercialise many smart city projects. They also have a specific service called City Tune. 02/06/2021 11

Programs, projects and ecosystems Note: Many activities run for a limited time. Doublecheck it is still active. Business Finland does not have a single smart city project, but instead has many different projects which could fit into this category. Personalized Health covers innovation and research to create new businesses around individualised healthcare platforms. Target countries include Denmark, Japan, Sweden, Switzerland, the UK and the USA. Smart Energy accelerates smarter and cleaner energy innovations. Note this program ends in 2021 and some projects have already ended. Smart Life includes digital health and wellbeing solutions. The program targets Australia, Germany, the Gulf region, the Nordic countries, Japan, Singapore, the UK and the USA. Smart Mobility and Batteries focuses on smart mobility, logistics and batteries and electrification. The Finnish Innovation Fund Sitra has themes important for a well-functioning smart city. The successful Circular Economy program advances a sustainable economic model which reuses materials and promotes services instead of products. Fair Data Economy is about how data is used and protected. Health Data 2030 develops how health data could be used in the EU. Sustainable Everyday Life works on a shift to a sustainable lifestyle. Updating Democracy aims to rejuvenate democracy including innovative digital solutions. MyHelsinki open API is an open interface about places, events and activities in Helsinki. Data is freely shared and can be used for public or private purposes. Funded by Business Finland, KEKO is an ecosystem to utilise building data. LuxTurrim 5G is an ecosystem to create the digital backbone for a smart city while 5G Test Network Finland is an ecosystem to test and develop 5G technology. The University of Oulu is looking farther ahead with the 6G Flagship program. 02/06/2021 12

Sites to visit in Finland Helsinki s Central Library Oodi is a major 98-million-euro investment which aims to increase citizen access and community participation, two key goals of smart city development. Kalasatama, a newer neighbourhood on the eastern side of Helsinki, is a lab for many smart city projects, such as flexible space, citizen participation schemes, smart trash bins and urban renewable energy. Maria 01 is a large coworking site in a former hospital in Helsinki. Some of the startups headquartered there are in the smart city field. The Smart Technology Hub in Vaasa is an project led by W rtsil focusing on the maritime and energy sectors, such as smart port technology. Enter Espoo can tailor a visit for your delegation. For example, you can visit multinational companies, small startups, universities, communities or specific smart city projects. Turku has some of the most ambitious climate goals in the world. Smart city solutions are a key to their Smart & Wise program. Oulu has a number of smart city projects in the built environment, transportation, health and mobile connectivity sectors, among others. Tampere s comprehensive smart city program includes all the usual focus areas as well as some which are less common, such as customer service and involvement as well as safety and security. Lahti was an early adopter of the circular economy philosophy. Some interesting projects include energy, such as creating biofuels from the side streams of bakeries and brewers. Experts who can give good lectures on the topic Note: please let VIE-50 know if you have suggestions of good speakers. We will update this material. Mika Klemettinen; trade and innovation consul, head of Shanghai office; Business Finland; mika.klemettinen@businessfinland.fi; +86 134 8274 6884 Steve Hwang, head of government and cities program in Asia for Nokia steve.hwang@nokia.com Tuula M kinen; lead, sales, new business; smart energy and built environment; VTT; tuula.makinen@vtt.fi; +358 503 014 661 Andrew Calzetti; Marketing Director at W rtsil Marine; andrew.calzetti@wartsila.com 02/06/2021 13

For social media @City of Helsinki Economic Development @City of Turku @Forum Virium Helsinki @Helsinki Business Hub @Helsinki Smart Region @J tk saari Mobility Lab @Sitra @6 Aika @Smart City Tampere @VTT #Finland #SmartCity #Innovation #SmartBuilding #SmartPort #IoT #AI #Finland had smart cities before there was the term #SmartCity. A #Finnish #SmartCity isn t about technology. It is about people. If we want to be #sustainable we need to get smart. Finnish #SmartCities are about improving our quality of life while protecting the environmtne. For further information Mika Klemettinen; trade and innovation consul, head of Shanghai office; Business Finland; mika.klemettinen@businessfinland.fi; +86 134 8274 6884 02/06/2021 14

Tools and materials VTT s Smart City Guide Business Finland s list of Key Industries. They do not have a single smart city category, but many of these industries could be considered under that heading. Sitra s list of projects and themes. They do not have a single category which encompasses every smart city topic, but many of Sitra s activities are relevant. Helsinki Business Hub has a nice page to promote smart city projects in the capital area. The City of Espoo has participated in several smart city projects. The Toolbox on Finland.fi includes a wealth of materials. There is no single smart city category but you can find valuable information on subsectors, such as digitisation, smart energy, smart health and mobility-as-a-service. A note on sources: The main sources for the information in Part I are: Business Finland (approximately 75% of the material) The Ministry for Foreign Affairs of Finland VTT Sitra Statistics Finland Eurostat The primary author s (David J. Cord) experience covering smart city topics as a journalist 02/06/2021 15

PART II: COUNTRY SPECIFIC INFORMATION 12/22/2020 16

Key points and main messages What are the most important things to emphasize in this specific country? What is Finland s special knowhow that makes us stand out especially in this country? Why should someone from this country want to cooperate, invest or buy? 12/22/2020 17

Elevator pitch Write a clear, brief message/commercial about the sector and Finland's knowhow. Position Finland: who are we and why people should trust us in this country State the problem that needs to be solved in this country and globally Present our solution and results with focus on the needs of this country: explain what we do, how we do it and what makes us unique. Eliminate jargon but wrap everything into a good story Finish with a call to action: what do we want to happen next, where do we want to go? 12/22/2020 18

Background, facts and stats This is the part where you add facts to support and explain your elevator pitch. Short history and development of the sector in your country. List all essential facts and numbers that a person needs to understand the size and significance of the sector in your country. Why and how did this become a key sector for Finland? What is the broader role of Finland in this sector, what is our position in comparison to other countries? 12/22/2020 19

Finnish companies in the area Please list Finnish companies operating in this sector in your country. Write shortly (1-2 sentences) what they have to offer. Team Finland Name of persons in charge of this sector in your country: name, title, organization, email, phone number. 12/22/2020 20

PART III: INSTRUCTIONS AND BACKGROUND FOR THIS INTERNAL MATERIAL PACKAGE 12/22/2020 21

Material package: instructions This is an internal working paper to support all Team Finland actors globally in promoting Finland and its strengths. The Unit for Public Diplomacy of the Ministry for Foreign Affairs coordinates the production of sectoral working papers in close cooperation with Business Finland and other core actors. The sectoral working papers can be found in the internal Team Finland section of the Finland Toolbox. Parts I-II Part I of consists of general information that can be used globally when preparing for meetings, visits, events, campaigns, etc. Part II is left blank. All Team Finland teams around the world are encouraged to fill in country specific information and use it actively! Hyperlinks When you read the content in normal view, the hyperlinks are not clickable. You can either open the hyperlinks by right-clicking on them and selecting Open Hyperlink or by switching to slide show view and clicking on them . Questions and comments If you have questions or suggestions concerning the format or content, please contact The Unit for Public Diplomacy at vie-50@formin.fi. 12/22/2020 22

Country branding and Team Finland work: why do we need common messages? Country branding is advocacy, communications and marketing that aims to influence target groups knowledge, opinions and eventually decisions through owned and earned media, events and meetings, among other means. Country branding is carried out by everybody who speaks about, writes about or documents Finland. Country image work is part of the normal work of our all Finnish actors abroad when they have meetings, are present in the media, give speeches, etc. It is not just about individual functions or events. It is extremely important that all relevant actors prioritize themes together and deliver the same main messages highlighting Finland's strengths. Sufficient cultural sensitivity is needed, always adapt Finland s strengths to each cultural area and current discussion. Finland s country image work is led by the Finland Promotion Board (FPB). In 2019 2023, the member organizations are: Ministry for Foreign Affairs, Ministry of Economic Affairs and Employment, Ministry of Education and Culture, Finnish National Agency for Education, Business Finland, Visit Finland, City of Helsinki, House of Lapland, Finnish Cultural and Academic Institutes, the Finnish Innovation Fund Sitra, Music Finland, W rtsil , Finnair and Iceye. 12/22/2020 23