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State <strong>of</strong> <strong>the</strong> World’s Cities <strong>2012</strong>/<strong>2013</strong>Box 3.2.1Measuring Innovation and CreativityIn 2000 a “Creative City Index” was developed to measure‘<strong>the</strong> imaginative pulse <strong>of</strong> <strong>cities</strong>’, combining a variety <strong>of</strong>indicators ranging from political and public frameworks,diversity, vitality and expression, openness and tolerance,entrepreneurship, vision, liveability, learning andpr<strong>of</strong>essionalism, among 10 specific dimensions. In 2007,Melbourne-based “2thinkNow” developed an “InnovationCities Program” along with an “Innovation Cities Index” in abid to enhance understanding <strong>of</strong> <strong>the</strong> links between innovationand <strong>the</strong> way <strong>cities</strong> operate. The measure also uses a largevariety <strong>of</strong> indicators, involving cultural assets, infrastructureand networked markets in areas such as commerce, finance,food, <strong>the</strong> arts, health, technology, religion, <strong>the</strong> media, etc.On this basis, <strong>cities</strong> are classified in five categories: ‘nexus’(<strong>cities</strong> featuring critical innovations),’hub’ (<strong>cities</strong> that areinfluential in key areas), ‘node’ (<strong>cities</strong> combining broadrangingperformance and imbalances), ‘influencer’ (<strong>cities</strong> thatare competitive but unbalanced on <strong>the</strong> whole), and ‘upstart’(<strong>cities</strong> with potential for future performance).Source: UN-Habitat (<strong>2012</strong>) Decentralization in Iraq: Challenges andSolutions for Federal and Local Governments, Nairobi: UN-HabitatpolicyA creative city must establish a balance between‘hardware’ factors – infrastructure and technology –and ‘s<strong>of</strong>tware’ factors (including mind-set, dynamics <strong>of</strong> place, <strong>the</strong>connection between thinkers and doers, and a change-friendlyenvironment). 7The Factors behind Urban InnovativenessInnovation can emanate from a creative worker, acommunity leader, a business person, an artist, a publicservant or a scientist, etc. Innovation can respond to aspecific problem, reduce risks, anticipate challenges, resultin new products or process, or harness existing or emergingopportunities. For <strong>the</strong> purposes <strong>of</strong> urban prosperity,innovation has a clear role in improved conditions forpopulations and <strong>the</strong> way <strong>the</strong>y live, work, move, relax andmore generally make <strong>the</strong> most <strong>of</strong> <strong>the</strong> urban advantage.If its existingcreative capital is to beenhanced, or activatedThe culture <strong>of</strong>policy creativity must where dormant, a citybe embedded in <strong>the</strong> way should become a locus<strong>cities</strong> operate. 8where socioculturaldiversity can be staged,and where links can flourish among both individuals andinstitutions. In practice, all <strong>of</strong> this requires well-adaptedphysical environments, which in turn have to do withurbanization economies 9 and better urban planning. Froma more institutional point <strong>of</strong> view, support to knowledgeexchange and networking is ano<strong>the</strong>r way <strong>of</strong> stimulatingcreative capital, along with favourable conditions forresearch and development. As for <strong>the</strong> productive sector,creative stimulation can also derive from economies <strong>of</strong>agglomeration and an entrepreneur-friendly environment.It may come as no surprise that in Asia, mostlocal experts saw a strong link between research anddevelopment (R&D), on <strong>the</strong> one hand, and enhancedprosperity on <strong>the</strong> o<strong>the</strong>r, with public authorities and o<strong>the</strong>rstakeholders playing significant roles in <strong>the</strong> areas <strong>of</strong>business, industry and technology.This was <strong>the</strong> case in Singapore, Hyderabad andBangalore (India), Shenzhen and Chongqing (China),Gaziantep (Turkey) and Cebu (<strong>the</strong> Philippines). InSingapore, gross expenditure on R&D increased from1.9 per cent in 1990 to 2.8 per cent 2008 and threeper cent in 2010 10 , with <strong>the</strong> focus on applied research,technology, sustainable urban living and ‘clean’ energy. 11In Bangalore, <strong>the</strong> emergence <strong>of</strong> <strong>the</strong> city as a knowledgehub is a visible impact <strong>of</strong> policy, entrepreneurship andinnovation. With more than 66 engineering colleges and55 polytechnics, <strong>the</strong> city has developed as a centre forscientific innovation, research in aeronautics and electronicswith strong public research facilities. 12 Biotechnologiesand computer/communications also feature highly inHyderabad, India’s pharmaceutical capital, with supportfrom central government and more than 40 researchand educational institutions. 13 Shenzhen has developedan endogenous innovation strategy led by <strong>the</strong> <strong>state</strong> withinvestments from government agencies, industries anduniversities. In few years,<strong>the</strong> city has developed ahigh-tech, modern serviceindustry, actively promotingfact UN-Habitatsurvey showsindustrial transformation that five main factorsand upgrade, focusingare at play when <strong>cities</strong>on electronics, biological innovate: innovativeengineering and newurban management,material technology.entrepreneurial capacity,<strong>the</strong> promotion <strong>of</strong>The city has also madearts and culture, <strong>the</strong>important innovationsemergence <strong>of</strong> industrialin <strong>the</strong> service industryclusters, and research(finance, logistics andand development (R&D).104

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