“Investments in Smarter systems often cut across organisations and budgets and many have objectives that are macro-economic, social and environmental, as well as financial. As such, they challenge existing accounting mechanisms. Whilst central government and the financial markets offer new investment solutions such as ethical funds, social impact bonds and city deals, so far these have not been used to fund the majority of Smarter solutions – many of which are supported by research programmes. The Technology Strategy Board’s investment in areas such as “Future Cities” and the “Connected Digital Economy” will provide a tremendous boost, but there is much to be done to assist cities in using new investment sources to fund Smarter initiatives – or to develop sustainable commercial or social-enterprise business models to deliver them.
Although progress can be driven by strong leadership, the issues of governance and fragmented budgets will need to be overcome if we are to take full advantage of the benefits technology can bring.
We live in an era of major global challenges – well described in the recent “People and the Planet” report by the Royal Society. At the same time, we have access to powerful new technologies and ideas to address them, such as those proposed by the 100 Academics who contributed essays to the book “The New Optimists”. When we focus those resources on cities, we focus on the structures in which we can have the greatest impact on the most people.
Already many forward-looking cities in the UK such as Sunderland and Birmingham are joining others around the world by investing in Smarter systems.
If we can meet the technical, organisational and investment challenges, we will not only provide citizens, businesses and agencies with new choices and exciting opportunities; we’ll also position the UK economy to succeed as the Information Revolution gathers pace.
(This post was first published as part of the “Growth Factory” report from the thinktank TLG Lab). ”