Smart City and Metropolitan Area: the Energy Component in the Case Studies of Genoa and Naples

The Smart City model is now considered one of the opportunities to rethink cities and, in general, the development of urban communities. One of the most relevant themes in the application of the Smart City paradigm is the city/energy relationship and Italian cities are fielding several actions to effectively cope with the energy issues. Nevertheless, actions and projects are often uncritically promoted as ‘smart’, but actually lack innovative contents and methods. Therefore, the aim of this research, of which we present the first findings, is the drafting of a survey, tested through field analysis, of the experimentations of Italian metropolitan areas on the Smart City topic. The in-depth analysis of two case studies, Genoa and Naples, allowed us to compare the actual state of the two cities. We have that they have undertaken a common path in the implementation of strategies to try to transform themselves into Smart Cities, focusing especially on the energy aspects.

section_content: Globalization, with trade liberalization measures and fast technological changes altering the relations of production, distribution and consumption, has very substantial effects on city development. As one important consequence, (network-) economies evolved " […] with easier physical movement, globalized players making decisions with no regard to national boundaries" (Thornley, 2000). Along with this progress private firms of the service sector but even of the production sector are increasingly footless and flexible in their location behaviour. Besides the technological changes it is the European integration process, which reduces the differences in economic, social and environmental standards and norms and, thus, provides a common market. The ongoing reduction of differences and barriers between nations also makes cities more similar in their preconditions. Thus, only a few out of many location-based characteristics gain importance for global actors (Begg, 1999; Parkinson et al., 2003) enforcing competition across cites by altering each city as potential competitor to improve its location profile. Cities in Europe face the challenge of combining competitiveness and sustainable urban development simultaneously. This challenge is likely to have an impact on issues of Urban Quality such as housing, economy, culture, social and environmental conditions changing a city's profile and urban quality in its composition of factors and characteristics. 

This project deals with medium-sized cities and their perspectives for development. 

Even though the vast majority of the urban population lives in such cities, the main focus of urban research tends to be on the 'global' metropolises. As a result, the challenges of medium-sized cities, which can be rather different, remain unexplored to a certain degree. Medium-sized cities, which have to cope with competition of the larger metropolises on corresponding issues, appear to be less well equipped in terms of critical mass, resources and organizing capacity. To enforce an endogenous development and achieve a good position, even these cities have to aim on identifying their strengths and chances for positioning and ensure and extend comparative advantages in certain key resources against other cities of the same level. City rankings are a tool to identify these assets. Although they are quite common in recent time, rankings are very different in their approaches or methods. Due to different interests behind rankings and the indicators and methodological approaches used it is also normal that one city is ranked very different in different rankings. Additionally, medium-sized cities are often not or only partially considered. 

Hence, existing rankings and benchmarks are not satisfying for medium-sized cities. 

The smart cities ranking, based on a comprehensive catalogue of indicators, offers a new view on medium-sized cities in Europe and their respective differences and comparative (dis-)advantages towards each other and allows to • illustrate differences in the respective characteristics and factors,

• elaborate specific perspectives for development and positioning and • identify strenghts and weaknesses for the considered cities in a comparative way. 

Finally, we will show that the aproach allows an in-depth analysis for every city based on the comprehensive description of characteristics and the large number of indicators.
section_name: Aim of the project

section_content: City-rankings have become a central instrument for assessing the attractiveness of urban regions over the last 20 years. In these kinds of comparative studies cities are evaluated and ranked with regard to different economic, social and geographical characteristics in order to reveal the best (and the worst) places for certain activities. Consequently city-rankings are often used by the cities themselves to sharpen their profile and to improve their position in the competition of cities: a toprank in a highly reputed city ranking helps to improve the international image of a city and can therefore play a central role in its marketing strategy. 

Examining and comparing different city-rankings in Germany, Schönert (2003) found out that they are targeted on different goals and that they significantly differ in methods and results. According to the chosen indicators and their weights many cities showed rather different ratings in the city-rankings considered. Furthermore there is no evidence that the evaluations are reflected in actual economic performance. Based on a detailed analysis and comparison of 10 German rankings 1 Schönert points out the following assets of city-rankings: City-rankings draw public attention to major issues of regional science City-rankings stimulate a broad discussion on regional development strategies Regional actors are forced to make their decisions transparent and comprehensible Positive changes are also registered outside the region The results in detail may initiate learning effects of local actors

On the other hand he considers some handicaps: City-rankings tend to neglect complex interrelations in regional development The discussion is mainly focused on the bare rank Long-term development strategies may be threatened Existing stereotypes may be strengthened Badly ranked cities tend to ignore the results

In order to get a more detailed insight into the diverse methods, objectives and results of different city-rankings, some international examples (as listed in table 1 ) are described and compared. 3 main aspects of rankings should be noticed: The objective of the ranking, the methodology and the final dissemination of the results. The different characteristics from the chosen rankings will be used to illustrate these aspects. 

Tab. 1: Elaborated city rankings
section_name: The role of city-rankings in regional competition

section_content: The objective of a ranking is not only specified by its aim and its target audience but also by its spatial scope and the desired factors and indicators behind the ranking. 

The rankings chosen for elaboration include between 50 and 200 cities -at least nation-wide but often also worldwide. This spatial scope depends of course on the aim and the target audience. 

The target audience of most rankings are either companies which have to relocate executives (expatriates) or the (future) expatriates themselves (1, 3, 4, 6), or political leaders of cities and communes which stand in direct competition with others (2,5,7). Hence, on the one hand a ranking can be used to rate certain costs of living or individual development chances, and on the other hand to illustrate lacks or advantages in a certain current state of development of a city opposite its direct competitors. 

Additional to the spatial scope, the chosen factors (and later the indicators) are certainly bound to the actual aim and target audience of a ranking. Rankings focusing on managers and expatriates mainly focus on individual living conditions for that certain group (1, 3, 4, 6). Rankings mainly focusing on the development state of cities include a broader choice of factors ranging from demographic factors, goods turnover to tourist attractivity etc. (5,7). However, rankings can also be used to analyse a certain characteristic of the cities state, as e. g. environmental sustainability (2).
section_name: Objectives

section_content: Methodology does not only include the way of data collection and processing but in a first step also the actual limitation of the selection of cities examined in the ranking. Certainly, a broad spatial scope is already defined by the objectives (e. g. only European cities). Still, as there are usually not enough resources to include all cities within this broad scope a further selection is necessary. Many rankings select cities on the basis of their population size (2,5,7), others by their importance in matters of global significance or perceptional importance for their target audience (1,3,4). Quite a comprehensive selection method was chosen for ranking 6: First a list of 643 European cities was elaborated which fulfilled one of various criteria (e. g. capital function, at least 100,000 inhabitants, listed in certain other rankings or at least one company headquarter according to Forbes 2000). All cities got a score for each criterion which was the basis for the selection of 58 cities for the actual ranking. 

Finally, data availability (for the subsequent ranking) also plays an important role in the selection of the cities if resources are limited. The collection of data is mainly a question of available project resources. Some data for rankings were elaborated by field research, mainly by interviews (1,3), the majority of data, however, was acquired by desk research, analysing primary and secondary data (2, 4, 5, 6, 7). 

A crucial point which has to be considered in the methodology is the use of weighting. Usually it is necessary to weight factors or indicators due to their influence or importance for the aim of the ranking. This is typically done by the executing agencies themselves, which have certain aims or targets in mind. 

Nevertheless it is also possible to assess the weight of the factors for the ranking by interviews again (1) if the target group is clearly defined.
section_name: Methodology

section_content: The way, how the results are evaluated, interpreted and presented is crucial for the impact of the ranking. An overall list of cities ranked is the typical result of city rankings. All elaborated rankings include such a list; some studies also include more differentiated results. One differentiation refers to the difference of the current status of a city and its recent development. In ranking 5 two rankings over all cities, a "Niveau"-Ranking and a "Dynamik"-Ranking were elaborated. Therefore cities with a lower state but with a recently very positive development were rated also high in the final ranking. Another approach was chosen in ranking 6: As the target group of the ranking were managers, 3 types of different managers with different demands were elaborated which influenced the weighting of the factors used. In ranking 7 a typology of core function(s) for each city was additionally elaborated through the performance within the different factors. This approach focuses especially on the strengths of each city. Another part of the dissemination aspect is the final availability of the results. Mostly the overall list (or the top) is available free of charge. On the contrary, partial results and interpretations or deeper insights are often not freely available. This might also be a reason for the sole public attention on the final results as addressed below. 

In brief it can be stated that there is a broad variety of how to do a ranking and it seems that rankings focusing on a more detailed and clearly defined issue provide more applicable results than rankings providing 'just' an overall list. Not only when analysing and interpreting existing city-rankings but also when developing a new one, it is important to consider these three aspects, giving evidence on their objectives, methodologies and dissemination. One serious problem of all city-rankings seems to be the fact that public attention is mainly focussed on the final ranking without considering the methodological aspects behind the ratings. This selective public perception of results enforces a confirmation of existing stereotypes and clichés neglecting the specific strengths and weaknesses of the cities in detail. The rankings are excessively acclaimed by the "winners" in order to improve their public image, while the "losers" tend to ignore the results which might threaten their position in city competition. Consequently both groups of cities pass up the chance to make use of the results in a constructive and positive way by discussing the main findings in detail. Only a serious examination of the results reveals actual strengths and weaknesses of cities and can therefore be used as an empirical base for detecting future fields of activity. 

Another major handicap of most city-rankings, which is especially relevant for medium-sized cities, lies in their generalistic approach: Since many financiers ask for clear results which can easily be communicated in public, most rankings aim at finding the "best" or "most attractive" city in general terms. Consequently these studies try to cover all fields of local attractiveness totally ignoring the fact that different activities need different conditions. It is quite obvious, however, that a city that offers a high quality of life does not necessarily have to be the ideal location for all industrial branches. This is especially true for medium-sized cities, which are not able to compete in all fields of economic activity, but have to focus on selected branches. This strategy of specialisation is based on an accurate examination of existing economic, social and environmental potentials in order to find specific niches in which the city is able to establish some competitive advantage. For that reason it does not really make sense to compare medium-sized cities generally and to evaluate their attractiveness in total. Even more than in the case of metropolises, city-rankings of medium-sized cities have to be highly specific in their approach and always be related to a particular aspect of attractiveness: The results of rankings focussing on quality of life or on cultural potentials will strongly diverge from the findings of studies which try to evaluate regional conditions for tourism or innovative industries. Consequently, rankings comparing medium-sized cities have to be interpreted thoroughly and with caution and the results should not be published without mentioning the factors and indicators considered. 

Anticipating our own ranking approach as illustrated in the next chapter, some conclusions should be drawn for the design and application of rankings dealing with medium-sized cities:

The largest part of European urban citizens live in medium-sized cities Need for definition of medium-sized cities Poor data availability makes inclusion of data from different spatial levels and limited sample necessary Transparent and well structured approach necessary for serious examination Focused rankings provide more applicable results Differentiation through relevant factors allows information and policy advice on strategic specialisation These conclusions are especially relevant for the current study. However, for a possible successor project certain adaptations are conceivable. The large number of medium-sized cities and its weight in regards to citizens and number of cities is a strong argument for the need of expanding the sample and continue research as emphasized in the outlook in the last chapter.
section_name: Dissemination

section_name: Objective

section_content: Rankings are only of value if the target is defined well and a transparent structure is used. The objective of this ranking is to compare characteristics and to identify strengths and weaknesses of medium-sized cities in a comparative way. Therefore it is not useful to solely focus on the performance of only one aspect of city development but on the performance in a broad range of characteristics. The specific feature of our approach is the evaluation of these characteristics regarding a forward-looking development on the basis of a combination of local circumstances and activities carried out by politics, business, and the inhabitants. 

As elaborated in a first phase of the project, a forward-looking development approach should consider issues as awareness, flexibility, transformability, synergy, individuality, self-decisive, strategic behaviour. Especially awareness seems important for a smart city as certain potentials can only be mobilised if inhabitants, companies or the administration are aware of the cities' position -knowing the city from the inside but also being aware of the surroundings and the system of cities the city is located in. 

Although the term smart city is understood as a certain ability of a city and not focusing on single aspects, a further definition requires identifying certain characteristics for the evaluation. Although the term "Smart City" is not very widely used yet in spatial planning literature or urban research, it is still possible to identify various aspects as a basis for further elaboration. Concluding from literature research the term is not used in a holistic way describing a city with certain attributes, but is used for various aspects which range from Smart City as an IT-district to a Smart City regarding the education (or smartness) of its inhabitants. In the following the various aspects will be summarized. 

In association with economy or jobs Smart City is used to describe a city with a "smart" industry. That implies especially industries in the fields of information and communication technologies (ICT) as well as other industries implying ICT in their production processes. Also for business parks or own districts comprising of companies within this field the name Smart City is used. The term Smart City is also used regarding the education of its inhabitants. A Smart City has therefore smart inhabitants in terms of their educational grade. In other literature the term Smart City is referred to the relation between the city government resp. administration and its citizen. Good governance as an aspect of a smart administration often also referred to the usage of new channels of communication for the citizens, e. g. "egovernance" or "e-democracy". Smart City is furthermore used to discuss the use of modern technology in everyday urban life. This includes not only ICT but also, and especially, modern transport technologies. Logistics as well as new transport systems as "smart" systems which improve the urban traffic and the inhabitants' mobility. 

Moreover various other aspects referring to life in a city are mentioned in connection to the term Smart City like security/safe, green, efficient & sustainable, energy etc. 

To sum up, there are several fields of activity which are described in literature in relation to the term Smart City: industry, education, participation, technical infrastructure, various 'soft factors'; finally we can identify six characteristics (see Fig. 1 ) as a roof for the further elaboration of smart cities which should incorporate the findings but also allow an inclusion of additional factors. 

Referring to the first paragraph we can structure the findings as the following: A Smart City is a city well performing in a forward-looking way in these six characteristics, built on the 'smart' combination of endowments and activities of self-decisive, independent and aware citizens. 

Furthermore it should be emphasized that we are currently only able to draw a picture of the present state of a city. Still, the path of development is decisive for a smart city and should be considered in further research that builds on time-series data.
section_name: Defining smart city

section_content: To describe a smart city and its six characteristics it is necessary to develop a transparent and easy hierarchic structure, where each level is described by the results of the level below. Each characteristic is therefore defined by a number of factors. Furthermore each factor is described by a number of indicators. The factors were defined in several workshops always having the overall target, smart city development in mind. Finally Fig. 2 : Structuring the analysis 33 factors were chosen to describe the 6 characteristics. To analyse the performance in each factor 1-4 indicators were selected (see chapter 3. 2) and assigned to each factor. For two factors, "Ability to transform" and "Political strategies & perspectives" it was not possible to receive sufficient data at the moment. Therefore 31 factors finally remained for the ranking. However, for further rankings we recommend to include and elaborate also these two factors as they seem important for the completion of the model. 

The following table illustrates the 6 characteristics and their assigned factors. Smart Economy includes factors all around economic competitiveness as innovation, entrepreneurship, trademarks, productivity and flexibility of the labour market as well as the integration in the (inter-)national market. Smart People is not only described by the level of qualification or education of the citizens but also by the quality of social interactions regarding integration and public life and the openness towards the "outer" world. Smart Governance comprises aspects of political participation, services for citizens as well as the functioning of the administration. 

Local and international accessibility are important aspects of Smart Mobility as well as the availability of information and communication technologies and modern and sustainable transport systems. Smart Environment is described by attractive natural conditions (climate, green space etc. ), pollution, resource management and also by efforts towards environmental protection. Finally, Smart Living comprises various aspects of quality of life as culture, health, safety, housing, tourism etc.
section_name: Operationalizing smart city

section_name: Methodology

section_content: As written in the previous chapters the focus of this ranking lies on medium-sized cities. However, there is no common definition of a medium-sized city. For this study we chose to understand medium-sized cities as cities often also understood as "second cities" on a European scale, cities which are mainly not recognised very well on a European scale but often of crucial importance on a national and regional scale. As a starting point we chose to focus on cities with a populuation between 100,000 and 500,000 inhabitants. The most comprehensive overview of cities or functional urban areas (FUA) in Europe provides the Espon 1. 1. 1 2 study incorporating almost 1,600 entities in Europe 3. 

For the further selection of a feasible sample two main arguments were considered according to the project's aim and its timeframe: Cities should be of medium size and they should be covered by accessible and relevant databases. For these reasons three knock-out criteria were elaborated in a first selection phase on the basis of the Espon 1. 1. 1 study. Additionally, the fact if a city is covered by Urban Audit -a European wide database on cities -is decisive for the benchmark as for reasons of data availability. Hence 94 cities remained. In a second step the project team did some further adaptation and elaboration of the city sample regarding data accessibility and quality. Also some cities which actually are of medium-size but situated in a denser populated area and therefore having a catchment area slightly larger than 1. 5 mio. were included. Finally 70 cities were chosen for the sample.
section_name: Selecting cities

section_content: All indicators that jointly describe the factors of a smart city are derived from public and freely available data, obtained from the following databases: In total 74 indicators were selected for the evaluation, whereas 48 (65 %) are based on local or regional data and 26 (35 %) are based on national data. The inclusion of national data was necessary to broaden the database but also because very interesting data is available on that level. We tried to use the most current data as possible. However, as for reasons of data availability we also had to include older data, finally ranging from 2001 to 2007. Furthermore several datasets were complemented from other sources by individual research by the project team so that we finally could achieve a coverage rate of 87 % for the 70 cities by 74 indicators. The complete list of indicators is available in the annex.
section_name: Identifying indicators and data sources

section_content: To compare the different indicators it is necessary to standardize the values. One method to standardize is by ztransformation (see formula). This method transforms all indicator values into standardized values with an average 0 and a standard deviation 1. It has the advantage to consider the heterogeneity within groups and maintain its metric information. Furthermore a high sensitivity towards changes is achieved.
section_name: Standardizing and aggregating data

section_content: To receive results on the level of factors, characteristics and the final result for each city, it is necessary to aggregate the values on the indicator level. For the aggregation of indicators of factors we consider also the coverage rate of each indicator. A certain result from an indicator of an indicator covering all 70 cities weights therefore a little more than an indicator covering only 60 cities. Besides this small correction the results were aggregated on all levels without any weighting. The aggregation was done additive but divided through the number of values added. That allows us to include also cities which do not cover all indicators. Their results are calculated with the values available. Still, it is necessary to provide a good coverage over all cities to receive reasonable results.
section_name: -=

section_name: Results and dissemination

section_content: In the final ranking Scandinavian cities and cities from the Benelux countries and Austria are ranked in the top group. Also Montpellier and Ljubljana achieve top ratings. The cities ranked lowest are mainly in the new EU-member states. Within the respective characteristics a similar picture can be recognised. Still, also some differences appear. The best rating in Smart Economy achieve Luxembourg, British, Irish and Danish cities as well as Eindhoven, Regensburg, Ljubljana and Linz. Smart People is led by Scandinavian cities as well as Dutch cities and Luxembourg. Again Scandinavian and also Austrian cities achieve a very good rating in Smart Governance. The The darker the colour the better the rating rating for Smart Mobility is very good in cities from Benelux countries and Denmark. Smart Environment is fairly different from the total rating. French, Slovenian and Greek cities as well as Timisoara achieve top ratings in this characteristic. The sixth characteristic, Smart Living, is lead by Austrian, Belgian and two Finnish cities as well as Luxembourg and Umeå. The following graph illustrates the composition of the total rating by characteristics for each city. It also allows a first evaluation of strengths and weaknesses of certain cities or groups of cities.
section_name: Performance of 70 cities

section_content: The analysis in characteristics allows already a broad outline of strengths and weaknesses of the included cities. However, a more detailed analysis is necessary because the performance within the respective characteristics or even within factors can vary. The transparent structure of the ranking-approach enables a quick insight into characteristics and factors, providing detailed city profiles. The following graph shows a detailed profile of Luxembourg, ranked on first place in the final ranking. 

Luxembourg has in every characteristic a rating above average. 

Especially in Smart Economy is Luxembourg far above the average of all 70 cities. Still, even in this characteristic we can see a different picture when zooming on the level of factors. Three factors, economic image, productivity and international embeddedness are extraordinary well rated while the other three are closer to the average but still above. An even more diverse rating is within Smart People. One can see that the very good rating on the level of characteristics is mainly caused by the very good performance in the factor social and ethnic plurality. On the other hand, the factors creativity and flexibility are even under average. We can even have a deeper look on the results by changing one level lower to the level of indicators.
section_name: City profiles

section_content: Besides this report, the most important results are available on the project homepage, www. smartcities. eu. With the implemented online database it is possible to get an insight view on the 70 cities and their comparative strengths and weaknesses on the level of characteristics and factors. 

Besides, all project partners gave interviews to several newspapers in the Netherlands, Luxemburg (German and French newspapers), Germany and, most of all, in Austria. In particular, some cities (resp. their marketing sections) got
section_name: Dissemination

section_content: This study was the first of its kind to focus on medium-sized cities, thereby considering a broad range of factors and indicators, inherent to the concept of 'smart cities'. As was stated before, rankings can only be meaningful when the datacollection and analysis has been carried out in a transparent way (and hence, its results should be reproducible by others). Moreover, this transparency allows considering the ranking of medium-sized cities from various viewpoints. Which one prevails, depends on the objective of the user of the information and his/her needs. With other words, the consideration of different characteristics, factors and indictors in an non-weighted way expresses that the authors are convinced that urban development is a complex process in different dimensions and its perception and evaluation, finally, depends on the actors themselves resp. their preferences and individual objectives. However, we do not have a complete overview about the perception of our study through corresponding actors across Europe, but we have got the impression that this ranking approach detected a niche within existing rankings and some of the mediumsized cities are very much aware of its usefulness for their own positioning. In front of these first reactions from newspapers and concerned cities two conclusions can be done:

First, some of the medium-sized cities resp. their marketing and planning sections are already aware of this increasing pressure of competition and their need for positioning within the European urban system. Thus, strategic advice through such a ranking and through the benchmarking with other cities along characteristics and factors seems to be useful for them. In particular some recent remarks and questions even let expect that a more detailed policy advice is in their interest. Of course, this policy advice could be realized on the base of the indicator scores identifying fields of action according to strengths and weaknesses and advising the most effective governance approaches between competition and cooperation. 

Second, this approach concerns a large number of cities and citizens in Europe. 120 mio. or 40 % of all urban citizens live in cities with a population between 100,000 and 500,000 inhabitants. These 600 cities figure as the engines of economic development in space. Because of their large number they are the most decisive actors in order to make Europe more competitive and at the same time to make spatial development more sustainable. Thus, this group should be object of further investigation in order to identify their recent strengths and weaknesses and their perspectives in positioning. Concluding, this research project presents a current overview of European mediumsized cities, but an analysis of time-series data was beyond its scope. Such an exercise, however, would be extremely useful, as smart city development is perhaps more concerned with making progress as concerns the smart indicators rather than a cities' positioning in a ranking -which inevitably is a snapshot in time. Nevertheless, the ranking features innovative aspects and results:

-Focus on medium-sized cities, a class of cities normally neglected in international comparative analyses -Analysis of characteristics and factors decisive for a successful forwardlooking city development -Use of a transparent and comprehensive catalogue of indicators, using data from official, public and freely available sources -Elaboration of detailed city profiles on the basis of 74 indicators providing applicable statements on comparative strengths and weaknesses Perhaps it would not be an exaggeration to say that truly smart cities use this cityranking as a tool to benchmark with other cities, and draw lessons from better performing cities, perhaps resulting in policy transfer. This should become evident in a follow-up to this project that will allow an assessment of the cities performance in each smart characteristic.
section_name: Outlook

section_name: General notes

section_content: This report represents the final report of a research project sponsored by Asset One Immobilienentwicklungs AG, Kaiserfeldgasse 2, 8010 Graz. 

The project was elaborated from April to October 2007. This report was edited by the Centre of Regional Science (SRF), Vienna University of Technology in October 2007.
section_name: General notes