Free trade zone and regional business hub for information technology companies.

Population: 5,500

Website: www.dic.ae

Smart21 2006

Despite an increase in output since 1999, oil reserves will be depleted by 2020. In anticipation of this, Doha, the national capitol, has committed nearly 3% of GDP to science and technology initiatives, including Education City, which are beginning to build a society driven by knowledge work.

Population: 400,051

Website: www.gov.qa

Smart21 2008

The second largest city in Israel, Tel Aviv is also its richest, home to the nation’s stock exchange. Newsweek magazine called it one of the ten most technologically influential cities in the world, because of its concentration of venture capital, research institutes and technology firms. Other industries include chemical processing, textiles and food. By the end of 2000, the city contained 86% of Israel’s high-tech companies but is also a center for the creative industries and home to Tel Aviv University, the country’s largest academic institution. Fixed broadband passes 99% of homes and penetration is well above 60%. The Great Recession has hit Tel Aviv’s tech sector hard, particularly venture capitalists used to a 25% annual return, but pharmaceuticals, biotechnology and solar technologies continue to grow.

Population: 384,400

Website: www.tel-aviv.gov.il/english

Smart21 2010

Using funds from development agencies and the US government, this war-torn capital of Afghanistan has built a telecom-based foundation for government by linking ministries with district offices and military bases throughout the country while expanding mobile service nationwide from 0.01% to 6% in three years.

Population: 2,500,000

Website: km.gov.af/en

Smart21 2007

ICF welcomes the city of Sunderland to the Top Seven for an unprecedented fourth time this year. The largest city in the Northeast of England, Sunderland has quite literally risen from the ashes of the Industrial Age to create a globally competitive city prospering in the Broadband Economy. This transformation was due to neither luck nor location, but to visionary leadership, good planning and unrelenting commitment.

In the 1980s, this former shipbuilding and mining center on the North Sea, which at one time launched more ships than any other port in Europe, had a peak unemployment rate of 22%. As the last shipyard closed in 1988 and the last coal mine followed in 1994, Sunderland fell into the bottom 10% of Britain's "depressed districts." The legacy of heavy industry was a large unemployed group of low-skilled workers, many with chronic health problems. With so little local opportunity, young people fled the city, leaving behind a shrinking and aging population.

Partnership Strategy

Sunderland's government responded in a way that would become a much-copied strategy for success. In 1991, it organized a volunteer group called the Sunderland Partnership, comprised of members from government, local universities, the chamber of commerce and citizen leaders representing important constituencies. The Partnership developed a vision for a new economy based on what Europeans called "telematics" - the union of telecommunications and computers. While City Council staff labored to translate this vision into measurable goals and meaningful programs, the Partnership focused on politics. Members educated their organizations and constituents about the crisis into which Sunderland had fallen, the challenges to recovery, and their vision for the future. This was to prove essential to Sunderland's success, because it created the political will and integration needed to embrace change.

The Telematics Strategy was published in 1996 to cover a 5-year period through 2001. It included training programs in call center and other Digital Age skills for the unemployed, public-access Internet kiosks and "electronic village halls" with Internet access, business incubation programs and an initial, government-funded high-speed network for a metropolitan area possessing no more than basic telephone infrastructure.

Doxford International

Meanwhile, the economic development staff succeeded in persuading a real estate developer to build the first speculative building of what is now Doxford International, an award-winning office park. During the 1990s, it filled and expanded, filled again and expanded again as the European headquarters of Nike and Verisign, and home to such companies as Barclays, CitiFinancial, EDF Energy and T-Mobile. These companies were attracted by the high-quality facilities in a city with attractive wage costs, a strong incentive program, and the availability of freshly-trained labor. The same team won public-sector funding from the national government and European Commission and invested it in rebuilding the derelict waterfront into a new home for the University of Sunderland, a former technical institute that had gained university status in 1992.

By 2000, Sunderland had created 9,000 new jobs. A second Telematics strategy, covering the 1999-2003 period, focused on using ICT to promote social inclusion and ensure that everyone benefited from the city's transformation into an Intelligent Community. It set new goals, including development of a publicly-owned ISP and e-government hub called the Sunderland Host, expansion of the high-speed network to businesses and community centers, and creation of a one-stop Sunderland Portal for citizens, business and government users. There was no let-up, however, in economic development efforts. In 2002, EDS opened its first data center in the North of England in Sunderland. During the three years from 2002 to 2004, Sunderland secured 72% of the new jobs entering the region, despite having just 11% of the North's population.

The latest plan, called The Sunderland Strategy (2004-07) has focused on exploiting the city's global connectivity and growing knowledge workforce to attract even more inward investment and encourage the formation and growth of small and midsize companies. For the past five years, the number of net new jobs has increased 4.87% compared with the UK average of 3.17%. Sunderland has also seen a measurable improvement in the quality of those jobs, with growth primarily in financial and customer services that offer good pay and prospects for advancement. From 2004 to 2005, gross weekly pay in Sunderland rose at three times the national average, and the average salary for full-time employees is almost double the national minimum wage.

Working Together

Sunderland's transformation from industrial has-been to Intelligent Community illustrates the power of making many separate elements work in concert. For example, the city's activism about deploying broadband, and willingness to create joint ventures where necessary to reduce risks to the private sector, convinced carriers including NTL-Telewest, BT and Tiscali to provide broadband at competitive costs for speeds up to 10 Mbps. Broadband penetration has leaped from 25% two years ago to 75% today. The City Council has taken advantage of this connectivity to create an e-government portal that delivers a wide range of services to about 30,000 visitors per month. Broadband is also the medium for a Virtual Learning Environment created by the City of Sunderland College that is used by more than 20,000 students for training in information technology.

The "electronic village halls" created by the first Telematics Strategy are being expanded into multi-agency centers, which provide healthcare, housing, welfare rights, police, job-finder and other services as well youth and sports facilities. Video-conferencing links people using the centers to support staff. These are supplemented by kiosks distributed throughout the city. Sunderland has also identified and trained Community e-Champions to broaden digital inclusion at the neighborhood level, as part of a "peoplefirst" strategy that also equips social service workers with wireless PDAs from which they can instantly check databases and record service requests.

Following on the success of Doxford International, Sunderland has attracted major investment in technology office parks and incubators. The Business & Innovation Center at the Sunderland Science Park offers 200,00 sq. ft. (18,580 m2)of high-tech workspace housing 165 companies employing 1,100 people. The Rainton Bridge Business Park currently houses 150,000 sq. ft. (13,935 m2) of incubators and technology facilities and will become the site of a 400,000 sq. ft. development by Northern Rock that will put the site on course to exceed the original target of 4,000 new jobs.

The University of Sunderland, with 250 full time R&D staff, has become an innovation hub that makes business formation a priority. A Digital Media Center created with support from Sony is the most advanced facility of its kind in the UK, with 50,000 sq. ft. (4,645 m2) of film, TV and radio studios, and includes an incubation space for students setting up their own businesses. A New Ventures project facilitates the spin-out of new businesses from University research, while the University continues to expand incubator facilities and develop venture financing in collaboration with government and the private sector. A recent survey revealed that 10% of Sunderland's labor force is now self-employed - inspired perhaps by the success of local entrepreneurs like Paul Callaghan, who founded Leighton Group at the Business & Innovation Center in 1997. It is now a global business serving customers including British Airways, Lloyds TSB and Microsoft.

So successful have been its efforts to develop a knowledge-based economy that Sunderland has begun branding itself as the "Software City." It is remarkable to think that, in a single generation, the people of Sunderland have moved from slag heaps, slums and stagnation into a future built on turning knowledge into prosperity.

Population: 283,700

Labor Force: 126,100

Website: www.sunderland.gov.uk

Smart21 2007

Top7 2002 | 2004 | 2005 | 2007

Manchester is the hub of a Greater Manchester urban area of some 2.6 million people. It has a vibrant economy where, according to The Times of London, 60 international banks and 80 of the UK's top 100 companies have offices. In 2002, it hosted the 2002 Commonwealth Games, the world's second largest sporting event, and the Sportscity development created for the Games has become a valued asset.

But it is also a city of sharp contrasts. The district of East Manchester – once the hub of Britain's world-leading cotton industry – was decimated by the recessions of the 1970s and 1980s. It suffered a 60% employment loss between 1975 and 1985, when 52% of households were receiving state benefits. In 1998, two of East Manchester's electoral districts were among the top twenty on the UK government's National Index of Deprivation. As the rest of the metropolitan area has risen to the challenges of the Broadband Economy, the failure of East Manchester has become more glaring. But it has also planted the seeds of hope for regeneration.

The Eastserve Project

New East Manchester Limited is a partnership between Manchester City Council, national government agencies and the local community. It is responsible for developing and implementing a strategy to revitalize East Manchester's economy, increase employment, improve education and create more and higher-quality housing. One of its projects, Eastserve, is recognized by ICF for deploying an IT-based solution that addresses these goals while strengthening the social bonds of the community.

At first glance, Eastserve is a Web portal (www.eastserve.com), little different from government or neighborhood sites in thousands of communities. What sets it apart is the way in which it was implemented and the skills of the developers in meeting so many different goals.

Begun in 2000, the Eastserve project began by surveying residents on their needs for information and their ability to access it. Residents identified four priorities: employment and training, housing, policing and street-based services. As a result, the portal design included a virtual police station with anonymous crime reporting, a home-finder system for public housing, and online job searches and resume preparation system, among many other features.

The surveys also revealed that only 19% of residents had access to a computer. In response, Eastserve tapped a UK Government program that distributed recycled computers in deprived areas in order to launch a 2001 pilot project involving 450 households. Each household received a recycled PC or set-top box at a subsidized price, plus free dial-up Internet access for the first three months. The project also placed PCs at public access locations including police stations, housing offices and youth clubs. The pilot was successful enough to lead to a second phase that targeted 4,500 households to receive new or recycled computers, added new content to the Web portal, tied the project into IT training programs for schools funded by the e-Learning Foundation, and tackled the problems of financial exclusion.

Firing On All Cylinders

In Phase Two, Eastserve began firing on all cylinders, thanks to the down-to-earth advice offered by a Residents Panel of volunteers and volunteer Project Board. With 25% of East Manchester residents lacking any access to broadband, the project created a wireless Eastserve Broadband network that now links 1,700 households, six community centers and 14 schools and is being extended to adjoining neighborhoods. Its work with residents convinced Eastserve that they rapidly outgrew the capabilities of recycled PCs and set-top TV systems. In response, it began offering new fully-configured PCs at a higher price (£200) compared with £50 for a recycled system. Uptake was so strong that the cost of the subsidies made it necessary to scale the pilot back to 3,500 households. All residents who purchased the subsidized systems were required to attend a three-hour training course at local community centers, online centers or the local college. Eastserve also took the opportunity created by the sale of systems to involve the East Manchester Credit Union in handling all cash for the program and offering low-interest loans to residents. The loans made it possible for many more people to participate and also connected many of them for the first time to a financial institution other than loan sharks or check-cashing services.

This small-scale success is likely to set a pattern for greater progress in the future. According to Eastserve's leadership, the project has helped Manchester's City Council to understand both the potential of technology-based economic development and the need to invest in creating demand for e-government programs. With strong support from governmental leaders, the future of East Manchester looks brighter than it has in years.

Population: 430,000

Website: www.manchester.gov.uk

Smart21 2006 | 2009

Top7 2006

Capital of Great Britain and of the UK government's digital growth strategy.

Population: 7,500,000

Website: www.london.gov.uk

Smart21 2006

In the 1990s, the leaders of the city of Dundee looked back on two decades of economic devastation and vowed that the future would be different. In the 19th and early 20th Centuries, Dundee had been a flourishing city known throughout Britain for trading, whaling, textiles, food manufacturing and shipbuilding. Deindustrialization took hold with a vengeance, however, in the mid 1970s. Large-scale plant closures threw thousands out of work and caused an out-migration of skills and talent. Resulting union militancy did little to improve conditions but made national headlines that reinforced Dundee's reputation as a city in terminal decline. Population losses hit the retail sector hard, discouraged inward investment, and sharply eroded quality of life.

In 1991, local government created The Dundee Partnership, a joint venture among key players including city government, the economic development agency Scottish Enterprise, universities, community groups, and the business sector. Its original focus was on the traditional tools of economic development: rebuilding the city center, developing tourist and leisure facilities and attracting corporate investment. But as the 20th Century gave way to the 21st, it became clear that more was needed. For the first time in decades, the city was experiencing net job growth, despite a continuing fall in manufacturing employment and levels of unemployment that remained well above the national average. Research revealed that Dundee's university sector - including the University of Dundee, University of Abertay Dundee, the Ninewells teaching hospital and Scottish Crop Research Institute - was driving job creation, not only in established sectors like publishing and scientific research, but in such new fields as software, animation, computer games, film and television.

Focus on New Sectors

In response, the Partnership refocused its effort on stimulating business formation in the new sectors. A government-funded Business Gateway project began providing e-business training and support to small and midsize companies, helping to improve the e-readiness of nearly 600 companies in 2004 and 2005. Moving in synch, Dundee's universities established graduate business incubators and policies promoting the spin-out of new companies. The University of Abertay Dundee opened the IC CAVE research center to support the computer game and digital entertainment sector. A £20 million (US$40m) Digital Media Park entered into development and, by 2007, opened its first phase, consisting of 100,000 sq. feet (9290 m2) of space for e-businesses. Two new marketing partnerships, bringing together public, private and academic leaders, launched Web sites, e-newsletters and conferences promoting "BioDundee" to attract life science companies and "Interactive Tayside" to the digital media sector. Several Scottish investment programs support these efforts, including Proof of Concept, which funds pre-commercial research, and SMART/SPUR, which issues grants to small-to-midsize businesses to develop innovative and commercially viable products and processes.

By 2007, the life sciences sector employed 3,900 people including 300 scientists from across the world. Wyeth Pharmaceuticals announced that it would locate the world's first translational medical research center in the city. Meanwhile, over 380 digital media businesses have opened or moved into the Tayside region, compared with 150 in 2000. They employ more than 3,000 people and generate over £100 million (US$198m) in annual sales.

Discovery Card

Dundee has also taken digital technology to the people. The City Council's Web site began offering online payment and processes to the public in 2002 and by 2007 had collected £25 million (US$50m) in taxes and fees. With more than 60 online applications, the Web site is used by 32% of Dundee's population and received satisfactory rankings from 86% of users. In 2006 alone, it processed 60,000 transactions and collected over £8 million ($16m).

Behind the "public face" of the Web, Dundee developed a comprehensive approach to its digital relationship with citizens. It established a Citizen Account database system that captured data on citizens (with their permission) and used it to pre-fill online forms. Some of the data was amassed through issuance of the Dundee Discovery Card, which replaced 10 separate card-related services in the city, for everything from bus service and parking to social services. The Discovery Card was the first example in Scotland of a university (Abertay) and City Council sharing a single card for their different purposes. One of the outstanding benefits of the Discovery Card, in the eyes of the City Council, is that it eliminates the social stigma attached to social services cards for low-income residents. So popular has it become - with 44,000 cards issued, used by 87% of 12-18 year olds for school meals and bus travel, and 85% of +60 year olds for leisure access and bus travel - that the Scottish Government decided to deploy a multi-application card for the whole country and asked Dundee to run the program.

Digital Savvy and Community Service

This combination of digital savvy with community service is typical of Dundee. Broadband is commercially available to 100% of households, businesses and institutions in Dundee, with 48% of households and 90% of businesses currently connected. Speeds of up to 10 Mbps are available for £13-30 (US$25-60) per month. But the city also operates 300 PCs with free Internet access at locations including 12 learning centers for adults, generating 15,000 user sessions per month. At least one free-access terminal is located within 2 miles of every household in the city. A network of 350 networked bus stops provides real-time travel information to digital signs and kiosks onsite as well as to mobile phones. A professor at the University of Abertay has founded ADD Knowledge in partnership with government agencies to deliver Scotland's first home-study program for over 400,000 primary school children using next-generation video game consoles. Meanwhile, local health services use text messaging to remind patients about appointments and medications, and Dundee is proposing to become a test bed for Scotland's Project XYZ, which aims to create a WiMax network across major cities.

Dundee has come a long way since the dark days of the mid-1990s. From 2000 to 2004, the city had net employment growth of 3.4%. That average number encompassed the loss of 3,300 manufacturing jobs, a 20% growth in digital media, and 50-60% growth in life sciences jobs. New business starts rose 7% during the period and unemployment dropped, though it remains over a full percentage point higher than the average for Scotland. In 2007, the Partnership created a new group called the Digital Observatory. Its goal: to closely track Dundee's development as an Intelligent Community and provide leaders with the information they need to keep their community on the path to prosperity.

Population: 142,000

Labor Force: 80,000

Website: www.dundee.com

Smart21 2007 | 2008 | 2010

Top7 2007 | 2008 | 2010

The UK’s second largest city, Birmingham is a study in contrasts that reflects a dramatic history. It was one of the leading cities of the Industrial Revolution but the devastating decline of manufacturing caused employment to collapse by 200,000 from 1971 to 1984, before a major renewal program grew service-sector employment to 85% of the total while manufacturing shrank to 11%. Today, Birmingham is home to major universities and has nearly half its workforce employed in knowledge-intensive industries. But less than a quarter of residents work in these industries, while half of residents live in some of the most deprived neighborhoods in the country. To spur the next wave of growth, the Digital Birmingham partnership is driving an effort to improve connectivity with development of a fiber-based Digital District. They are building digital skills with training programs in libraries, computers in low-income homes, and broadband build-outs in Council housing. Birmingham Science City is building a research cluster focusing on advanced materials, sustainable energy and advanced medicine. One of the UK’s largest government re-engineering programs promises to achieve £1bn in efficiency gain, while city hospitals are pioneering in wireless decision support systems and digital media education programs for patients and staff.

Population: 1,000,000

Website: www.birmingham.gov.uk

Smart21 2011

Broadband development led by city to open economy to the globe.

Population: 130,000

Website: www.vasteras.se

Smart21 2006