Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Innovation arbitrage.
It’s a unique term, I suppose. And a pressing theme for urban planners and policymakers too. Let me explain.
You’ve likely heard of arbitrage, the well-known approach taking advantage of price disparities in markets. Today, a similar approach is being applied to innovation hubs.
What’s clear from the past decades in technology is that both founders and businesses strategically seek out the best environments for innovation. Examples include locations with advantageous regulatory environments, talent pools and economic incentives.
This is innovation arbitrage in its purest form.
And European cities are rushing to exploit this trend, but in doing so, it’s often residents who are the ones being exploited. But hey, who said arbitrage wasn’t a risky bet—right?
So today we’ll look to answer one key question. Can innovation and urban development work better together?
Let’s dive in (and dig out some interesting examples too).
Old meets new in a rising Tallinn, Estonia
The Rise of the Rest.
Europe’s tertiary cities are on the rise, offering unique alternatives to the likes of London, Berlin and Paris.
Just as in the US, it’s the classic rise of the rest, with demographic and economic tailwinds supporting new, emerging hubs. (Thanks Steve Case and Revolution , we dig the phrase over here too.)
But back to arbitrage. Let me spell out today’s opportunity:
Under-exploited talent pools: More firms are setting up in markets like Estonia, Portugal and Romania to tap into new talent pools and graduates.
Talent migration: Tallinn, Porto and Barcelona are attracting new talent due to lower living costs and a high quality of life. This includes the diaspora community.
Cost advantages: Bucharest, Athens, Nicosia and others offer lower operational costs, helping scaling firms extend their runway and allocate more resource to growth.
And looking beyond the macro environment, governments are also lending a hand to help grow ecosystems. Examples include:
Founder-friendly policies: Estonia and Portugal are example markets, launching friendly residency/visa programs, co-investment schemes and tax incentives for companies.
Access to funding: Germany, France, Spain, and UK have launched financial instruments (funds & fund-of-funds) to back national startups and scaleups.
Regulatory sandboxes & testbeds: Helsinki and Amsterdam have launched smart city testbeds, London includes the FCA Regulatory sandbox for FinTech firms and Tallinn is known for various e-governance innovations.
The list goes on.
But you’ll pick up the trend from the examples above—cities are busy trying to engineer their position as Europe’s top tech hub. Surprisingly though, most have overlooked how to manage growth once they’ve achieved it.
And this is a real problem.
But municipalities, planners and civic leaders are beginning to respond.
Barcelona: aerial view of city layout and superblocks
Managing Growth.
Growth undeniably brings on urban challenges. So while some compete to be Europe’s top startup hub, others confront these challenges head-on. Here are some examples we can learn from, though none are without criticism:
Barcelona, Spain: Urban Design & Tourism
Superblocks: the municipality is a primary driver, looking to reclaim public space from vehicles and prioritize pedestrians.
Controlling Tourism: the city council has suspended permits for new tourist accommodations and plans to ban short-term rentals by 2029.
Amsterdam, Netherlands: Affordable Housing
The 40-40-20 Rule: Amsterdam city council has launched a new housing regulation, where new developments must include 40% social housing, 40% mid-range rentals, and 20% free market housing.
Buy-to-let restrictions: new homes can't be rented out immediately after purchase.
Milan, Italy: Placemaking
Collaboration Pact: the municipality has launched an agreement between citizens, facilitating participatory urban transformation processes.
Participatory Budget: citizens can propose, vote on and co-design physical structures in public spaces. This includes many low-cost non-permanent interventions.
Inclusive Public Space: the capital’s €98M new library was meticulously planned to be free and open to all, promoting social inclusion and community engagement.
Baana: Helsinki’s €13M revitalization project transformed an old railway line into a linear park, enhancing connectivity, health benefits, and community space, as well as boosting the economy of the surrounding areas.
Some great case studies. But when diving into them, one thing is crystal clear. We need more collaboration.
Berlin protests against rising rents & evictions
Teaming Up.
Urban growth and innovation don’t have to conflict.
But residents are angry. And perhaps even rightly so—they haven’t enjoyed the same uplift as the tech community.
You see, innovation arbitrage presents a blessing and a curse. Growth, but also urban challenges along with it.
My view is that instead of dwelling on the negatives, we need to look towards solutions. And this starts with deciding who needs to play a role here, especially a leading one.
The tech community? Honestly, we’re too inward-focused.
Developers? We’re too fragmented, meaning a single player lacks the scale to really move the needle.
Municipalities? Certainly, city stakeholders must play a leading role, but not without more help. And not alone…
To move beyond the status quo we need meaningful collaboration. Coordination too. We’re starting to see it, with the few examples I cited today. But truth be told, our efforts are far too disconnected. In fact, from my lens, they’re siloed.
We need the tech community, developers and municipalities to come closer together. Locally, nationally and also internationally across Europe. Only then will our cities have a chance at achieving sustainable, equitable growth.
Dialogue, coordination, and ambition are needed. But we’re not quite there yet.
Europe’s major strength lies in its diversity, its history, its culture. Waiting to act may cost us this strength. And all in the name of simply trying to be the next Silicon Valley...
… And who actually wants this anyway?
The last decade saw cities battling to become a major European tech hub. The next will be focused on how to manage it once it's achieved.
Something to look forward to.
Onward.
[This article was originally published as a part of the Regenerator's Dilemma series.]
Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Innovation arbitrage.
It’s a unique term, I suppose. And a pressing theme for urban planners and policymakers too. Let me explain.
You’ve likely heard of arbitrage, the well-known approach taking advantage of price disparities in markets. Today, a similar approach is being applied to innovation hubs.
What’s clear from the past decades in technology is that both founders and businesses strategically seek out the best environments for innovation. Examples include locations with advantageous regulatory environments, talent pools and economic incentives.
This is innovation arbitrage in its purest form.
And European cities are rushing to exploit this trend, but in doing so, it’s often residents who are the ones being exploited. But hey, who said arbitrage wasn’t a risky bet—right?
So today we’ll look to answer one key question. Can innovation and urban development work better together?
Let’s dive in (and dig out some interesting examples too).
Old meets new in a rising Tallinn, Estonia
The Rise of the Rest.
Europe’s tertiary cities are on the rise, offering unique alternatives to the likes of London, Berlin and Paris.
Just as in the US, it’s the classic rise of the rest, with demographic and economic tailwinds supporting new, emerging hubs. (Thanks Steve Case and Revolution , we dig the phrase over here too.)
But back to arbitrage. Let me spell out today’s opportunity:
Under-exploited talent pools: More firms are setting up in markets like Estonia, Portugal and Romania to tap into new talent pools and graduates.
Talent migration: Tallinn, Porto and Barcelona are attracting new talent due to lower living costs and a high quality of life. This includes the diaspora community.
Cost advantages: Bucharest, Athens, Nicosia and others offer lower operational costs, helping scaling firms extend their runway and allocate more resource to growth.
And looking beyond the macro environment, governments are also lending a hand to help grow ecosystems. Examples include:
Founder-friendly policies: Estonia and Portugal are example markets, launching friendly residency/visa programs, co-investment schemes and tax incentives for companies.
Access to funding: Germany, France, Spain, and UK have launched financial instruments (funds & fund-of-funds) to back national startups and scaleups.
Regulatory sandboxes & testbeds: Helsinki and Amsterdam have launched smart city testbeds, London includes the FCA Regulatory sandbox for FinTech firms and Tallinn is known for various e-governance innovations.
The list goes on.
But you’ll pick up the trend from the examples above—cities are busy trying to engineer their position as Europe’s top tech hub. Surprisingly though, most have overlooked how to manage growth once they’ve achieved it.
And this is a real problem.
But municipalities, planners and civic leaders are beginning to respond.
Barcelona: aerial view of city layout and superblocks
Managing Growth.
Growth undeniably brings on urban challenges. So while some compete to be Europe’s top startup hub, others confront these challenges head-on. Here are some examples we can learn from, though none are without criticism:
Barcelona, Spain: Urban Design & Tourism
Superblocks: the municipality is a primary driver, looking to reclaim public space from vehicles and prioritize pedestrians.
Controlling Tourism: the city council has suspended permits for new tourist accommodations and plans to ban short-term rentals by 2029.
Amsterdam, Netherlands: Affordable Housing
The 40-40-20 Rule: Amsterdam city council has launched a new housing regulation, where new developments must include 40% social housing, 40% mid-range rentals, and 20% free market housing.
Buy-to-let restrictions: new homes can't be rented out immediately after purchase.
Milan, Italy: Placemaking
Collaboration Pact: the municipality has launched an agreement between citizens, facilitating participatory urban transformation processes.
Participatory Budget: citizens can propose, vote on and co-design physical structures in public spaces. This includes many low-cost non-permanent interventions.
Inclusive Public Space: the capital’s €98M new library was meticulously planned to be free and open to all, promoting social inclusion and community engagement.
Baana: Helsinki’s €13M revitalization project transformed an old railway line into a linear park, enhancing connectivity, health benefits, and community space, as well as boosting the economy of the surrounding areas.
Some great case studies. But when diving into them, one thing is crystal clear. We need more collaboration.
Berlin protests against rising rents & evictions
Teaming Up.
Urban growth and innovation don’t have to conflict.
But residents are angry. And perhaps even rightly so—they haven’t enjoyed the same uplift as the tech community.
You see, innovation arbitrage presents a blessing and a curse. Growth, but also urban challenges along with it.
My view is that instead of dwelling on the negatives, we need to look towards solutions. And this starts with deciding who needs to play a role here, especially a leading one.
The tech community? Honestly, we’re too inward-focused.
Developers? We’re too fragmented, meaning a single player lacks the scale to really move the needle.
Municipalities? Certainly, city stakeholders must play a leading role, but not without more help. And not alone…
To move beyond the status quo we need meaningful collaboration. Coordination too. We’re starting to see it, with the few examples I cited today. But truth be told, our efforts are far too disconnected. In fact, from my lens, they’re siloed.
We need the tech community, developers and municipalities to come closer together. Locally, nationally and also internationally across Europe. Only then will our cities have a chance at achieving sustainable, equitable growth.
Dialogue, coordination, and ambition are needed. But we’re not quite there yet.
Europe’s major strength lies in its diversity, its history, its culture. Waiting to act may cost us this strength. And all in the name of simply trying to be the next Silicon Valley...
… And who actually wants this anyway?
The last decade saw cities battling to become a major European tech hub. The next will be focused on how to manage it once it's achieved.
Something to look forward to.
Onward.
[This article was originally published as a part of the Regenerator's Dilemma series.]
Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Innovation arbitrage.
It’s a unique term, I suppose. And a pressing theme for urban planners and policymakers too. Let me explain.
You’ve likely heard of arbitrage, the well-known approach taking advantage of price disparities in markets. Today, a similar approach is being applied to innovation hubs.
What’s clear from the past decades in technology is that both founders and businesses strategically seek out the best environments for innovation. Examples include locations with advantageous regulatory environments, talent pools and economic incentives.
This is innovation arbitrage in its purest form.
And European cities are rushing to exploit this trend, but in doing so, it’s often residents who are the ones being exploited. But hey, who said arbitrage wasn’t a risky bet—right?
So today we’ll look to answer one key question. Can innovation and urban development work better together?
Let’s dive in (and dig out some interesting examples too).
Old meets new in a rising Tallinn, Estonia
The Rise of the Rest.
Europe’s tertiary cities are on the rise, offering unique alternatives to the likes of London, Berlin and Paris.
Just as in the US, it’s the classic rise of the rest, with demographic and economic tailwinds supporting new, emerging hubs. (Thanks Steve Case and Revolution , we dig the phrase over here too.)
But back to arbitrage. Let me spell out today’s opportunity:
Under-exploited talent pools: More firms are setting up in markets like Estonia, Portugal and Romania to tap into new talent pools and graduates.
Talent migration: Tallinn, Porto and Barcelona are attracting new talent due to lower living costs and a high quality of life. This includes the diaspora community.
Cost advantages: Bucharest, Athens, Nicosia and others offer lower operational costs, helping scaling firms extend their runway and allocate more resource to growth.
And looking beyond the macro environment, governments are also lending a hand to help grow ecosystems. Examples include:
Founder-friendly policies: Estonia and Portugal are example markets, launching friendly residency/visa programs, co-investment schemes and tax incentives for companies.
Access to funding: Germany, France, Spain, and UK have launched financial instruments (funds & fund-of-funds) to back national startups and scaleups.
Regulatory sandboxes & testbeds: Helsinki and Amsterdam have launched smart city testbeds, London includes the FCA Regulatory sandbox for FinTech firms and Tallinn is known for various e-governance innovations.
The list goes on.
But you’ll pick up the trend from the examples above—cities are busy trying to engineer their position as Europe’s top tech hub. Surprisingly though, most have overlooked how to manage growth once they’ve achieved it.
And this is a real problem.
But municipalities, planners and civic leaders are beginning to respond.
Barcelona: aerial view of city layout and superblocks
Managing Growth.
Growth undeniably brings on urban challenges. So while some compete to be Europe’s top startup hub, others confront these challenges head-on. Here are some examples we can learn from, though none are without criticism:
Barcelona, Spain: Urban Design & Tourism
Superblocks: the municipality is a primary driver, looking to reclaim public space from vehicles and prioritize pedestrians.
Controlling Tourism: the city council has suspended permits for new tourist accommodations and plans to ban short-term rentals by 2029.
Amsterdam, Netherlands: Affordable Housing
The 40-40-20 Rule: Amsterdam city council has launched a new housing regulation, where new developments must include 40% social housing, 40% mid-range rentals, and 20% free market housing.
Buy-to-let restrictions: new homes can't be rented out immediately after purchase.
Milan, Italy: Placemaking
Collaboration Pact: the municipality has launched an agreement between citizens, facilitating participatory urban transformation processes.
Participatory Budget: citizens can propose, vote on and co-design physical structures in public spaces. This includes many low-cost non-permanent interventions.
Inclusive Public Space: the capital’s €98M new library was meticulously planned to be free and open to all, promoting social inclusion and community engagement.
Baana: Helsinki’s €13M revitalization project transformed an old railway line into a linear park, enhancing connectivity, health benefits, and community space, as well as boosting the economy of the surrounding areas.
Some great case studies. But when diving into them, one thing is crystal clear. We need more collaboration.
Berlin protests against rising rents & evictions
Teaming Up.
Urban growth and innovation don’t have to conflict.
But residents are angry. And perhaps even rightly so—they haven’t enjoyed the same uplift as the tech community.
You see, innovation arbitrage presents a blessing and a curse. Growth, but also urban challenges along with it.
My view is that instead of dwelling on the negatives, we need to look towards solutions. And this starts with deciding who needs to play a role here, especially a leading one.
The tech community? Honestly, we’re too inward-focused.
Developers? We’re too fragmented, meaning a single player lacks the scale to really move the needle.
Municipalities? Certainly, city stakeholders must play a leading role, but not without more help. And not alone…
To move beyond the status quo we need meaningful collaboration. Coordination too. We’re starting to see it, with the few examples I cited today. But truth be told, our efforts are far too disconnected. In fact, from my lens, they’re siloed.
We need the tech community, developers and municipalities to come closer together. Locally, nationally and also internationally across Europe. Only then will our cities have a chance at achieving sustainable, equitable growth.
Dialogue, coordination, and ambition are needed. But we’re not quite there yet.
Europe’s major strength lies in its diversity, its history, its culture. Waiting to act may cost us this strength. And all in the name of simply trying to be the next Silicon Valley...
… And who actually wants this anyway?
The last decade saw cities battling to become a major European tech hub. The next will be focused on how to manage it once it's achieved.
Something to look forward to.
Onward.
[This article was originally published as a part of the Regenerator's Dilemma series.]
Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Innovation arbitrage.
It’s a unique term, I suppose. And a pressing theme for urban planners and policymakers too. Let me explain.
You’ve likely heard of arbitrage, the well-known approach taking advantage of price disparities in markets. Today, a similar approach is being applied to innovation hubs.
What’s clear from the past decades in technology is that both founders and businesses strategically seek out the best environments for innovation. Examples include locations with advantageous regulatory environments, talent pools and economic incentives.
This is innovation arbitrage in its purest form.
And European cities are rushing to exploit this trend, but in doing so, it’s often residents who are the ones being exploited. But hey, who said arbitrage wasn’t a risky bet—right?
So today we’ll look to answer one key question. Can innovation and urban development work better together?
Let’s dive in (and dig out some interesting examples too).
Old meets new in a rising Tallinn, Estonia
The Rise of the Rest.
Europe’s tertiary cities are on the rise, offering unique alternatives to the likes of London, Berlin and Paris.
Just as in the US, it’s the classic rise of the rest, with demographic and economic tailwinds supporting new, emerging hubs. (Thanks Steve Case and Revolution , we dig the phrase over here too.)
But back to arbitrage. Let me spell out today’s opportunity:
Under-exploited talent pools: More firms are setting up in markets like Estonia, Portugal and Romania to tap into new talent pools and graduates.
Talent migration: Tallinn, Porto and Barcelona are attracting new talent due to lower living costs and a high quality of life. This includes the diaspora community.
Cost advantages: Bucharest, Athens, Nicosia and others offer lower operational costs, helping scaling firms extend their runway and allocate more resource to growth.
And looking beyond the macro environment, governments are also lending a hand to help grow ecosystems. Examples include:
Founder-friendly policies: Estonia and Portugal are example markets, launching friendly residency/visa programs, co-investment schemes and tax incentives for companies.
Access to funding: Germany, France, Spain, and UK have launched financial instruments (funds & fund-of-funds) to back national startups and scaleups.
Regulatory sandboxes & testbeds: Helsinki and Amsterdam have launched smart city testbeds, London includes the FCA Regulatory sandbox for FinTech firms and Tallinn is known for various e-governance innovations.
The list goes on.
But you’ll pick up the trend from the examples above—cities are busy trying to engineer their position as Europe’s top tech hub. Surprisingly though, most have overlooked how to manage growth once they’ve achieved it.
And this is a real problem.
But municipalities, planners and civic leaders are beginning to respond.
Barcelona: aerial view of city layout and superblocks
Managing Growth.
Growth undeniably brings on urban challenges. So while some compete to be Europe’s top startup hub, others confront these challenges head-on. Here are some examples we can learn from, though none are without criticism:
Barcelona, Spain: Urban Design & Tourism
Superblocks: the municipality is a primary driver, looking to reclaim public space from vehicles and prioritize pedestrians.
Controlling Tourism: the city council has suspended permits for new tourist accommodations and plans to ban short-term rentals by 2029.
Amsterdam, Netherlands: Affordable Housing
The 40-40-20 Rule: Amsterdam city council has launched a new housing regulation, where new developments must include 40% social housing, 40% mid-range rentals, and 20% free market housing.
Buy-to-let restrictions: new homes can't be rented out immediately after purchase.
Milan, Italy: Placemaking
Collaboration Pact: the municipality has launched an agreement between citizens, facilitating participatory urban transformation processes.
Participatory Budget: citizens can propose, vote on and co-design physical structures in public spaces. This includes many low-cost non-permanent interventions.
Inclusive Public Space: the capital’s €98M new library was meticulously planned to be free and open to all, promoting social inclusion and community engagement.
Baana: Helsinki’s €13M revitalization project transformed an old railway line into a linear park, enhancing connectivity, health benefits, and community space, as well as boosting the economy of the surrounding areas.
Some great case studies. But when diving into them, one thing is crystal clear. We need more collaboration.
Berlin protests against rising rents & evictions
Teaming Up.
Urban growth and innovation don’t have to conflict.
But residents are angry. And perhaps even rightly so—they haven’t enjoyed the same uplift as the tech community.
You see, innovation arbitrage presents a blessing and a curse. Growth, but also urban challenges along with it.
My view is that instead of dwelling on the negatives, we need to look towards solutions. And this starts with deciding who needs to play a role here, especially a leading one.
The tech community? Honestly, we’re too inward-focused.
Developers? We’re too fragmented, meaning a single player lacks the scale to really move the needle.
Municipalities? Certainly, city stakeholders must play a leading role, but not without more help. And not alone…
To move beyond the status quo we need meaningful collaboration. Coordination too. We’re starting to see it, with the few examples I cited today. But truth be told, our efforts are far too disconnected. In fact, from my lens, they’re siloed.
We need the tech community, developers and municipalities to come closer together. Locally, nationally and also internationally across Europe. Only then will our cities have a chance at achieving sustainable, equitable growth.
Dialogue, coordination, and ambition are needed. But we’re not quite there yet.
Europe’s major strength lies in its diversity, its history, its culture. Waiting to act may cost us this strength. And all in the name of simply trying to be the next Silicon Valley...
… And who actually wants this anyway?
The last decade saw cities battling to become a major European tech hub. The next will be focused on how to manage it once it's achieved.
Something to look forward to.
Onward.
[This article was originally published as a part of the Regenerator's Dilemma series.]
Key Facts
Regeneration
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October 9, 2024
Innovation Arbitrage And European Cities
Jeremy Bamberg
Article
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Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Innovation arbitrage.
It’s a unique term, I suppose. And a pressing theme for urban planners and policymakers too. Let me explain.
You’ve likely heard of arbitrage, the well-known approach taking advantage of price disparities in markets. Today, a similar approach is being applied to innovation hubs.
What’s clear from the past decades in technology is that both founders and businesses strategically seek out the best environments for innovation. Examples include locations with advantageous regulatory environments, talent pools and economic incentives.
This is innovation arbitrage in its purest form.
And European cities are rushing to exploit this trend, but in doing so, it’s often residents who are the ones being exploited. But hey, who said arbitrage wasn’t a risky bet—right?
So today we’ll look to answer one key question. Can innovation and urban development work better together?
Let’s dive in (and dig out some interesting examples too).
Old meets new in a rising Tallinn, Estonia
The Rise of the Rest.
Europe’s tertiary cities are on the rise, offering unique alternatives to the likes of London, Berlin and Paris.
Just as in the US, it’s the classic rise of the rest, with demographic and economic tailwinds supporting new, emerging hubs. (Thanks Steve Case and Revolution , we dig the phrase over here too.)
But back to arbitrage. Let me spell out today’s opportunity:
Under-exploited talent pools: More firms are setting up in markets like Estonia, Portugal and Romania to tap into new talent pools and graduates.
Talent migration: Tallinn, Porto and Barcelona are attracting new talent due to lower living costs and a high quality of life. This includes the diaspora community.
Cost advantages: Bucharest, Athens, Nicosia and others offer lower operational costs, helping scaling firms extend their runway and allocate more resource to growth.
And looking beyond the macro environment, governments are also lending a hand to help grow ecosystems. Examples include:
Founder-friendly policies: Estonia and Portugal are example markets, launching friendly residency/visa programs, co-investment schemes and tax incentives for companies.
Access to funding: Germany, France, Spain, and UK have launched financial instruments (funds & fund-of-funds) to back national startups and scaleups.
Regulatory sandboxes & testbeds: Helsinki and Amsterdam have launched smart city testbeds, London includes the FCA Regulatory sandbox for FinTech firms and Tallinn is known for various e-governance innovations.
The list goes on.
But you’ll pick up the trend from the examples above—cities are busy trying to engineer their position as Europe’s top tech hub. Surprisingly though, most have overlooked how to manage growth once they’ve achieved it.
And this is a real problem.
But municipalities, planners and civic leaders are beginning to respond.
Barcelona: aerial view of city layout and superblocks
Managing Growth.
Growth undeniably brings on urban challenges. So while some compete to be Europe’s top startup hub, others confront these challenges head-on. Here are some examples we can learn from, though none are without criticism:
Barcelona, Spain: Urban Design & Tourism
Superblocks: the municipality is a primary driver, looking to reclaim public space from vehicles and prioritize pedestrians.
Controlling Tourism: the city council has suspended permits for new tourist accommodations and plans to ban short-term rentals by 2029.
Amsterdam, Netherlands: Affordable Housing
The 40-40-20 Rule: Amsterdam city council has launched a new housing regulation, where new developments must include 40% social housing, 40% mid-range rentals, and 20% free market housing.
Buy-to-let restrictions: new homes can't be rented out immediately after purchase.
Milan, Italy: Placemaking
Collaboration Pact: the municipality has launched an agreement between citizens, facilitating participatory urban transformation processes.
Participatory Budget: citizens can propose, vote on and co-design physical structures in public spaces. This includes many low-cost non-permanent interventions.
Inclusive Public Space: the capital’s €98M new library was meticulously planned to be free and open to all, promoting social inclusion and community engagement.
Baana: Helsinki’s €13M revitalization project transformed an old railway line into a linear park, enhancing connectivity, health benefits, and community space, as well as boosting the economy of the surrounding areas.
Some great case studies. But when diving into them, one thing is crystal clear. We need more collaboration.
Berlin protests against rising rents & evictions
Teaming Up.
Urban growth and innovation don’t have to conflict.
But residents are angry. And perhaps even rightly so—they haven’t enjoyed the same uplift as the tech community.
You see, innovation arbitrage presents a blessing and a curse. Growth, but also urban challenges along with it.
My view is that instead of dwelling on the negatives, we need to look towards solutions. And this starts with deciding who needs to play a role here, especially a leading one.
The tech community? Honestly, we’re too inward-focused.
Developers? We’re too fragmented, meaning a single player lacks the scale to really move the needle.
Municipalities? Certainly, city stakeholders must play a leading role, but not without more help. And not alone…
To move beyond the status quo we need meaningful collaboration. Coordination too. We’re starting to see it, with the few examples I cited today. But truth be told, our efforts are far too disconnected. In fact, from my lens, they’re siloed.
We need the tech community, developers and municipalities to come closer together. Locally, nationally and also internationally across Europe. Only then will our cities have a chance at achieving sustainable, equitable growth.
Dialogue, coordination, and ambition are needed. But we’re not quite there yet.
Europe’s major strength lies in its diversity, its history, its culture. Waiting to act may cost us this strength. And all in the name of simply trying to be the next Silicon Valley...
… And who actually wants this anyway?
The last decade saw cities battling to become a major European tech hub. The next will be focused on how to manage it once it's achieved.
Something to look forward to.
Onward.
[This article was originally published as a part of the Regenerator's Dilemma series.]
Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Innovation arbitrage.
It’s a unique term, I suppose. And a pressing theme for urban planners and policymakers too. Let me explain.
You’ve likely heard of arbitrage, the well-known approach taking advantage of price disparities in markets. Today, a similar approach is being applied to innovation hubs.
What’s clear from the past decades in technology is that both founders and businesses strategically seek out the best environments for innovation. Examples include locations with advantageous regulatory environments, talent pools and economic incentives.
This is innovation arbitrage in its purest form.
And European cities are rushing to exploit this trend, but in doing so, it’s often residents who are the ones being exploited. But hey, who said arbitrage wasn’t a risky bet—right?
So today we’ll look to answer one key question. Can innovation and urban development work better together?
Let’s dive in (and dig out some interesting examples too).
Old meets new in a rising Tallinn, Estonia
The Rise of the Rest.
Europe’s tertiary cities are on the rise, offering unique alternatives to the likes of London, Berlin and Paris.
Just as in the US, it’s the classic rise of the rest, with demographic and economic tailwinds supporting new, emerging hubs. (Thanks Steve Case and Revolution , we dig the phrase over here too.)
But back to arbitrage. Let me spell out today’s opportunity:
Under-exploited talent pools: More firms are setting up in markets like Estonia, Portugal and Romania to tap into new talent pools and graduates.
Talent migration: Tallinn, Porto and Barcelona are attracting new talent due to lower living costs and a high quality of life. This includes the diaspora community.
Cost advantages: Bucharest, Athens, Nicosia and others offer lower operational costs, helping scaling firms extend their runway and allocate more resource to growth.
And looking beyond the macro environment, governments are also lending a hand to help grow ecosystems. Examples include:
Founder-friendly policies: Estonia and Portugal are example markets, launching friendly residency/visa programs, co-investment schemes and tax incentives for companies.
Access to funding: Germany, France, Spain, and UK have launched financial instruments (funds & fund-of-funds) to back national startups and scaleups.
Regulatory sandboxes & testbeds: Helsinki and Amsterdam have launched smart city testbeds, London includes the FCA Regulatory sandbox for FinTech firms and Tallinn is known for various e-governance innovations.
The list goes on.
But you’ll pick up the trend from the examples above—cities are busy trying to engineer their position as Europe’s top tech hub. Surprisingly though, most have overlooked how to manage growth once they’ve achieved it.
And this is a real problem.
But municipalities, planners and civic leaders are beginning to respond.
Barcelona: aerial view of city layout and superblocks
Managing Growth.
Growth undeniably brings on urban challenges. So while some compete to be Europe’s top startup hub, others confront these challenges head-on. Here are some examples we can learn from, though none are without criticism:
Barcelona, Spain: Urban Design & Tourism
Superblocks: the municipality is a primary driver, looking to reclaim public space from vehicles and prioritize pedestrians.
Controlling Tourism: the city council has suspended permits for new tourist accommodations and plans to ban short-term rentals by 2029.
Amsterdam, Netherlands: Affordable Housing
The 40-40-20 Rule: Amsterdam city council has launched a new housing regulation, where new developments must include 40% social housing, 40% mid-range rentals, and 20% free market housing.
Buy-to-let restrictions: new homes can't be rented out immediately after purchase.
Milan, Italy: Placemaking
Collaboration Pact: the municipality has launched an agreement between citizens, facilitating participatory urban transformation processes.
Participatory Budget: citizens can propose, vote on and co-design physical structures in public spaces. This includes many low-cost non-permanent interventions.
Inclusive Public Space: the capital’s €98M new library was meticulously planned to be free and open to all, promoting social inclusion and community engagement.
Baana: Helsinki’s €13M revitalization project transformed an old railway line into a linear park, enhancing connectivity, health benefits, and community space, as well as boosting the economy of the surrounding areas.
Some great case studies. But when diving into them, one thing is crystal clear. We need more collaboration.
Berlin protests against rising rents & evictions
Teaming Up.
Urban growth and innovation don’t have to conflict.
But residents are angry. And perhaps even rightly so—they haven’t enjoyed the same uplift as the tech community.
You see, innovation arbitrage presents a blessing and a curse. Growth, but also urban challenges along with it.
My view is that instead of dwelling on the negatives, we need to look towards solutions. And this starts with deciding who needs to play a role here, especially a leading one.
The tech community? Honestly, we’re too inward-focused.
Developers? We’re too fragmented, meaning a single player lacks the scale to really move the needle.
Municipalities? Certainly, city stakeholders must play a leading role, but not without more help. And not alone…
To move beyond the status quo we need meaningful collaboration. Coordination too. We’re starting to see it, with the few examples I cited today. But truth be told, our efforts are far too disconnected. In fact, from my lens, they’re siloed.
We need the tech community, developers and municipalities to come closer together. Locally, nationally and also internationally across Europe. Only then will our cities have a chance at achieving sustainable, equitable growth.
Dialogue, coordination, and ambition are needed. But we’re not quite there yet.
Europe’s major strength lies in its diversity, its history, its culture. Waiting to act may cost us this strength. And all in the name of simply trying to be the next Silicon Valley...
… And who actually wants this anyway?
The last decade saw cities battling to become a major European tech hub. The next will be focused on how to manage it once it's achieved.
Something to look forward to.
Onward.
[This article was originally published as a part of the Regenerator's Dilemma series.]
Regenerator’s Dilemma unpacks disruptive trends and the innovators shaping our neighborhoods and cities. Today, we explore how tech is influencing urban growth in Europe and what we should do about it.
What’s covered:
Innovation arbitrage: what it is and how it impacts cities
Rising tertiary cities, macro trends and the policies promoting them
Syncing efforts to drive change. The tech community, developers and municipalities
Innovation arbitrage.
It’s a unique term, I suppose. And a pressing theme for urban planners and policymakers too. Let me explain.
You’ve likely heard of arbitrage, the well-known approach taking advantage of price disparities in markets. Today, a similar approach is being applied to innovation hubs.
What’s clear from the past decades in technology is that both founders and businesses strategically seek out the best environments for innovation. Examples include locations with advantageous regulatory environments, talent pools and economic incentives.
This is innovation arbitrage in its purest form.
And European cities are rushing to exploit this trend, but in doing so, it’s often residents who are the ones being exploited. But hey, who said arbitrage wasn’t a risky bet—right?
So today we’ll look to answer one key question. Can innovation and urban development work better together?
Let’s dive in (and dig out some interesting examples too).
Old meets new in a rising Tallinn, Estonia
The Rise of the Rest.
Europe’s tertiary cities are on the rise, offering unique alternatives to the likes of London, Berlin and Paris.
Just as in the US, it’s the classic rise of the rest, with demographic and economic tailwinds supporting new, emerging hubs. (Thanks Steve Case and Revolution , we dig the phrase over here too.)
But back to arbitrage. Let me spell out today’s opportunity:
Under-exploited talent pools: More firms are setting up in markets like Estonia, Portugal and Romania to tap into new talent pools and graduates.
Talent migration: Tallinn, Porto and Barcelona are attracting new talent due to lower living costs and a high quality of life. This includes the diaspora community.
Cost advantages: Bucharest, Athens, Nicosia and others offer lower operational costs, helping scaling firms extend their runway and allocate more resource to growth.
And looking beyond the macro environment, governments are also lending a hand to help grow ecosystems. Examples include:
Founder-friendly policies: Estonia and Portugal are example markets, launching friendly residency/visa programs, co-investment schemes and tax incentives for companies.
Access to funding: Germany, France, Spain, and UK have launched financial instruments (funds & fund-of-funds) to back national startups and scaleups.
Regulatory sandboxes & testbeds: Helsinki and Amsterdam have launched smart city testbeds, London includes the FCA Regulatory sandbox for FinTech firms and Tallinn is known for various e-governance innovations.
The list goes on.
But you’ll pick up the trend from the examples above—cities are busy trying to engineer their position as Europe’s top tech hub. Surprisingly though, most have overlooked how to manage growth once they’ve achieved it.
And this is a real problem.
But municipalities, planners and civic leaders are beginning to respond.
Barcelona: aerial view of city layout and superblocks
Managing Growth.
Growth undeniably brings on urban challenges. So while some compete to be Europe’s top startup hub, others confront these challenges head-on. Here are some examples we can learn from, though none are without criticism:
Barcelona, Spain: Urban Design & Tourism
Superblocks: the municipality is a primary driver, looking to reclaim public space from vehicles and prioritize pedestrians.
Controlling Tourism: the city council has suspended permits for new tourist accommodations and plans to ban short-term rentals by 2029.
Amsterdam, Netherlands: Affordable Housing
The 40-40-20 Rule: Amsterdam city council has launched a new housing regulation, where new developments must include 40% social housing, 40% mid-range rentals, and 20% free market housing.
Buy-to-let restrictions: new homes can't be rented out immediately after purchase.
Milan, Italy: Placemaking
Collaboration Pact: the municipality has launched an agreement between citizens, facilitating participatory urban transformation processes.
Participatory Budget: citizens can propose, vote on and co-design physical structures in public spaces. This includes many low-cost non-permanent interventions.
Inclusive Public Space: the capital’s €98M new library was meticulously planned to be free and open to all, promoting social inclusion and community engagement.
Baana: Helsinki’s €13M revitalization project transformed an old railway line into a linear park, enhancing connectivity, health benefits, and community space, as well as boosting the economy of the surrounding areas.
Some great case studies. But when diving into them, one thing is crystal clear. We need more collaboration.
Berlin protests against rising rents & evictions
Teaming Up.
Urban growth and innovation don’t have to conflict.
But residents are angry. And perhaps even rightly so—they haven’t enjoyed the same uplift as the tech community.
You see, innovation arbitrage presents a blessing and a curse. Growth, but also urban challenges along with it.
My view is that instead of dwelling on the negatives, we need to look towards solutions. And this starts with deciding who needs to play a role here, especially a leading one.
The tech community? Honestly, we’re too inward-focused.
Developers? We’re too fragmented, meaning a single player lacks the scale to really move the needle.
Municipalities? Certainly, city stakeholders must play a leading role, but not without more help. And not alone…
To move beyond the status quo we need meaningful collaboration. Coordination too. We’re starting to see it, with the few examples I cited today. But truth be told, our efforts are far too disconnected. In fact, from my lens, they’re siloed.
We need the tech community, developers and municipalities to come closer together. Locally, nationally and also internationally across Europe. Only then will our cities have a chance at achieving sustainable, equitable growth.
Dialogue, coordination, and ambition are needed. But we’re not quite there yet.
Europe’s major strength lies in its diversity, its history, its culture. Waiting to act may cost us this strength. And all in the name of simply trying to be the next Silicon Valley...
… And who actually wants this anyway?
The last decade saw cities battling to become a major European tech hub. The next will be focused on how to manage it once it's achieved.
Something to look forward to.
Onward.
[This article was originally published as a part of the Regenerator's Dilemma series.]
