The GEN Atlas Spotlight series identifies interesting individual examples of innovative policy making. The first selection of case studies spotlighted have been chosen for the differing approaches to providing evidence of impact. GEN Atlas categorizes programs into five groups based on type of evidence provide:
- No Evidence: programs that provide no metrics to evaluate the impact of their work
- Level 1 – Participation: programs that reveal only basic information such as number of participants, program completion rates, and levels of activity
- Level 2 - Outcomes: programs that demonstrate they have hit specific goals relating to entrepreneurship such as number of course graduates going on to start a business, number of products successfully developed, number of business relocations, costs saved for startups etc.
- Level 3 – Wider Economic Impact: policymakers can cite improved economic stats that correlate to their program such as an increased investment, GVA, job creation, survival rates, business creation, increased exports etc.
- Level 4 – Direct Proof Impact: policymakers have used academic methods to demonstrate the direct impact their program has had on economic measures
DataCity Paris is an open innovation program co-organized by start-up accelerator NUMA and the City of Paris since 2016. The program brings together data-intensive startups to solve urban problems in the city. This program is built to solve urban challenges and make Paris a better city to live in by bringing together startups, large companies and citizens of Paris to find innovative solutions to problems experienced in daily life.
DataCity was created in 2016 by Numa in partnership with the Paris City Government led by Mayor Anne Hidalgo. The program is conducted over a 10-month period and has run four editions in total bringing together 41 startups and 41 industrial partners including Vinci Energies, Setex, Suez and Cisco. The process starts with the city authorities and NUMA identify the main challenges faced by the city (such as increasing citizens’ awareness of air quality) and then scout for innovative startups who may have solutions. The program is highly selective: only five startup ideas were admitted in 2016. This enables the program to be highly selective over which startups receive a grant of €10,000 to support their experiment, plus access to data and live test sites. The program is aimed at tackling two main challenges facing entrepreneurship policymakers:
Science, Technology and Innovation
We live in a time of transformation and upheaval. Technological breakthroughs in areas such as AI, quantum technology, cleantech, and biotech promise to solve some of humanities greatest challenges whilst also completely reshaping the way we work and conduct our daily lives. To policymakers this is both a huge opportunity to improve society and boost economic productivity but also a great burden for them to bear as they grapple with ethical considerations that would have been confined to science fiction just a couple of decades ago. To do this effectively, policymakers need to have their fingers on the pulse of change, constantly looking for ways to expand digital infrastructure, increase digitalization of government services and businesses, incentivize research and experimentation, and ensure that government policy is not impeding the development of cutting-edge technologies.
Even in the modern era of globalized economies, government rules still serve as substantial barriers to both startups looking to expand overseas and innovative startups looking to disrupt markets at home. It is estimated that up to 19% of GDP is spent on public procurement contracts in the EU, making it one of the most significant ways governments can back startups and SMEs locally. However, procurement processes – at both national and local levels – often favour established companies over startups. This occurs as a result of time consuming and complex application processes and a general culture of risk avoidance that favours incumbents over disruptors. Policies that fall under the “Market Access” theme seek to expand access to both international and domestic markets for startups and investors alike.
DataCity Paris uses three policy mechanisms to address these issues:
DataCity Paris is attempting to use science, technology and innovation to solve both new challenges facing citizens and old issues that have persisted for generations in the assumption they were just an inherent part of city living. These challenges concern key issues for the future of Paris and improving living standards of inhabitants such as smart buildings, energy, logistics and waste management. Their main method for achieving this is the crowd sourcing of ideas through a process known as Open Innovation.
Once the challenges have been determined, NUMA and its partners invite startups to apply and present their ideas. The selection process focuses on finding startups with innovative and data-driven solutions that align with the program's main policy areas, such as environment and climate change, and social inclusion and equity. After evaluating the proposals, DataCity Paris selects the most promising startups to participate in the program and work on their projects.
Crucially, startups that are selected for the program are given access to the vast data collection held by the City of Paris, as well as providing startups with access to facilities to conduct on-site experimations for their products. Data is an incredibly valuable economic asset that is the foundation of many startups but also critical for civic innovation. Cities have become an increasingly significant player in the collection of data sets with the potential for providing access to live data with an open API (application program interface) which makes the data easy to interpret. By sharing this data with startups, city government’s can vastly accelerate the development of innovative ideas and new products.
While not an explicit procurement policy, programs like DataCity Paris open the door for startups to develop products that are purchased or implemented by the Paris City Government which remains an underutilised source of innovation. Rather than following a traditional procurement process, the startup ideas are selected through a meticulous process focused solely on their ability to deliver innovative solutions. This brings startups into the local government sector who would be highly unlikely to get the opportunity otherwise.
Impact Level 1: demonstrates participation
Data City Paris can demonstrate that 41 startups and partners have participated in the program since its inception. However, no impact studies are available that explore the impact it has had on addressing the challenges faced by the city’s residents or the wider economic benefits of solving those issues. It is worth noting that one individual project was claimed to result in a 10% energy saving in street lighting costs and another in a reduction in greenhouse gas emissions. Still, this remains an example of an innovative policy that has fallen short in providing comprehensive and compelling evidence about the impact it has had on the world.
Using evidence of impact to tell stories about the success of a program is critical to the spread of good policy ideas, yet it is often overlooked by policy makers. Sourcelink has recently published a guide that outlines the most important metrics for programs to consider measuring at the outset. This includes basic success metrics such as; jobs created, entrepreneurs served, funds allocated, revenue generation and businesses started. Going further than that, programs can include sustainability metrics such as; retention rate, entrepreneurial satisfaction, resource utilization, resource diversification, ecosystem health, and community engagement.
This is the last of a Spotlight series highlighting the different levels of evidence provided by entrepreneurship programs. Read about the higher levels here and read the full case study for DataCity Paris by clicking here.