Research as a driver of innovation in urban and rural areas

The German Institute of Urban Affairs (Difu) conducts applied urban research and works in partnership with local authorities. Our aim is also to support towns and cities in implementing research findings and putting results into practice. We therefore continuously monitor the federal government’s research agenda and analyse it in terms of the research topics and perspectives relevant to towns, cities and local authorities.

This also applies to the High-Tech Agenda Germany (HTAD), which was adopted by the Federal Cabinet last year. The Agenda focuses on greater value creation, competitiveness and autonomy. To this end, it identifies six key technologies and five strategic research areas. Closely linked to the HTAD is the “Research for Sustainability” (FONA) strategy, published a few weeks ago by the Federal Ministry of Research, Technology and Space (BMFTR), which puts the HTAD’s research field of marine, climate and sustainability research into practice. Whilst broadly building on previous FONA strategies, it nevertheless adopts a different focus in content terms: sustainability is no longer seen merely as a goal, but as a means to growth and innovation. The three core modules are geared towards fostering sound decision-making (FONA-Insight), developing market-ready technologies (FONA-Impact) and enabling ground-breaking game-changers (FONA-Ignite).

The fact that the new FONA strategy builds on the successes of its predecessors is to be welcomed. Particular mention should be made of interdisciplinary and transdisciplinary research involving real-world laboratories and other experimental formats, such as those carried out at Difu. Another positive aspect is that one of the four FONA research and technology areas explicitly focuses on innovations to improve quality of life in urban and rural areas – thereby highlighting the central role played by local authorities in achieving the Sustainable Development Goals (SDGs).

Difu’s many years of experience in providing scientific support for BMFTR funding measures show that local authority involvement in research has an impact that extends far beyond the development and testing of new solutions. Not only does it provide valuable impetus for research, but it also has a lasting impact on local administrations. Staff expand their technical and methodological skills, projects drive strategic developments and their implementation, and communication and decision-making processes change. Furthermore, research projects strengthen cooperation across administrative boundaries: both between local authorities and with the public, civil society organisations and other local stakeholders.

It is therefore to be hoped that, in the coming years, the Federal Ministry of Research will accord urban and regional research, as well as local authorities, at least the same level of priority as in the past. The first step was the call for proposals entitled “Think Tank for Sustainable Cities and Regions”, but this was completely oversubscribed, and projects were selected not on the basis of defined criteria but by drawing lots. There is clearly great need out there – further funding for research and implementation must now follow without delay.

The vision of innovation reflected in the strategies provides food for thought. In view of the major transformative challenges facing Germany, incremental innovations – that is, step-by-step improvements to existing processes or products – are no longer sufficient. Whilst this is recognised and addressed, the focus is very much on technological innovations that can be used to make a profit. It should be noted here that the FONA strategy was developed within the ministry and that stakeholders were only involved once it had been published. The strategy falls short of the knowledge gained from FONA’s research funding to date. In our view, the early involvement of stakeholders from local politics and administration, urban, spatial and sustainability research, the business sector and civil society is essential for the research field “Innovations for Quality of Life in Urban and Rural Areas”. Only in this way can support measures be effective, become firmly established and gain social acceptance. Sustainable development is rarely a matter of technical solutions alone; rather, it depends on institutional frameworks, financial scope for action, social and cultural practices, and spatial contexts. Accordingly, the degree of innovation in new ideas and technologies should not be judged solely on the basis of their technology readiness level.

Both HTAD and FONA emphasise the accelerated application and utilisation of knowledge and technologies in business and society. Practice-oriented research should provide effective support for societal transformations, such as in the field of digitalisation. These objectives have already been incorporated into funding programmes for technology-driven urban development in recent years (keyword: smart city). Experience has now shown just how much implementation depends on circumstances. To date, evaluations of programmes, projects and initiatives have tended to be the exception rather than the rule, and systematic criteria for measuring success are often lacking. Not every technical tool developed as part of a pilot scheme ultimately proves viable, and the mere fact that an idea appears radical and disruptive does not mean that it will lead to widespread adoption. Typical problems include institutional hurdles (such as a lack of standardisation), technical issues (such as a lack of interfaces), insufficient economic viability (where there is no sustainable business model), legal barriers (for example, in public procurement) or a lack of acceptance (where development fails to address actual needs).

What is needed is a funding policy that takes a long-term approach and takes into account the complexity of implementing new solutions right from the start. This also requires cooperation both between ministries and between the different levels of government, so that important findings from one level are passed on to others. To ensure that innovative ideas are viable, they must be developed to a stage where government research programmes or development banks can build on them. At the same time, funding schemes must also be consolidated and streamlined in such a way that they become more manageable. In this context, the results and outputs of research funding must be made available in a way that is appropriate for the target groups.

Above all, however, research funding for sustainable development requires continuity. It should be based on long timelines. In this respect, local authorities are setting an example to some extent, as they have built up extensive expertise in the long-term implementation of sustainable urban development over the past 35 years. Local commitment is strong, but it is currently facing significant headwind as funding becomes scarcer and the urgency of environmental crises such as climate change is met with scepticism in many places.

Research funding should address this issue to at least the same extent as it does new technological options. In doing so, it can draw on a broad range of transdisciplinary urban and spatial research carried out at universities and non-university research institutions such as Difu. There is a wealth of expertise available on sustainable towns, cities and regions.