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Draft of Budapest Manifesto




                            The Budapest Manifesto
      for the creation of NeSTI, Network of Social and Territorial Innovation


                                                Preamble
We, the signatories of this Manifesto, come together to address the three main challenges facing the
cities and regions of Europe today: the devastating effects of the financial crisis undermining the
European social model; the increasing threat and disruption brought about by climate change to our
territories; and the demand for more effective representation set forth by our constituencies.
These challenges call for a transformational change in the way we all work, live, play, and build our
future, which in turn places a special burden on those of us holding the responsibility to govern such
processes with an optimum usage of the public resources available. We are deeply convinced that
technological and social innovation can make an invaluable contribution in that direction, provided
the right policy choices are made now to ensure a long lasting impact of the immense resources that
will be available through Europe 2020.
In this crucial time and with these challenges in mind, we reach out to our citizens and enterprises to
join us in a broad endeavour of co-creating the most appropriate policies for each of our territories,
as well as implementing them jointly in the years to come. This in the firm belief not only that the
challenges we face affect all of us and the generations to come, but also that only through an
unprecedented engagement of our people can we gain access to our hidden potentials of creativity
and innovation for the sake of territorial development and inclusion. With this Budapest Manifesto,
we signatories join forces to build NeSTI, a trans-European network of cities and regions sharing this
common vision and learning from each other to find the right pathways towards Social and Territorial
Innovation.


                                                  Vision
The elements with which to build the answer are at hand, but only by bringing them together can we
make them sustainable. Future Internet technologies in “Smart” environments are allowing for new
forms of participation and citizenship as well as bringing unprecedented efficiencies to the
management of territorial infrastructures and systems. Digital innovation ecosystems are emerging,
based on citizen-driven approaches such as Living Labs, where co-design methods are able to tap the
creative potential of local territories. Regional policy must be the guiding force of these processes,
blending diffused technological and social innovation within a territorial governance framework that
guarantees the participatory, democratic setting in which to define the key policy choices we face.
In this context, the new Europe 2020 strategy, in particular through the flagship initiative Innovation
Union and its application to regional innovation policy design by the concept of Smart Specialisation,
represents the main opportunity today. Regions have an important role to play in devising solutions
for participatory governance that can reinforce the high-level policy intentions while introducing the
bottom-up dimension through deeper engagement of local governments, citizens and businesses. By
appropriately capturing territorial creativity and innovation potentials, they can better achieve and



                                Project CentraLab is implemented through the
                                      CENTRAL EUROPE Programme,
                                          co-financed by the ERDF
                                                                                                Page | 1
Draft of Budapest Manifesto




increase the coherence in the orchestration of innovation processes across sectors and in different
spatial contexts. Previous experiences in Territorial Cooperation and other initiatives for knowledge
exchange1 are brought together here to form network capital creating a critical mass of practice and
proof of concept.


                                            Partnership
We come together in order to form a permanent network that inter-connects local and regional
government bodies and their Living Lab partnerships, in order to build and reinforce diffused
territorial innovation ecosystems across Europe. The NeSTI network is open to territorial authorities
and local development agencies, including EGTCs, within Europe, in neighbouring territories such as
the Mediterranean and Eastern European spaces, as well as throughout the world. The NeSTI
network will enhance and multiply previous pilot experiences of transnational learning and exchange
by addressing concrete needs, but will above all carry forward the values, principles and
commitments that have been developed thereby and are agreed upon by any new member joining
the network, as summarised in the following 10 points.

                                                      1.
The key values, as declared by the European Network of Living Labs and which we share, are as
follows: trust, openness and transparency, enabling networking and participation; human-centricity;
bottom-up, enriched communication; co-creation and collaboration. We are committed to upholding
these values in all activities in the NeSTI network. In particular, all participants are considered to have
a unique role, contributing to innovation activities and policies on an equal, peer basis, whatever
their institutional, organisational, or financial standing.

                                                 2.
We are therefore committed to adopting the citizen-centred approach for all relevant policy tables,
capturing the benefits of the Future Internet both to support co-design processes and to enable the
creation of more sustainable future scenarios. We will thus jointly work to enhance the maturity
development of all Living Lab co-design partnerships in our territories, by contributing to the stability
of partnerships, their policy alignment, and the full involvement of citizens and businesses. Active
Living Lab communities are a valuable resource not only for their local territories but for the network
as a whole. We will make every effort to allow every local stakeholder access to the opportunities in
NeSTI and vice versa.

                                                  3.
More specifically, we will apply a bottom-up Living Lab approach to the formulation, enactment, and
maintenance of our Smart Specialisation strategies for the 2014-2020 period. In addition, we will
apply and test co-design approaches to better utilise residual funds from the 2007-2013 period. To

1
  Baseline experiences include: CentraLab: Central European Living Lab for Territorial Innovation (ERDF TC CEE,
2011-2013), MedLab: Mediterranean Living Lab for Territorial Innovation (ERDF TC MED, 2009-2011), Alcotra
Innovation (ERDF TC Cross-Border Alcotra, 2010-2013), Parterre: Electronic Participation Tools for Spatial
Planning and Territorial Development [CIP (ICT-PSP), 2010-2012], and Periphèria: Networked Smart Peripheral
Cities for Sustainable Lifestyles [CIP (ICT-PSP), 2010-2013].


                                  Project CentraLab is implemented through the
                                        CENTRAL EUROPE Programme,
                                            co-financed by the ERDF
                                                                                                     Page | 2
Draft of Budapest Manifesto




this end, we are committed to fostering innovative communities in our territories by introducing ICT
into participative development initiatives and in parallel, by promoting user-centred approaches in
regional R&D innovation clusters. We will jointly monitor and analyse the formation and evolution of
these innovation ecosystems in our territories in order to govern their development.

                                                          4.

Recognizing that institutional innovation is an integral part of the objectives of the NeSTI network,
we are committed to the experimentation of multi-stakeholder co-production of public services and
pre-commercial public procurement as a motor of innovation. This shall occur through the promotion
of pilot actions that apply the Living Lab approach across a broad range of sectors and fields of
research, both within and external to our Smart Specialisation framework.

                                                  5.
At the same time, we recognise the transversal nature of complex systems and the role of integrated
territorial models such as the Smart City, which we will extend to different areas – remote, rural and
insular – and scale up as an integrated Smart Region model. Furthermore, we will explore extension
to bottom-up macro-regional strategies that coordinate the integration of funding sources (EAREF,
FP, ESF, EARDF, EFF, etc.) for different policy objectives. For this reason we are committed to
promoting the participation in the NeSTI network of local authorities at different levels of
governance and to the use of the network as a forum for exploring new forms of multi-level
cooperation and policy coherence.

                                                  6.
We recognize the fundamental importance of inter-regional and trans-national networking between
local innovation systems as a means of achieving a harmonious balance between identities in the
physical local and virtualised global worlds through the valorisation of Territorial Capital. We are
committed to open networking to increase access to knowledge, the potential of local capital, and
the internationalisation of regional SMEs. This includes leveraging the network potential of existing
groups such as ENoLL, the CRPM, ERRIN, EUKN, the Covenant of Mayors, etc.

                                                  7.
We are committed to playing a pro-active role in the Smart Specialisation Strategy platform 2 based
on the values and approaches that are shared in the NeSTI network. More broadly, we will promote
the exploration and adoption of ICT platforms and services that can support the transition towards a
sustainable society. We agree, within the limits of property and other rights, to share and exchange
ICT platforms and services as collective resources, adopting where possible the Open Source and
Open Data models and taking localisation requirements into account.

                                                 8.
NeSTI involves many issues where further research and proof of concept is needed, ranging from
open governance to social creativity. We will promote further research on these cross-sectoral and
multi-disciplinary issues and experiment new approaches both within EU cooperation initiatives and

2
    http://s3platform.jrc.ec.europa.eu


                                     Project CentraLab is implemented through the
                                           CENTRAL EUROPE Programme,
                                               co-financed by the ERDF
                                                                                                     Page | 3
Draft of Budapest Manifesto




by building them into our own regional innovation strategies, contributing where possible with our
resources and experiences and sharing new understandings across the NeSTI network.

                                                 9.
NeSTI participants will together define concrete goals, success criteria, and performance indicators
through a mixture of competitive and collaborative benchmarking, so as to allow measuring progress
against shared objectives while promoting learning from different baselines and in different cultural
and territorial contexts.

                                               10.
Finally, we are committed to promoting NeSTI itself globally, as an innovative and open multi-level
partnership model for the governance of innovation processes, ideally suited to providing a bottom-
up response to the challenge of implementing on the ground the policy goals of Europe 2020 and
similar frameworks.

Launched in Budapest, 2 October 2012




                               Project CentraLab is implemented through the
                                     CENTRAL EUROPE Programme,
                                         co-financed by the ERDF
                                                                                               Page | 4

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Budapest Manifesto v1

  • 1. Draft of Budapest Manifesto The Budapest Manifesto for the creation of NeSTI, Network of Social and Territorial Innovation Preamble We, the signatories of this Manifesto, come together to address the three main challenges facing the cities and regions of Europe today: the devastating effects of the financial crisis undermining the European social model; the increasing threat and disruption brought about by climate change to our territories; and the demand for more effective representation set forth by our constituencies. These challenges call for a transformational change in the way we all work, live, play, and build our future, which in turn places a special burden on those of us holding the responsibility to govern such processes with an optimum usage of the public resources available. We are deeply convinced that technological and social innovation can make an invaluable contribution in that direction, provided the right policy choices are made now to ensure a long lasting impact of the immense resources that will be available through Europe 2020. In this crucial time and with these challenges in mind, we reach out to our citizens and enterprises to join us in a broad endeavour of co-creating the most appropriate policies for each of our territories, as well as implementing them jointly in the years to come. This in the firm belief not only that the challenges we face affect all of us and the generations to come, but also that only through an unprecedented engagement of our people can we gain access to our hidden potentials of creativity and innovation for the sake of territorial development and inclusion. With this Budapest Manifesto, we signatories join forces to build NeSTI, a trans-European network of cities and regions sharing this common vision and learning from each other to find the right pathways towards Social and Territorial Innovation. Vision The elements with which to build the answer are at hand, but only by bringing them together can we make them sustainable. Future Internet technologies in “Smart” environments are allowing for new forms of participation and citizenship as well as bringing unprecedented efficiencies to the management of territorial infrastructures and systems. Digital innovation ecosystems are emerging, based on citizen-driven approaches such as Living Labs, where co-design methods are able to tap the creative potential of local territories. Regional policy must be the guiding force of these processes, blending diffused technological and social innovation within a territorial governance framework that guarantees the participatory, democratic setting in which to define the key policy choices we face. In this context, the new Europe 2020 strategy, in particular through the flagship initiative Innovation Union and its application to regional innovation policy design by the concept of Smart Specialisation, represents the main opportunity today. Regions have an important role to play in devising solutions for participatory governance that can reinforce the high-level policy intentions while introducing the bottom-up dimension through deeper engagement of local governments, citizens and businesses. By appropriately capturing territorial creativity and innovation potentials, they can better achieve and Project CentraLab is implemented through the CENTRAL EUROPE Programme, co-financed by the ERDF Page | 1
  • 2. Draft of Budapest Manifesto increase the coherence in the orchestration of innovation processes across sectors and in different spatial contexts. Previous experiences in Territorial Cooperation and other initiatives for knowledge exchange1 are brought together here to form network capital creating a critical mass of practice and proof of concept. Partnership We come together in order to form a permanent network that inter-connects local and regional government bodies and their Living Lab partnerships, in order to build and reinforce diffused territorial innovation ecosystems across Europe. The NeSTI network is open to territorial authorities and local development agencies, including EGTCs, within Europe, in neighbouring territories such as the Mediterranean and Eastern European spaces, as well as throughout the world. The NeSTI network will enhance and multiply previous pilot experiences of transnational learning and exchange by addressing concrete needs, but will above all carry forward the values, principles and commitments that have been developed thereby and are agreed upon by any new member joining the network, as summarised in the following 10 points. 1. The key values, as declared by the European Network of Living Labs and which we share, are as follows: trust, openness and transparency, enabling networking and participation; human-centricity; bottom-up, enriched communication; co-creation and collaboration. We are committed to upholding these values in all activities in the NeSTI network. In particular, all participants are considered to have a unique role, contributing to innovation activities and policies on an equal, peer basis, whatever their institutional, organisational, or financial standing. 2. We are therefore committed to adopting the citizen-centred approach for all relevant policy tables, capturing the benefits of the Future Internet both to support co-design processes and to enable the creation of more sustainable future scenarios. We will thus jointly work to enhance the maturity development of all Living Lab co-design partnerships in our territories, by contributing to the stability of partnerships, their policy alignment, and the full involvement of citizens and businesses. Active Living Lab communities are a valuable resource not only for their local territories but for the network as a whole. We will make every effort to allow every local stakeholder access to the opportunities in NeSTI and vice versa. 3. More specifically, we will apply a bottom-up Living Lab approach to the formulation, enactment, and maintenance of our Smart Specialisation strategies for the 2014-2020 period. In addition, we will apply and test co-design approaches to better utilise residual funds from the 2007-2013 period. To 1 Baseline experiences include: CentraLab: Central European Living Lab for Territorial Innovation (ERDF TC CEE, 2011-2013), MedLab: Mediterranean Living Lab for Territorial Innovation (ERDF TC MED, 2009-2011), Alcotra Innovation (ERDF TC Cross-Border Alcotra, 2010-2013), Parterre: Electronic Participation Tools for Spatial Planning and Territorial Development [CIP (ICT-PSP), 2010-2012], and Periphèria: Networked Smart Peripheral Cities for Sustainable Lifestyles [CIP (ICT-PSP), 2010-2013]. Project CentraLab is implemented through the CENTRAL EUROPE Programme, co-financed by the ERDF Page | 2
  • 3. Draft of Budapest Manifesto this end, we are committed to fostering innovative communities in our territories by introducing ICT into participative development initiatives and in parallel, by promoting user-centred approaches in regional R&D innovation clusters. We will jointly monitor and analyse the formation and evolution of these innovation ecosystems in our territories in order to govern their development. 4. Recognizing that institutional innovation is an integral part of the objectives of the NeSTI network, we are committed to the experimentation of multi-stakeholder co-production of public services and pre-commercial public procurement as a motor of innovation. This shall occur through the promotion of pilot actions that apply the Living Lab approach across a broad range of sectors and fields of research, both within and external to our Smart Specialisation framework. 5. At the same time, we recognise the transversal nature of complex systems and the role of integrated territorial models such as the Smart City, which we will extend to different areas – remote, rural and insular – and scale up as an integrated Smart Region model. Furthermore, we will explore extension to bottom-up macro-regional strategies that coordinate the integration of funding sources (EAREF, FP, ESF, EARDF, EFF, etc.) for different policy objectives. For this reason we are committed to promoting the participation in the NeSTI network of local authorities at different levels of governance and to the use of the network as a forum for exploring new forms of multi-level cooperation and policy coherence. 6. We recognize the fundamental importance of inter-regional and trans-national networking between local innovation systems as a means of achieving a harmonious balance between identities in the physical local and virtualised global worlds through the valorisation of Territorial Capital. We are committed to open networking to increase access to knowledge, the potential of local capital, and the internationalisation of regional SMEs. This includes leveraging the network potential of existing groups such as ENoLL, the CRPM, ERRIN, EUKN, the Covenant of Mayors, etc. 7. We are committed to playing a pro-active role in the Smart Specialisation Strategy platform 2 based on the values and approaches that are shared in the NeSTI network. More broadly, we will promote the exploration and adoption of ICT platforms and services that can support the transition towards a sustainable society. We agree, within the limits of property and other rights, to share and exchange ICT platforms and services as collective resources, adopting where possible the Open Source and Open Data models and taking localisation requirements into account. 8. NeSTI involves many issues where further research and proof of concept is needed, ranging from open governance to social creativity. We will promote further research on these cross-sectoral and multi-disciplinary issues and experiment new approaches both within EU cooperation initiatives and 2 http://s3platform.jrc.ec.europa.eu Project CentraLab is implemented through the CENTRAL EUROPE Programme, co-financed by the ERDF Page | 3
  • 4. Draft of Budapest Manifesto by building them into our own regional innovation strategies, contributing where possible with our resources and experiences and sharing new understandings across the NeSTI network. 9. NeSTI participants will together define concrete goals, success criteria, and performance indicators through a mixture of competitive and collaborative benchmarking, so as to allow measuring progress against shared objectives while promoting learning from different baselines and in different cultural and territorial contexts. 10. Finally, we are committed to promoting NeSTI itself globally, as an innovative and open multi-level partnership model for the governance of innovation processes, ideally suited to providing a bottom- up response to the challenge of implementing on the ground the policy goals of Europe 2020 and similar frameworks. Launched in Budapest, 2 October 2012 Project CentraLab is implemented through the CENTRAL EUROPE Programme, co-financed by the ERDF Page | 4