Why Cities Become Laboratories

Cho Nam-joon, Distinguished Professor at Nanyang Technological University Singapore (Director of Industrial Affairs and Head of Cross Economy Center, NTU) A Closer Look at RIE2030 ⑩

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By SEDaily IN (Commentary)
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An AI-generated image depicting the city as a "laboratory" where transportation, energy, water, environment, health, and data operate in simultaneous connection. - Seoul Economic Daily Opinion News from South Korea
An AI-generated image depicting the city as a "laboratory" where transportation, energy, water, environment, health, and data operate in simultaneous connection.

When we talk about urban innovation, we typically think of smart cities—attaching sensors, collecting data, and optimizing transportation and energy. However, in Singapore's 2030 national strategy, RIE2030 (Research, Innovation and Enterprise), the city is not merely a target for such technology deployment. The city itself is a vast laboratory.

Why does the city become a laboratory? The reason is simple. No system is more complex than a city.

A city is a residential space while simultaneously being a production space, a consumption space, and a place where energy and resources are concentrated. Transportation, energy, health, environment, safety, and administration all operate at once. The city is precisely the space where a single technology or policy interacts with all these elements. Singapore views this complexity not as a problem but as a condition for experimentation.

Take transportation policy, for example. Its effects are far from simple. Adjusting congestion charges changes not only traffic flow but also commercial activity, logistics costs, citizen movement patterns, and energy use simultaneously. In cities, a single policy touches multiple systems at once. The city is the only space where this composite reaction can actually be observed.

The core role of the city in RIE2030 is not to test technology but to verify whether transformation actually works. Whether energy management technology truly changes cost structures, whether transportation data improves citizens' quality of life, and whether environmental performance leads to investment and trust—all are verified in the real-world space of the city.

An important point in this approach is that urban experiments are not short-term events. RIE2030 does not break cities down into project units. Instead, it treats accumulated long-term data and experience as assets. Even failed experiments are assets, because they reveal what did not work.

For example, if a particular energy policy proves less effective than expected, that failure is not simply a policy failure. It is data showing under what conditions the effect does not appear. This data becomes an important criterion in designing the next policy. Urban experimentation is a process of accumulating learning rather than successes.

Another reason cities can serve as laboratories is scale. Countries are too large, and companies are too small. Cities are large enough for policy experimentation yet small enough to control. Singapore strategically leverages the advantages of this middle scale.

For example, introducing a new transportation policy nationwide carries significant risks. Conversely, conducting experiments first in specific city districts allows for verifying and adjusting policy effects. Equally important, this approach reveals social responses that cannot be obtained through corporate-level experiments.

Here the logic of the cross economy reappears. Data generated in cities is not merely operational information. Traffic flow, energy use, environmental performance, and citizen behavior data can all be converted into assets. When measured, accumulated, and made comparable through digital means, the city itself becomes an asset portfolio.

Consider energy use data. When energy consumption by building is measured in real time and made comparable, inefficient buildings come under pressure to improve, while efficient buildings gain investment value. The same urban infrastructure transforms into an investable asset the moment data is connected.

This is why cities and digital ESG are closely linked in RIE2030. A city's ESG performance is managed through data, not declarations. When carbon emissions, energy efficiency, environmental quality, and social performance accumulate as numerical data, policies are adjusted based on evidence rather than intuition. This is the moment when urban operation itself becomes economic strategy.

Singapore's water management system is a good example. As water usage, recycling rates, and energy consumption data are managed in an integrated manner, water policy becomes not simply resource management but part of national competitiveness. Water technology is exported abroad, and urban operational experience expands into global standards. It is a representative case of data accumulated in cities being converted into national assets.

This approach is clearly different from smart city discourse. While smart cities ask how much technology has been adopted, RIE2030 asks what structural changes that technology has created. The criterion is not efficiency but transformation.

Consider Korean cities. We view urban issues as problems to be solved. Transportation is a problem, housing is a problem, the environment is a problem. But Singapore's perspective is different. The city is not a collection of problems but a space for verifying answers.

For example, expanding roads to reduce traffic congestion is a problem-solving approach. However, using transportation data to change movement patterns, connecting public transit with shared mobility, and continuously measuring policy effects is an experimental approach. The former stops at solving; the latter changes the structure.

Through cities, RIE2030 asks: Does this policy actually work? Does this technology reduce costs? Does this data become an asset? Cities become laboratories because they are the spaces that answer these questions most honestly.

In the next installment, I will examine the final axis that runs through all these domains: digital. In RIE2030, digital is not one field but the common language connecting all transformations.

Jo Nam-jun's CROSS ECONOMY - Seoul Economic Daily Opinion News from South Korea
Jo Nam-jun's CROSS ECONOMY

Original reporting by SEDaily IN (Commentary) for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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