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Versatility supports successful business models of Smart City Centres

How do academic smart city centres operate to create and deliver their intended services to smart city stakeholders?

We found that the centres that are more successful in diversifying their value propositions and value financing, and extending their value networks beyond the academic community, tend to have more stable financial situations (p. 11).

In our article “How do academic smart city centres operate in complex environments? A business model perspective (Ghanbari, Soe, Toiskallio and Mora 2024), published by Cities (Volume 152, September 2024), we show that with administrative support and facilities from the institution smart city centres are part of, typically university, they keep their thematic scope wide enough to serve public authorities in their knowledge capacity issues and private companies in their precise needs.

In some cases, their near connection to their mother university connects them also to students. Usually, the centres also facilitate wide specialist networks, and they operate at least in many countries, if not globally.

This versatility also enables successful smart city centres to get vital funding from many sources.

This is not an easy task, which is one reason for the rather small number of explicitly smart-cityfocused R&I units. It can also happen that smart city units, famous based on their academic publications, are after all just a few people around their professor, suffering from funding cuts. 

Defining “Smart City”

Since there is no consensus on what “Smart City” precisely means, no wonder not very many know what smart city research and innovation units are doing.

Smart City is not a discipline but academically oriented movement to develop cities’ digitally supported services. These services have been widening from technically oriented back-office functions to more people oriented, lately even aiming to happiness of people.

In the introduction of the article, you can find a clear and short description of the four main phases of the smart city movement’s main urges since the 1990s. 

Method and limitations

Since the topic of this article and number of the actual smart city centres are rare and small, an explorative approach was needed to support the main lens of the study that was the business models of the centres.

Thus, semi-structured in-depth online interviews were a crucial source for us, on top of the online-questionnaire and public information from the centres’ websites. 

After all, the data of our study could have been larger and deeper. We never visited nor worked in our target units, but interviewed one or two persons in a leading position in that unit.

We still do not know if our target centres have their own building or entrance, or just a roll-up in the hall-way in front of professor’s door. Culturally, our study was also restricted to centres using English as their main language, leaving thus South-America and many parts of Asia out of scope. So, more studies dealing with this topic really are needed. 

Pioneering Smart City projects: Short success story of FinEst Centre

For our own unit, FinEst Centre for Smart Cities within Tallinn University of Technology, Estonia, the results mean that we can be proud of our few years old unit having rather independent and honoured position within TalTech.

Instead of being a normal department in a faculty, we are a special unit having spacious office rooms, negotiaton and coffee rooms, being directly under the vice-rector of research, employing more than 40 multi-national research & innovation personnel being specialists in almost ten domains, most of them holding at least a PhD.

Furthermore, we are able to do explicitly Smart City projects, running or participating currently in almost 20 of them. The endless flow of visitors and invitations to participate in new project proposals shows that FinEst Centre is a desired collaborator and partner for public authorities, companies and networks of urban development world-wide. 

Read the full paper “How do academic smart city centres operate in complex environments? A business model perspective” (Hadi Ghanbari, Ralf-Martin Soe, Kalle Toiskallio, Luca Mora). Cities, Volume 152,
2024

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