Market stimulations for smart cities activities
Test beds and demonstrations of new and more sustainable solutions are established activities in many Smart Cities. The activities generate performance indicators for different solutions and the city authorities can pick a winner. If the authority will be the solution provider a supplier can contracted after a public procurement based on the test and demonstrations.
A deeper understanding is needed
However, if city authority is a market regulator the authority needs to understand how policies and regulations (and sometimes subsidies) can be designed to stimulate market growth for the identified new solutions. To do this, the city authority need a deeper understanding of the value chain (or business ecosystems) which together deliver the solution as well as the different companies individual business models. With this knowledge the authority can design and manage an effective Smart City market stimulation package.
A market stimulation package is the sum of all action’s city authorities take to support market development of prioritised quality criteria e.g., fossil free mobility. Including promotion of solutions, policies, regulations, financial support to entrepreneurs, investments in infrastructure, data donation platforms.
As a service IMCG offer reviews market stimulation packages designed to aim at specific impact goals. During 2020 IMCG have reviewed stimulation packages in three European cities. The reviews have been based on so called “launch reports” from test and demonstrations of new sustainable solutions. The reports have been compared with a basic template for market stimulation including: Governance and public communication, scale-up roadmaps, public investment, knowledge management as well as support to entrepreneurs.
The three performed reviews in 2020 showed that the city authorities are on track but need more resources to the change management process to keep up pace with market development. Policy, regulations and public investments for the built environment usually have a slow pace but, in this new situation with expectations of a fast development towards climate neutrality in 2030, market stimulation activities also need to speed up.
IMCG offers support adapted to the city’s relevant needs to design effective market stimulation packages. Where city authorities stimulate market transition toward impact goals by being consistent in communication, policy making and prioritizing public investments.
Ask Jonas Norrman