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Smart Economy

Reaping economic benefits, one smart city at a time

With digitization and disruptive technologies changing the requirements of many jobs today, smart cities will have to develop strategies to address jobs of the future that will power Industry 4.0 and the smart economy. Advances in technologies will also help streamline government procedures, providing a seamless experience to businesses.

Explore the smart cities of the future

Smart economy trends

Case studies

Take a closer look at how cities and agencies around the world are implementing these smart economy strategies.

New York used data science to boost the efficiency of safety inspections. The city was getting 25,000 complaints of illegal conversions of buildings each year with only 200 inspectors to cover the workload. Filtering the complaints using predictive analytics, the city was able to improve inspection efficiency.

Without analytics, only 13 percent of inspections found dire conditions. However, with predictive analytics, more than 70 percent of inspections resulted in a vacate order—an impressive improvement that was achieved without additional inspectors.

One of the questions that small and medium businesses face is where to locate the business within a city. Most small businesses often choose their locations based on little more than gut instinct. According to one survey, 72 percent of small and mid-size businesses make decisions that way, and 90 percent say that data-based decisions are the sole preserve of big companies, due to the costs involved. To address this issue, New York City created a tool called Business Atlas to help businesses research the economic conditions of neighborhoods where they might set up shop.

The free, online portal shows a map with interactive data on demographics, density of restaurants, income, and even foot traffic. This helps businesses determine what type of shop would thrive in a particular area, or which area might best nurture a new idea. The Business Atlas can help entrepreneurs gain crucial knowledge before making a costly investment.

Rhode Island faced a sluggish economy in recent decades, challenged by low economic growth and high unemployment. Taking office in early 2015 amid this challenge, Governor Gina Raimondo made economic growth and job creation priorities for her administration. There was an urgent need to define priority growth engines and high-impact activities that would help drive Rhode Island’s economic development.

Strong industry clusters acting as leading drivers of innovation were identified by the state. Rhode Island’s dominant clusters reflect historic strengths in naval defense, education, manufacturing, and corporate offices, with naval defense and corporate offices showing the most recent share growth. Emphasis was placed on the growth of submarines and underwater related technologies that could act as a growth catalyst through the value chain.

By becoming a hub for such emerging technologies, RI could bolster and diversify the private sector and drive growth in science, technology, engineering, and math and small and mid-sized enterprise (SME) ecosystem. High-quality, fast-cycle, higher margin manufacturing was also identified as potential new growth engines. Targeted opportunities in these sectors can lead to sizeable job growth. This influx of talent will likely, in turn, start, attract, retain, and grow companies.

Boston had made streamlined permitting a top priority. The quest began with the HubHacks Permitting Challenge, a hackathon co-hosted by the Department of Innovation and Technology (DoIT) and the Mayor’s Office of New Urban Mechanics (MONUM). Over two days, experts attempted to reinvent the city’s permitting.

The hackathon’s prototypes included a Find My Address tool to identify the address of record, an app that explains which permits a project needs, and a program to track applications through the permitting process. Boston also revealed a beta version of a new online permitting system that allows users to apply for multiple permits at once, organize permits by project, and include multiple people—say, a contractor and a homeowner—on the account.

The effort to create a better customer experience has yielded significant results. The Inspection Services issued 12,500 more permits in the first year of reform than in the previous year. The average review time for long-form permits was cut by five days, or 20 percent. Permits are now issued on time 75 percent of the time. And the building complaint backlog shrunk from 3,500 to 212.

The city of New Orleans used data science to formulate a preventive approach to firefighting. As part of its Targeted Smoke Alarm Outreach Program, the city developed a predictive model to identify areas at the highest risk of fires and fire fatalities. The data fed into the model came from open sources such as the Census American Housing Survey and American Community Survey, as well as the fire department’s own data. Considering factors such as poverty, building age, location, previous fire history, and the likelihood of dwellings having fire alarms, the project turned once-siloed data into actionable insights.

Officials created a heat map of the city to pinpoint areas for a door-to-door campaign. For instance, since the analysis revealed that those under five and over 60 were most susceptible to fire fatalities, authorities distributed and installed fire alarms in areas with concentrations of these age groups. New Orleans distributed more than 7,500 alarms by the end of 2015. Analytics, cross-agency collaboration, and data integration helped the city optimize its resources to protect its most vulnerable residents.