Business Models for Smart City Solutions

Smart city business models identify the mechanisms through which a smart city solution or a combination of integrated solutions are able to create, deliver, and capture private and public value for society. This paper aims to identify the main archetypes of smart city business models in three sectors (energy, mobility, ICT) through an in-depth analysis of three city case studies: Valencia, Dresden, and Antalya (involved in the Horizon 2020 project “MAtchUP”). Cities' business models are analysed through a questionnaire-based survey, targeted to city government representatives and their technical partners. The paper develops a set of smart city business model archetypes, based on the roles and involvement of public and private actors in 1) funding, 2) asset ownership, and 3) operations of smart city solutions. These archetypes range from a model where the city government plays a prevalent role in all three dimensions to a model where private actors are more prevalent with several intermediate models.