Smart cities financing system: An empirical modelling from the European context

This work investigates the experimental hypothesis of the influence of innovation financing and innovation collaboration systems on the evolution of the Smart Urban Development (SUD) level. The multiple regression analysis method was adopted, considering the main formal sources of innovation incubation financing, in addition to the indicators of Open and Close Innovation practices among young companies. The research was concentrated in 66 cities on the European continent based on longitudinal data for the period from 2008 to 2014. The results reveal that there is a significant effect of the innovation incubation financing system on the evolution of the SUD level, with this system being identified as private sponsorship, as venture capital sponsorship, and as sponsorship by higher education entities. Public financing and PPP financing did not have a significant influence on the evolution of the SUD level, although some studies highlight the importance of these sources for smartization projects.