Exploring Long Term Ventures in the Smart City Entrepreneurial Ecosystem

Abstract

Innovation and entrepreneurship are what cities produce, due to their diverse concentrations of talent, people and companies (Jacobs, 1961). Smart cities deploy innovative technology in pursuit of solving the problems of urbanization; yet, according to Sarma and Sunny, 2016, the innovations developed in the venture backed entrepreneurial ecosystems are not supporting long term ventures. This paradox suggests that smart city entrepreneurial ecosystems present particular challenges for building mature, job creating businesses needed to fund investments in urban modernization. Cities that invest in modernizing technologies need methods for sustaining the long term costs and maintenance. This study uses cluster analysis as a means for organizing smart cities based on their business development, entrepreneurial ecosystems, and location demographics to determine which smart cities are able to build long term ventures.