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Carine Staropoli

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1st OECD Roundtable on Smart Cities and Inclusive Growth

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Carine Staropoli

  1. 1. Digital New Deal : public-private relationships in the smart cities Carine Staropoli (PSE, Panthéon-Sorbonne University) 1st OECD Roundtable on Smart Cities and Inclusive Growth – 9th of july 2019 - Session III: Digital innovation and disruption to city governance: revisiting business models and citizen engagement
  2. 2. As a starting point… A new ecosystem Historically Digital Era Smart cities are at crossroadsHalf empty or half full record ? The digital Show-Case The modern far-west fantasy
  3. 3. The answer: « smarter » public-private relationships 3 XVIth – XVIIthcent.: bridges, canals, roads, etc. XVIIIth-XXth cent.: generalization of public service delegation XXIth cent. : new public services  Cities as buyers purchasing goods, services, works and infrastructures to provide public services  Make or buy?  Different contractual arrangements: public contracts/ concessions/ PPPs  Regulation A classical equation... ... with new factors  New services to be invented (based on new technology, smart infrastructure and data)  New players to be taken into account (pure players, citizens...)  New business models to be found
  4. 4. The triad of public action (in smart cities) Photo à changer 4 Publicaction Make Public employment Buy Traditional procurement PPP Concession contract Availability-based contract Regulate Norms Contract
  5. 5. Need to adapt contractual practices to digital era 5 More global contracts Mastering the usages News risks sharing / financing More innovative contracts Systematic socio- economic evaluation
  6. 6. More global contracts • Integrated & Transversal approach: from conception to maintenance (e.g. onDijon) – stop silo organization with large scope contracts (Comprehensive Energy Management Contract of The Ohio State University - Engie) • Inclusion of stakeholders/ citizen into extended partnerships (e.g. Cordee, OptimodLyon) Mastering the usages • User centric contract based on service and multi-services (e.g. Maas Global mobility Contract Grand Dijon) • Performance contracts (e.g. extended EPC) + User satisfaction Innovative contracting • Specific contract: innovative partnership (e.g Pays Haut-Val d’Azette) • Upstream: sourcing, competitive dialogue • During the contract life: adaptation, renegociation, conditional phase to take into account innovation… New risk sharing & financing schemes • Better anticipate the evolution of infrastructure and services usages • Use public lever to mobilize new private financing devices (e.g. France transition by Canfin Zaouati (2018), sustainable finance, social impact finance) Systematic socio-economic evaluation •Currently: lack of visibility on collective value of Smart city projects •Extand ex ante to on-going and ex-post evaluation •Need to adapt existing BCA methods to take into account transversality, data, innovation
  7. 7. Need to adapt regulation Who regulate? • New services proposed directly to citizen by new entrants • New (unregulated) actors (platforms, start-ups) • Private services sometimes complementary to public services … but potentially in conflict Why regulate? • Maximize positive externalities and reduce negative externalities • Specific objectives: • Increase acceptability Harm reduction • Induce coopetition • Attract new services and innovation Which regulatory tools? • Data regulation (e.g. Licence to use data - « Licence engagée » OptimodLyon) • Use of public domain/ facilities (e.g. free floating) • Tariffs (waste, mobility) • Nudges Regulation type? • Regulation – confrontation • Regulation – cooperation • Regulation – agregation 1. Cooperation instead of verticality: Partnering with private players to define appropriate regulations, public entities still having the last word 2. Incentives instead of prohibition : Incentivizing private actors so that they comply with public orientations → virtuous circle based on market forces 3. Control and sanction for credibility: Impose penalties in case of breach: no more incentives, stricter obligations
  8. 8. Coming soon (september 2019) http://tnova.fr/http://chaire-eppp.org https://third.digital/ Related publications with Benoit Thirion (Altermind) - @bthirion Contact: carine.staropoli@univ-paris1.fr