1st OECD Roundtable on Smart Cities and Inclusive Growth

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. 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. 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. 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. 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. 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. 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. 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