Smart cities, smarter values: Unpacking the ecosystem of urban innovation

The beginning of this millennium has become the golden age of smart city initiatives, as local governments strive to exploit novel technologies to improve public services and the quality of life of their inhabitants. However, it is not enough to focus only on the technologies; we need to understand how value is identified, and how different parties approach that value on an ecosystem level. In this qualitative case study, two Finnish smart cities were examined by employing an ecosystem value balance framework to identify how the value proposition is created and what types of value can be captured during the early phases of the ecosystem. The results show that at the very beginning of the life cycle, monetary, epistemic, and social investments are required. The earliest values captured are epistemic, social, and functional. Prominent financial value is seen as a potential value, but to achieve it, the ecosystem should have a common purpose, successful external communication, low entry barriers, seamless internal information sharing, and plenty of co-operation between the ecosystem actors.