Smart City Tech to Drive Over 5% Incremental GDP, Trillions in Economic Growth Over the Next Decade Reports ABI Research
January 24 2018 - 8:00AM
The positive impact of smart city technologies on economic
development could see cities locking in incremental growth of over
5% and driving more than $20 trillion in additional economic
benefits over the coming decade. These are the findings of a new
whitepaper by ABI Research which analyzes the impact smart city
technologies could have on economic development and GDP growth by
2026.
According to the report, titled ‘Roles of Smart
Cities for Economic Development,’ economic development should be
treated as an “uber” benefit, indirectly linked to factors
conducive to attract and maintain economic activity within cities,
such as security, and livability. Using GDP growth as a key metric,
the white paper, commissioned by InterDigital (NASDAQ:IDCC) on
behalf of its Smart Cities-focused business, ChordantTM,
highlighted the following three dimensions or phases set to be
impacted by smart city technologies over the course of the next
decade, these include:
- Open Data Policies, with a
potential incremental GDP growth of close to $1 trillion without
investments in physical infrastructure;
- Public investments multiplier
effect of up to 10 times, with a potential incremental GDP growth
of $10 trillion; and
- Structural Smart Urban Economy
growth, with an expected increase of 2.8% by 2026, driven by
next-generation technologies like AI and blockchain.
“These recent findings further emphasize the
importance of technology as a driver for economic development in
our future smart cities,” said Jim Nolan, Executive Vice President,
Chordant, at InterDigital. “The benefits are clear: trillions in
incremental GDP growth will significantly transform the way we live
and how our cities operate. But it’s not as simple as deploying
technology and hoping it sticks. Cities will have to become
strategic in the way they deploy smart city technology to ensure
that it maximizes its potential.”
The report noted that to operationalize and
capture these economic benefits, cities must begin preparation and
investment now. In particular, the recommendations from the report
suggest that smart city strategies must be optimized based on
detailed guidelines and checklist tools. These include:
- Define priorities and strategies
based on an economic development SWOT;
- Set up processes supporting
frictionless interaction with supplier ecosystems; and
- Optimize based on economic
variability according to regional and city size differences.
In addition to this, the report identified both
economic growth and technological drivers for economic development
in a smart city. On economic growth, factors such as a
business-friendly environment, skilled workforce and political
stability were cited. On technology drivers, areas included:
- Connectivity platforms: a range of
technologies such as 5G, fiber, Low Power Wide Area (LPWA) and V2X
(Vehicle-to-Infrastructure) will contribute significantly to
economic growth by allowing important cost savings through new
services like smart bins, smart street lights, etc.
- Sensors: Both embedded and mobile
sensors, in combination with connectivity, allow optimized use of
assets through better access to real-time information as well as
monitoring environmental metrics to control air and water
quality.
- Analytics: Advanced analytics allow
extracting actionable intelligence, from condition-based monitoring
to advanced preventive and predictive maintenance.
- Open data platforms and policies:
Standardized platforms will accelerate the unlocking of
technological innovation. Opening the access of real-time data to a
smart city ecosystem will represent significant economic value in
terms of efficiencies, innovation and job creation.
“Next-generation smart city technologies like
AI, blockchain, and closed-loop infrastructure will accelerate
future growth by transforming the economy into cognitive,
self-governing entities,” said Dominique Bonte, Vice President,
Markets, ABI Research. “Distributed ledgers and other financial
instruments will allow citizens to seamlessly participate in a
networked, all-in economy characterized by frictionless
cross-vertical collaboration, transparent commerce, and new forms
of employment, driving unseen levels of innovation and urban value
creation. Cities will be the catalysts of this emerging new economy
which will be both scalable and sustainable.”
The report follows a recent whitepaper published
by ABI Research in December 2017, and also commissioned by
InterDigital, which highlighted the $5 trillion cost saving
opportunity for cities using or deploying smart city and IoT
technology. According to the report, entitled ‘Smart Cities and
Cost Savings’, cities employing smart city technology could stand
to make significant cost savings across governments, enterprises
and citizens.
The full ABI Research report, ‘Role of Smart
Cities for Economic Development’ is available to download here.
About
InterDigital®
InterDigital develops mobile technologies that
are at the core of devices, networks, and services worldwide. We
solve many of the industry's most critical and complex technical
challenges, inventing solutions for more efficient broadband
networks and a richer multimedia experience years ahead of market
deployment. InterDigital has licenses and strategic relationships
with many of the world's leading wireless companies. Founded in
1972, InterDigital is listed on NASDAQ and is included in the
S&P MidCap 400® index.
InterDigital is a registered trademark of
InterDigital, Inc. Chordant is a trademark of InterDigital.
For more information, visit:
www.interdigital.com.
About Chordant™
Chordant, an InterDigital business, is part of a
global company passionate about innovation and a standards-based
approach that stimulates thriving global ecosystems. Solutions
powered by the Chordant platform address the fundamental challenges
in Smart City deployments. Like a perfect chord of musical notes,
the Chordant platform brings harmony to diverse devices, data and
services. We have created one of the largest Smart City
deployments, integrating hundreds of transport data sources into a
transport data marketplace. Our Smart City solutions have also been
recognized by leading analyst firms and organizations. For more
information, visit: www.chordant.io.
InterDigital Contact:Patrick
Van de WilleEmail: patrick.vandewille@interdigital.com +1 (858)
210-481
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