Cities, Data, and Digital Innovation

This paper is part of the IMFG Papers on Municipal Finance and Governance series. For a full list of papers, please visit http://bit.ly/2ylAa2D.Developments in digital innovation and the availability of large-scale data sets create opportunities for new economic activities and new ways of delivering city services while raising concerns about privacy. This paper defines the terms Big Data, Open Data, Open Government, and Smart Cities and uses two case studies – London (U.K.) and Toronto – to examine questions about using data to drive economic growth, improve the accountability of government to citizens, and offer more digitally enabled services. The paper notes that London has been one of a handful of cities at the forefront of the Open Data movement and has been successful in developing its high-tech sector, although it has so far been less innovative in the use of “smart city” technology to improve services and lower costs. Toronto has also made efforts to harness data, although it is behind London in promoting Open Data. Moreover, although Toronto has many assets that could contribute to innovation and economic growth, including a growing high-technology sector, world-class universities and research base, and its role as a leading financial centre, it lacks a clear narrative about how these assets could be used to promote the city. The paper draws some general conclusions about the links between data innovation and economic growth, and between open data and open government, as well as ways to use big data and technological innovation to ensure greater efficiency in the provision of city services.Institute on Municipal Finance and Governanc