Estimating the Economic Impact of Smart City Innovation Neighborhoods

Abstract

Capital investment projects use standard input–output modeling to estimate economic impact and justify decisions to move forward. In this chapter, I begin by breaking down the elements and inputs used in a standard economic impact analysis with some examples of how the “number” is used and misused. This is followed by an explanation of the traditional model for projecting economic impact. The subsequent chapter provides an introduction to a new Smart City model for determining the economic impact of ultra-high Internet deployment, especially in the innovation neighborhoods discussed in the previous chapter. The conclusion provides recommendations on how to improve this decision-making process and measure long-term economic impact for the Smart economy.