Financial challenges

From the financial standpoint, no clear model is being developed for smart cities. The economic conditions of the public sector are worsening, and not all countries have money to spend on smart cities. Developing countries are at a higher risk than developed countries. This limitation prevents an exponential adoption of the smart-city market. A possible solution of this problem is given in a research paper by Andrea Zanella et al:

"A possible way out of this impasse is to first develop those services that conjugate social utility with very clear return on investment, such as smart parking and smart buildings, and will hence act as catalyzers for the other added-value services."

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