Trade article – Innovative municipalities: The role of municipal IT service providers & start-ups © Photo Credit: Nomos Verlagsgesellschaft mbH & Co. KG

Trade article – Innovative municipalities: The role of municipal IT service providers & start-ups

Current publication of the results of the WIK study in the conference proceedings

The "Better Regulation and Bureaucracy Reduction Network" examines the opportunities offered by administrative digitization. What role do municipal companies and startups play in this process? To what extent do they compete? Where are areas for action for greater innovation? The WIK contribution in the current conference proceedings provides insights into the offerings of municipal IT service providers and startups.

German municipalities traditionally work with municipal IT service providers. Their tasks are for example the operation of technical processes and the support of IT workplaces. They also play an important role in IT procurement. They are therefore both competitors and potential customers for private-sector companies. Municipalities are the most important target group for GovTech start-ups. 95% of the start-ups analysed in our study offer solutions for them. However, nationwide surveys show that only a minority of local authorities have awarded IT contracts to start-ups, which suggests that there is great untapped potential for market penetration. The paper analyses opportunities and challenges in the market and presents examples of innovation.

The conference proceedings ‘Public administration under pressure to transform’ are dedicated to the question of how public administration can manage change processes such as digital transformation, reduce bureaucratic hurdles and remain citizen-centred at the same time. The contributions combine scientific findings with practical solutions and make suggestions on how public administration can be made fit for the future.