Smart City Innovations: The Role of Local and Global Collaborations

Abstract

This paper integrates research on smart cities, innovation ecosystems, and networks to examine how collaboration shapes the development of smart city technologies. It addresses a critical gap in the literature by investigating the roles of both local and global partnerships in driving innovation. Drawing on a negative binomial regression analysis of global patent data, the study evaluates the impact of domestic and international collaborations on smart city innovation. Next, to uncover the underlying mechanisms through which these partnerships influence innovation, the paper combines thematic analysis of interviews with network analysis. The findings identify three key pathways through which collaboration fosters innovation: knowledge transfer and adoption, co-development and experimentation, and standardization and scalability. The study underscores the complementary roles of local and global ties—while local collaborations provide the foundation for implementation, global linkages introduce new ideas and practices that enrich local innovation efforts. The paper concludes with policy recommendations for promoting effective multi-level collaboration in smart city development.

1. Introduction

Amid ongoing economic and technological transformations driven by globalization, cities worldwide are increasingly grappling with complex sustainability challenges that cut across critical urban sectors—including housing, transportation, energy, law enforcement, healthcare, waste management, and climate adaptation. Addressing these interconnected issues requires a holistic approach to urban and socio-economic development—one that systematically integrates economic, environmental, and social dimensions through cross-sectoral collaboration [1]. In this context, smart cities have emerged as a promising framework for fostering sustainable urban futures, leveraging smart technologies alongside coordinated stakeholder engagement.

The smart city concept has evolved alongside urban expansion, shaped by the convergence of advanced technologies, digital communication systems, and the active involvement of diverse urban actors [2,3]. The literature highlights several core dimensions of smart city development, including smart infrastructure, mobility, technology, healthcare, work and living, the economy, the environment, and citizenship—underscoring the importance of both technological innovation and multi-actor collaboration [4,5,6]. Effectively addressing today’s urban challenges through sustainable solutions necessitates the coordinated efforts of multiple stakeholders. Encouragingly, the smart city paradigm is gradually shifting away from a narrow techno-centric and infrastructure-driven model toward a more integrated approach that aligns with sustainability objectives and prioritizes broad-based stakeholder participation [7,8].

At the same time, despite growing interest in the involvement of multiple stakeholders in smart city development, a significant gap remains in our understanding of how stakeholder collaboration—both within and across cities—shapes innovation and sustainability outcomes. While the literature in economic geography and regional innovation systems has long emphasized the value of diverse forms of collaboration—such as citizen engagement, partnerships with knowledge institutions, interdisciplinary cooperation, and public–private partnerships [9]—the specific role of collaboration between domestic and international stakeholders in smart city development remains largely overlooked. Furthermore, the relative importance of global versus local collaborations has yet to be systematically investigated.

The development of smart cities has been markedly uneven across geographic contexts [10]. This variation highlights the need for a deeper investigation into the forms, scales, and intensities of collaboration among diverse stakeholders, to better understand the relational dynamics—and their geographical dimension (local versus global)—that shape smart city initiatives in an increasingly interconnected world. To address this gap, the present study poses the following research question: What is the role of local and global collaborations in advancing smart city innovations?

Research on innovation and regional innovation systems differentiates between local and non-local collaborations, highlighting the important role both play in driving innovation [5,6,11,12]. Our findings indicate that while both local and global collaborations contribute meaningfully, international linkages exert a stronger influence on the development of smart city innovations, whereas local connections provide an essential foundation for implementing new technologies and initiatives within the local context. Building on this, we employ thematic analysis of interviews alongside network analysis to examine the mechanisms through which these collaborations shape innovation within smart city ecosystems. Our analyses reveal three core themes characterizing the collaborative structures influencing smart city innovation: (1) knowledge transfer and innovation adoption, (2) co-development and experimentation, and (3) standardization and scalability. By emphasizing the roles of actors operating both within and beyond city or national boundaries, our findings contribute to the literature on innovation ecosystems and smart cities. Moreover, they offer valuable guidance for policymakers seeking to overcome challenges in implementing smart city innovations through effective collaborative approaches.

The remainder of this paper is structured as follows. The next section reviews the relevant literature to establish the foundation for our arguments regarding the relationship between collaboration and smart city innovation, with a focus on domestic and international partnerships. This is followed by a description of the data and methodology used. We then present the results of our analyses and discuss the key findings, highlighting their implications for fostering collaboration and advancing smart city innovations. The paper concludes by acknowledging its limitations, outlining key contributions, and suggesting directions for future research.

2. Literature Review

Smart cities have emerged as a strategic response to urgent sustainability challenges, including climate change, resource depletion, and unsustainable urban expansion [13]. Developing a smart city framework requires alignment, integration, and collective commitment to the dynamic processes of generating, sharing, and applying knowledge through innovative practices [8]. While much of the existing research on smart cities emphasizes technological advancements, a growing body of work has begun to explore the relational dimension, identifying collaboration as a key factor in the successful development and implementation of smart city initiatives [14,15]. The following subsections review the relevant literature to develop propositions regarding the relationship between stakeholder collaboration and innovation in smart cities. This is followed by our empirical analysis, which provides evidence of the significant role collaborative efforts play in driving smart city innovation.

2.1. Local and Global Collaborations and Smart City Innovations

A smart city is not a self-contained system but rather the product of collective efforts and interactions among actors across various domains [2,12]. Its successful implementation—and the attainment of sustainability goals—depends on the extent to which smart solutions are developed in alignment with the structure and dynamics of collaborative networks [8]. For instance, smart city models that address different challenges require input and cooperation from multiple sectors and often draw on knowledge and resources beyond the immediate smart city network [8]. Similarly, innovation depends on diverse forms of expertise and is strengthened by relationships that extend beyond local boundaries [16].

Bathelt et al. [9] conceptualize this dynamic through the notions of local buzz and global pipelines. Local buzz refers to the informal, often spontaneous exchange of knowledge within a specific geographic area. This interaction—facilitated by face-to-face meetings, labor mobility, and social proximity—promotes trust, mutual understanding, and the rapid diffusion of tacit knowledge, thereby supporting incremental innovation. In contrast, global pipelines denote formal, strategic linkages that connect local actors to distant partners, enabling the transfer of knowledge across geographic boundaries. These connections are essential for introducing new, often radical, ideas and innovations into the local ecosystem. They allow access to external technologies, expertise, and practices not yet present in the local context. However, maintaining global pipelines requires significant effort, including cross-cultural communication, long-term relationship management, and organizational commitment.

Existing research in innovation studies and economic geography shows that the most successful innovation regions do not rely exclusively on either local or non-local mechanisms [17,18] but rather achieve a productive balance between the two [9]. Local interactions support continuous, incremental improvements and play a crucial role in strengthening a city’s absorptive capacity—its ability to acquire, assimilate, and apply external knowledge effectively. Through sustained collaboration, trust-building, and coordinated urban experimentation, local linkages also create the foundation for global partnerships, enabling cities to both contribute to and benefit from international smart city innovation. In contrast, global linkages offer access to diverse and advanced knowledge sources that can drive more radical, transformative innovation. The integration of both local and global mechanisms is thus essential for expanding a city’s overall innovation potential.

However, the relative importance of local versus non-local collaborations may vary across sectors. In areas where radical innovation is especially critical—such as the smart city sector—non-local linkages are particularly valuable for bringing in novel ideas, technologies, and practices. For example, cross-border collaborations can help promote more equitable access to AI-driven solutions in smart cities [12]. Countries that actively participate in international partnerships around AI and smart city development tend to maintain strong ties with both regional and global actors [12], underscoring the growing importance of non-local linkages in shaping innovation trajectories. On this basis, we propose the following propositions:

Proposition 1. 

In the development of smart city innovations, global collaborations matter more than local collaborations.

Proposition 2. 

In the development of smart city innovations, local collaborations act as a foundation for the effective development of global collaborations.

2.2. Collaboration for Knowledge Transfer and Innovation Adoption in Smart Cities

Smart city initiatives offer innovative approaches that leverage advanced technologies and effective data management to tackle the complex challenges associated with rapid urbanization. By integrating digital technologies, smart cities aim to enhance the efficiency and sustainability of urban operations, thereby improving residents’ quality of life. In addition, they use information and communication technologies (ICTs) to promote sustainable economic development, improve environmental outcomes, and strengthen community engagement [19]. However, the success and long-term sustainability of smart city initiatives depend not only on digital transformation, but also on the active engagement and collaboration of a wide range of stakeholders.

Collaboration among actors in smart cities facilitates the sharing of knowledge, expertise, and resources to address pressing urban challenges, co-create context-sensitive solutions, and ensure that smart city strategies reflect both stakeholder priorities and the broader needs and aspirations of local communities [20,21,22]. Smart cities are underpinned by a dual foundation of digital infrastructure and collaborative governance. Their core objectives include improving operational performance, enhancing quality of life, and ensuring long-term sustainability through the strategic deployment of ICTs across urban systems and services [23]. Knowledge-based institutions, in particular, are central to this process, as they possess much of the technical and domain-specific expertise required to achieve both sustainability and smartness. When integrated into collaborative networks, these institutions contribute significantly to a city’s overall innovation capacity [8]. Such networks also benefit from diversity and complementarity—characteristics that are strengthened by intensive interactions among actors and organizations [8]. Domestic collaboration supports the formation of knowledge spillovers, stimulates interactive learning, and enables the development of technologies tailored to local needs [24,25]. As such, effective partnerships among governments, research institutions, private sector actors, and citizens are vital for building and sustaining resilient and adaptive smart city ecosystems [18].

At the same time, cross-border collaborations are becoming increasingly important in shaping the trajectory of smart city development. Cities situated in different geographic and socio-economic contexts can exchange best practices, share research insights, and adapt innovative technologies by learning from one another’s successes and failures [12]. Smart city transformation is driven not only by technological advancement, but also by the creative, collaborative, and context-sensitive application of these technologies [26]. International partnerships play a vital role in facilitating the transfer of knowledge and technologies, boosting innovation and productivity, and enhancing public understanding and awareness of smart city applications [27]. Crucially, collaborations that connect local and global actors serve as a key mechanism for effective innovation adoption. By integrating global expertise with local knowledge and institutional understanding, these partnerships help tailor advanced technologies to the specific needs and conditions of local contexts. This significantly increases the likelihood of successful, scalable, and sustainable implementation. Furthermore, local-global collaboration enables cities not only to adapt global innovations to their own urban ecosystems, but also to scale up locally developed solutions and foster dynamic networks of mutual learning and exchange. In doing so, such collaborations enhance a city’s overall innovation capacity while promoting resilience, adaptability, and inclusivity in smart city development.

Based on the above discussion, we developed the following proposition:

Proposition 3. 

Collaboration between local and global actors is beneficial for knowledge transfer and innovation adoption in smart cities.

2.3. Collaboration for Innovation Co-Development and Experimentation in Smart Cities

Smart cities thrive on multi-stakeholder innovation, which requires robust collaboration and a shared understanding of each stakeholder’s values, technological capabilities, user needs, and the implications of policy shifts [28]. Foundational elements of smart city development include digital infrastructure, interconnected technological systems, and integrated platforms for service delivery [8,29]. At the same time, fostering an open and inclusive environment that promotes knowledge exchange and idea-sharing among stakeholders is essential for activating these components. Such an environment facilitates meaningful collaboration, aligns collective objectives, supports adaptive governance practices, and helps overcome both technical and organizational challenges [28].

Collaboration between diverse stakeholders—including technology providers, government bodies, citizens, and end-users—is thus critical not only for driving urban transformation but also for advancing technological innovation [21]. The adoption of advanced technologies and digital solutions plays a pivotal role in promoting sustainability, resilience, and efficiency within urban systems. Moreover, smart city initiatives offer opportunities to build more inclusive, adaptive, and resilient urban environments that respond to the evolving needs of their populations [30]. However, the successful development of such environments depends on sustained, active collaboration among stakeholders to ensure equitable access to technology and the effective realization of smart city goals [28].

In this context, stakeholder engagement enables cities to operate collaboratively, transforming them into living laboratories or testbeds for emerging technologies [21]. Co-creation—where multiple actors across borders jointly develop and implement solutions—is particularly important for aligning strategic objectives and ensuring the relevance, legitimacy, and scalability of smart city innovations. This approach supports the integration of diverse perspectives and capacities, ultimately enhancing innovation outcomes and contributing to more holistic urban transformation. As such, co-creation and collective experimentation are increasingly recognized as a key component of smart city development, with the potential to generate tangible value for all participating organizations [31].

Based on the above discussion, we developed the following proposition:

Proposition 4. 

Collaboration between local and global actors is beneficial for innovation co-development and experimentation in smart cities.

2.4. Collaboration for Innovation Standardization and Scalability in Smart Cities

Collaboration enables stakeholders to identify local needs, co-develop innovative solutions, and prioritize implementation in ways that ensure smart city initiatives are holistic, inclusive, and supportive of long-term sustainability goals [20]. Within smart cities, multiple domains—such as transportation, energy, healthcare, education, and governance—are deeply interconnected, forming a complex but cohesive environment for innovation and service delivery [17]. To achieve sustainable development across economic, social, and cultural dimensions, smart cities emphasize the efficient use of infrastructure and resources [29]. This, in turn, necessitates cross-boundary activity systems and distributed innovation processes [18], as stakeholders leverage digital technologies to address a wide range of socio-economic and environmental challenges in their jurisdictions [32].

In the context of emerging technologies, cross-border collaboration becomes especially important for establishing shared standards for data exchange, cybersecurity, and technology integration—each of which is essential for effective urban planning and coordinated innovation [12]. The interplay between societal and technological development is critical to ensuring smart city initiatives contribute meaningfully to sustainable development. Amid growing social and spatial complexity, data-driven smart city development offers significant economic and social advantages [3,33].

Indeed, smart technologies and collaborative governance are both fundamental pillars of smart city development [29]. Implementation requires multidisciplinary and multi-level efforts, where collaboration facilitates the distribution and scaling of sustainable innovations [7]. Smart city models grounded in advanced knowledge, cutting-edge digital technologies, and innovative practices often rely on international specialized collaborative networks to achieve sustainability outcomes [8]. Being embedded in such networks strengthens the capabilities of all actors involved, as knowledge exchange is enabled through sustained inter-organizational collaboration [34,35]. Furthermore, close cross-border collaboration between technology providers and end-users ensures that smart solutions are aligned with local needs and aspirations, thus enhancing both stakeholder well-being and the social legitimacy of smart city initiatives [22]. Importantly, collaboration between local and global actors also enhances the scalability of locally developed solutions by connecting them to broader innovation ecosystems, allowing for their adaptation, refinement, and implementation across diverse urban contexts.

Based on the above discussion, we propose the following proposition:

Proposition 5. 

Collaboration between local and global actors is beneficial for innovation standardization and scalability in smart cities.

3. Methodology and Analysis

In this study, we applied a mixed methodology that includes a quantitative analysis of global patent data and a qualitative analysis of semi-structured in-depth interviews conducted with ten smart-city specialists who have experience with Montreal’s smart city development (inventors of smart city patents, managers of organizations involved in smart city development, policymakers working on smart city developments). The purpose of the quantitative analysis is to identify global trends in smart city collaboration and evaluate the effect of domestic and global linkages on smart city innovation development. We evaluated the effect using negative binomial regressions with an inventor’s number of smart city patents as the dependent variable and their number of domestic and global linkages as independent variables. The qualitative analysis zooms in on a specific case of Montreal’s smart city development and presents the mechanisms through which local and global linkages influence smart city innovations. Ten smart-city specialists who have experience with Montreal’s smart city development were asked questions regarding the ways local and global linkages influence smart city innovation. A combination of convenience and snowball sampling was used to select the interviewees; at first, four established specialists in Montreal smart city developments were approached (two from the industry and one from the policymaking), and then they also recommended other specialists to interview. In total, sixteen specialists were approached, and ten agreed to give an interview. As a result, four interviewees are managers in private companies, two are policymakers, two are inventors, one works in an international organization, and one is from an NGO and has experience with public–private partnerships in smart city development. Each semi-structured interview lasted for about an hour (some interviews were conducted in person and some over Zoom) and, while based on an interview guide (Appendix B), also allowed the participants to engage in an open discussion. Ethical approval was obtained in advance from the authors’ institution. Thematic coding with a deductive strategy was used for interview analysis. Three themes pertaining to collaboration and smart city innovations were identified, and interview citations were cataloged in accordance with the three themes: knowledge transfer and innovation adoption, co-development and experimentation, and standardization and scalability. We explain how these themes relate to our findings below. In addition, one of the interview questions specifically asked the interviewees about Montreal’s smart city stakeholders’ domestic and international collaborations to be able to visualize the structure of Montreal’s smart city ecosystem. Among the interviews, there were no outliers, as all the interviewees were smart city specialists well aware of both local and global smart city developments and trends.

3.1. Analysis of Global Patent Data

To conduct this analysis, we searched the USPTO database for patents related to smart cities that were published prior to or in 2024. Therefore, we queried the USPTO corpus (1976–2024) for patents whose abstract contains the exact phrase “smart city”. This yielded a seed set of 1100 unique patents published during the period 1976–2024. We then extracted the CPC patent classification codes of these 1100 patents, including class, subclass, and main group, in accordance with the specification: https://www.uspto.gov/web/offices/pac/mpep/s905.html#:~:text=(B)%20Class%20Symbol%20%E2%80%93%20Each,00%20or%20C07D%20203/02 (accessed on 1 July 2025).

This resulted in the identification of about 250 CPC codes. The list of these codes is added in Appendix A for transparency and reproducibility.

We then conducted a relevance analysis, and out of these 250 codes, extracted the CPC codes that are the most relevant to smart city technologies (these top codes are provided in Appendix A). We used the following approach to identify the top codes:

• Frequency/enrichment screening of rank codes by their prevalence in the initial seed set of 1100 patents;
• Domain screening performed via keyword analysis to retain codes whose scope explicitly aligns with “urban infrastructure, sensing, communications, mobility, energy, and city-scale information systems”.

Next, we used the 30 most relevant CPC codes to filter the full USPTO database and retain only patents that contain at least one of those codes. This resulted in a smart city-related dataset with information on 744,000 patents and about 600,000 authors with the following information:

• Inventor unique identifier (UID);
• Inventor country;
• Patent UID;
• Patent time stamp;
• CPC code;
• Patent title;

Next, we built a collaboration network from the dataset as follows:

• We sorted the dataset by patent UID and created a list of all the inventor UIDs and inventor countries associated with each patent.
• We incorporated that list into the original dataset based on patent UID to end up with a dataset in which each inventor (inventor UID) and patent (patent UID) are linked to all their co-inventors’ UIDs and countries.
• We then sorted this latter dataset by Inventor UID and created the following variables:

  ○

  Inventor UID;

  ○

  Inventor country;

  ○

  Number and list of patents authored by inventor UID;

  ○

  List of domestic linkages by inventor UID;

  ○

  List of global linkages by inventor UID;

  ○

  Inventor min date (the date of the earliest patent found for a given inventor UID);

  ○

  Inventor max date (the date of the latest patent found for a given inventor UID);

  ○

  Inventor span = inventor max date–inventor min date, in months.

Figure 1 below illustrates the relationship between the number of smart city innovations and the number of countries the focal inventor collaborates with. It demonstrates that the number of patents increases significantly with an increase in international collaborations.

Figure 2 presents the histogram of patents per inventor, on a log-log scale, to make this distributional pattern explicit. This visualization indicates concentration near 1–2 patents, with a small number of prolific inventors accounting for the high end of the distribution. Case-by-case analysis of different countries shows that the same distribution occurs in every country, indicating that prolific inventors are not concentrated in one specific country.

Afterward, we conducted negative binomial regressions (since our dependent variable is a count variable) with an inventor’s number of smart city patents as the dependent variable and the number of domestic collaborations and international collaborations as independent variables. We controlled for the span of time that the inventor has been publishing patents (in months), as well as the last year of patent publication, since the topic of smart cities is a rather new field and those inventors who published more recently may have higher chances of developing smart city patents. We used the nbreg command in STATA that fits a negative binomial regression model for a nonnegative count dependent variable.

Table 1. Correlations and summary statistics.

	Number of Patents	Domestic Linkages	Global Linkages	Inventor Span	Inventor Last Year of Patent Publication
Number of patents
Domestic linkages	0.2685
Global linkages	0.5631	0.2351
Inventor span	0.4028	0.1964	0.4148
Inventor’s last year of patent publication	0.1379	0.2029	0.1370	0.1808
Mean	3.302262	4.806028	1.225867	31.91591	2015.363
S.D.	8.080304	6.452837	0.5916368	58.43059	9.022488

presents correlations, means, and standard deviations. It gives a preliminary indication of the existence of a positive association between our dependent and independent variables.

Table 2. Negative binomial regression results.

Variables	Dependent Variable: Number of Patents Coefficients and Standard Errors
Domestic linkages	0.047 *** (0.0002)
Global linkages	0.152 *** (0.001)
Inventor span	0.008 *** (0.00002)
Inventor’s last year of patent publication	0.015 *** (0.0001)
Number of observations	640,624
LR chi2(4)	600,279.13
Prob > chi2	0.0000
Log likelihood	−1,191,277.9
Pseudo R2	0.2012

Note: *** denotes significance at the 1% level

presents the results of the analysis.

The analysis indicates that both domestic and global collaborations have a significant positive impact on smart city innovations. At the same time, the test of difference in coefficients indicates that there is a significant difference between the impact of domestic linkages and that of global linkages (chi2 = 4768.80; Prob > chi2 = 0.0000), with global linkages having a stronger impact on smart city innovations. These results support Proposition 1. The following subsections analyze the mechanisms through which domestic and international linkages influence the dynamics of smart city innovation. The discussion first delineates recent global trends in smart city development and subsequently examines the case of Montreal, with particular attention to the ways in which collaborative networks shape innovation trajectories within the smart city context.

3.2. Smart City Best Practices Across the Globe and the Case of Montreal

As cities around the world grapple with urbanization, climate change, infrastructure strain, and social inequality, smart city initiatives have emerged as strategic responses to these complex challenges. However, the success of such initiatives depends not only on technological innovation but also on the adoption of globally recognized best practices that ensure inclusivity, sustainability, and effective governance.

Foundational best practice in smart city development is the implementation of people-centered and participatory governance models. This ensures that smart technologies are deployed to meet real citizen needs rather than being driven solely by vendor interests or top-down policy. For example, the Smart Seoul Portal in South Korea has been critically assessed as a model for cooperative, participatory, and networked governance when compared with other cities like Amsterdam, Barcelona, and Singapore [36]. Another example is the role of institutional and technological innovation in enhancing participatory e-governance in Korean smart city programs, which can help foster inclusion and trust in digital government platforms [37].

Actionable use of urban data is another critical best practice. It is not enough for cities to collect data—they must also develop the institutional capacity to interpret and apply it to decision-making. In Helsinki, Finland, the development of Mobility-as-a-Service (MaaS) was supported by strong regulatory frameworks and multi-level governance approaches [38]. Implementation of MaaS in the Helsinki region also shows how interpretative flexibility among stakeholders can enable or constrain innovation, depending on alignment between actors [39].

Environmental sustainability and climate resilience remain at the heart of successful smart city efforts. While some well-established models like Curitiba, Brazil’s integrated transport and green urban design, are often cited historically, newer examples like Amsterdam’s MX3D smart bridge highlight how sensor-embedded infrastructure can support environmental monitoring and public engagement through open data [40].

Smart mobility solutions are among the most visible and measurable smart city interventions. Helsinki’s MaaS platform allows seamless trip planning and payment across multiple transport modes and serves as a model of integrated digital mobility [38]. Further, the use of Bluetooth sensors and GPS-enabled apps in Helsinki has allowed city planners to capture and analyze multimodal transport behaviors for better service planning [41].

Another emerging best practice is the creation of interoperable, modular smart infrastructure that allows for scalability and flexibility. The Amsterdam Smart City SDK project is a strong example, offering shared digital tools and APIs for use across European cities in areas such as mobility, tourism, and citizen participation (https://waag.org/en/project/smart-citysdk/ (accessed on 18 May 2025)). These tools demonstrate how smart infrastructure can be co-developed and adapted to local needs while ensuring compatibility.

Inclusivity and equity are increasingly recognized as essential for the legitimacy and effectiveness of smart city initiatives. Institutional and technological adaptations that allow citizens—including marginalized populations—to actively engage with digital governance platforms are critical [37]. This is supported by governance studies showing that consistent stakeholder engagement, transparency, and service accessibility are central to building trust in smart city systems [36].

Finally, successful smart cities demonstrate a capacity for continuous learning and adaptation. The governance of platforms like Seoul’s Smart City Portal shows how stakeholder feedback, iterative design, and public accountability mechanisms can improve service effectiveness and responsiveness [36]. Similarly, Helsinki’s approach to MaaS reveals how adaptive governance frameworks are necessary for aligning technology with long-term urban sustainability goals [38].

Therefore, the most effective smart city strategies are not defined by specific technologies but by the practices and values that guide their application. Key among these are participatory governance, data-driven decision-making, environmental sustainability, smart mobility, modular infrastructure, social inclusivity, and adaptive governance. As urban challenges intensify globally, the ability of cities to learn from each other while adapting to their unique circumstances will be crucial in shaping inclusive and sustainable urban futures.

We use Montreal as a case study to validate our remaining propositions, as all the described elements of smart city best practices can be found in Montreal. First, Montreal is constantly improving its position in the global smart city ranking. It has been investing heavily in open data portals to ensure the development of people-centered and participatory governance. For example, the mission of the Quartier de l’innovation in Montreal is to foster innovation through experimentation and collaboration between academics, entrepreneurs, and residents, generating benefits for society. Similarly, the Conseil de l’innovation du Québec regularly organizes different events to bring people together to share knowledge and facilitate collaboration.

Montreal has also been developing smart transportation systems, such as its bike-sharing system BIXI and its smart traffic management system, which uses real-time data to optimize traffic flow and reduce congestion (https://bixi.com/en/?gad_source=1&gad_campaignid=12374867659&gclid=CjwKCAjw9anCBhAWEiwAqBJ-c0pe0PNQfbE63vB5B14IY6Uf3uMvuQmpMjl7EXRzSUEpr8Y_f8BIMBoCIJYQAvD_BwE (accessed on 5 May 2025)). Second, Montreal places a strong emphasis on sustainability with initiatives like its Montreal Urban Ecology Center that aims to reduce the city’s carbon footprint and promote green spaces (https://projetmontreal.org/en/news/la-ville-de-montreal-accelere-le-verdissement (accessed on 5 May 2025)). Third, Montreal is home to a thriving tech industry and many startups and companies specializing in areas like artificial intelligence (AI), clean tech, and internet of things (IoT) solutions. Finally, Montreal has also been recognized for its innovative approach to urban planning and projects like its smart city initiative that aims to make the city more livable, efficient, and sustainable through the use of technology and data. Montreal also won the Government of Canada’s Smart Cities Challenge (https://housing-infrastructure.canada.ca/investments-investissements/stories-histoires/comm-cul-rec/montreal-qc-eng.html(accessed on 16 May 2025)), a competition that encouraged cities to use technology to improve livability, workability, and sustainability, and used the prize money it received to fund additional smart city initiatives (https://www.viasmartcities.com/smart-city-montreal/ (accessed on 16 May 2025)). Moreover, Montréal ranked among the 2024 Smart City Index’s top 100 smart cities globally for its economic and technological progress, quality of life, environment, and inclusiveness (https://blog.mtl.org/en/montreal-ranks-top (accessed on 16 May 2025)). The annual Smart City Index assesses urban settings that apply technology to enhance the benefits and diminish the shortcomings of urbanization for their citizens.

3.3. Structural Features of Montreal’s Smart City Ecosystem and Domestic Collaborations

We start by presenting the structure of Montreal’s smart city ecosystem network based on interviewees’ responses about the main ecosystem actors and their linkages. Data from interviews (the names of the stakeholders and the names of their main partners, as well as locations), were transferred to UCINET software and the network was created via NETDRAW sub software in UCINET. Figure 3 presents the ecosystem network. If actors collaborate with actors from predominantly one city in a given country (e.g., Barcelona in Spain), we put the name of the specific city. If they collaborate with actors from multiple cities, then we put the name of the country.

Figure 3 reveals important structural features of Montreal’s smart city ecosystem. The ecosystem is a diverse and collaborative network that involves government bodies, academic institutions, private companies, and community organizations. At the heart of the ecosystem is the City of Montreal (Ville de Montréal), which leads urban digital transformation through its Smart City Office and the Urban Innovation Lab. These entities coordinate initiatives related to open data, digital services, urban planning, and citizen engagement. The City of Montreal also collaborates with the Communauté métropolitaine de Montréal (CMM), a regional authority that addresses issues affecting the broader metropolitan area, such as transportation, sustainability, and infrastructure development. Another important actor in Montreal’s smart city ecosystem is academia. It plays a vital role in shaping the city’s smart initiatives.

Institutions like Université de Montréal (UdeM), McGill University, École de technologie supérieure (ÉTS), Concordia University, and HEC Montreal contribute through research on AI, engineering, urban sustainability, and ethical digital governance. Research centers such as Mila and SphereLab, which are part of UdeM, and IVADO (Institute for Data Valorization), which is a joint research group developed in partnership with Polytechnique Montréal, HEC Montréal, and UdeM, are especially influential and help to position Montreal as a global tech hub that sits at the intersection of tech and smart city development. Mila is a leading Quebec AI institute, and SphereLab focuses on research that investigates how environments contribute to population health profiles by exploring how urban environment interventions impact health and social health inequalities. IVADO focuses on the development and promotion of robust, reasoning, and responsible AI. It aims to bridge academic expertise and industry needs by fostering innovation that addresses societal challenges. It also works on accelerating Quebec’s digital transformation by catalyzing progress in research related to big data and decision-making.

The private sector also adds significant momentum to the ecosystem. For simplicity, we group private firms (startups and big companies alike) together in one “private sector” node in our ecosystem diagram. Montreal boasts a strong community of startups, including companies like Transit, Local Logic, and Potloc, that develop data-driven solutions for mobility, urban analytics, and citizen engagement. These startups often receive support from innovation incubators and accelerators, such as Centech (created by ÉTS), District 3 (created by Concordia University), and Zú (created by Cirque du Soleil founder Guy Laliberté), that provide access to resources, mentorship, and collaborative spaces for scaling new urban technologies. Large multinational firms, including IBM, Microsoft, Google, ServiceNow, and Fujitsu, also have a presence in the ecosystem and collaborate with public and academic actors. For example, the City of Montreal collaborates with the Canadian branch of Fujitsu, a leading Japanese ICT company. In 2021, the City deployed Fujitsu’s AI-enabled data analysis platform to optimize the flow of traffic in its port district by streamlining the synchronization of approximately 2500 traffic lights using real-time sensor and camera data.

Civic organizations and community groups are also important members of Montreal’s smart city ecosystem. They ensure that Montreal’s smart city development remains inclusive and accountable. Organizations like Living Lab Cité champion public participation in technology governance. In parallel, social innovation spaces like the Maison de l’Innovation Sociale experiment with co-creation models that prioritize the voices of underserved communities.

Overall, Montreal’s smart city ecosystem is characterized by very high cohesion, which indicates a strong culture of local collaboration. It integrates cutting-edge research, entrepreneurial energy, public leadership, and active civic participation to create a smarter, more equitable urban environment. Our analysis indicates that Canadian collaborations are an important part of Montreal’s smart city ecosystem. In our diagram of the ecosystem (Figure 3), the small blue nodes represent local ecosystem members and the medium-sized black nodes indicate the locations of Canadian partners. Most Canadian partners are located in Toronto. For example, UdeM collaborates with institutions in Toronto on smart city technologies through several strategic partnerships and research initiatives. In 2023, UdeM and the University of Toronto jointly received over CAD 300 million in federal funding for AI. UdeM’s share supports IVADO. UdeM’s partnership with the University of Toronto and Polytechnique Montréal aims to modernize transportation modeling by focusing on integrating advanced modeling techniques in urban mobility planning to assess and predict transportation demands and behaviors in order to enhance planning. These collaborations reflect a commitment to advancing smart city technologies and sustainable urban development through partnerships between institutions located in Montreal and Toronto. As another example, the living lab Cité collaborates with Rimouski through an open innovation laboratory based at the Cégep de Rivière-du-Loup. This partnership focuses on developing and testing innovative solutions to address digital and educational inequalities in Quebec, particularly in underserved areas.

3.4. Global Collaborations

The large yellow nodes in Figure 1 represent international collaborations—more specifically, the locations of local ecosystem members’ international partners. Most international partners come from France, the U.S., and Japan. One example of an international collaboration is McGill University’s active participation in the Horizon Europe program, particularly its smart city-related initiatives. In 2024, Canada became an associated country of the Horizon Europe program, which enables Canadian researchers, including those at McGill University, to lead and join collaborative projects pertaining to Horizon Europe’s Pillar II: Global Challenges and European Industrial Competitiveness. This pillar encompasses thematic clusters that are directly relevant to smart city development, such as climate, energy, and mobility; and digital, industry, and space. McGill University also actively engages in collaborative research with Indian institutions on smart city initiatives, with a focus on sustainable urban development, infrastructure resilience, and digital health. As another example given by several interviewees, Infinitii AI, a Montreal-based company that specializes in machine learning and AI-driven analytics, has partnered with several U.S. cities to incorporate smart infrastructure solutions (data monitoring and predictive analytics) in urban infrastructure. The company has been awarded contracts by both the City of Montreal and the CMM for smart infrastructure projects.

3.5. The Impact of Local and Global Collaborations on Smart City Innovations

The analysis of interviews highlighted three major themes that characterize the collaborative structure of a smart city ecosystem—mechanisms through which collaborations influence smart city innovations. They are explained below.

3.5.1. Knowledge Transfer and Innovation Adoption

The interviewees indicated that global linkages connect smart city developers with international partners and enable them to import cutting-edge technologies—such as AI-based traffic optimization or green infrastructure—from global leaders like Japan, the U.S., or the EU.

For example, the City of Montreal’s collaboration with Global Traffic Technologies enabled it to gain valuable experience deploying advanced smart mobility systems such as transit signal priority and emergency vehicle preemption solutions. As interviewee 3 indicated, “This partnership really helped [local engineers] to engage in hands-on learning, gain technical skills, and insights how to integrate new technologies with existing infrastructure.” The City of Montreal also benefits from real-time traffic data and performance analytics that allow for data-driven decision-making and more effective urban traffic management. By observing how these systems improve transit efficiency and emergency response, the City better understands how smart technologies can support broader sustainability and mobility goals. Additionally, the collaboration helps to shape future policy and infrastructure strategies while building the City’s capacity to manage complex public–private partnerships with international technology firms. This knowledge and these ideas are then filtered through local networks, where local firms, researchers, and governments adapt them to fit Montreal’s urban context, regulatory frameworks, and social norms.

Another example mentioned by interviewees is the collaboration between Moment Factory, a Montreal-based multimedia studio, and various international partners to develop the “Living Connections” lighting project for the Jacques Cartier Bridge. This project involved integrating big data with LED lighting systems to create dynamic, real-time light displays on the bridge, and made the bridge the first “connected” bridge in the world. The project was executed in partnership with many local and international collaborators, including Philips Lighting (Netherlands) that provided over 2000 programmable LED lights for the dynamic lighting effects; Lumenpulse (Montreal) that supplied high-performance luminaires that were crucial for the project’s lighting design; and Jacques Cartier and Champlain Bridges Incorporated (Montreal) that managed the project, oversaw its implementation, and ensured compliance with infrastructure standards, showcasing Montreal’s leadership in innovative urban design.

Another example is the partnership between Montreal-based 8D Technologies and U.S.-based Motivate, a leading U.S. bike-share operator. As interviewee 6 mentioned, “this collaboration combined 8D’s expertise in wireless bike station terminals, RFID bike dock technology, and software systems with Motivate’s extensive experience in operating bike-share programs across North America. Together, and with broader collaboration of Montreal stakeholders such as the City of Montreal, Montreal research institutes and other organizations, they enhanced the development and deployment of bike-sharing systems and promoted sustainable urban mobility in Montreal and used Montreal experience to implement similar solutions in other cities.”

All the interviewees indicated that international collaborations are crucial for gaining access to new and critical knowledge and ideas, while dense domestic networks are necessary to absorb this knowledge, adapt it, and generate new innovations. As interviewee 1 indicated, “All the countries are now trying to foster tight collaborations within a county enhancing domestic network. For example, there are many initiatives on behalf of different levels of government to homogenize smart city trajectories across Canadian cities and solidify domestic networks. Therefore, there is a lot of similarity in Canadian approaches. Now, the source of new approaches and ideas is international networks, but they will not develop without solid domestic base.”

As interviewee 4 mentioned, “local collaborations foster trust among stakeholders and help to ensure that the ideas borrowed [from external environments] are sustainable and aligned with local priorities and regulations.” Local collaborations are paramount in supporting capacity building by facilitating knowledge transfer and leveraging local expertise to address city-specific challenges, and ultimately making imported smart city strategies more relevant and impactful. Interviewee 8 indicated that “local network is important for absorbing new ideas from…international collaborations. If the local network is not dense and agile, this will block new idea and knowledge transfer, because no matter how great the ideas borrowed from external environments are, there is no collective fabric, no basis to implement them at home.”

Interviewee 2 added “strong Canadian local network is critical for being able to benefit from global collaborations. The fact that Montreal has a strong collaboration corridor with Toronto and other cities ensures that things learned from global partners are transferred on a pan-Canadian scale and helps with more even urban development at a country level.”

3.5.2. Co-Development and Experimentation

Domestic linkages facilitate real-time experimentation and iteration with stakeholders (e.g., municipal agencies, tech startups, and citizens). Global collaborations capitalize on this and expand this by enabling joint R&D projects, often between organizations facing similar challenges (for example, climate resilience, mobility, or urban infrastructure). Involving stakeholders—such as citizens, local governments, and businesses—ensures that technologies are designed with inclusivity and usability in mind. It builds trust, incorporates different perspectives, and results in solutions that better meet the needs of the community. Meanwhile, global co-development connects cities and developers around the world and encourages knowledge sharing, standardization, and the adoption of ethical practices. This collaborative effort ensures that smart city technologies are not only locally relevant and socially accepted but also scalable and aligned with international norms. Together, these elements create a strong foundation for building smarter, more sustainable, and inclusive cities.

Montreal serves as a compelling example of how local experimentation, stakeholder interaction, and global co-development can drive the evolution of smart city technologies. As interviewee 10 mentioned, “through initiatives like this [the Montréal en commun project], the city enables a collaborative environment where community organizations, residents, municipal authorities and external collaborators co-create solutions to urban challenges. This approach has led to the development and testing of innovative mobility and food security solutions…and it is important to note that technologies are tailored to the specific needs and contexts of Montreal’s diverse neighborhoods.”

Montréal en commun is a pioneering urban innovation initiative led by the City of Montreal that aims to reimagine urban life through collaborative experimentation. The project was launched as part of the Smart Cities Challenge and secured a CAD 50 million federal grant to implement community-driven solutions to improve mobility, food access, and municipal governance. The initiative brings together a wide variety of organizations, including non-profits and educational institutions, and local residents, to co-create and test innovative solutions. Its focus is on addressing local challenges through hands-on experimentation and fostering a culture of innovation that is both inclusive and responsive to the needs of the community.

One of the Montréal en commun initiative’s projects is Mobilité de Quartier, led by the organization Solon. With a CAD 3.2 million investment from the City of Montreal, this project aims to rethink local mobility by reducing single-occupancy vehicle trips and promoting sustainable transportation options. It emphasizes citizen participation in reshaping transportation practices at the neighborhood level. Through Montréal en commun, the city is setting a global example of how urban innovation can be driven by community engagement and collaborative problem-solving. The initiative not only addresses immediate urban challenges but also builds a foundation for a more sustainable and inclusive urban future.

Montréal en commun is part of broader smart city networks in which cities share findings and tools. This enables Montreal to learn from and contribute to a global dialog about inclusive, data-driven urban development. As interviewee 5 stated, “Montréal is part of the Open & Agile Smart Cities network, a global coalition of over [one] hundred and fifty cities across more than thirty countries where local and external stakeholders work together to develop what we say interoperable, scalable and sustainable smart city solutions.” This network emphasizes the use of open standards, open APIs, and shared data models, which help cities avoid being locked into proprietary technologies and instead collaborate on urban challenges like mobility, energy use, and public service delivery. Through its participation in Open & Agile Smart Cities (OASC), Montreal contributes to and learns from a shared pool of best practices, tools, and pilot projects. For example, its work involving urban mobility data through the Montréal en commun initiative aligns with the OASC’s goals and allows the city to collaborate with others, such as Barcelona or Helsinki, that are tackling similar issues. This kind of global engagement ensures that Montreal’s smart city strategies are not only locally grounded but also globally informed and future-ready.

Another example of local-global co-development is Montreal’s smart street lighting project. For this initiative, the city partnered with local companies like Dimonoff and Énergère, as well as the Israeli firm Telematics Wireless, which supplied the T-Light Pro™ system that offers a robust wireless mesh network for communication between lighting nodes and central management software. Additionally, the U.S.-based company Current by GE contributed to the deployment of LED luminaires and control systems. This collaboration resulted in the modernization of over 100,000 streetlights across Montreal with LED technology and the implementation of an intelligent lighting management system. This collaboration not only improved energy efficiency, operational control, and public safety but also set a precedent for interoperability by integrating technology from multiple providers into a single scalable platform.

These projects underscore the importance of integrating local insights with global expertise to develop smart city technologies that are both innovative and contextually relevant. By engaging stakeholders at all levels and embracing collaborative development, Montreal exemplifies how cities can harness technology to create more sustainable, inclusive, and resilient urban environments.

3.5.3. Standardization and Scalability

Global pipelines are crucial for ensuring smart city solutions align with international standards (e.g., for data interoperability, cybersecurity, or sustainability metrics), which helps local innovations scale beyond their original settings. Conversely, local ecosystems test and validate standards in real-world conditions and contribute feedback that shapes global frameworks—creating a two-way influence.

Interviewer 6 gave an example specific to PBSC Urban Solutions: “First starting from Montreal’s BIXI bike-sharing program, PBSC Urban Solutions has then significantly expanded its global footprint through strategic collaborations with international firms. These partnerships have been instrumental in aligning Montreal’s smart city standards sustainable urban mobility with international practices.” For instance, PBSC partnered with Tembici, a Brazilian company that specializes in bike-sharing systems, to deploy advanced bike-sharing solutions in Buenos Aires and Santiago. This collaboration involved the installation of over 4000 ICONIC bikes and over 3000 FIT bikes, along with over 700 solar-powered smart stations across both cities. The project aimed at providing residents with state-of-the-art urban mobility options to enhance their quality of life and promote sustainable transportation. This partnership exemplifies how Montreal’s innovations are being adapted and scaled in a variety of international contexts. PBSC also entered into a joint venture with Ferrovial, a renowned infrastructure and services operator, to revolutionize electric urban mobility in Barcelona. The partnership involved deploying over 7000 bikes, including 1000 electric pedal-assist BOOST e-bikes, across the city’s 10 districts under a 10-year contract. This initiative was part of Barcelona’s Bicing bike-sharing network that aims to integrate sustainable mobility solutions into the city’s urban fabric. The collaboration highlights PBSC’s commitment to aligning with global smart city standards and practices.

PBSC (now known as Lyft Urban Solutions) has installed over 280,000 bikes and 13,000 stations across fifty cities worldwide. This expansion has facilitated the adoption of Montreal’s bike-sharing model in various urban settings and promoted sustainable mobility practices.

Interviewee 9 highlighted that “Thanks to active collaboration of local firms with international firms and international organizations, and remarkable contributions to global standardization, in 2024, Montreal became the headquarters for MobilityData’s Global Community Engagement Unit.” This international organization develops open data standards such as the General Transit Feed Specification, which is widely used for public transportation data. This initiative, which is supported by the Canadian and Quebec governments as well as the City of Montreal, aims to enhance global mobility through standardized data formats.

The interviewees also gave examples of how best practices from other cities are transferred to Montreal via global collaborations. For instance, in 2023, Montréal launched a smart corridor pilot along the Notre-Dame Street East corridor in partnership with Kapsch TrafficCom, a global smart mobility technology provider based in Austria. This project brought in a traffic management system already tested in other international cities. It uses real-time video analytics, connected vehicle data, and AI to detect accidents, congestion, or abnormal events at intersections and along major routes. By implementing this system, Montreal imported advanced traffic control capabilities, such as incident detection and dynamic traffic signal adjustments, that had been previously deployed in places like Madrid and Buenos Aires. This illustrates how cities can accelerate smart mobility innovation by partnering with globally experienced firms and adapting existing tools to their own urban context.

4. Discussion

In this paper, we examine the relationship between local and global collaborations and the development of smart city innovations, and we identify the mechanisms through which these collaborations shape innovation outcomes. Global collaborations are becoming increasingly important for smart city development, particularly as urban challenges and technological solutions often extend beyond regional and national boundaries. These partnerships not only enhance local innovation capacity but also help cities gain international visibility. Our findings identify three key mechanisms that characterize the collaborative structure of smart city ecosystems and shape innovation processes: knowledge transfer and innovation adoption, co-development and experimentation, and standardization and scalability. These insights contribute to the smart city literature by highlighting the importance of inter-city and cross-border stakeholder dynamics, and to the innovation ecosystem literature by shedding light on the roles of actors operating both within and beyond individual cities in advancing technology and innovation.

Smart cities have emerged as a strategic response to a range of economic, social, and political challenges, with the goal of ensuring long-term sustainability through smart technology integration and collaborative governance [21,42]. Consistent with prior studies [33,43], our research confirms that knowledge sharing among stakeholders facilitates innovation and supports key urban objectives such as enhanced quality of life, operational efficiency, and economic and environmental sustainability. Local and domestic collaborations help smart city actors leverage the existing capabilities and resources within their regional ecosystems. At the same time, we show—drawing on the example of the Smart Corridor project discussed earlier—that global collaborations enable local actors to access external resources, knowledge, and technologies through international networks, thereby improving the quality and impact of services provided to the community. These joint efforts help ensure that technologies are not only locally grounded and socially accepted, but also scalable, transferable, and aligned with international standards.

Smart city initiatives aim to enhance citizens’ well-being by delivering improved services, ensuring safety, and promoting livable environments—objectives that rely heavily on the integration of diverse stakeholders and the fostering of innovation. In line with recent research on smart cities [18,28], our findings underscore the importance of collaboration for operational efficiency and innovation. Complex urban issues such as traffic congestion and pollution cannot be solved by any single actor alone. Addressing these interconnected challenges requires coordinated, cross-sectoral, and cross-border collaboration, enabling stakeholders to pool their complementary resources and expertise, including data, advanced technologies, infrastructure, financial capital, and human talent [8,29]. Furthermore, in line with existing studies [34,35], we show that collaboration supports capacity-building by facilitating mutual learning and the diffusion of knowledge through shared networks.

Smart city development presents opportunities to generate both economic and social benefits [3] (Myeong & Shahzad, 2021). Consistent with prior research [14,15], our findings highlight that effective collaboration is fundamental to building smart cities that are both successful and sustainable. For instance, our analysis shows that partnerships between government agencies and private companies can harness private sector innovations and resources to enhance public services. Likewise, collaborations between universities, research institutions, and businesses play a key role in driving technological advancement and developing cutting-edge solutions. Moreover, involving citizens in the planning and implementation of smart city initiatives helps ensure that these projects are responsive to local needs and priorities, thereby increasing their social legitimacy and long-term impact.

Cities today serve as dynamic hubs for advancing science, technology, and innovation, and increasingly act as key organizing frameworks for promoting long-term sustainability [44]. Within this context, smart cities are viewed as processes of social innovation aimed at fostering sustainable and inclusive urban development [7,20,22]. This study investigates the relational mechanisms that underpin smart city ecosystems. Smart cities harness information and communication technologies (ICTs) to build more efficient, adaptive, and sustainable urban environments [13]. As Gracias et al. [17] emphasize, digital technologies, communication systems, and data analytics are used to enhance the delivery of public services, improve quality of life, and support sustainability goals. Additionally, smart cities rely on advanced technologies to optimize infrastructure performance, enabling the provision of higher-quality services while fostering sustainable economic development [17,45]. The integration of ICTs into urban systems enables more efficient resource management and supports long-term sustainable development. Therefore, increasingly, cities are adopting strategies that position ICTs as central tools for advancing sustainability objectives [20,46]. However, the effectiveness of smart technologies largely depends on a clear understanding of stakeholder interests and priorities, as well as strong collaboration among all involved parties [13]. When strategically and effectively implemented, these technologies contribute to the creation of sustainable urban ecosystems that are aligned with broader economic, environmental, and social goals [12,43].

Cross-border collaboration and the adoption of technology in smart cities enables actors to learn from others’ experiences and innovations and then adapt them to their local contexts, allowing for rapid response to change and more efficient challenge resolution [29]. According to Mills et al. [47], sustainable achievement of smart city objectives depends on the capacity to exploit technology, to innovate, and to collaborate. Implementing cutting-edge technologies and digitization is fundamental to smart city development [30], as is relying on cross-boundary activity systems and distributed innovation processes [18,22]. However, beyond technology, we need trust, robust data privacy and security, and clear mutual understanding among all stakeholders about one another’s values, the technologies in use, user needs, and the implications of policy changes; and we must ensure that all stakeholders have meaningful roles in decision-making [28].

Collaboration among diverse domestic actors within smart city ecosystems is vital for driving innovation and progressing development. The effectiveness and depth of collaboration are shaped by strategic alignment and shared objectives among stakeholders [5,6,11,28]. Cross-sector partnerships greatly enhance the sustainable implementation and long-term success of smart city technologies [4,12]. Moreover, collaborative approaches help mitigate challenges arising from geographic and jurisdictional fragmentation [43]. They provide fertile ground for innovation by incorporating actors with creative ideas and diverse perspectives [27]. Locally, some actors bring specialized knowledge and distinct capabilities, intervening in creative processes in ways that allow new knowledge to transcend local levels [25]. At the same time, cross-border collaborations expand perspectives and resources, fostering global advances in resource management and urban sustainability [12].

In recent decades, cities around the world have increasingly adopted the smart city framework to harness digital technologies in pursuit of sustainable urban solutions. However, as urban challenges grow more complex and priorities continue to evolve, a more integrated approach has become essential—one that connects information, knowledge, technology, society, and governance processes in a cohesive system. Our analysis shows that both local and global collaborations are critical and serve complementary functions in fostering innovation. Global linkages facilitate the transfer of new knowledge, practices, and technologies into the local context, while also helping align local efforts with international norms and standards. At the same time, domestic collaborations provide a foundation for the development of global collaborations and strengthen a city’s absorptive capacity—its ability to interpret, adapt, and apply external knowledge effectively—thereby enabling the successful development and implementation of smart city innovations.

Policy Recommendations

It is recommended that policymakers devise initiatives to strengthen stakeholder collaboration within cities, across urban regions, and internationally, as this can lead to more effective, inclusive, and sustainable urban development. Policymakers in various organizations, cities, and regions can take measures such as establishing bilateral or multilateral agreements; creating platforms and organizing events to bring local and global actors together for information sharing; and developing targeted policies to support specific technologies and innovations in smart city development. For example, in Montreal, our analysis shows that the Ville de Montréal plays a vital role in helping global companies establish their operations in the city through concrete programs. At the same time, institutions like the Conseil de l’innovation du Québec and the Quartier de l’Innovation coordinate collaboration between global actors and local stakeholders to foster technological innovation and development.

Collaboration—and a clear understanding of stakeholders’ values, the technologies involved, and the potential impact of policy changes—helps actors navigate the challenges of multi-stakeholder innovation in smart city projects [7,19]. Our findings also demonstrate that local collaborations provide an essential foundation for global connectivity. Thus, cities that are currently lacking strong smart city innovation capacity should first focus on deepening local connections among stakeholders, then seek international partners. Starting with global connections without strong local networks often hampers the transfer of knowledge from foreign partners into the local context.

Finally, our method for identifying smart city innovations—along with the comprehensive list of Cooperative Patent Classification (CPC) codes provided in Appendix A—offers a valuable resource for both policymakers and researchers aiming to better measure and monitor innovation in the smart city domain. By using our set of 250 CPC codes, or the top 30 most relevant codes, policymakers can assess the technological strengths and innovation potential of specific regions. This classification system allows for a more targeted analysis of smart city-related patents and provides a replicable framework for evaluating the development and diffusion of smart technologies. Policymakers can use this tool to inform strategic decisions, benchmark their city’s innovation performance, and identify areas for investment, collaboration, or policy intervention.

5. Conclusions

The smart city concept—centered on the integration of advanced technologies and data-driven solutions—aims to create more sustainable, efficient, and livable urban environments. Achieving these goals requires close collaboration among governments, local stakeholders, and a wide range of organizations to design and implement effective sustainability policies. This study offers empirical evidence that collaboration among diverse stakeholders domestically and especially internationally is positively linked to the advancement of smart city innovations. We identify three key themes that define the collaborative structure of smart city ecosystems and influence innovation: knowledge transfer and innovation adoption, co-development and experimentation, and standardization and scalability.

Our findings underscore the importance of global connectivity in bringing in new ideas, knowledge, and practices that can catalyze innovation at the local level. At the same time, strong domestic networks provide the foundational capacity to absorb, adapt, and implement externally sourced innovations, thereby enhancing a city’s absorptive capacity. Effective communication and collaboration between actors are essential for successfully integrating technologies into the sustainable management of urban systems. These insights can support policymakers in fostering cross-border and cross-sectoral collaboration and designing smarter, more adaptive planning strategies.

While smart city initiatives present significant opportunities, they also face challenges—such as data privacy, cybersecurity, and system fragmentation—that can hinder effective technology deployment. Addressing these barriers requires not only ensuring interoperability across technologies and platforms but also nurturing a culture of cross-disciplinary and multi-stakeholder cooperation.

This research has several limitations. Firstly, our analysis of global patent data was constrained by the variables available in the USPTO database. Future studies could expand this by utilizing additional databases to explore the influence of other factors—such as economic or organizational variables—on smart city innovations. Secondly, the linkage mechanisms we identified are based on the case study of Montreal require further exploration. Subsequent research should investigate whether these mechanisms are applicable across different geographic and socio-political contexts. Such comparative studies will be crucial to deepening our understanding of the collaborative dynamics essential for sustainable urban transformation. Thirdly, future research could employ alternative methods to analyze smart city best practices and experiences—for example, by reviewing secondary data such as city administration records and policy documents. Finally, as this study focused on a specific sector within smart cities, it would be valuable to examine whether the findings hold true in other innovation sectors.