Firms located in smarter cities present higher level of profitability. We use IESE Cities in Motion index (ICIM), as a proxy to compare smart cities, as well as the key indicators in representing an urban area as a smart city, for 11 most populated cities in the US. We find that firms located in smarter cities are more profitable: on average a 1% higher ICIM of a smart city results in a 0.13% higher profitability of firms located in this city.

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Keywords Smart City, Profitability, Social Cohesion
Conference SCE 25th International Conference on Computing in Economics and Finance (CEF)
Citation
Memarian, M. (2018). Firm’s Profitability in Smart Cities. Will be presented in SCE 25th International Conference on Computing in Economics and Finance (CEF) in Ottawa, Canada, June 2019. Presented at the SCE 25th International Conference on Computing in Economics and Finance (CEF).