There is an obvious correlation between the size of city and municipal budgets and their ability to strategically plan and implement Smart City development initiatives. This follows from a study by the Innovation Center of the Ústí Region conducted in relation to the readiness of municipalities in the region to benefit from the Just Transformation OP in 2023. Larger cities and municipalities have a more significant budget per capita and a more robust administrative background, which leads to better conditions for strategic decision-making in the development of urban areas. However, it also has its BUT!

While a larger population means a wider range of development needs and problems, which require a solution, and thus the need for greater diversification of project initiatives, it is not guaranteed that a higher number of projects automatically leads to a higher level of development. This is where it comes into play small municipalities that may be more flexible in some cases in their decision-making and cooperation in the preparation of projects.

The study further pointed out that the connection between the size of the municipality and the number of projects is not entirely direct; larger municipalities may be aware of the greater importance of some areas and show a higher level of preparedness, but this is not always the rule. Smart environmental, energy and social projects can provide rural areas with the means to reduce these disparities compared to larger cities.

And what is the level of project readiness among the surveyed municipalities? Total participated in the study 160 municipalities. From that 114 municipalities to 999 resident a 46 municipalities over 1000 inhabitants. The data show that approx 20 % municipalities had no projects ready in 2023 nor specifically defined plans for development. Alarming 40 % municipalities signaled a relatively low level of preparedness. This indicates that they need more support and resources to strengthen their planning skills.

On the other side of the spectrum, I guess 30 % municipalities achieved a slightly higher level of preparedness, but most of them were still not ready in 2023 or were not actively working on the preparation of projects in any specific area. Only 10 % municipalities could state with certainty that they have most of the projects either ready or participates in the preparation, or has clearly defined plans for their implementation.

An interesting finding is also the fact that municipalities with a population exceeding 1,000 showed a higher degree of preparedness. On the contrary, smaller municipalities often showed a lower level of preparedness, suggesting that the size of the municipality may play a key role in the ability to prepare and implement development projects.

The readiness of municipalities to implement development projects is shown in the chart below. The scale on the graph shows the distribution of municipalities according to their level of readiness, from those with no projects to those with a high level of readiness, revealing that most municipalities are in the middle of the spectrum with room for improvement.

A summary of the main results from the mapping:

• The larger size of cities and towns is associated with a greater readiness to implement development projects. Larger municipalities have a more significant budget, both in absolute numbers and per inhabitant, as well as a larger administrative background, which is reflected favorably in the conditions for strategic decision-making in the area of municipal development.
• With a higher population, the spectrum of development needs and problems expands, which need to be addressed and this may lead to the need for greater diversification of project initiatives.
• However, it cannot be assumed that a greater number of implemented projects in larger cities and towns automatically means a higher level of development. Smaller municipalities can in some cases show a higher degree of flexibility in decision-making and cooperation in the preparation of development projects.
• The connection between the size of the municipality and the number of projects is not entirely clear, although larger municipalities are aware of the greater importance of the areas and show a higher level of preparedness.

The information obtained can serve as a basis for strategic decisions and development planning in various municipalities and territories, they can also be used for regional management within the region, especially in the context of the objectives of the Just Transformation Fund. Smart environmental, energy and social projects present an opportunity for rural municipalities to close the gap with cities.

It is possible to withdraw from the study read here.

The study was implemented thanks to the support of the Smart Accelerator project for the Ústecký Region III, registration number CZ.02.01.02/00/22_009/0004316.