Smart Economy

Nils Balke views the city through an economic lens: The transformation into a smart city is first and foremost technology-driven, says the professor of controlling, investment and finance, "but technology is not an end in itself; it must provide benefits." Environmental and social aspects must be taken into account, but financial ones as well. Smart cities offer many opportunities for exciting new business models, Balke explains. I myself find regional online marketplaces quite attractive as a business idea. We have a large group of people who want to support their local businesses.

Being a controller, it is of particular interest to him to control the smart city economically. He sees the city as a network of institutions, individuals, companies and other players. Ideally, I reduce transaction costs through cooperation, explains the economist. Standardized processes reduce frictional losses. That said, how do you coordinate the players and what control and incentive systems can be put in place?

It appeals to me to apply the economic methodology from companies to the city, says Balke. Outside the industrial sector, he offers his expertise in the further development of controlling structures in cultural institutions. We want to provide cultural institutions with tools that allow them to transparently present their economic situation, adapt their financial plans for exhibitions, performances and events flexibly, and identify risks in order to create an improved basis for project decisions.