Smart Institutions for Smart Cities

Smart cities employ creativity of the population for innovations supporting social and economic development. In this context, this paper explores the role of framework conditions on special supply effects of university hospitals, which can invite further research institutions for intense collaboration, thereby stimulating innovations. The case study, comparing a hospital in Russia with one in Germany, is based on the concept of the employment multiplier. The results show that exogenously given, but, more importantly, also modifiable framework conditions lead to large differences regarding the employment multiplier. Thus, it should be the concern of smart cities to make smart use of their institutions, such as university hospitals, by adjusting the conditions, under which they are operating. © 2018 Institute of Physics Publishing. All rights reserved.