Are you a Proactive city?

One that really helps local business?

Here are the five Dimensions to Build Innovation

in a Proactive Municipality. and do it fast.

About the international report

Digitalisation of SMEs
in the Mediterranean region

Today, 99% of businesses are micro, small and medium Sized Enterprises and only 1% are large

Small-Medium Enterprises (SMEs) are usually less innovative, find it difficult to reinvent themselves, and often do not have the budget that is at the disposal of larger organisations. 

Yet, they are the core of the economy.

When they are innovative and strong, they create more jobs, reduce production expenses, grow profitability, adapt their business model to the ecosystem, and increase their access to sources of finance.

Their success in overcoming the digital and innovation obstacles is not only a task for business owners, but for society at large, and for local authorities’ mayors in particular. The role of local government leaders is to help businesses overcome five main obstacles and promote local solutions
The report was written by the Israeli Mayor of Ganei Tikva, Ms. Lizzy Delaricha, together with Mr. Nir Koren, CEO & Founder at “Buildinn Innovation Consulting & Technology”, and the Foreign Relations Administration of the “Federation of local authorities in Israel”.

Organizing Framework

Why Is It so Important?

When the local authorities mayors request to make a change, they face numerous challenges,

one of which is the ability to correctly identify how to lead the process.

To do this properly, four stages should be followed.

1. Why?

Studying and understanding the obstacles faced by local authorities, especially when it comes to helping businesses enter the digital world. To do this right, we must understand why the change is necessary and what needs it creates. Only then it is possible to move to the next stage

2. What?

The next step in the path to create a change in a local authority, before managing the process itself, is to define the desired results and the expected strategy.​

3. Who?

The third stage in the change process is to clearly define the stakeholders. The ability to understand who will be affected by the change and who will be involved is critical for continuity (possible entities that may be involved are the local authority, the government, businesses, entrepreneurs, donors, the public at large, and others).

4. How?

The fourth step in the process towards innovation has to do with the How. How can we implement the process successfully? How will we do it and get businesses to move towards digital? How can we ensure continuity? And how can we promote an ongoing implementation of the program that creates value and can be properly measured?

The order of the stages is critical. Only by beginning with the Why will the local authority be able to ascertain throughout the process that it is working towards a realizable goal, rather than choose a path in advance and then try to justify its rationale.

our methodology

The five main Dimensions

5 Dimensions
18 Possible Obstacles
19 Solutions
10 Steps

After answering the 4 questions above, barriers can be found in five dimensions. The five main dimensions that local authorities must take into consideration to promote digitalisation among its businesses are:

A significant aspect in the promotion of businesses towards innovation and digitalisation demands understanding what the commitment of the local authority towards those businesses is. And more then that, whether it is a driving or an immobilizing force. The first two dimensions ( this one and the one after it) deals with the ability of the local authority to effect a structural change, that focuses on legislation, regulation, and on creating fast or hindering tracks.
Another major aspect is the ability to define a specific issue where the municipal ecosystem should focus. The more the local authority is able to define a specific area it wants to lead at the regional, national and global level, the easier it will be to enlist important players, help promote innovation and online transformation, with an emphasis on the core topics selected.
The third aspect focuses on the ability to identify different groups in the municipal arena, empower them and understand their needs. This enables to better find the required skills, those things that enable a city to operate better, and to create empowering social partnerships that can reinforce the relationships between businesses in the city.
Once the right infrastructure and the players in the ecosystem are in place, and the groups are empowered, the fourth dimension is to help SMEs drive innovation. Here the local authority wears the hat of innovation-enabler.
The fifth dimension has to do with the connections and communications between the players. We surveyed this dimension that creates a good regulatory framework, obstacles that may be related to the mapping of players in the ecosystems, understanding of the needs of the different groups, and the ability to lead businesses to venture into the digital world. The last group of obstacles in this dimension focuses on the ability to create more connections between the players themselves.

10 steps for mayors

How Is It Actually Done?


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