European cities must be smarter with their money and legal systems to develop into ‘smart’ cities.

A recent report found that funding is a significant challenge in upgrading ‘smart’ European cities.

Governments must create adequate legal systems that keep up with the pace of technological innovations, say lawyers at Osborne Clarke, who commissioned the report.

It says uncertainties around existing legal systems and a lack of funding, are holding back the growth of smart cities.

Smart cities could include things like intelligent transport – where they provide better informed transport systems, making them more efficient and ‘smarter’ to use.

More than 95% of people surveyed believe that regulations should be introduced to support collaboration across different markets. And 79% say there should be a minimum standard for sustainable construction of new buildings.

Simon Beswick, CEO of Osborne Clarke added: “The issues of funding and regulation are linked: investors, whether public, private, or joint public-private partnerships, will need much more comfort that regulations will support, rather than thwart, the new technologies.”

• Europe, Osborne Clarke, smart cities