Digitalization, Online Services, and Entrepreneurial Environment in the Italian Smart Cities’ Transition

Cities are facing increased dynamism due to rapid technological development, digitalization, and citizens’ requirements, creating novel opportunities for smart city transformation. If, until a few years ago, the city’s development from a smart perspective was an opportunity, today, it has assumed a predominant character on a social and economic level. This study investigates the evolution of the online service implementation in cities over the years and its impact on the entrepreneurial environment. Using panel data based on 20 Italian cities for 11 years period ranging from 2011 to January 2022, this paper evaluates the online services’ evolution and implementation using cluster analysis to identify two clusters (cities in transition and developed). Moreover, we performed a predictive validity analysis to identify the relationship between the clusters and the entrepreneurial environment. The results show that, at the emergent stage of the digitalization process, the development of the city’s smartness was important to have an advantage over other cities; today, the implementation of smart city services is essential to create a favourable local environment for the development of entrepreneurial opportunities.