Smart City Institute asked for an interview about the final solution of the Smart City Competition 2024. Startup Innovation Catapult is a project by the city of Brno. It aims to enhance the performance of innovative solutions. It helps startups and scale-ups collaborate with local governance and city companies. This unique model of gradual testing and scaling bridges the gap between businesses and governance. It aims to overcome barriers such as legislation, scalability, and multiple solutions testing. The catapult allows up to 10 startups to participate at once. The winning solution can achieve up to 35 times the original proposal’s expansion.
In an interview with Jakub Rybář, Head of the Cooperation and Development Department of the Brno City Municipality, and Jaroslav Petrák, a city innovation specialist, we focused on the catapult’s operation principles and the benefits it brings to startups and the city. We also discussed funding methods, sharing results, and the impact of this project on the future of innovation in public administration. The project is not only an opportunity for innovative companies but also an important step towards more efficient and open public administration.
Q: What led you to establish the Startup Innovation Catapult, and what problem were you trying to solve?
At the city level, we have been dedicated to innovation policy for 15 years. We started in 2009 under limited conditions. Although we have come a long way since then, one problem remains – connecting the business world with public administration. There is an imaginary wall between these worlds, built on legislation, caution, and mutual distrust. Businesses often perceive public administration as inflexible and overly bound by processes, while public administration fears the risks associated with innovation. This discrepancy led us to create the innovation catapult – a space where these two worlds can safely meet, experiment, and collaborate.
The basic idea is that the city takes on the risks associated with the first contact between startups and city companies. Instead of startups and public institutions collaborating directly, the city acts as an intermediary. This creates a safe environment for testing and implementing innovations. Startups get the opportunity to present their ideas and test them in a real environment. City companies can try out new technologies without fear of failure or bureaucratic obstacles.
The catapult operates in three phases. First, ten startups test their solutions on a smaller scale. Half of them advance to the next phase, where they expand the implementation. One selected project gets the chance to realize its solution on a larger scale. This way, it gains references and the possibility of scaling in the market. Meanwhile, the city verifies the benefits of the given solution.
This approach has another dimension. During the process, startups become partners, not just suppliers. They receive feedback that allows them to improve and adapt their products. Public administration can define its needs and problems, which brings real added value. The catapult connects business with community needs, which is rare.
Our goal is not only to support innovation but also to change the approach to business. We want it to be not only profitable but also meaningful. Public administration ceases to be merely a consumer of ready-made solutions. It becomes an active player in their development. This way, we can more effectively address real community problems while creating space for the growth of innovative companies.
Q: The Innovation Catapult is a great opportunity for startups because it lowers the risk during development. How does it work, and what benefits does it bring to startups?
Startups often face significant risks in the early stages of development. The catapult reduces this risk by allowing startups to gain direct contact with potential customers, represented by city companies. This lets startups test and adjust their solutions in a real environment, which is a key benefit of this scheme. Besides access to the local public administration market, startups also open up the potential for expansion into other European markets where public administration operates similarly.
Another advantage of the catapult is speed. Public administration often operates slowly, which is a crucial problem for startups. They work with limited resources, and any delay can be fatal. In the catapult, the process is designed to avoid unnecessary delays between phases. Startups immediately know whether they are advancing to the next phase or not and can quickly adapt. This eliminates the “wasting time” typical of public administration.
Q: How do you select startups and what standards must they meet?
The selection of startups is based on cooperation with partners like the South Moravian Innovation Centre, CzechInvest, and the Chamber of Commerce. These partners help identify suitable startups for the program. A long list of potential participants is created, from which ten companies are selected for the first phase of the catapult.
The process ensures that startups undergo a real test of their scalability and readiness. The ten selected companies get the chance to verify their solution in the first phase. Half of them advance to the second phase with expanded implementation. Finally, one company gets the opportunity to realize its solution on a larger scale.
The goal is not only to select the best solution but also to support the cooperation of startups and public administration as equal partners. This way, startups gain crucial feedback and real experiences that help them adjust and improve their products. The catapult thus becomes a tool for overcoming traditional barriers between the business world and public administration. It supports not only innovation but also new approaches to business.
Q: Should they be local companies?
Yes, we primarily focus on companies with headquarters or branches in Brno and its surroundings, or within the broader area known as #brnoregion. The idea is to make Brno a center that attracts startups for development and cooperation. If a startup from Pardubice, Liberec, or Prague were to apply, the distance and transportation costs would likely be demotivating.
Geographical proximity is also significant for project efficiency. Startups and city companies can collaborate better when they are in the same location. Personal contact and quick communication play a key role. Greater distances mean increased costs, which startups often cannot or do not want to bear.
We also want startups to have the motivation to invest in the project beyond just financially. This is usually easier for companies with ties to the region, considering it their natural environment.
Q: Can you describe the phases of the program from initial testing to scaling the winning solution?
The Innovation Catapult program is divided into three key phases. These phases allow for the gradual testing and development of innovative solutions in a real environment.
First Phase – Testing: In this phase, the basic functionality of the solution is tested on a small sample over a short period, such as one month. The goal is to determine whether the solution works in practice and has the potential to be expanded. Pilot projects help startups identify shortcomings and adapt the solution to real use. If a startup finds its solution requires significant adjustments, it will not proceed further without investing additional resources. They may reapply later with an improved product.
For example, one testing project measured CO₂ levels in schools to improve air quality in classrooms, which significantly affects students’ cognitive abilities. Another project involved caring for urban greenery in the Brno Technology Park. By monitoring trees using artificial intelligence, it was possible to prevent the felling of 60 trees, bringing both ecological and financial benefits. These examples show the practical advantages of collaboration between startups and public administration and the need for further scaling.
Second Phase – Scaling: Successful solutions advance to the second phase, which involves a longer period and a broader testing environment. Here, the focus is on scaling, such as deploying the solution across an entire city district or its long-term evaluation. The longer period allows for deeper analysis of results and a better understanding of effectiveness.
Third Phase – Realistic Deployment: In the final phase, the solution is tested under conditions very close to real operation. This phase involves significant project expansion and building trust between the startup and public administration. The solution is deployed over a year in an environment where the city company can evaluate it based on real results. Such collaboration often leads to gaining references and opportunities for further growth of the startup, such as securing additional contracts or certain bank financing.
This process allows public administration to overcome initial fears of innovation and ensure that the final solution is safely ready for implementation. At the same time, it gives startups space for iteration and ensures the long-term sustainability of their products.
Q: How do you secure funding for all phases of the program, and what role do external partners play?
Funding for all phases of the program is currently fully covered by the budget of the city of Brno. However, we are also considering using European grants. For example, we have submitted a project to the European Urban Initiative call, which includes ten runs of the Innovation Catapult scheme.
Even without external funding, the program is designed so that startups and city companies invest time and energy into collaboration. This represents natural co-financing. Thanks to this scheme, startups do not have to face the challenges associated with regular public procurement. The catapult eliminates the burden of the traditional procurement process. This makes it easier for startups to get involved and removes barriers associated with their participation in the selection process.
Overall, the program combines effective funding with an approach that supports the long-term development of innovations.
Q: Data and results are to be publicly available. How do you plan to share them, and will they be usable in further innovations?
Absolutely. All case studies are always publicly available, either through partner organizations or directly from us. We want to ensure that the data and experiences gained from the Innovation Catapult can serve as inspiration and a basis for further innovations, not only in Brno but also in other cities.
As part of Brno Trade Fairs, a live laboratory platform – Brno Living Lab – is already being created. This platform provides space for testing and presenting innovations in a real environment. The large area, which is unused for 100 days, is a great opportunity for testing solutions. We would like to incorporate the Innovation Catapult scheme into this initiative. The catapult would allow for a controlled way to support companies whose goal is to offer solutions for public administration, for which public administration is a natural and ideal customer.
We also plan to present the results and data at the URBIS Smart Cities Meetup fair. At this event, we reflect on the activities we have managed to achieve in the field of innovation over the past year. This event is an ideal opportunity not only to summarize the successes of the past year but also to make contacts and discuss future development. During the fair, we will be ready to answer questions and share available data that can serve as a basis for further projects.
Many thanks to Denisa Přichystalová, Kateřina Tomášová and Petr Tomáš from Smart City Institute.
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