Germany: Procuring Smart City Solutions Through GovTech

This chapter explores the role of GovTech in advancing smart city solutions across Germany, focusing on innovative procurement practices and their impact on smart city digitalization. Smart cities aim to enhance citizen-centric governance and operational efficiency without overhauling existing infrastructure. However, the complexity of smart city technologies often exceeds in-house capabilities, creating dependencies that challenge digital sovereignty. GovTech—technology-based collaboration between public and private sectors—offers a solution by enabling governments to procure tailored, innovative solutions. This chapter examines procurement challenges, from legal constraints to lengthy timelines, and highlights innovative approaches like agile procurement, experimental clauses, and public–private partnerships. Case studies from Germany, including communal initiatives like GovTech Tage, Hamburg’s venture clienting model (GovTechHH), and Dataport’s inter-federal platform, demonstrate best practices in leveraging GovTech for scalable, efficient, and citizen-centric solutions. National efforts like the GovTech Campus further emphasize the importance of ecosystem building and co-creation. Concluding with best practice recommendations, we advocate for proactive market research, fostering ecosystems, and adapting procurement frameworks to support GovTech adoption as a benefit for both smart cities and GovTech companies.