How LA & DC Invest in Innovation

Los Angeles and Washington, D.C., both received high rankings in a recent survey of digital programs across the country

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What Happened?

Los Angeles and Washington, D.C., both received high rankings in a recent survey of digital programs across the country. These cities and many other municipalities are focusing more money and resources on innovative technologies to strengthen their economies and improve efficiency.

LA

The e.Republic Center for Digital Government survey ranked Los Angeles as the top city in the country for digital innovation in 2014. The researchers recognized a variety of Los Angeles’ tech-related projects when setting the rankings including:

  • Expenditure data portal
  • Modern 311 service platform
  • Refurbished computer program
  • Utility department’s digital platforms
  • Open data architecture

Furthermore, in 2013 the city launched the Cyber Intrusion Command Center to protect public agencies from cyberattacks. The command center has already proven its worth by blocking a Trojan horse that steals files and holds them ransom for a fee, MyFoxLA reported.

To keep innovation a top priority, Los Angeles has created a $1 million Innovation Fund to support any groundbreaking ideas from city workers. The fund will be run by the Innovation and Performance Commission and encourage creative problem-solving by employees in all sectors of the city’s government.

All year long, city employees can submit ideas for funding through the program. The proposals are reviewed by managers, the Innovation and Performance Commission and members of city council before the winning ideas are selected for funding. The program was inspired by a Parks and Recreation Department employee who came up with an idea to make facility air conditioning systems more efficient, Government Technology reported.

DC

To free up capital to fund tech innovation, the District of Columbia has created a capital gains tax cut for certain tech companies. The capital gains tax rate for investments in qualifying long-term tech companies was lowered to 3 percent for at least two consecutive years, down from the regular rate of 8.95 percent. The new rate will go into effect in 2019, The Washington Post reported.

The overall goal of the capital gains tax cut to tech companies is to nurture growth of the industry within the District of Columbia. Nearby states such as Virginia and Maryland offer lower capital gains tax rates, which could pull some companies and investors out of D.C. Local officials are hoping to attract and retain tech companies, tech-savvy workers, investors and innovative startups to help make the city the leading technology hub on the East Coast, The Washington Post reported.

Tech Cohort

Nashville, Louisville and Philadelphia have joined forces to create a technology cohort to develop innovative solutions that better aid underserved, low-income communities. The three cities will implementing tech-driven solutions throughout neighborhoods in need, while receiving assistance from municipal innovators and $3 million in technical assistance and consulting, Governing reported.

The 18-month program is designed to test technology solutions that will boost government services for low-income residents. The programs include:

  • Louisville: Leverage its innovation toolkit to provide services to residents with mental illness and substance abuse
  • Nashville: Combat homelessness through affordable housing and economic opportunity
  • Philadelphia: Assist low-income residents in accessing benefits and tax relief

The cities will work together, share ideas and resources, and identify best practices.

Pushing Innovation to the Front of the Line

Gov1 has reported on the top tech trends for cities, most of which include a strong focus on innovating government agencies.