The emerging field of public/private partnerships (P3s) was at the forefront of discussions on building cities of the future during the eGOV Summit, part of the 4th annual eMerge Americas tech conference held last month in the Miami Beach Convention Center. The conference brought together more than 15,000 attendees including government officials, urban planners, innovators, investors and other stakeholders from North America, Latin America and Europe.

A P3 model can be used to create incentives for private innovation that can benefit the public sector. Private firms are often comfortable absorbing risks in exchange for potential returns, and risks can be strategically allocated to the private sector in a manner that encourages innovation. For example, a private firm that is made to bear the risk of low ridership on a mass-transit system will have an incentive to incorporate the latest innovations to improve the ridership experience, such as coordination with “last mile” services such as Uber, Lyft, and bike- or scooter-sharing options.