Ted Hayduk, Michael L. Naraine

“Smart cities” and their value to regional development are emerging as a popular discussion topic. Within that context, some work has proposed that constructing high-tech “smart stadia” can ostensibly have innovation ripple effects in the surrounding locale. Yet, that proposed relationship has not been empirically verified. This study used a sample of 291 technology firms in California between 1990 and 2019 (N = 8,344) to build models of firm (a) innovation and (b) innovation effectiveness in the fiscal quarters before and after the opening of five professional sport stadiums in the San Francisco Bay Area. The estimation procedure found that firms located near new professional football, baseball, and basketball stadia decreased innovation before the venues’ opening by about $63.1 million (USD) in total. These firms saw no change in productivity but recorded increases in market performance after the venues opened. Ice hockey and soccer stadia did not induce fluctuations in firms’ innovation or innovation effectiveness. Findings suggest stakeholders consider more optimal resource allocation policies if they wish to propagate smart city development.

Keywords: smart cities, sport innovation, firm performance, urban development, facilities

Citation: Hayduk, T., & Naraine, M. (2025). Do “smart stadia” create innovation ripple effects? An investigation of new stadium development and local technology firms. International Journal of Sport Management, 26(3), 315-347.

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