Tech and digital: Smart City strategy frozen and startup ecosystem weakened

A strategic sector for the future of Brussels

The technology and digital sector is a growing pillar of the Brussels economy. With approximately 40,000 direct jobs and an ecosystem of over 1,200 startups, Brussels has positioned itself as a digital hub in Europe. The presence of European institutions and international organisations strengthens the Region's attractiveness for technology companies.

The sector depends on several regional mechanisms: the Smart City strategy, digital inclusion subsidies, startup incentives managed by Innoviris and hub.brussels, and the digitalisation of public services.

Since 9 June 2024, the caretaker regional government can no longer take new structural decisions in these areas.

Smart City strategy: an interrupted vision

The mechanism

Brussels' Smart City strategy aimed to integrate digital technologies into urban management: smart mobility, data management, connected public services, digital citizen participation. This framework plan defined investments and priorities to make Brussels a smart and inclusive city.

What is blocked

Under a caretaker government, no new strategic initiatives can be launched. In practice:

• No new smart city projects (urban sensors, open data, participatory platforms)
• No adaptation of the plan to rapid technological developments (artificial intelligence, cybersecurity)
• No new public-private partnerships in the digital domain
• No funding for new regional digital infrastructure

Source: Brussels-Capital Region, Smart City plan; hub.brussels, digital economy observatory, 2025.

Digital inclusion: vulnerable populations left waiting

The stakes

Brussels has a significant proportion of residents in situations of digital vulnerability: elderly people, low-skilled individuals, newcomers. Regional digital inclusion programmes fund training, public digital spaces and support schemes.

What is frozen

• No new calls for projects for organisations active in digital inclusion
• No expansion of public digital spaces in disadvantaged neighbourhoods
• No adaptation of programmes to new needs (mandatory online administration, post-COVID digital divide)
• No strengthening of partnerships with CPAS/OCMW social welfare centres and municipalities

Grassroots organisations such as BeCode report a growing need for digital training that existing resources cannot meet.

Source: BeCode, activity report 2024; King Baudouin Foundation, digital inclusion barometer, 2025.

Startup incentives: a weakened ecosystem

The context

The Brussels startup ecosystem developed thanks to a range of regional instruments: pre-activity grants, Innoviris innovation premiums, hub.brussels support, and Region-backed incubators.

Consequences of the freeze

• No new programmes for innovation support adapted to current technological trends
• No revaluation of grant and premium amounts against inflation
• No new agreements with incubators and accelerators
• No regional strategy for attracting international technology talent

Innoviris continues to fund projects approved before June 2024, but cannot launch new large-scale calls for projects.

Source: Innoviris, annual report 2024; hub.brussels, Brussels startup barometer, 2025.

Digitalisation of public services: modernisation on pause

Brussels' regional administrations had begun an extensive digitalisation programme. Under a caretaker government:

• New digitalisation projects (single digital window, regional digital identity) are suspended
• Major IT public procurement cannot be launched
• Digital training for civil servants is limited to existing programmes
• Interoperability between the systems of different Brussels administrations stagnates

Source: CIRB (Centre for IT for the Brussels Region), activity report 2024.

What continues to function

Technology companies

Technology companies established in Brussels continue their activities normally. The private digital market is not directly affected by the caretaker government, although the absence of an active regional policy reduces the territory's attractiveness.

University research

Brussels universities continue their research programmes in artificial intelligence, cybersecurity and big data. Projects funded by European programmes (Horizon Europe) are unaffected.

Existing digital services

Regional digital platforms and services already deployed continue to function with existing maintenance budgets.

Impact on the ground

The freeze on regional mechanisms has concrete consequences for the digital sector:

• Weakened startup ecosystem: without new incentives, Brussels startups are disadvantaged compared to Flemish and Walloon ecosystems
• Widening digital divide: vulnerable populations lack training and support
• Technological lag: the Smart City strategy falls behind other European capitals
• Declining attractiveness: international digital talent turns to regions offering more active support

Outlook

The Brussels digital sector has structural assets: the European presence, a quality university pool, cultural diversity conducive to innovation. But these assets are not sufficient without an active regional policy of support and development.

Each month without a regional digital strategy represents accumulated delay compared to cities such as Amsterdam, Berlin or Lisbon, which are investing heavily in their digital transformation.

Main sources: Agoria, report on the Belgian digital economy 2024; Innoviris, annual report 2024; hub.brussels, economic observatory; BeCode, activity report 2024.