*4.2. The Firms Network 4.2. The Firms Network*

In the case of cities, following the same criteria, we have identified pairs of corporations that share their presence in at least three cities (Table S4). Telefónica is the company with more presence in this list, participating in five out of 14 pairs, followed by Endesa, with four pairs. Other companies such as Acciona, Iberdrola or Philips are present in three pairs. Accordingly, these companies are also those with more shared participations in cities, and they are particularly associated with each other. For instance, the pairs Acciona-Iberdrola, Telefónica-Acciona and Telefónica-Endesa all share a presence in four cities. This evidence suggests interesting conclusions about the corporate network of Smart City projects in Spain. On the one hand, most presences in the same city correspond mostly to multinational Spanish capital firms, while foreign capital corporations tend to share their presence in RECI's member cities with a Spanish multinational. It must be noted here that the case of Endesa, which was acquired by the Italian Enel in 2009, could be seen in this sense as a strategy pursued by multinational firms to gain access to new markets by acquiring local companies. Thus, in all cases, most companies are well-established multinational firms, either with Spanish or foreign capital. This would call into question the expectation that Smart City networks would foster the participation of local and medium-to-small companies. On the contrary, big firms seem to enjoy greater structural advantages from the network. On the other hand, this pattern could also indicate that participating in this network offers foreign firms a mediated access to the growing Spanish Smart City market. In the case of cities, following the same criteria, we have identified pairs of corporations that share their presence in at least three cities (Table S4). Telefónica is the company with more presence in this list, participating in five out of 14 pairs, followed by Endesa, with four pairs. Other companies such as Acciona, Iberdrola or Philips are present in three pairs. Accordingly, these companies are also those with more shared participations in cities, and they are particularly associated with each other. For instance, the pairs Acciona-Iberdrola, Telefónica-Acciona and Telefónica-Endesa all share a presence in four cities. This evidence suggests interesting conclusions about the corporate network of Smart City projects in Spain. On the one hand, most presences in the same city correspond mostly to multinational Spanish capital firms, while foreign capital corporations tend to share their presence in RECI's member cities with a Spanish multinational. It must be noted here that the case of Endesa, which was acquired by the Italian Enel in 2009, could be seen in this sense as a strategy pursued by multinational firms to gain access to new markets by acquiring local companies. Thus, in all cases, most companies are well-established multinational firms, either with Spanish or foreign capital. This would call into question the expectation that Smart City networks would foster the participation of local and medium-to-small companies. On the contrary, big firms seem to enjoy greater structural advantages from the network. On the other hand, this pattern could also indicate that participating in this network offers foreign firms a mediated access to the growing Spanish Smart City market. The firm network (Figure 3) shows the prominent role of Telefónica and Iberdrola in terms of

The firm network (Figure 3) shows the prominent role of Telefónica and Iberdrola in terms of betweenness, followed by Acciona, Tecnalia, Iberdrola and Endesa. With the exception of Endesa (probably having to do with its acquisition, mentioned above), all correspond to Spanish multinational firms, which is consistent with the idea that they play a key role as gateways for international companies to enter the Spanish market. betweenness, followed by Acciona, Tecnalia, Iberdrola and Endesa. With the exception of Endesa (probably having to do with its acquisition, mentioned above), all correspond to Spanish multinational firms, which is consistent with the idea that they play a key role as gateways for international companies to enter the Spanish market.

**Figure 3.** Inter-firm networks. Node size is based on betweenness centrality in the network. A tie **Figure 3.** Inter-firm networks. Node size is based on betweenness centrality in the network. A tie between nodes means they have at least two cities in common.

between nodes means they have at least two cities in common. Their capacity for mediation is confirmed when analyzing the specific scores for the main firms in the list, as displayed in Table S5. Telefónica and Iberdrola display higher measures not only in betweenness but also in the other two measures of centrality (in-degree and closeness), confirming their prominent role as fundamental nodes in the network. The other corporations appear in different positions for each centrality measure. Acciona and Endesa have similar in-degree scores, but Endesa Their capacity for mediation is confirmed when analyzing the specific scores for the main firms in the list, as displayed in Table S5. Telefónica and Iberdrola display higher measures not only in betweenness but also in the other two measures of centrality (in-degree and closeness), confirming their prominent role as fundamental nodes in the network. The other corporations appear in different positions for each centrality measure. Acciona and Endesa have similar in-degree scores, but Endesa appears before Acciona with regard to closeness. Tecnalia, for example, has more betweenness than Endesa. These variations suggest that, in terms of hierarchies, there are remarkable levels of inequality,

appears before Acciona with regard to closeness. Tecnalia, for example, has more betweenness than

and the Gini score of betweenness confirms that a small set of companies concentrate most of the intermediary role.

Thus, the firm network offers two interesting conclusions. Some companies combine a relatively high level of connections with a low brokering capacity. We find this situation in multinational companies such as Philips, which could suggest that participating in the network is a way of accessing the Spanish Smart City market. As the participation of multinational companies is mediated by local multinational firms, this presence does not provide them with a brokering capacity. Conversely, some companies have relatively low levels of connections but a relevant betweenness capacity, suggesting that they act as strategic hubs in the network because of their specialization (like Tecnalia, a technological corporation mostly focused on applied research) and even regardless of their origins, if they have been established in Spain for a long period of time (the case of IBM).
