Smart cities are created by the convergence of two great currents of modern thinking about city and urban development: on the one hand redefinition of the city through communication technologies, digital networking and its representation, and on the other hand the understanding of the city as an environment creativity and innovation.
The term smart cities is used to describe areas (cities, regions, city districts, clusters) where the local innovation system is supported and upgraded through digital networks and applications. By using information and communication technologies, the innovation system gets more depth and scope, and its functions become more transparent and effective. The city gains in a capacity for innovation, which translates into competitiveness and prosperity. Two key components of smart cities are: