Smart City System as a Catalyst for Business and Government Development

In recent years, there has been a growing recognition of the impact of “Smart Cities” and other topics related to increasing people's living standards in cities. Although much of the research has focused on the direct link between the technologies and services that the state can provide and the needs of residents, little attention has been given to the willingness of people to use the services. The essence of the "e-readiness" index in smart cities is the desire of residents and their technical literacy, which can be measured by collecting and analyzing data from questionnaires of responses. Generally stated, this paper explores the process of implementing the "Smart City" system and considers possible positive effects and damages from the interaction of the state and business. The literature review and secondary data analysis model shed new light upon the current approaches to implementing the system in Europe, Africa, and Russia. The results suggest that addressing the risks posed by the innovation sector can lead companies and governments to address a variety of challenges without attracting additional investment. The implications for future studies and recommendations for the Russian Federation are discussed.