The Impact of Geopolitical and Social Factors on the Formation of Smart Cities and Digital Economic Policy

Abstract

The formation of smart cities remains one of the most significant strategic objectives in contemporary urban governance, particularly in regions where geopolitical conditions are fragile and volatile, and where social factors are deeply intertwined with local governance systems, economic structures, and societal values. This study examines how geopolitical and social conditions influence the conceptualization, spatial configuration, and technological development of smart cities. Particular emphasis is placed on the mechanisms through which regional and local governments respond to geopolitical shifts by planning and implementing digital economic policies, simultaneously employing them as instruments to foster urban resilience and innovative development.
The research focuses on countries such as Romania, Bulgaria, Moldova, Serbia, Hungary, and Georgia - regions currently undergoing active digital transformation, striving to align their economic policies with modern standards while simultaneously engaging in complex geopolitical processes.
The presented study is based on an interdisciplinary analytical framework that integrates economic - mathematical modelling techniques, case study analysis, and theoretical approaches from the fields of urban studies, international relations, social anthropology, and political science. The core of the research lies in analysing the complex impact of geopolitical and social factors on the planning and implementation of smart city policies. Determinant elements such as political stability, the degree of economic integration, the strength of international partnership networks, the level of technological infrastructure development, demographic trends, and citizens’ socio-technological engagement are examined in detail.
The findings demonstrate that the success of urban initiatives largely depends on the geopolitical context: political volatility, external pressure, or systemic security uncertainty often hinder the stable development of large-scale infrastructural and technological projects. At the same time, social factors - particularly the level of citizens’ technological literacy and their participation in decision-making and implementation processes - constitute one of the essential foundations for the sustainability and effectiveness of smart cities.
The study particularly highlights the distinction between EU member and non-member states, which clearly reveals the role of foreign policy and institutional environments in both fostering local innovation and determining the appropriate priorities of digital economic policy.