The Knowledge Economy as a Key Determining Factor to Improve Smart Cities

Abstract

This chapter analyses the components of the Knowledge Economy as key determining factors to improve smart cities. By analysing the citizens’ perception, we find eight factors that determine the Knowledge Economy: Internationalisation Skills, Education, Global Competitiveness, Business Intelligence, Professional Excellence, Logistics, Potential of the city, Entrepreneurship, and their effect on the Dimensions of the smart city. The methodology of this chapter is based on the citizens’ perception, estimating the importance of these factors by sampling 500 randomly selected citizens for the empirical study of the hierarchical model. We conclude that if the consensus of the citizens is to empower the aforementioned factors of the Knowledge Economy, this provides local leaders and managers with valuable information to develop strategies that will improve smart cities.