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Russian government actively supports introduction of smart city technologies in large administrative entities in Russia. However, it is necessary to evaluate and maintain investment activity in the national market of innovative products which provides a competitive offer of such technologies to Russian and world consumers. Varying levels of regional social and economic development, different historical and cultural background of consumer behaviour affect not only the innovation in businesses and urban population in matters of purchasing and use of smart city technologies. These factors also determine attractiveness of relevant industries and start-ups, as well as sufficiency of human resources in high R&amp;D intensive industries. The presented research outcomes reveal significant differences in innovative development level of “Smart Cities” in Russia. Russian government finances digitalization and introduction of “Smart City” technologies using public resources. It is concluded in the paper that incoherence in availability of territorial administrative resources among the constituent entities of the Russian Federation, different motivational and value orientations of Russian population and civil servants, in particular, traditional for various territories, leads to different results of the implementation and use of such innovations.

Investment potential of innovative development of “smart cities” in Russia