The effect of ICT use and capability on knowledge-based cities

- We relate the components proposed by López et al. (2014) in their knowledge based development index with the main dimensions of a Smart City.
- We propose two ttechnological efficiency indices for the use and capability in ICT.
- We analyse the influence of two factors related with the use and capability in ICT on the different dimension of a Smart City.
- The results allow us to corroborate that these factors clearly influence economic development.
- The most important factor is the capability factor with a clear influence over human and image capital, and the use factor on environmental capital.

In the information society, ICT (Information and Communications Technology) use and capability are regarded as keys to economic growth. Use of these ICTs depends on the access and ability of citizens, while capability primarily depends on government investment in Research and Development (R&D) and the degree of development of technology-related sectors.Using information society and science and technology statistics for NUTS 2 statistical regions from the Eurostat database, we construct two synthetic indices for cities based on ICT use and capability, and these are used to group the cities into clusters. We then study the relationship between the ICT indices and economic development, taking wealth and intellectual capital as a measurement of knowledge-based European cities. The results show that both factors, use and capability, are significant but particularly so regarding investment in R&D and the development of ICT sectors.