Global Smart City Rankings: Europe Shines, Taiwan Rises

Switzerland’s International Institute for Management Development (IMD) releases an annual Smart City Index that balances the focus on the economic and technological aspects of smart cities, as well as the “human dimension” of smart cities, which includes quality of life, environment, and inclusivity.

The Smart City Index for 2024 released in April shows progress in smart cities in Europe and Asia on a global scale, while rankings for North American cities have slightly declined.

Based on data analyzed by researchers and feedback from surveys of 120 residents in each city, the report ranks 142 smart cities globally. This year’s index was produced in collaboration by IMD’s World Competitiveness Center’s Smart City Observatory and the World Smart Sustainable Cities Organization (WeGO) based in Seoul, South Korea.

The report reveals that among the top 10 smart cities listed, 7 are located in Europe. According to IMD’s definition, a smart city is a city environment that “applies technology to enhance the benefits of urbanization for residents while reducing its drawbacks.”

Zurich has been ranked number one in the index for the fifth consecutive time, followed by Oslo at second place and Geneva at fourth. Copenhagen in Denmark, Lausanne in Switzerland, London in the UK, and Helsinki in Finland claim the 6th to 9th positions. Canberra in Australia ranks third, and the UAE holds the 10th position.

The 2024 IMD Smart City Index report points out that “with very few exceptions, the top 20 cities are located in economically and socially relatively predictable regions, even in a global environment of uncertainty.”

Cities performing well on the list have implemented measures to enhance the overall quality of life for their citizens.

“The focus of such measures is on developing green spaces, expanding cultural activities, and opportunities for social connections,” the report notes. “In these leading cities, most combine such efforts with innovative strategies to attract and retain talent, encourage selective investments (such as supporting sustainable development), and address long-standing geographical inequalities and inclusivity issues.”

It is worth noting that for the first time since the index’s launch in 2019, there are no North American cities among the top 20.

Bruno Lanvin, Chairman of the Smart City Observatory, states, “Last year, the index for most American cities increased, but this year there has been a decline.”

“The ‘Build Back Better’ initiative by Biden may offer some explanation as it has had positive effects. In contrast, with elections looming this year, people are more critical of areas needing improvement.”

The report reveals that using a three-year moving average (comparing a city’s average ranking from 2021-2024 to the average ranking from 2020-2023), the rankings of numerous American cities have decreased.

Washington D.C., Denver, and Los Angeles, in particular, saw drops of 12, 12, and 11 positions, respectively, while San Francisco, New York City, and Chicago each decreased by 9, 7, and 4 positions.

The highest-ranking American city this year is New York City at 34th place, followed by Boston at 36th, and Washington D.C. at 50th.

While European cities dominate the list, Asian cities are also continuously improving. Taipei, for instance, rose 13 places from 29th in 2023 to 16th this year.

Lanvin emphasizes, “Cities must design and adopt strategies that can withstand the increasing uncertainties of the future.”

“Concerns related to health remain high,” he says, “A new round of international tensions has made this situation even more complex. Trust and good governance become increasingly important, and the importance of artificial intelligence in city design and management is growing.”

“Although it may sound counterintuitive, artificial intelligence can help make cities more human-centric,” he adds.

(Adapted from CNBC report)