Abstract
The article detects how innovations affect municipal development and management. Many fields of innovations used in cities are presented, showing the progress which have been reached by the cities in engineering, transportation and other areas. The article analyzes the main conditions and benefits from innovations implementation for city residents. As an example of innovative municipal project the author suggests the Smart city concept. The major elements of the Smart city concept are pointed out and detailed. The concept integrates all innovations and technologies into one system, providing possibility to practice efficient municipal management and to create a modern comfortable city environment.
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