Smart cities are becoming increasingly attractive, but they are widening inequalities

So attractive, yet so difficult to work, study and live in. Smart cities are experiencing the paradox of innovation. Investing in technology attracts more young people, but at the same time exacerbates inequalities. Human capital is being attracted, but new barriers are also being erected. This is what emerges from the Anglo-Italian research project led by the D’Annunzio University of Chieti-Pescara and Essex Business School. The study focused on 42 Italian cities over a period of thirteen years.

With every increase in the ‘smartness’ index, the ability to attract young workers rises to 79 per cent and that of international students to 83 per cent. The study, previewed in *Il Sole 24 Ore*, covers 26 per cent of the Italian population and 68 per cent of the population in the main urban areas. ‘The lesson is that we must not have to choose between technology and inclusion. The best-performing cities demonstrate that technology creates opportunities, attracts young people and strengthens urban competitiveness and efficiency. The risk arises when a city becomes “smart” for its own sake – for the sake of opportunity or investment – rather than for the people who live there. Innovation must increase opportunities without raising barriers; otherwise, the smart city risks becoming a selective city,’ says Filippo Marchesani, professor of management of innovation and digital consumer behaviour at the D’Annunzio University of Chieti-Pescara and co-author of the research with Rama Kummitha.

The paradox holds true: smart cities attract young people, but they also exacerbate inequalities. It is not just a question of technology. The smart city index developed by the researchers measures public investment in research and development, municipal digital services, energy sustainability practices, green governance, citizens’ use of public apps and the availability of open data. In other words, a smart city is not simply about digitalisation, but about the ability to integrate innovation, participation and sustainability.

The smartest cities are Milan, Bologna and Bergamo, whilst Reggio Calabria, Caserta and Foggia are among the least advanced. ‘Cities are open systems but with finite resources such as space, housing, services and carrying capacity. When a smart city becomes more attractive, it draws in young people, students, businesses and investment, generating new opportunities. However, competition to access those opportunities also increases. This is where the paradox emerges: value is created, but not everyone is able to benefit from it in the same way. Globalisation, migration, tourism and depopulation are redefining the urban balance, making it even more important to accompany innovation with inclusive and accessible policies,’ explains Marchesani.

This is the dilemma of superstar cities that both win and lose at the same time, as the urban planner Richard Florida writes. In the United States, cities such as San Francisco, New York, Boston and Seattle have attracted talent, start-ups and investment, but this success has led to rising rents, the displacement of the middle classes and social polarisation. The elusive Generation Z is not chasing technology, but rather the opportunities that technology makes possible. ‘Universities, jobs, transport, professional networks and opportunities for growth remain the main factors of attraction. Technology is often taken for granted, but it acts as an enabler of more dynamic and connected ecosystems. Today, a new factor is emerging: quality of life. Young people value this aspect just as highly as opportunities for career and economic growth,’ says Marchesani.