The potential for innovative development of modern cities

The research considers the potential for innovative urban environment development, defines the innovative development of cities. Modern cities remain the centers of innovative development and economic growth; it gives relevance to the research topic. The study provides an overview of the theory of innovation, presents the most up-to-date ratings of innovative cities and examples of modern projects of innovative urban development in Russia (Smart Saint Petersburg) and abroad (PlanIT Valley, Konza Technology City). The paper shows how the innovative equipment of municipal economic systems creates the favorable environment for the city’s infrastructure and its social and cultural development. The criteria of innovative urban development and the factors influencing the global leadership of smart cities are identified. Besides, the implementation areas of the innovative urban potential (transport, culture, education, healthcare, public utility) are revealed.