ABSTRACT
The objective of this research is to provide some insights on the relationship between clusters and smart cities. Linking these two concepts may lead to some synergy as they complement each other and share many common characteristics, like focus on innovation and strong geographical concentration. The research demonstrates that clusters stimulate the development of smart cities, but there may be also an inverse relationship, as smart cities might be seen as seedbeds for clusters. Smart cities are developed through the introduction and integration of Industry 4.0 technologies. Clusters may help with the digital revolution by providing benefits such as a knowledge base and mechanisms, agglomeration economies and externalities connected with the development of specialized labor pool, and critical mass of companies. Additionally, clusters contribute to the development of a more stable and predictable but still flexible and creative environment of trust and collaboration that form a prerequisite for the development of smart cities. These interdependencies are perfectly portrayed by the city of Seoul, in which tremendous growth is stimulated by the simultaneous development of clusters and smart city programs.
