Smart Infrastructure and the Urban Economy: Policy Insights from Middle-Income Cities

Abstract

As urbanization accelerates across middle-income countries, smart infrastructure is increasingly positioned as a catalyst for economic transformation. This article investigates the critical question of how smart infrastructure impacts urban economic outcomes, focusing on the governance, technological, and institutional dimensions within middle-income city contexts. Using a systematic literature review approach, the study synthesizes findings from peer-reviewed research published over the last five years. The analysis reveals that while smart infrastructure has the potential to improve urban productivity, sustainability, and service delivery, its effectiveness largely depends on policy coordination, adaptive governance, and local capacity building. The discussion integrates insights on data-driven planning, digital equity, and contextualized innovation strategies. Key findings underscore the importance of aligning smart city investments with inclusive growth objectives and long-term urban planning goals. This study contributes to a more nuanced understanding of how tailored infrastructure policies can support sustainable economic development in rapidly urbanizing regions.