Goal – the aim of this article is to discuss the essence of smart cities as one of the effects of public sector innovation. More specifically, the attention will be focused on the Central and Eastern European area, analyzing smart cities and their achievements in this region. Research methodology – the article contains review of the literature, an analysis of innovation and smart cities measures and indicators, on the basis of international rankings and good practices. Score/results – the presented statistical data and good practises indicate that the innovativeness of the public sector and a scale of smart cities is growing. Innovations play a key role in creating development and the ability to adapt to constantly changing operating conditions. The implementation of the smart cities concept can be boldly described as an effect of the innovation of the private sector. It is thanks to this type of activities that cities are able to meet the constantly changing expectations of residents, but also of potential investors. It is important to point that smart cities mean both economic and technological development, care for residents, but also sustainable development, i.e., despite striving for continuous technological development, care for the natural environment. Historical facts and belonging to the Eastern Bloc prevented countries from Central and Eastern Europe from achieving such a state of affairs. However, it is comforting to note that despite this developmental backwardness, these economies are actively trying to follow the path of innovation leaders, climbing up the innovation and smart city rankings. Originality/value – the review of the literature on the subject and the conducted analysis have highlighted serious problems with measuring innovation in the public sector and in smart cities. Moreover, the focus was on the somewhat forgotten part of the Central and Eastern Europe, which, despite its developmental backwardness, turned out to be aware of the power of innovation and the implementation of the smart city concept, which it continues to do in small or large steps.
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