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vity and knowledge, as well as the capacity of the economy to create and absorb innovation'. To compete in this new economic environment, cities will need to apply better the advanced information technology, analytics and systematic thinking to develop a more citizen-centric approach to services. By doing so, they can better attract, create, enable and retain their citizens’ skills, knowledge and creativity.

The use of new technology/intelligent solutions efficiently in our society is an important part of innovation, evolution and sustainable development. Our world today is more interconnected, intelligent and the information is positioned in the middle of it. In our age the sustainable development depends on the use of more and more new intelligent solution. For smart and sustainable growth of cities it is important to use efficient the new technology and resources.

ECONOMIC GROWTH MODELS

Analyzing the economic models we can observe that all of them suggest that the economic development depends on investment in increasing the life quality which is the support of sustainable development.

In development economics is used the Harrod-Domar model [75] to explain an economy's growth rate in terms of the productivity and level of saving of capital. It suggests that for an economy to have balanced growth is no natural reason. The model was developed by Sir Roy F. Harrod in 1939 and Evsey Domar in 1946. The Harrod-Domar model was the precursor to the exogenous growth model'.

Figure Harrod-Domar Growth Model (Welker, 2008)

The model implies that economic growth depends on policies to increase investment, by increasing saving, and using that investment more efficiently through technological advances (figure 6).

Many of developed countries - suggested Lewis Structural Change Model- have dual economies. In this economy:

The traditional agricultural sector was assumed to be of a subsistence nature characterized by low productivity, low incomes, low savings and considerable underemployment.

The industrial sector was assumed to be technologically advanced with high levels of investment operating in an urban environment.

Lewis suggested that the modern industrial sector would attract workers from the rural areas.

Industrial firms, whether private or publicly owned, could offer wages that would guarantee a higher quality of life than those available in the rural areas.

Furthermore, as the level of labor productivity was so low in traditional agricultural areas that people leaving the rural areas would have virtually no impact on the output.

Indeed, the amount of food available to the remaining villagers would increase as the same amount of food could be shared amongst fewer people. This might generate a surplus which could be sold so that to generate income.

Those people that moved away from the villages to the towns would earn increased incomes:

Higher incomes generate more savings.

Increased savings meant more fund available for investment.

Increased investment meant more capital and increased productivity in the industrial sector, higher wages, more incentive to move from low productivity agriculture to high productivity industry, the circle continues.

Figure Lewis Str