Abstract:

Today it is necessary to build a new society based on the principles of legality, the application of high moral and ethical standards, and innovative approaches to the system of social management, as well as IT and Smart technologies. The subject of research is the management relations in implementing the priority innovation projects. The topic of the research is conducting a factor analysis of the influence of external and internal factors that affect the effectiveness of the innovation project management system when implementing the concept of sustainable economic development of cities. Purpose Based on the conducted factor analysis, to develop and substantiate the business model for implementing the Smart City concept, as well as to assess the influence of factors on the effectiveness of the innovative project management system. Methods The general scientific methods of cognition (including a comprehensive factor analysis, correlation analysis, as well as methods of expert assessments and consistency of expert opinion) are used in the research. The tools developed on the basis of those methods allow evaluating the effectiveness of management decisions in the framework of implementing the Smart City concept. Results In the course of the research, a set of external and internal factors affecting the project management system was determined, a scale for assessing its effectiveness and a matrix of external and internal factors affecting the management systems were developed, and a business model for effective management of innovative projects was developed and substantiated within the Smart City concept. The scope of application of the results The results of the research may be useful to public authorities and private business, whose interests include solving problems of improving the efficiency of urban space management, as well as to management personnel implementing major innovative projects. Conclusions  In order to make optimal management decisions, a theoretical and comprehensive analysis of the external environment and internal components must be carried out in addition to the results of the calculations; the analysis should be based on knowledge, experience, logic, and intuition of Smart-managers. Implementing certain areas of the Smart City concept will significantly increase the level of comfort for cities' residents.