The aim of this chapter is to position the popular concept of geographic clusters in a broader regional development context. After a general overview of regional upgrading strategies and a concise introduction to cluster analysis, the chapter offers a critical analysis of clusters. It also provides a range of extensions of cluster analysis, with a particular view to the role of governments.

Modern cities face a range of challenges and threats caused, inter alia, by intense population growth, environmental pollution, climate change, poverty, unemployment, lack of safety, migration and socio-economic inequality. Smart cities presuppose an innovative and knowledge-based approach to cope with these challenges and threats to improve urban quality of life and to make the city more inclusive and competitive. Digital technologies provide the tools to enhance the empirical knowledge about the city and its residents. This chapter addresses the question: ‘Under which conditions is social policy a facilitator of smart city strategies?’ Using a broad inventory and multi-disciplinary approach, and with the help of an extensive literature review, this chapter aims to provide a better understanding of the technology-based issues of smart cities and the position of those social groups most affected by these developments. The authors develop a conceptual framework for mapping out the forces at work. They also argue that digital technologies can be more accessible and usable for more city residents through social policy.