Key Factors of Effective Development of Smart Cities in Croatia

World trends are showing a continuous increase in the number of inhabitants living in cities. It is expected that 70% of total world and 80% of total European population will live in cities by 2050. By increasing the number of inhabitants, the challenges of city management are growing as well. With the aim of achieving maximum living standards and quality of life of their inhabitants, the implementation of smart city model proves to be a necessity. The Republic of Croatia, as a member of the European Union, is obliged to follow recommendations contained in a series of documents and conclusions, as well as use the sources of funding available to European member states. The paper provides a framework for understanding the concept of smart cities through an overview of scientific literature, examples of good practice from Europe and the world, and a detailed analysis of the state and degree of development of smart cities in the Republic of Croatia, focusing on key dimensions of smart city development. It has been proven that investing in key dimensions of a smart city: Population, technology, and institutions, generates revenue growth, economic development, and better living quality of city population. The research methodology for this paper is based on a mixed method that involves collection, analysis, and integration of quantitative and qualitative research. The aim of the paper is to provide a framework for understanding the concept of a smart city, point out the advantages of such management mode, as well as the key dimensions to be invested in, in order to boost economic development and quality of life of the dominant, city population