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This lecture introduces the transition to smart cities, focusing on the interaction between technology and institutions in urban systems. It emphasizes the role of digitalization as a key driver of change, impacting technological advancements, institutional dynamics, and actor behavior. The discussion is structured around the three layers of smart cities: infrastructure, digital/data, and services, highlighting their influence on urban performance. The upcoming weeks will delve into the challenges of this transition, addressing service and infrastructure layers, and providing insights for managers, culminating in policy recommendations.