Enhancing Urban Development: The Role of Open Innovation in Egypt’s Smart Cities

Abstract This study explores the pivotal role of open innovation in the development of Egypt’s smart cities, with a focus on the New Administrative Capital (NAC). By integrating information and communication technologies (ICT), smart cities aim to enhance urban services and improve the quality of life. Open innovation, characterised by the purposeful inflows and outflows of knowledge, accelerates internal innovation and expands market opportunities, fostering collaboration among various stakeholders, including government agencies, private companies, academic institutions and citizens. This research investigates the impact of open innovation on six key dimensions of smart cities: economy, people, governance, mobility, environment and living standards. Employing a qualitative approach, the study utilises qualitative case study approach. Data were collected through document analysis of publicly available reports, articles and project documentation to provide a comprehensive perspective on the NAC’s development. The findings reveal that open innovation significantly boosts economic competitiveness, enhances human capital, improves governance transparency and promotes sustainable urban mobility and environmental practices. The NAC’s integrated smart transportation system exemplifies successful open innovation projects, reducing traffic congestion and emissions. Policy recommendations emphasise the need for supportive regulatory frameworks, increased investment in infrastructure and strengthened public–private partnerships to sustain and scale smart city initiatives. This study underscores the transformative potential of open innovation in fostering sustainable urban development in Egypt.