Global ranking of the smartest cities: Vilnius is the only city in the Baltics to maintain growth
In the latest global ‘IMD Smart City Index 2026’ ranking, Vilnius has risen to 32nd place out of 148 cities. The Lithuanian capital has not only improved its position by two places, but has also become the only city in the Baltic States to demonstrate consistent growth. According to the Innovation Agency, the biggest leap was recorded last year, when Vilnius climbed by as many as 13 places, but the current result shows that the Lithuanian capital is successfully maintaining a high level of international competitiveness by attracting investment and creating favourable conditions for talent to work and live.
“Lithuania’s capital city successfully maintains a high level of international competitiveness by attracting investment and creating favourable conditions for talent to work and live. Examples from leading cities show that true smartness is achieved when public infrastructure and digital tools develop in tandem, responding to the real expectations of residents. “That is why we are focusing our efforts and investments across the whole of Lithuania, as only a strong technology ecosystem will help our country’s cities become even smarter,” says Edvinas Grikšas, Minister of Economy and Innovation.
Vilnius is the only city in the Baltic States to have maintained consistent growth: Tallinn has dropped four places to 26th, whilst Riga, having slipped one place down, now ranks 47th.
The top three smartest cities in the world remain unchanged from last year – Zurich and Oslo lead the way, with Geneva holding onto third place.
Although Vilnius is rising in the rankings, the study reveals an interesting contrast: the city’s infrastructure (healthcare, safety, mobility) is rated higher (BBB) than its digital solutions (BB).
Simona Buziliauskienė, Head of the Progress Department at the Innovation Agency, emphasises that Vilnius outperforms the average for cities in its group on several key indicators:
• Payment habits: as many as 71.5% of residents prefer digital alternatives to cash.
• Quality of life: cultural activities (84.6%) and easily accessible green spaces (78.7%) remain the city’s greatest flagship.
• Business conditions: basic technological infrastructure and internet speed (79.7%) create excellent conditions for the growth of high value-added sectors.
Despite the overall positive progress, Vilnius residents clearly identify their ‘pain points’. The main challenge remains the affordability of housing (62.9%). Although the problem of traffic congestion has eased slightly, one in two Vilnius residents (50.8%) still see it as a major hindrance, whilst 46.8% hope for greater transparency in city governance and more active involvement of the city community in local government decision-making.
The secret to a successful city – collaboration
Managing a modern city governance is a complex process involving many parties: ministries, agencies, businesses and service providers. For a city to become truly smart, it is essential to coordinate the actions of all these parties.
Examples from the highest-ranked cities show that success is determined not by a strict concentration of power in the hands of a single authority, but by the ability to collaborate. Leading cities create shared platforms where all parties can easily share information, coordinate investments and work together towards common goals, whilst remaining open to innovation.