We propose a model of strategic interaction between higher education institutions (HEIs) and the government. HEIs compete by choosing prices and education quality investment and government allocates the state-financed quotas between the universities.
In today's world with the emergence of new requirements for urban development and competitiveness, took shape the concept of “smart city”. Actuality of the theme "smart cities" in Russia proved by a link between innovations and increase the efficiency of the main spheres of the cities. Problematics of the topic is that the development of "smart cities" requires considerable resources, which is associated with a large-scale modernization and innovation. To determine the methods of implementation of the projects it is provides an overview of the organizational, organizational and economic methods for the development of "smart cities" in the cities of Europe and Asia. The article provides recommendations for methods of modernization and innovation development of cities to meet the challenges of governance.