What is “Smart” Network

The chapter discusses the specific changes in supply chains, conducted by the establishment of “smart” local communities as the result of comprehensive implementation of digital technologies. The author distinguishes the main drivers of these changes, derived from the activization of knowledge spillover used for commodification of locally supplied goods and services. The emphasis has been done on the institutional framework, enabling to expand the scope of beneficiaries of supply chains, associated with the provision of services, basic for local communities, based on networked consumption. The sophistication of supply chains in “smart” local communities the author explains by the expansion of business-local communities' partnership, integrating “smart” solutions into local governance and supplementing digital technologies with reformatting of managerial practices and everyday behavior patterns.