Hong Kong has come in eighth out of 73 cities in a smart city index.
The ranking, compiled by Polytechnic University researchers, considered how factors such as infrastructure or the use of technology improved living standards.
The findings were disclosed at the fourth International Conference on Urban Informatics which opened on Wednesday at the university.
Professor John Shi, president of the International Society for Urban Informatics (ISUI), said this is an improvement compared with 2023, when the SAR ranked ninth out of 50 cities.
According to Shi, the city stands out for its economy and having a good business environment as well as its free flow of capital.
The ISUI Smart City Index is compiled by ISUI and the Otto Poon Charitable Foundation Smart Cities Research Institute.
Unlike similar indexes, the ISUI index is based on publicly available data rather than questionnaires.
Shi says the results are therefore more objective.
He added the findings can aid policy development, such as building more active transportation infrastructure like cycling tracks or electric vehicle charging stations.
"It [Hong Kong's performance in the index] is very strong, very [encouraging], the city is doing well and in terms of smart city development."