ENThe article analyses the expression of the potential of Lithuanian municipalities in developing a smart social system. The focus is on defining the concepts of a smart social system and a smart region. Based on the authors’ works, the article presents the trajectory of the change of smart local self-governance, in the case of Lithuanian municipalities. It has been established that the change towards a smart social system can be achieved through five investment directions: human resources, digital economy and business, innovation and research, economic infrastructure and climate change, and energy. Such insights are based on the statements of expert interviews and Lithuania’s plan for the DNA of the future economy. Key words: smart social system, smart region, smart municipality, municipal potential. [From the publication]