A growing number of cities around the world have now realised the need to use digital technology to capitalise on the rapidly growing digitally driven economy. In mid-2013 Brisbane, Australia released its 'Digital Strategy' document to strengthen its economy through improved productivity for local businesses. The article is based on a combination of policy analysis and empirical data gathered through interviewing a sample of stakeholders involved in the strategy development process. It aims to understand how Brisbane intends on using the potentials of the digital economy. The results raise questions around the role defined for the digital economy in the future and shed light on the 'smart city' concept as a plausible digital-enabled direction for cities and regions with reference to the third wave of economic development, and the Triple (Quadruple) Helix of knowledge development. The lessons learned here may be applicable to any city interested in playing a proactive and productive role in the new economy.