I've never heard either Smart File or Smart Object used in connection with InDesign.
Photoshop has the concept of a Smart Object.
I have no idea what Smart File would mean.
Thank you, Steve, that’s what I suspected. I had a client today ask me if I was familiar with Smart File Creation. All I know about are Smart Objects, and Smart Folders. And you're right, not in connection to InDesign. Thanks again for your help.