Europe’s city governments are increasingly recognising the need to innovate how they work to tackle urgent challenges, including climate change, the housing crisis and social inequalities. However, to foster public innovation that can effectively meet these challenges, greater political recognition is essential.
Currently, political discussions on innovation mostly focus on making the private sector more competitive. However, city governments are showing that innovation in the public sector is just as valuable, proving that improving city operations not only strengthens public services but also creates a better environment for businesses to succeed.
To support this shift, city governments are calling for increased EU resources and funding, along with ambitious political commitments, that will strengthen their structures and secure long-term investment in public innovation.
These priorities are outlined in a major new report on the landscape of city innovation, launched by Eurocities and LSE Cities at a high-profile event in the European Parliament this week.
The meeting, which brought together MEPs, city leaders and innovation experts, shared the results of the report – Public Innovation: Building Capacity in Europe’s City Governments – written by LSE Cities, in partnership with Bloomberg Philanthropies and Eurocities.
Based on a Eurocities Pulse Survey of 65 chief innovation officers in European cities and seven in-depth city case studies, the report analyses city government innovation across Europe.
Using the report’s findings, participants at the meeting discussed cities’ successes when it comes to innovation, what they can learn from each other, and where they need more support.
We must “support cities as change-makers”
Welcoming the new report, Italian MEP Pierfrancesco Maran, who hosted the event, emphasised the central role of cities in driving EU innovation. “If we believe that the EU should be a driver of innovation, then we must recognise where innovation truly thrives – in our cities,” he stated.
MEP Maran, who is one of nearly 200 MEPs in the new European Parliament with a background in city governance, underscored that cities are uniquely positioned to tackle pressing issues through innovation. He also pointed to the necessity of resources, noting that “EU funding is key” to ensuring that cities’ ideas transform into impactful change.
“Above all, we need a strong connection between the European Parliament, the European Commission and our cities, their problems, their aspiration and their opportunities,” stated Maran. “It is this coalition that will bring together ideas like those presented today.”
Landscape of city innovation: report findings
The new public innovation report, which was presented by LSE Cities, reveals that city administrations increasingly view government innovation as essential. First, the report says that effective leadership is the primary driver of innovation, with engaged mayors and city officials setting the vision and direction.
“Innovation doesn’t happen by chance, you have to build up your innovation muscles,” explained Ben Rogers, Bloomberg Distinguished Fellow in Government Innovation, at LSE Cities. “Cities need committed leaders who prioritise innovation beyond just service delivery.”
In Leuven, for example, the city’s leadership has made innovation a priority, establishing the non-profit Leuven 2030 to lead on climate action, working around usual municipal limitations and allowing the recruitment of specialised talent.
Second, many cities report organisational limitations as their biggest barrier, but they recognise the importance of investing in dedicated innovation teams and structures.
Third, data-driven research is critical for decision-making. Bratislava, for instance, uses real-time data in its public transport system to reduce congestion and improve urban mobility.
And fourth, cities are adept at forming partnerships, especially with the EU, universities and local communities. The city of Bologna, through its Urban Innovation Foundation (UIF), shows how partnerships with residents, academics and civic groups can drive projects in sustainable mobility and digital governance.
The report sets out key action points for city governments that want to build their innovation capacity, emphasising the need to invest in innovation budgets and teams. It also calls on the EU, national governments, city networks, and philanthropic foundations to do more to support cities’ ability to develop new solutions to the challenges ahead.
“Cities won’t achieve the outcomes we need without further support and a long-term focus on building their innovation capacity,” added Rogers.
Strengthening EU-city collaboration
Responding to the report’s findings, Judita Rozsa, Acting Director General of the European Commission’s DG REFORM, emphasised the EU’s role in bolstering city innovation, especially through flexible funding and supportive frameworks.
She referred to the words of Raffaelle Fitto, the new EU Commissioner for Cohesion and Reform, during his EU confirmation hearing, in which he spoke about cities’ importance in “achieving Europe’s goals.”
Rozsa pointed out that cities need more than short-term project funding, they require strategic, long-term support that builds capacity.
“At the Commission, we have already put in place a lot of tools and instruments to help cities to access funding,” she stated, “but there is of course more space to make EU funding rules more coherent and simplified for the cities to access.”
Adding to this position, André Sobczak, Secretary General of Eurocities, outlined cities’ pivotal role in driving innovation and addressing contemporary challenges.
He noted that mayors and city officials are “uniquely positioned to address local challenges directly and implement real and effective solutions”, including efforts to mitigate and adapt urban areas to the effects of climate change, implement sustainable transport, and help supply affordable, energy efficient homes for everyone.
Sobczak stated the need for increased recognition of cities’ efforts in innovation, calling for the direct involvement of cities in EU decision-making processes. “Cities are not just there to implement decisions made by others; they need to be able to bring in their experiences and their direct links with citizens when new EU policies are defined,” he explained.
Leading by example: Bratislava and Milan
At the event, city leaders from Bratislava and Milan shared their innovative urban initiatives, explaining that they are crucial for realising their ambitious visions for sustainable urban transformation.
Matúš Vallo, Mayor of Bratislava, said that his city has pioneered the use of real-time data to improve its public transport system, helping to ease congestion and enhance mobility. “Data allows us to make decisions that directly improve the daily lives of our residents,” he explained.
Bratislava is also undergoing extensive public space renovations, creating new areas for recreation and community gatherings, yet faces challenges with funding larger urban projects. “To overcome these challenges, my administration has formed strong partnerships with the EU and private sector to support continued progress,” stated Vallo.
Gaia Romani, Milan’s Deputy Mayor for Decentralisation, Neighbourhoods, Participation and Civic Services, emphasised the importance of projects like ‘STEP UP – Walkability for Women in Milan,’ which is improving the safety of women in the city. This includes improving public lighting and enhancing public transportation services, to create a safer and more inclusive urban environment for all residents
“This initiative is crucial for understanding and addressing the unique challenges women face in our urban spaces, ensuring that Milan becomes a safer and more inclusive city for all,” she explained.
Romani emphasised the need for tailored approaches that consider each city’s unique context, stating: “Innovation must be adaptable to the specific needs and characteristics of our urban environments.”
Innovating city teams
James Anderson, Head of Government Innovation Programs at Bloomberg Philanthropies, emphasised that for cities, innovation is essential, not optional. “Innovation is the answer to the test,” he said, as cities work to meet ambitious goals with limited resources.
Anderson highlighted the importance of institutional innovation and reshaping how cities operate to deliver more citizen-centred services. This involves empowering teams within city governments to take “calculated, well-calibrated risks” and driving change from within city administrations.
He also pointed to procurement as a powerful but underused tool for innovation, noting that procurement officers should act as “civic innovators” who bring new solutions into city processes.
A new era for cities
Closing the event, Ben Rogers explained that the new report on city innovation highlights a pivotal shift in European urban governance, underscoring the role of cities as drivers of innovative social change.
Cities like Milan, Bratislava, Vienna, and Bologna are stepping up as leaders, not only by implementing innovative solutions but by building frameworks that tackle the problems that really matter for their residents, including climate action, providing jobs and affordable housing, and implementing sustainable transport.
However, if they are to bring real change to the lives of the residents, they must continue to develop and innovate their administrations.
“Cities are no longer just implementing ideas from elsewhere, they’re shaping the future through bold policies and strategic investment,” added André Sobczak.
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Read the full report, Public Innovation: Building Capacity in Europe’s City Governments, written by LSE Cities, in partnership with Bloomberg Philanthropies and Eurocities.
You can also watch the full recording of the meeting on public innovation in cities, which took place in the European Parliament on 12 November 2024.
Photos from the event are available to download here: Report launch: Public innovation in Europe’s city governments | Flickr. If you use any photos, please ensure that you state they are copyright of Eurocities.
