For more than a century and a half, the progress and prosperity of Europe’s cities has been driven by the railway, a way to channel collaboration and communication, to exchange ideas and talent and, ultimately, to connect people and reduce distance.
It is therefore especially fitting that the 2025 Eurocities Economic Development Forum took place at OGR Torino, a former railway repair depot in the heart of the city, now transformed into a hub for creativity and entrepreneurship.
This year, Eurocities joined forces with the European Innovation Council and SMEs Executive Agency (EISMEA) to organise the Cities Innovate Summit, bringing together Eurocities Economic Development Forum and the iCapital Awards under one roof on 3-4 December 2025. It was a unique opportunity to gather cities from across Europe to discuss talent, innovation, inclusion and sustainability.
Cities driving Europe’s new innovation agenda
The Cities Innovate Summit in Turin came at a crucial moment for Europe. Cities are expected to lead on climate neutrality, industrial transformation and social cohesion, while competing globally with innovation powerhouses in the United States and China.
Innovation is truly effective when people are at the centre
From the start, the message was clear: innovation only works when it focuses on supporting people. “Innovation is truly effective when people are at the centre,” said Stefano Lo Russo, Mayor of Turin, underlining the city’s ambition to remain an open and connected place that attracts talent, ideas and investment while creating social inclusion. “Technology accelerates this process, but real change comes from working together.”
This approach reflects Turin’s legacy as European Capital of Innovation: winning through innovation, growing through collaboration, lasting through legacy. Participants in the forum explored how cities can combine innovation, inclusion and competitiveness, ensuring no one is left behind while powering Europe’s industrial and green transition.
“Cities are where Europe’s industrial future will be built,” said André Sobczak, Secretary General of Eurocities. “They are already innovating on the ground, but they need more recognition, skills and resources to keep leading the way.”
The power of place and identity
Identity and visibility are strong assets for cities to thrive. Barcelona offered a compelling example. As Marc Sans from the city explained, “The Barcelona Brand is now one of the most powerful city brands in the world, but it’s based on collaboration, not competition.”
Working hand in hand with the Catalan government, Barcelona has developed joint initiatives such as the Barcelona Catalonia Startup Ecosystem, promoting startups and research centres abroad.
Elsewhere, Ghent showed how smaller cities can make a global mark. With a strong biotech and cleantech ecosystem, the city has turned its regional identity into an advantage. “Start with who you are, find your edge and never forget that it’s a people’s game,” said Frederik van Hacke, from the municipality of Ghent. “The stronger your network, the stronger your ecosystem.”
Cities are already innovating on the ground, but they need more recognition, skills and resources to keep leading the way
Cities also shared strategies to balance tourism and liveability. In Spain, where housing affordability tops public concerns, Barcelona is tightening rules on short-term rentals and redirecting tourist tax revenue to retrofit public buildings. Genoa, Ghent and Frankfurt, meanwhile, are using similar taxes to fund maintenance or diversify visitor flows beyond crowded areas, redefining tourism as a driver of balanced and sustainable urban economies.
Lenka Kolarova, from Prague, set the priorities for the coming year: “City attractiveness, skills for the green and digital transitions, balanced tourism and reindustrialisation. Our goal is to make these priorities practical for city managers.”
Innovation districts where creativity meets technology
If collaboration is the engine of innovation, innovation districts are where that engine comes to life. The OGR Torino venue itself embodies this shift.
Through programmes like Hello Torino, ToTem for Founders and Ignite Torino, the municipality helps innovators settle in the city, offering mentoring, legal support and access to accelerators and urban testing. Over 450 startups have already benefited from the initiative, which blends municipal support with private partnerships.
Gavin Poole, CEO of Here East in London, shared how East London transformed the 2012 Olympic Park into a living innovation ecosystem. “What if all these buildings became engines for innovation?” he asked. The result is a campus for games design, fashion and tech that has created over 10,000 jobs. “If you leave culture out of your innovation district, you weaken your ability to create and grow,” he said.
Across Europe, cities are experimenting with similar models. San Sebastian’s dense innovation ecosystem, Bologna’s Tecnopolo and Innovation Square and the collaborative platforms in Aalborg, Grenoble Alpes Metropole and Nicosia all show how urban spaces can become testbeds for sustainable industry, driven by public-private partnerships and local talent.
We must electrify our whole economy, rebuild our industrial base, and do it in a social way so that people don’t lose their jobs.
Building cities that attract and keep talent
Innovation is meaningless without people. Cities are now focusing on how to attract, develop and retain talent in ways that improve quality of life.
San Sebastian’s experience stood out. Through its municipal development agency Fomento de San Sebastian, the city supports researchers and entrepreneurs with housing, co-working and training spaces. Its EKINN programme even facilitates accommodation for people looking to start a business. “We want people not only to work here, but to live here,” said Yesenia Otamendi, from the city of San Sebastian. The quality of life is also boosted by the Basque city.
In Bologna, the Innovation Square brings together local firms, universities and startups in challenge-based programmes that foster collaboration and showcase the city’s creative potential. Regional laws in Emilia-Romagna now link new investment to talent retention, ensuring that economic growth benefits residents.
Europe’s next industrial transformation starts in cities
The next decade will define how Europe’s industry adapts to a green and digital future. Cities are leading this shift: redesigning grids, rethinking manufacturing and investing in clean technologies. But they cannot do it alone.
Willem van Winden, from Amsterdam University of Applied Sciences, summarised the challenge: “We must electrify our whole economy, rebuild our industrial base, and do it in a social way so that people don’t lose their jobs. Cities are where this transformation will actually happen.”
Across the sessions, the consensus was that cities need long-term competences, funding and partnerships to bridge the gap between innovation policy and real change on the ground. Europe’s strength lies in its diversity of cities: large and small, northern and southern, where ambition and creativity drive local innovation for the benefit of all.
Celebrating innovation: the 2026 iCapital Awards
The Cities Innovate Summit also hosted this year’s European Capital of Innovation Awards, celebrating cities that excel in adopting innovative solutions to improve residents’ lives.
If you leave culture out of your innovation district, you weaken your ability to create and grow
Grenoble Alpes Metropole was crowned European Capital of Innovation 2026 for its forward-thinking approach to sustainable urban development, renewable energy, smart infrastructure and community-driven innovation. Rotterdam and Liverpool followed in second and third place.
In the European Rising Innovative City category, the city of Aalborg took first place, recognised for integrating technology into urban planning and fostering cross-sector collaboration across education, healthcare and clean energy. San Sebastian and Nicosia were awarded second and third place respectively.
Watch the full awards ceremony.
Looking ahead to Barcelona 2026
The forum in Turin closed with a shared sense of purpose: to continue leading Europe’s green and digital transformation, cities need the right tools, resources and recognition at every level. The journey continues next year, when the Eurocities Economic Development Forum heads to Barcelona in 2026.
From the railways that once connected Europe’s industrial past to today’s innovation districts, the message remains the same: cities drive a sustainable, inclusive and prosperous future for all. Let’s enjoy the ride together.
Check out the full gallery of images of the event here.
