Lisbon named European Capital of Innovation

The European Commission has named Lisbon, Portugal as this year’s European Capital of Innovation, winning the city €1 million (US$1.09 million).

Warsaw, Poland and Lviv, Ukraine were the runners up in the ninth edition of the awards and will receive €100,000 each.

Linköping, Sweden won the European Rising Innovative City category, which is for smaller towns and cities with a population of less than 250,000. The city was awarded €500,000. Runners up Padova, Italy and Cork, Ireland won €50,000.

Supported by the European Innovation Council under Horizon Europe, the iCapital awards aim to “reward those European cities that are courageous enough to open their governance practices to experimentation, to boost innovation, to be a role model for other cities, and to push the boundaries of technology for the benefit of their citizens.”

Iliana Ivanova, Commissioner for Innovation, Research, Culture, Education and Youth, said: “Congratulations to Lisbon and Linköping. They are shining examples of how cities can use innovation to reshape the urban landscape, tackle demographic and economic challenges and work for the benefit of their residents.”

Unicorn Factory

Lisbon was particularly recognised for the growth of its tech sector, supported by initiatives such as the Unicorn Factory, a platform to foster startups and attract foreign companies to the Portuguese capital.

Lisbon also has an open innovation programme, Smart Open Lisbon, to address urban challenges and test new ideas.

Other projects of note include Lisbon’s participation in the European Union’s 100 Climate-Neutral and Smart Cities by 2030 mission; the SAUDE 65+ initiative, which provides access to healthcare for older residents; and the city’s free public transport programme for students and the over-65s.

According to the city, the Unicorn Factory has attracted 54 new tech companies to Lisbon from 23 countries, including 12 unicorn firms, and created 10,000 jobs. In two years, it also launched 13 incubation and acceleration programmes, tripled the number of incubated startups, and positioned the city in diverse industries such as digital health, ‘Web 3’ technologies, and artificial intelligence.

Carlos Moedas, Mayor of Lisbon, said the award money will be invested in the Unicorn Factory “to develop projects in social innovation and combat exclusion, using technology as a social elevator.”

He added: “This award also proves that we can and should be more ambitious. That we have everything to be the best. Thanks to the success of the Unicorn Factory, Lisbon has won the most prestigious award for a European city.”