Frequently Asked Questions

InnoCities is the Finnish way of implementing the EU’s Sustainable Urban Development (SUD) policy framework, with green and digital transitions at its core.

The InnoCities network consists of 16 Finnish urban areas that have signed an Ecosystem Agreement with the Finnish Ministry of Economic Affairs and Employment. The cities in these urban areas receive European Regional Development Fund (ERDF) support for sustainable urban development (under Article 11 of the ERDF regulation (2021/1058)). They use it to develop their innovation ecosystems according to the priorities defined in the Ecosystem Agreements.

Together, the 20 participating cities form a national network that develops innovation ecosystems, strengthens city-university-business collaboration, and accelerates the creation and scaling of new solutions to societal challenges. Alongside the ministry and the cities, the agreements engage important local innovation actors, including research organizations and regional development companies, as ecosystem partners.

The Ecosystem Agreements between the Finnish Ministry of Economic Affairs and Employment and 16 Finnish urban areas provide a long-term framework for innovation-led development within the InnoCities network. They set priorities for innovation ecosystem development and guide the strategic allocation of public RDI funding across participating cities.

Regionally, the agreements align the efforts of key innovation ecosystem actors, including cities, development agencies, universities, research organizations and other regional partners, around shared priorities and development objectives. They support the identification of joint projects, the development and testing of new solutions in real-world urban environments, and the attraction of external funding from national and European programmes.

Each agreement is built around a participating urban area’s key strengths and areas of specialization, helping to concentrate resources on themes with the greatest potential for sustainable growth, innovation and international competitiveness. For instance, the city of Kuopio has defined Health and Wellbeing Technology as well as Water Expertise as its focus areas.

While the agreements provide long-term direction, strategic continuity and focus, they also remain flexible enough to adapt to changing needs and opportunities. For instance, they provide a framework for annual dialogue between the cities and the ministry on development and funding priorities. The implementation model of the agreements was assessed in a mid-term review at the turn of 2024-25. Following the review, seven cities updated their agreements to include, for instance, new city-specific areas of specialization.

Today’s and tomorrow’s sustainability challenges must be addressed in cities. Cities are key hubs for innovation, where new solutions are developed, tested and scaled.

To this end, InnoCities exists to support the development of:

• World-class innovation and testing environments
• New drivers of growth and emerging business ecosystems
• Enhanced urban expertise and collaboration between key innovation actors.

Across the InnoCities network, ecosystem development is centered on three broad themes: the clean transition, digital technology, as well as health and wellbeing.

Together, the cities in the network can benefit from synergies, for example through joint capability-development activities coordinated at the national level, while developing distinct thematic profiles based on their Ecosystem Agreement priorities.

A national coordination team supports the development of innovation ecosystems across participating cities and facilitates collaboration within the InnoCities network.

As designated by the Finnish Ministry of Economic Affairs and Employment, the Council of Tampere Region serves as the host organization of the InnoCities national coordination team.

The coordination team’s main responsibilities include:

• facilitating network cooperation and peer learning
• monitoring implementation and impact
• coordinating communications and outreach
• financing joint lead projects that bring together multiple cities.

Among other activities, the coordination team organizes peer-learning events on Ecosystem Agreement implementation, international study visits to leading innovation ecosystems, foresight workshops, and events focusing on innovation ecosystem development and funding opportunities.

Under the EU Cohesion Policy 2021-2027, member states are required to allocate at least 8 % of their ERDF funding to sustainable urban development priorities and projects identified by cities themselves. In Finland, this Article 11 Sustainable Urban Development (SUD) funding is directed towards innovation activities defined in the Ecosystem Agreements between cities and the national government.

The cities that form the InnoCities network have a leading role in deciding which projects are funded. The funding is granted by regional councils.

Projects implementing the Ecosystem Agreement priorities are backed by multi-level investment. For each project, 60 % is funded by the ERDF and national funding. Cities must provide at least 25 % of the total funding. The rest of the funding can come from other public or private sources. Between 2021 and 2027, the EU, the Finnish government, cities and other public-sector organisations will invest more than €160 million in innovation ecosystem development.