From ideas to impact: putting cities at the core of EU competitiveness
Europe is at a turning point. The European Commission’s proposal for the European Competitiveness Fund (ECF) is a bold attempt to close the competitiveness gap, accelerate industrial transitions, and strengthen strategic autonomy. But to succeed, the fund must embrace a simple truth: competitiveness is born and delivered in cities.
Urban regions are where innovation happens. They bring together research, talent, and industry, creating the conditions for breakthrough technologies to move from ideas to market-ready solutions. Europe’s challenge is not generating patents or concepts—it is turning them into globally competitive businesses. This journey, especially in deep tech, demands long time horizons, high capital intensity, and regulatory expertise that universities and private accelerators alone cannot provide. Cities can fill this gap. They convene actors, mobilize local demand, and build tailored services that help companies survive the “valley of death” and reach the scale needed for EU and private investment.
Competitiveness is inherently territorial. Cities and regions account for the majority of public investment growth in the EU and shape the foundations of industrial success through infrastructure, education, housing, and quality of life. They are also in the frontline of Europe’s clean transition. Decarbonization is not an abstract goal—it happens in urban environments where energy, transport, and building systems intersect. Supporting cities as testbeds for clean technologies is essential if Europe is to meet its climate targets and remain competitive.
Resilience and security is another dimension where cities matter. From pandemics to cyberattacks, local authorities are the first responders. They manage critical infrastructure and coordinate emergency measures. Without their involvement, Europe risks repeating the fragmented responses and delays seen during recent crises. Empowering cities with interoperable tools and capacity-building will strengthen Europe’s preparedness and security.
Finally, talent is the lifeblood of competitiveness. Europe cannot build world-class industrial champions without access to globally competitive skills. Attracting and retaining top talent is not just a social goal—it is an economic imperative. Cities provide the living and working environments that turn specialized expertise into industrial capacity, making them central to Europe’s ability to scale frontier technologies.
The ECF is a visionary proposal, but its success depends on recognizing cities as strategic partners. By embedding the urban dimension into its instruments and governance, Europe can transform isolated pilots into scalable solutions, accelerate the twin transition, and secure its place as a global leader in innovation and sustainability.
More information from the senior EU Advisor Hilu Kangas
Hilu Kangas
Economic and urban policy
Senior EU Advisor
hilu.kangas@helsinki.eu
+32 49 330 1301
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