European Capital of Innovation Awards 2021: applicants, process and what the prizes aim to reward

The seventh edition of the European Capital of Innovation Awards, known as iCapital, closed its call for entries on 15 July 2021. Supported by the European Innovation Council under Horizon Europe, the 2021 call drew 39 applications from cities and towns across EU Member States and Horizon Europe associated countries. Eligible entries will undergo evaluation by an independent high level jury from July through October. Shortlisted applicants are due to be announced in September and winners will be revealed at the European Innovation Council Summit in November 2021.

What the awards are for and what is new in 2021

The iCapital recognition prize targets cities that have built inclusive, multi‑faceted innovation ecosystems. The competition aims to highlight urban practices that connect citizens, public authorities, academia and business while delivering tangible improvements in citizens' wellbeing and supporting 'game changing' innovation. For 2021 the organisers added a new prize category, the European Rising Innovative City, to recognise smaller cities and towns with populations between 50,000 and 249,999.

Prizes, past winners and legal framework

How the selection process works

Eligible applications are reviewed by a high level independent jury from July to October. The jury evaluates cities against criteria that probe the development and functioning of the innovation ecosystem, the degree of civic engagement, the ability to translate research and partnerships into measurable benefits for citizens and the presence of initiatives with transformational potential. Shortlisted applicants will be announced in September. The final winners are scheduled to be announced at the EIC Summit in November 2021.

What iCapital means in practice and limits of such prizes

The iCapital awards aim to showcase local experimentation, cross sector collaboration and inclusive innovation policies. In practice the recognition and prize money can provide financial breathing space for specific projects or seed programmes and can be useful for raising a city’s profile. The award sits within Horizon Europe as one of the EIC Prizes which are intended to promote scaling of innovation and to signal good practices across the Union.

However the effect of prizes is not automatic. Evidence on the long term impact of city innovation awards is mixed. Recognition alone does not remedy structural challenges such as weak governance, limited access to risk finance, talent shortages, or regional inequalities. Selection processes tend to reward cities that already have visible strengths and resources to prepare competitive submissions. Introducing a Rising Innovative City category helps address scale bias but the population threshold will still exclude smaller municipalities and rural innovation networks.

Context within the EU innovation landscape

The award is administered by the European Innovation Council and EISMEA. It operates alongside other EU initiatives intended to strengthen innovation ecosystems such as the European Innovation Ecosystems programme, European Structural and Investment Funds that co finance regional innovation strategies and the EIC funding instruments for startups and scaleups. The iCapital award is primarily recognition based but the prize money is intended to be spent on projects that boost local innovation capacity and inclusion.

For cities and regions with limited administrative resources, competing for EU recognition requires time and expertise. National contact points and networks such as the Enterprise Europe Network are often listed as partners to support applicants. The award campaign also functions as a signal to investors and national governments but it should be read alongside actual policy commitments and funding pipelines that determine whether a city can scale up its innovations.

Practical takeaway for applicants and observers

Cities considering entry should prepare evidence of partnership working, clear indicators of social impact and plans for how prize funds would be allocated. Smaller towns that qualify for the Rising Innovative City category should highlight scalable experiments and mechanisms for citizen inclusion. Observers and policymakers should treat the award as one signal among many and ask for follow up reporting on how prize funds are used and what measurable outcomes were achieved.

The iCapital award can amplify good practice but it will not substitute for systemic investment in innovation capacity, regional cohesion and governance reform. Transparency about judging criteria, public reporting on the use of prize money and attention to capacity building for less resourced municipalities would strengthen the value of the scheme.