Startups and Cities: Why ‘Choose Europe’ Could Be a Turning Point for Urban Innovation

The European Commission’s newly launched startup and scaleup strategy under the Choose Europe initiative signals a renewed effort to turn the continent into a competitive and fertile ground for tech-driven entrepreneurship. But beyond the realm of business and investment, this development carries important implications for Europe’s cities and their future planning.

The Urban Potential of Startups

Cities are the natural habitat of startups. They offer the density, diversity, infrastructure and human capital needed for new ideas to emerge and thrive. A well-supported startup ecosystem can feed directly into urban development, shaping smarter mobility, cleaner energy systems, better health services and digital public infrastructure.

The EU’s focus on making it easier for startups to grow, scale and remain within European cities could drive innovation that aligns with the needs of urban populations. From AI solutions in traffic control to tech-enabled waste management and more resilient energy grids, cities stand to benefit from closer cooperation with the startup community.

Easing the Path from Idea to Impact

The strategy addresses key barriers that have traditionally made it difficult for startups to flourish across Europe, such as fragmented regulations and limited access to capital. Reducing these obstacles doesn’t only benefit entrepreneurs, it creates a more agile urban economy. When cities can adopt innovations more quickly, they become more responsive to the challenges of climate adaptation, social inclusion and housing.

Simplifying rules and harmonising standards also means city authorities can more easily pilot and adopt new solutions, no matter where they originated in Europe. A mobility solution tested in Tallinn, for example, could be more easily adapted for a city like Porto, Warsaw or Athens.

Talent and Infrastructure as Urban Drivers

Attracting and retaining top talent is another pillar of the strategy, and another area where cities play a crucial role. Vibrant, well-connected urban areas that offer quality of life, affordable housing and dynamic public services become natural magnets for skilled individuals and creative thinkers.

Startups thrive in places where tech hubs, co-working spaces, research institutions and municipal governments are interconnected. The Commission’s emphasis on access to infrastructure and services means that more cities could position themselves as ideal testbeds and launchpads for innovation. Urban planners and local governments will need to respond by investing in the right types of spaces and networks to support this shift.

Planning for a More Innovative Europe

The Choose Europe strategy is about building a more cohesive and forward-looking Europe. For urban planners and policy makers, it presents an opportunity to reimagine how cities host innovation. Encouraging startups to grow where people live and work fosters more inclusive, resilient and responsive cities.

With the right alignment between local strategies and the EU’s direction, European cities can become not only homes for startups, but also co-creators of the ideas that will shape the urban future.