Nicosia: A Rising European Capital of Innovation

Nicosia, Europe’s last divided capital, is charting a bold path toward innovation, inclusion, and sustainability. The Municipality of Nicosia is proud to announce that the city has been shortlisted as one of three finalists for the 2025 European Capital of Innovation (iCapital) Awards, in the category of Rising Innovative City. This recognition celebrates cities that leverage innovation to improve urban life, engage citizens, and drive sustainable growth.

Over recent years, Nicosia has transformed challenges into opportunities, turning historic sites and underutilized spaces into hubs of creativity and collaboration. The old municipal market “Agora”, now home to the CYENS Centre of Excellence, is a prime example. This European Teaming Centre for applied research in interactive media, smart systems and emerging technologies anchors a network of coworking spaces, maker labs, and innovation hubs that energize the Walled City.

What sets Nicosia apart is its integration of technology, urban planning, and civic participation. The Smart Nicosia Project focuses on integrating digital technologies into the city’s operations to improve efficiency, sustainability, and citizen services. The project includes smart street lighting, environmental sensors, intelligent waste and parking systems, and other IoT-enabled infrastructure.

Building on its commitment to innovation and capacity-building, Nicosia participates in the SMARCO (SMARt COmmunities Skills Development in Europe) project, funded by Erasmus+. The project addresses skills gaps in smart-community-related professions, such as urban planners, engineers, and public procurers, by providing training programmes, micro-credentials, and certification schemes. Through SMARCO, Nicosia contributes to the creation of a transnational network for knowledge exchange, fostering expertise in sustainable, resilient, and digitally enabled communities. This initiative complements the city’s broader vision of a green, inclusive, and innovation-driven urban ecosystem, ensuring that citizens and professionals alike are equipped to shape the city’s sustainable future.

Nicosia’s innovation ecosystem thrives on collaboration. Initiatives such as Hub-In Nicosia support start-ups and creative enterprises, linking local talent with academic, public, and private partners. Platforms like Nicosia Together allow residents and community organisations to co-design public spaces, volunteer in city projects, and contribute to civic decision-making. These efforts ensure that innovation is people-centred, inclusive, and socially impactful.

The city also combines innovation with heritage and sustainability. Projects like the New European Bauhaus redesign of Ledras Street demonstrate how culture, aesthetics, and green urban development can converge, creating vibrant, accessible, and sustainable public spaces. By leveraging digital transformation, creative industries, and citizen participation, Nicosia is emerging as a model for small and mid-sized European cities seeking holistic urban renewal.

Being named a finalist for the iCapital Awards highlights that Nicosia is not only innovating locally but also contributing to Europe’s broader urban innovation and skills ecosystem. Through strategic planning, digital transformation, and active citizen engagement – reinforced by initiatives like SMARCO, which develops smart-community skills for professionals across Europe – the city demonstrates that innovation can connect communities, empower citizens, strengthen local economies, and advance a sustainable, resilient future.

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