Fundão, located in the central region of Portugal, has faced significant population loss and economic decline in recent decades. In response, since 2012, the municipality has invested in a smart territorial innovation strategy to drive economic transformation in the county and region.  

The Fundão Innovation Plan increased the region's competitiveness by attracting and retaining people through investment, innovation and skilled employment, while offering an excellent quality of life. Today, for the first time in decades, Fundão has a positive migration balance and is home to talented people from 74 different nationalities.  

The integrated innovation ecosystem supports idea acceleration, business incubation and digital skills training. It has a dedicated support team, infrastructure, diverse partners, competitive incentives, agile mobility programmes, and impactful initiatives, such as IT bootcamps with a 97% success rate, all within a welcoming community.  

Fundão symbolises the emerging social, environmental and economic challenges of European cities, especially those in low-density areas, and is a model for solutions that address these. The Municipality of Fundão's strategy is to create a smart, sustainable and inclusive city, focusing on its beautiful rural character. 

The Fundão Innovation Plan takes an integrated approach to tackling urban challenges, by addressing economic, social and environmental dimensions simultaneously.  

Economic: The plan is revitalising the local economy through significant investment in technology and innovation, creating 16 IT companies, 1 000 skilled jobs and supporting 250 private projects. This approach has encouraged a positive migration balance, reversing decades of population decline, attracting talent from 74 nationalities. 

Social: The plan promotes inclusivity and community engagement, earning Fundão recognition as one of the nine European Capitals of Inclusion and Diversity in 2023. The Cova da Beira Living Lab and its partnerships emphasise social cohesion. Initiatives, such as IT bootcamps, equip residents with digital skills, reducing unemployment and improving social mobility. 

Environmental: The plan promotes sustainable urban development and regeneration. Fundão integrates traditional industries with modern sustainable practices, particularly in the agri-food sector. The Producers' Club and collective efficiency strategies help local producers to adopt sustainable practices and access new markets.  

The Fundão Innovation Plan was designed and implemented by a wide network of partners, embodied in the Cova da Beira Living Lab, which is certified under the European Network of Living Labs (ENoLL).  

Led by the Municipality of Fundão, the consortium consists of public entities, universities and schools, civic and development associations, businesses, financial institutions, the Central Hospital of Cova da Beira, and other ecosystems of innovation. 

The work carried out in various networks to which the municipality belongs, and the partnerships created have proved to be a fundamental element in the success of the strategy. This helps link the needs of all the actors involved, the specificities of the territory, and the actions carried out.  

This participatory approach ensures community engagement, fostering a sense of ownership and inclusiveness. 

The Fundão Innovation Plan has revitalised the rural city by tackling depopulation and economic decline. It created inviting conditions for technology companies, stimulated an innovation ecosystem, promoted urban regeneration, and fostered community involvement.

The plan:

• Supported more than 250 private investment projects.
• Attracted more than EUR 150 million in investment.
• Created three projects of national interest and 16 ICT companies. 

It has made Fundão one of five locations in Portugal with 100% export-oriented near-shore software development centres. Unemployment fell from 1 700 in 2012 to around 700 in 2020, with over 1 000 new skilled jobs in ICT and another 1 000 in traditional sectors such as agri-food and textiles.  

The training centre certified more than 700 people in two years, and 300 people moved from unemployment to ICT jobs through bootcamps. 

Fundão achieved a positive migration balance for the first time in decades, hosting more than 70 nationalities, and accelerated more than 80 start-ups, three of which ranked in the top 25 in Portugal.  

The city has introduced universal computer programming courses in public schools, promoting digital literacy from an early age. Producers' clubs in the agri-food sector united companies, opening new commercial channels and increased investment.  

Urban planning processes have increased by 75% since 2012, and the rental market has become more vibrant with new opportunities for investors. 

Fundão's innovative approach is highly relevant to other European cities, addressing common challenges like depopulation, economic decline, and digital transformation.  

The Fundão Innovation Plan supports:

• The Sustainable Development Goals (SDGs): SDG 8 (Decent work and economic growth), SDG 9 (Industry, innovation & infrastructure), and SDG 11 (Sustainable cities and communities).
• The Urban Agenda for the EU. 
• EU Territorial Agenda 2030.