In response to their ever-evolving environment, urban innovation intermediaries are compelled to adapt and develop their innovation capabilities. These capabilities have become imperative for their overall success; however, these organisations encounter numerous challenges in effectively implementing them. This research aims to study four innovation capabilities within five European UIIs, seeking to investigate how the cases adapt to their environment, how they enable a sustainable pace of progression and a positive work atmosphere, and what types of knowledge management practices they implement. Furthermore, this research contributes to the existing body of research by proposing a novel methodological approach. This approach encompasses a combination of structured and semistructured interviews, questionnaires, and an immersion within five prominent European urban innovation intermediaries. A distinguishing aspect of this research compared to previous studies
in the field is the utilisation of autoethnography.
The research presents four key findings. Firstly, it proposes that UIIs enhance their internal innovation capabilities by refining their service offering, growth strategies, and operational strategy; calibrating their level of process formalisation; and expanding their innovation ecosystem. Secondly, it provides insights about diverse practices implemented to enhance risk management, knowledge management, and trust between managers and employees UIIs. Thirdly, it shed light on several challenges faced by UIIs in their attempt to enhance their internal innovation capabilities, including, their dependency on the public sector; the implementation of innovation in urban settings; the maintenance of a positive work atmosphere when restructuring; and the adequate calibration of transparency and straightforwardness in managers to employees’ communication. Fourthly, it provides a better understanding of dynamic capabilities by elucidating that it is crucial for UIIs to calibrate different elements such as ambition, risk-taking, and resource allocation for meetings and events to navigate complexity Finally, this research concludes by summarising its contribution to contingency theories and innovation management and by providing recommendations for practitioners.