Complex challenges innovative cities is a three-year project funded under the European Commission’s INTERREG IVC programme. CCIC project focuses on the role of local authorities in medium-sized and big cities in driving innovation to contribute to Europe 2020 strategy goals for economic modernization and increased competitiveness. In their efforts to improve the effectiveness of the regional innovation policies all public authorities face a set of interlinked challenges like: public finance for innovation, public authorities as innovators, public attitudes to innovation, public procurement and innovation. Building on CCIC partners’ experience in public innovation support and on the good practices of other EU regions for promotion of innovation, research and technological development, the project aims to implement new ideas relating to the challenges defined in the partner regions. 14 partners from 10 cities/regions will aid the understanding of public sector innovation and lay the grounds for successful transfer of good practices into the regions.