The Final Report of an Action that has actively involved more than 100 urban researchers, professionals and policy experts from 22 countries, representing a great variety of cities and organizations, professional expertise and scientific disciplines in social science, humanities, architecture, engineering and natural science. The Action has studied 15-20 innovative urban projects and processes in the participating countries, meaning either whole projects which were innovative in their entirety, or parts of projects which effectively demonstrated innovation. They also organised a sequence of workshops with thematic focus on different urban issues, illustrated by local urban projects/processes, with the objective to investigate the role of urban knowledge and Urban Knowledge Arena in urban development. Complementary to this, a series of theoretical and conceptual seminars have been held.