This chapter investigates innovation in urban passenger transport and clarifies how cities play a leading role. By focusing on liveability, intelligent systems management and new mobility, single innovations are discussed and the results summarized in a matrix. The most important ‘initiators’ are city governments, citizen groups, public transport authorities and universities, with the enterprise world somewhat lagging until recently. On the physical side, larger cities create more inventions and high density plays a role in feasibility of public transport. Universities are important, as is a historical city centre. On the social side, a well-educated population wishing to continue living in the city enhances innovation, but in some developing countries the electorate which does not own cars appears to be important. Also helpful are city governments acting on openness and trust and active political leaders. Furthermore, the early adopting cities often faced a crisis in mobility or failure of projects.