The French capital has been awarded the 2017 European Capital of Innovation (iCapital) prize of €1,000,000 ($1.1 million) by the European Commission for its "inclusive innovation strategy".
The European Commission said Paris spends five percent of its budget on projects suggested and carried out by citizens.
Over the last 10 years, the French capital has built more than 100,000 square meters of incubators. It also boasts the world's largest start-up campus.
Paris mayor Anne Hidalgo, receiving the prize in Lisbon, said the city also planned to build an innovative school.
Tallinn and Tel Aviv received each €100,000 ($115,000) as runners-up. The prize money will be used to scale up and further expand the cities' innovation efforts.
