The document discusses Urban Labs, which are test spaces located in cities that are used to experiment with innovative solutions involving citizens. Urban Labs provide real-life testing environments to improve products before broader deployment. They also help bridge relationships between city administrators and innovative companies. Examples are provided of companies that tested solutions like parking sensors and LED lighting in Urban Labs and how it helped them improve their products and win new contracts. The goals of Urban Labs are outlined as developing innovative solutions with users, creating initial demand, and providing a showcase for solutions to help them compete globally.