Purpose: The primary objective of this paper is to develop a framework that will support municipal governments and policymakers to capture a city’s capacity and maturity for adopting and implementing innovative mobility solutions for both passenger and freight. Methods: This paper adopts a three-step which starts with the definition of the “city-led innovation” and “Innovation Readiness” for mobility planning based on literature and lessons learned from the European funded H2020 SPROUT project. Then, it identifies the elements and sub-elements of the urban mobility ecosystem through systematic literature review and validates them through workshops with SPROUT mobility experts. The third step focuses on assigning weights to these elements and sub-elements by applying an AHP to the opinion of specific mobility experts. Results: The main finding of this study is the definition of the Innovative Urban Mobility ecosystem which consists of six elements along with eleven sub-elements that capture the city’s readiness for innovation. The prioritization methodology highlighted that the most important element is the Innovative Governance & Growth which holds the importance at 40% followed by Innovative People & Stakeholders (20%) while the least important was Smart & Easily Accessible with 9.50%. A further investigation on sub-elements level revealed that the most important factors are Mobility Planning (11.66%), Public Investments (16.52%) and Cities Capacity (13.67%) while the least important sub-elements are Inter-departmental coordination (5.70%), Openness (4.61%) and Industry Diversity (6.32%) highlighting the important role of public authorities. Conclusion: In conclusion, this article suggests that by using the proposed framework, cities can better prepare the conditions to harness innovation by implementing city-led, instead of industry-led, initiatives in mobility. Furthermore, it proposes that this framework can serve as a foundation for creating a self-assessment tool that allows cities to evaluate their strengths and weaknesses in relation to elements within the ecosystem.