Co-creation for public innovation: The role of living labs and user-engagement methodologies

Drawing on a survey of six European countries, this article examines how living labs (LLs) and user engagement methods influence public innovation outcomes. Based on econometric empirical evidence, the authors provide key insights for public sector managers at all levels (national, regional, local), emphasizing that active user involvement leads to better innovation outcomes, particularly those that go beyond the innovation process and influence how users perceive or benefit from public services (for example, by increasing user service quality). The authors recommend prioritizing value-creation functions that enable the most active user involvement methods based on co-creation over internal-focused processes. Additionally, they highlight the importance of supporting LLs as methodologically robust, sustainable, long-term innovation infrastructures, rather than tying them to short-term and limited resourcing projects. These conclusions are valid across different countries, varying sizes of public units, and levels of government (municipal or national). Public living labs (LLs) promote collaboration to tackle societal challenges. However, their success cannot be taken for granted, as user engagement methodologies matter. Drawing on data from a survey of six European countries, the article explores how LLs and user engagement methods are connected with public innovation outcomes. The authors conclude that methods with higher user involvement based on co-creation tend to produce better innovation outcomes, and the most relevant are those directly related to user experience versus cost or other internal-oriented outcomes. The conclusions hold across different countries, varying sizes of public units, and levels of government (municipal or national). The article also provides both policy implications when designing and implementing LLs in public sector, and managerial implications to promote effective public value creation in collaboration with users, citizens, or organizations.