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

David Gago and Luis Rubalcaba

Public Money & Management, 2025, vol. 45, issue 6, 604-614

Abstract: 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).

Date: 2025
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DOI: 10.1080/09540962.2024.2425423

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