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Living laboratories have increasingly been used as platforms for innovation and experimentation in urban areas, involving key features of open innovation, a multistakeholder approach, real-life environments, and residents as users (Friedlich et al., 2013; Veeckman & Graaf, 2015). The goals of urban living labs can vary according to their environments, from small-scale experiments of new technology and services to large-scale social and economic improvement (Franz et al., 2015). In addition to complex problems in physical environments, there are social and economic problems that are difficult to understand and handle due to their multidimensional nature, such as stigmatization, unemployment, and segregation of ethnic minorities. There are also problems due to organized complexity: a multiplicity of organizations steering the region can result in competitive and overlapping systems of administration (Baynes, 2013; Wallin, 2013). Due to multi-layered problems, urban living labs call for practice-based innovation with diffuse and heterogeneous knowledge production, instead of homogenous accumulation of knowledge and clearlydefined problem solving (Melkas & Harmaakorpi, 2008). Thus, an urban living lab usually starts as a bottom-up process setting additional challenges for problem definition and the composition of actors.

Enhancing Early Innovation in an Urban Living Lab: Lessons from Espoo, Finland