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The aim of this research is to propose a model of problem based learning to develop service innovators. This model futures empirical finding for problem solving by implementing with enterprises and higher education institutions. This study focuses on craftsmanship in the manufacturing small enterprises in Japan. It is because the management of a small enterprise is tight and it is difficult to demonstrate the value of excellent craftsmanship. This study shows a model of co-design of service innovation and the execution process of the model by enterprises and higher education institutions incorporating living labs which is one methodology to practice open innovation.

CO-DESIGN OF SERVICE INNOVATION THROUGH PROBLEM BASED LEARNING IN HIGHER EDUCATION INCORPORATING LIVING LABS