Report on the Living Lab concept and the national programme

The innovation paradigm is being transformed: closed, linear models are increasingly giving way to open innovation ecosystems. In this process the Living Lab (Community Innovation Laboratory) is a user-centred system in which the subject of development — the user — becomes an active participant.

1. Why does the Living Lab matter?

The strategic significance of the Living Lab lies in bridging the so-called "pre-commercial" phase: the gap that runs between applied research and market launch. Research data show that a substantial share of new products — as much as 80% — fail after launch when there is no genuine user involvement.

The active participation of users reduces precisely this risk: real needs and constraints come to light in the earlier phases of development, so the end result stands a better chance of gaining social acceptance.

2. The operating mechanism: the Quadruple Helix model

The Living Lab is based on the Quadruple Helix model, which connects four actors within a single collaborative system:

• the public sector,
• the scientific community,
• private companies,
• and civil society, that is, the users.

It is this model that makes it possible for technological solutions to emerge not in isolation but in alignment with real social needs.

3. Where does the concept come from?

The term "Living Lab" is associated with MIT professor William Mitchell (2003), who interpreted the laboratory as a place where the behaviour of people using new technologies is observed in a real, lifelike environment.

Theoretically, the concept builds on the idea of open innovation (Open Innovation, Henry Chesbrough), which recognises that useful knowledge is widely distributed beyond the boundaries of the organisation. A defining characteristic of the Living Lab is user-driven innovation: the user does not merely test but actively takes part in the creation of value.

4. The actors of the ecosystem and their roles

The Living Lab gives every actor a distinct function in the collaboration:

• Scientific community (academia): provides the methodological background and validation, acting as a neutral intermediary.
• Public sector: is responsible for funding and regulation (for example ESF+ resources) and sets the strategic direction.
• Private sector: carries out the technological implementation and ensures market sustainability.
• Civil society and users: are not passive subjects but active co-creators alongside the problem-owner organisations — they shape the solutions.

5. The innovation cycle in practice

The Living Lab is an iterative process that moves through five phases:

1. Exploration: mapping the problem space and involving the stakeholders.
2. Co-creation (co-creation and co-design): workshops and the development of scenarios.
3. Prototyping: rapid prototype development.
4. Experimentation: testing in a real-world environment — this is what bridges the "pre-commercial gap".
5. Evaluation: multidimensional analysis and iteration.

6. The national programme: ELTE and TINLAB

Eötvös Loránd University (ELTE), with support from the European Social Fund Plus (ESF+) and within the framework of the Social Innovation Plus (SI Plus) programme, operates National Social Innovation Competence Centres.

The aims of the programme are:

• identifying social problems,
• developing adaptable solutions,
• support provided through 2×2 days of fieldwork and workshops,
• and building the ecosystem at local levels.

7. The relevance of the Living Lab for InnoK

The role of the InnoK Institute can be particularly important in the "orchestrator" function: as an intermediary that coordinates the actors of the ecosystem. Linking the Smart City Urban Lab and the Social Lab (social innovation) serves the goal of ensuring that technological solutions respond to real social needs.