Living Labs and Small and Medium-Sized Enterprises: A Symbioses Propelling Sustainable Innovation

Abstract

Until recently, it had not been certain to what extent the integration of SMEs in Living Labs, as a special form of open innovation ecosystems, actually leads to successful commercialization of (sustainable) products and/or services. Today, while the effectiveness of publicly funded innovation projects is increasingly being debated, especially by European policymakers, who once hoped to solve the European paradox through this type of public-private-people partnership, this article can prove that in parts of the innovation process—and this includes, in particular, the sustainable innovation output—an increase in innovation performance on the site of the SMEs can be detected. Based on the concept of program evaluation, the effects on SMEs’ innovation are determined with a preliminary qualitative study. The impact of Living Lab projects on innovation output, activities, capabilities, and knowledge flows of 12 European SMEs are then empirically tested in a quantitative study. Significant effects on the innovation performance of SMEs resulting from participation in Living Labs are identified. According to this study, Living Lab projects mainly influence the sustainable innovation output and knowledge flows of SMEs.