What Could Possibly Go Wrong? Exploring Challenges and Mitigation Strategies of Applying a Living Lab Approach in an Innovation Project

The living lab methodology is widely used in innovation projects to drive user-centered development. While its benefits, such as co-creation and real-world validation, are well known, its implementation presents challenges that remain underexplored. This study examines these challenges by using the Horizon 2020 Möbius project as a case study. While the Möbius project itself aimed to modernize European book publishing through an immersive reading application and a data visualization tool, this study reflects on the implementation process of the living lab approach within that context, using an action research approach. After project completion, a structured brainstorming session reviewed identified challenges and mitigation strategies. Findings highlight three key challenges. First, misalignment between assumed and actual stakeholder needs hindered industry engagement. Second, recruitment was complicated by the ambiguous use of “prosumer”, causing confusion among participants. Third, communication gaps and personnel changes disrupted the integration of user feedback into development cycles. These challenges underscore the need for early and continuous stakeholder alignment, adaptive communication, and structured knowledge management. Based on these findings, the study proposes strategies to improve engagement and integrate user insights more effectively, ultimately enhancing the impact of living lab-based innovation projects.