Chapter 15: Cocreating Innovation A Study on NEST Living Lab

Innovation is critical to the tourism industry. Living Labs (LLs) are innovation ecosystems which are becoming popular in tourism. LLs are a model of open innovation characterized by a networked approach to innovation. Local communities and businesses are usually excluded from processes of decision-making concerning the management of tourism. LLs enable local communities' participation in the sustainable development of tourism, thereby providing them the opportunity to increase their share of benefits. This chapter focuses on a case study of an LL recently created in Portugal and discusses LLs as an environment for tourism innovation where the local community is stimulated to explore competencies to cocreate value.