From Co-Creation to Circular Cities: Exploring Living Labs in EU Governance Frameworks – A Literature Review

Purpose: This paper provides a comprehensive and integrative literature review of how Living Labs (LLs) are conceptualised, implemented, and evaluated within the European Union’s governance frameworks. It aimsto trace the evolution of LLs beyond their original innovation rhetoric and to assess their actual contributions to co-creation, participatory governance, and circular transitions.Design/Methodology/Approach: Using a PRISMA-compliant systematic literature review methodology, the study screened 403 peer-reviewed publications from the Web of Science Core Collection. Following the applicationof rigorous inclusion criteria, 77 eligible studies were analysed. A co-occurrence analysis of 360 keywords was conducted using VOSviewer to identify ten thematic clusters that structure the field. The findings are discussed across four dimensions: institutional anchoring, collaborative learning, socio-economic transition, and methodological consolidation.Findings: The review reveals that LLs function as hybrid governance infrastructures that foster innovation only when they are embedded in stable institutional settings and aligned with multi-level governance systems. While many LLs claim inclusivity, their actual transformative capacity is often constrained by power asymmetries, weak institutionalisation, and methodological fragmentation. Nevertheless, high-performing LLs demonstratesignificant value in facilitating systemic learning, promoting circular practices, and enabling democratic experimentation.Practical Implications: The findings emphasise the need for standardised evaluation frameworks, long-term funding mechanisms, and stronger in stitutional pathways for LL outcomes to inform policy. Policymakers andpractitioners are urged to move beyond pilotism and adopt LLs as embedded tools of governance.Originality/Value: Unlike previous studies that focused narrowly on sectoral applications or isolated urban experiments, this review is the first to systematically map the evolution of Living Labs across four governanceoriented dimensions: collaborative anchoring, democratic learning, circular innovation, and methodological evaluation. By linking these dimensionsto the structural conditions of institutional consolidation within EU public policy frameworks, the article provides a novel conceptual synthesis that bridges fragmented scholarship. It advances the field by offering an integrated perspective that captures the multifunctional role of LivingLabs as infrastructures for systemic governance innovation.