Institutional Arrangements for Public Innovation: Legal Certainty in the Implementation of Living Labs
Living lab; public sector innovation; technology transfer; legal certainty; institutional arrangements
Innovation has progressively been incorporated into governmental agendas as a strategic element for socioeconomic development and for the modernization of state action. However, within the public sector, the implementation of innovative initiatives faces specific challenges related to regulatory rigidity, institutional fragmentation, and the strict observance of the principles of legality and legal certainty. In this context, Living Labs have emerged in the literature as instruments capable of fostering open innovation through the experimentation of solutions in real-life environments, grounded in the interaction among government, the private sector, academia, and civil society. Despite their diffusion across different countries, the adoption of Living Labs by public authorities still lacks greater systematization regarding their regulatory and institutional foundations, particularly within the Brazilian context. Drawing on the contributions of New Institutional Economics, which emphasizes the role of formal and informal institutions in reducing uncertainty and coordinating social interactions, as well as New Public Governance, which recognizes the centrality of networks and the co-production of public value, this study aims to analyze the regulatory and institutional environment applicable to the implementation of Living Labs in the public sector, with particular emphasis on legal certainty and the effectiveness of technology transfer. Methodologically, a qualitative and exploratory approach was adopted, comprising a regulatory review and a multiple-case study based on semi-structured interviews with public managers from Porto Alegre, Florianópolis, Gravataí, and Caxias do Sul, as well as international experts and other ecosystem actors. The findings indicate that public Living Labs can contribute to the reduction of transaction costs, foster institutional learning, and enhance interorganizational coordination, provided they are embedded within a clear and coherent regulatory framework. As a technological output, this research proposes the development of a guiding toolkit—the Toolkit do Living Lab Público—structured around the CANDY framework (Challenges, Innovation, Impact), offering procedural guidelines and legal instruments for the strategic governance of urban innovation ecosystems.