This paper analyses co-creation in urban living labs through a multi-level network perspective on system innovation. We draw on the case House of Skills, a large, multi-stakeholder living lab aimed at developing a ‘skills-based’ approach towards labour market innovation within the Amsterdam Metropolitan Region. Our
analysis helps understand stakeholder dynamics towards system innovation, drawing on an innovative living lab example and taking into consideration the multi-layered structures that comprise the collaboration. Our conceptual framework provides an important theoretical contribution to innovation studies and offers a practical repertoire that can help practitioners improve co-creation of shared value in living labs, towards orchestrating flexible structures that strengthen the impact of their initiatives.