The way that innovation is currently done requires a new research methodology that enables co-creation and frequent, iterative evaluation in realworld settings. This paper describes the employment of the living lab methodology that corresponds to this need. Particularly, this paper presents the way that the Amsterdam University of Applies Sciences (HvA) incorporates living labs in its educational program with a particular focus on ambient intelligence. A number of examples are given to illustrate its place in the university’s curriculum. Drawing on from this, problems and solutions are highlighted in a ‘lessons learned’ section.