: The present article aims to describe the Living Lab’s method as a method innovation in institutional activities and the problems of taking this innovation into use. Possibilities to transfer the Living Lab’s method from one country, Finland, to other, Estonia, potential implementation fields and obstacles are studied. Considerations on the process of utilising the Living Lab’s method in Tallinn are given. Living Lab’s is a human-centric research and development approach in which new technologies are co-created, tested, and evaluated in the users’ own private context. This method is coming into use in several countries among which Finland is in the forefront but is not yet in use in Tallinn, Estonia. The empirical part of the research is based on the analyses of fourteen interviews conducted among Tallinn and Helsinki city officials, representatives of technology enterprises, experts of the fields that are internationally most wide-spread Living Labs' testing grounds, u...