The concept of Living Lab is a relatively new approach to the creation and implementation of innovative solutions in organizations. Its basic assumption is the end-user participation in the entire process of creating new products. At the basis of this concept is the belief that the effectiveness of new solutions will be higher when those end users will create a novelty in circumstances of its actual application. Article introduces the concept of Living Lab and presents practical possibilities of its application. Theoretical considerations have been supported by case study of knowledge scouting – solution prepared and tested in the University of Lodz.