Although companies may strongly benefit from living labs, little research has been conducted on the matching of the collaboration model to the business purpose. This paper aims at presenting an innovative approach for the selection of the best suited living lab collaboration model for the Creation of service innovations. At first, it is shown that the term “innovation” needs a conceptual definition, in such a way as to enable the various stakeholders to develop a common understanding of the phenomenon. Types and categories of innovation indicate a clear structure for any kind of users to discuss innovation processes.