Digital innovation processes are becoming more complex with a need for heterogeneous actors collaborating. One approach to support digital innovation is Living Lab. However, even if Living Lab seems like a promising initiative, there is little guidance of how Living Lab can be setup and managed to support digital innovation processes. The aim with this paper is to provide guidance for Living Lab practice and research by presenting a set of four Living Lab principles and explain how these can be put into Living Lab practice. Derived from Living Lab literature, the principles are established and then elaborated by analysing a Living Lab case study from the perspective of the following principles: Boundary spanning co-creation, Exploration & experimentation, User-centricity, Realism & Authenticity. The analysis of the empirical case study is guided by the following research question: how can digital innovation processes be supported by Living Lab principles?