Living lab as support for co-creation of value: application to agro-biodiversity contracting solutions

In addition to providing private goods such as food, fibre and biomass, agriculture can deliver a variety of environmental public goods and ecosystem services, such as biodiversity conservation, water filtering, carbon sequestration, and landscape aesthetics for recreation. Often, however, the use of agricultural landscapes prioritises the provision of private goods, resulting in negative environmental impacts. To address this imbalance in the provision of private and public goods, targeted policy instruments (e.g. contracts) are required to ensure that public goods are provided at the level desired by society. This paper, which is written in the context of the Horizon 2020 project “Contracts 2.0–H2020 RUR-03-2018”, aims to present a Living Lab case study in Tuscany to point out possible future scenarios of contractual solutions that could provide the right incentives for farmers and land managers to produce a specific environmental public good such as agro-biodiversity. This paper aims to evaluate the application of Living Labs in the case study, assessing what challenges might seriously hinder the collaboration process and/or the success of the participatory approach. Thanks to the participatory approach, it was possible to finalise the “dream contract” in the Living Lab case study. Contract Innovation Labs and Policy Innovation Labs members agreed on a new type of contract based on clear and measurable objectives decided together by farmers and public authorities.