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This dissertation was written as a part of the MSc in Digital Marketing & e-business at International Hellenic the University. Its purpose is to clarify what exactly Public Sector’s Innovation Laboratories are, which are their barriers until the date that this dissertation become published; and through research which are the proposals of authors who have researched this topic. After explaining the meaning of the terms “Living Labs” and “Innovation Labs”, with the last one being divided in “Public Sector’s Innovation Labs” and Private Sectors Innovation Labs”, we keep up with the differences between the last two categories. To sum up, after the research we made various conclusions, according to our findings, which we hope will be helpful for future researchers.