Abstract
Innovation research is highly interdisciplinary and has attracted numerous science and practice communities. Though innovation results are broadly applicable, this paper focuses on engineering and service domains. The two are tightly interrelated, as the benefits of product innovation are realized through the business activities, and certain business undertakings may impact the product design innovation. A requirements-driven approach to innovation is proposed. It is a natural extension of the system of customer requirements in terms of their number and type and the expanded ways of collecting and processing them. The proposed approach is implemented as the Living Innovation Laboratory.