Innovation has become a phenomenon that has been given more importance in the last thirty years and is encouraged at every opportunity as the added value it creates is realized. In this context, international organizations are trying to create innovation policies and measure the innovation performances of countries within the framework of determined criteria. Innovation is applied in many areas, especially in ensuring global competition and economic growth, improving the quality of life of citizens, solving problems such as hunger, infectious diseases, thirst, environmental pollution, etc. Countries that realize that innovation is an essential need are preparing innovation programs and providing funding sources for its intensive use in public institutions. Innovation is used as a tool that solves problems and meets needs depending on social, economic developments and rapid changes in the field of technology. As a tool that exceeds citizens' expectations on a global level, it is applied by municipalities, which are the units closest to citizens in public institutions, in service delivery. Innovations that emerge especially in the field of technology emerge as smart city applications and social innovations in municipalities and are effective in increasing sustainable urban development, citizen welfare, and municipal service performance. In addition, the efficient use of resources, reduction of costs and the reflection of digital technologies such as artificial intelligence, smart sensor technology, etc. to the services provided are provided. On the other hand, with the help of innovation, it is possible to combat the difficulties encountered in urban life and to meet the emerging needs through the effective participation of citizens (democratic innovation). With the cooperation of the private sector and civil society organizations with municipalities, a creation opportunity arises, and faster, more effective and citizen-focused service delivery can be provided in the field of innovation with organizations called "Living Lab" in municipalities.