The document summarizes Session 3 of the 3rd Connected Smart Cities Conference which focused on Living Labs and Open Innovation. The session objectives were to explore governance models for public-private partnerships in cities, innovation policies and instruments for smart cities, key principles for sustainable smart cities from Living Labs, and further developing the Open and Agile Smart Cities mechanism. Speakers included representatives from the European Commission as well as city leaders and experts from Helsinki, Copenhagen, Antwerp, Aarhus, Eindhoven, Sipoo and other organizations to discuss case studies and inputs on these topics.