Despite immense efforts to realize diverse visions of the ‘smart city,’ municipalities still face manifold uncertainties of how governance and the tools of governance can best support public and regional value creation for achieving urban sustainability. To this end, Urban Living Labs have become a known enabling mechanism. In this paper, we extend the lab idea and formulate the concept of Urban Experimentation Platform that focuses on developing urban innovation ecosystems for urban sustainability. We use action design research and participant observation across multiple case studies enacting Urban Experimentation Platforms in order to investigate how the tie-in between governance and the local lab’s innovation process unfolds. Our analysis distills three facets that are instrumental in institutionalizing these platforms as resilient organizational models. With the help of the case studies, we illustrate the three facets, concerning issues of urban ecosystem governance, empowering co-creation, and qualifying local innovation. The facets reinforce the roles of digital instruments and digital capabilities for effective urban governance and platform management. We draw some conclusions for future research and formulate policy recommendations for implementing and operating Urban Experimentation Platforms.