This paper takes its point of departure from urban place innovation studies with focus on stakeholders' interests and involvement in developing local communities in smaller cities. The aim of the present paper is to identify place innovation challenges among local community stakeholders and to discuss approaches to involve stakeholders in local regeneration through case studies in Norway and Sweden.

In-depth qualitative interviews have been conducted during the years 2016-2018. In total 40 different stakeholders representing local entrepreneurs, non-profit organizations, municipalities, elected officials and residents with particular interests in regeneration of the local communities have been interviewed. Additional participatory observations and document studies were conducted. The results reveal stakeholders' views on challenges and opportunities related to collaborative approaches for place innovation. The complex nature of the two cases is characterized by cultural heritage, authenticity, indistinct place identity, insufficient communication and inclusion together with a mix of nostalgia and resignation. Findings indicate that place innovation requires an integrated approach based on stakeholder collaboration and engagement in order to develop the potential of city centers.