The global space industry has recently seen a structural transformation through the emergence of ‘New Space’, i.e., a significant expansion of the development of smaller, cheaper, and more modular space-related products in services. One example of this expansion is the emergence of a world-leading cluster of New Space industry in Scotland (UK). Critically, this development is being pitched as a new approach to innovation ecosystem, which the players refer to as ‘Agile Space’, based on a consolidation of cross-sector competences within loose value chain integration. However, I argue, in particular, that the emergence of the Scottish New Space Sector is crucially linked to the Living Laboratories (Living Lab) conceptualisation of the innovation practices and processes within the Agile Space approach. Hence, this article maps the key features of the emergence and development of the New Space Industry in Scotland and analyses the key feature of the Agile Space Living Lab paradigm, before proposing a critical further research agenda suggesting several much-needed strands of enquiry.