This paper introduces the notion of cultural innovation, which requires adapting our approach to co-creation. The argument opens with a first conceptualization of cultural innovation as an additional and autonomous category of the complex processes of co-creation. The dimensions of cultural innovation are contrasted against other forms of innovation. In a second step, the paper makes an unprecedented attempt in describing processes and outcomes of cultural innovation, while showing their operationalization in some empirical case studies. In the conclusion, the paper considers policy implications resulting from the novel definition of cultural innovation as the outcome of complex processes that involve the reflection of knowledge flows acros...