This chapter presents the LibrarIN Toolkit, designed to support the transformation of European libraries to address societal challenges and adapt to the changing needs of their communities through value co-creation and social innovation. The Toolkit addresses the “European innovation paradox” by providing tools and methods that translate research into actionable policy and practice. It comprises three main components: the Library Policy Tracker, the What-Works Database, and the Research Knowledge Base.The Toolkit allows for the benchmarking of National Library policies, fostering the adoption of EU-level recommendations, showcases examples of social innovation practices, and offers a repository of research literature on social innovation in libraries. The Toolkit was developed through a collaborative process involving library experts and policymakers, illustrating the effectiveness of co-creation, evidence-based advocacy, and context-specific innovation. The chapter provides an example of how each of the tools can be used to support the implementation of AI and digital innovation in library services and operations. By aligning with EU priorities and promoting stakeholder engagement, the LibrarIN Toolkit aims to empower libraries as key pillars of democracy and social cohesion.