Urban Living Labs (ULLs) have emerged as critical arenas for fostering collaborative innovation and addressing complex urban challenges through experimentation in real-life contexts. Yet, articulating diverse stakeholders within these spaces remains a persistent challenge, especially in developing countries where institutional and socio-technical asymmetries hinder sustained engagement. This paper investigates how stakeholder articulation can be effectively modeled through system dynamics to enable participatory socio-technical innovation in ULLs. Building on stakeholder salience theory and actor engagement frameworks, we propose a dynamic model that explores how attributes such as influence, legitimacy, and collaborative capacity shape stakeholder interactions. The model is grounded in the empirical case of the Fenicia ULL in Bogotá, Colombia, where participatory experiments addressing the waste–energy–information nexus are underway. Through a mixed-method approach combining causal loop diagrams, participatory workshops, and conceptual simulation, we validate the hypotheses: community involvement improves the viability and acceptance of socio-technical solutions. Our findings contribute to the literature by operationalizing stakeholder dynamics as system structures, offering insights into how participatory innovation can be governed, simulated, and improved over time. The proposed model provides a scalable framework for ULLs aiming to balance experimental openness with structured actor coordination, and highlights the potential of system dynamics as a methodological bridge between stakeholder theory and urban innovation practice.