In this research project the concepts of user driven innovation and innovation processes in the practice of virtual worlds (VW) e.g. Second Life and World of Warcraft are studied with reference to three empirical fields: 1) new market dynamics and management, 2) social and cultural innovation and 3) knowledge construction. User driven innovation will be understood as the meaning-generating processes and sense-making strategies of innovative practices. The aim in terms of theory is to explore and evaluate the applicability of sense-making theories and methodologies (Dervin et al., 2003) in interplay with the actor network theory concepts intermediaries (non-human actants) and mediators (human actants) (Latour, 2005), when used as a basis for understanding the concepts, and phenomena of innovation and innovation processes in a practice. Also, the pivotal interest is in developing concepts and methods for analysing and facilitating the communication of research understood in dialogic as communication designed to contribute to socially innovative interactions between different actors in society and their knowledge forms (Gibbons et al.1994; Nowotny et al.2001). Therefore, the research groups are particularly interested in how communication forms and knowledge forms interact. In the study of virtual worlds the methodological reflection is embryonic, yet a distinct field is in the making, one that focuses on the study of avatar based interaction and communication (Guimararães, 2003; Schroeder, 2002, 2006; Williams 2007). The project is meant to contribute to qualitative research that explores how conceptions of space, body and person influence design, use and change of/in virtual worlds when interaction and communication is avatar-based. On the Danish scene, virtual worlds and their potential are still a relatively new domain, in contrast to the many international experiences. For this reason the project prioritizes collaboration with actors with experience in the field, so that effect and relevance may be assessed on the basis of knowledge about Danish initiatives - in interaction with international findings. Partners of the project are: Roskilde University: the interdisciplinary research group Communication Forms and Knowledge Production, Copenhagen Business School: the interdisciplinary research group LIKE – Leadership, Innovation, Knowledge and Entrepreneurship, UNI-C - Centre for Education and Research in collaboration with the DK*CERT Computer Emergency Response Team, and the private firm consultancy Innovation Lab.