Lily Díaz research interests are focused in: 1. New media platforms that could be developed to illuminate knowledge in the arts and the humanities 2. Virtual reality as a new genre 3. Design research practice and theory; 4. Combined use of anthropology and new media to promote human-centred design.

Her experience as principal investigator in projects related to development and implementation of digital technologies for cultural heritage. She is an active participant (as well as leader) in national and international research projects.

In 2015 she was appointed full professor of new media at Aalto University, School of Arts, Design and Architecture. As Head of Research she is responsible for the Doctoral Studies in the Media Lab Helsinki. In the MA studies programme she teaches design research and information visualization design. 

Significant research projects include the Raisio Archeology Archive created as part of the Illuminating History Through the Eyes of Media project funded by the Academy of Finland during the Research on Information framework; the Digital Facsimile of the Map of Mexico 1550 project that received First Prize in the Nabi Digital Storytelling International Competition of Intangible Heritage organized by Art Center Nabi in South Korea and UNESCO; the Interactive Virtual Reality Installation of the Pavilion of Finland at the 1900 World Fair in Paris developed as part of the TEKES funded HandsOn project and also in collaboration with faculty and students at Media Lab and University of Helsinki; the Interactive Virtual Reality Installation of Vrouw Maria, that was awarded a Special Mention of the Jury in the research category of the 2015 Europa Nostra digital cultural heritage competition and the Interactive Diorama-Rembrandt, 1632 installation showcased at Ars Electronica 2017 and Helsinki Public Library (Oodi) 2019. (See http://sysrep.aalto.fi/research/)

She has written over 90 publications in areas related to art, design, heritage and new media. Ubiquitous Computing, Complexity and Culture an anthology published by Routledge in 2015 (co-edited with Ulrik Ekman, Jay David Bolter, Martin Sondegaard and Maria Engberg) and Adaptation and Convergence of Media (co-edited with Magda Dragu and Leena Eilitta) and published by Aalto ARTS Books in 2019  are among her latests result as an author.