GUEST COLUMN.

A global survey involving 590 public officials from ten nations reveals near-universal acknowledgment that citizens value and desire more innovative solutions from their governments. However, only 8 percent of agencies surveyed by Accenture were identified as trailblazers in government innovation.

Which brings up a big question—why such a large gap? Or perhaps more importantly: What would it take to close it? In a recent book, which I co-authored with David Audretsch, Innovation and Entrepreneurship in the Public Sector (Oxford University, 2025), we conducted years of research and realized that public innovation success did not come from just buying new technology or simply implementing methodologies like Six Sigma. In one of the chapters, we found what we called the “Public Innovation Ecosystem”.

This public innovation ecosystem consists of:

·        Human capital

·        Entrepreneurial Culture

·        Cross-sector collaboration

·        Supporting resources

·        Public policy

·        New management and leadership. 

Following are the roles these elements play:

The lifeblood of any organization innovation is its human capital. Developing entrepreneurial mindsets within organizations and the skills required to innovate are two crucial components to an organization’s success, yet many leaders don’t know where to start. Organizations should first identify who their most innovative thinkers are and explore how to help all employees become more innovative.

Developing human capital goes hand in hand with fostering an entrepreneurial culture. In many cases, public employees have innovative ideas and a genuine desire to drive progress, but they often work in environments that discourage calculated risk-taking. Over time, this stifles creativity and silences valuable insights from within the organization.

Our research shows that the most innovative organizations break this cycle by establishing strong incentive and reward systems. They cultivate an open, empowering culture where even entry-level employees feel confident sharing new ideas—often the very people who best understand public needs. If your organization hasn’t proposed something bold in six months, the issue isn’t talent—it’s the “soil.” Great organizations create conditions where ideas can take root, knowing that only some will bloom, but all are worth planting.

But every organization has its own limitations, and we found that ones that do best are those that recognize them and use cross-sector collaboration to complement their own strengths. There’s a Chinese saying that “Three cobblers together with their wits combined equal Zhuge Liang.” Zhuge Liang was a famed strategist of the Three Kingdoms era, celebrated for his wisdom and ingenuity.

With the rapid development of new technologies, governments frequently lack the specialized knowledge and skills needed to innovate effectively when operating in silos. For example, The Greater Jakarta area in Indonesia suffers from frequent monsoons and flooding. PetaBencana.id. is a platform that was designed to address these issues by providing a centralized system for reporting flood hazards. It was developed in collaboration with multiple stakeholders, including MIT’s Urban Risk Lab, a nonprofit foundation, and the Indonesian government. This collaborative approach provided real time updates to government and citizens, helping to keep the citizens safe during times of emergency.

Governments also play a vital role in catalyzing innovation across entire communities. When acting as a supporting resource of innovation, some governments have adopted the incubator model often providing physical space and funding. Israel’s Technology Incubator Program is an example fostering high-potential tech startups. Social financing is another tool. Social Impact Bonds (SIBs) allow investors to fund projects based on government-identified social needs, earning returns when specific outcomes are achieved. The UK applied this model to prisoner rehabilitation programs, creating alignment between financial returns and social impact. This approach expands the funding pool available for innovation while maintaining focus on measurable community benefit.

Let's be honest: public policy often feels like the thing that slows innovation down. But when created with insight, intellect and fair-mindedness, it can create the infrastructure that lets organizations share knowledge and collaborate beyond departmental silos. For instance, a growing number of governments around the world have adopted the open data policy. This policy enables all sectors to collaborate, especially allows citizens to get involved with public innovation.

While aiming for innovation, it is also important to acknowledge that public innovation needs management and leadership to ensure fairness, transparency, and accountability. In the modern digital era, it is imperative for the public sector to develop new management and leadership approaches--not only to navigate change, but also to embrace new ways of public innovation.

During the research, many city leaders shared “We have problems but don't know where to start” or “We are not innovative, and we don’t dare to innovate either.” The truth? Innovation isn't your problem. Connection is. Your talented people, real budget, and genuine challenges exist in separate boxes, never quite meeting.

The “Public Innovation Ecosystem” shows what happens when those boxes break open. Human capital, culture, collaboration, resources, policy, and leadership stop competing for attention and start reinforcing each other. That's when your buried brilliance surfaces. That's when the 8 percent becomes 80 percent. That's when the “big gap” closes.

The contents of this Guest Column are those of the author, and not necessarily Barrett and Greene, Inc. 

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