Organisations around the world are faced with a series of complex and interconnected developments, ranging from environmental tipping points to security threats and accelerated technological shifts. Governments are struggling to make sense of this reality and respond in an adequate way, not just to tackle crises, but also to identify future opportunities. Anticipating change and harnessing it for innovation is a promising approach to successfully navigate an uncertain world and survive in global competition. But no single institution can do this alone. A range of perspectives and expertise are needed to tackle the kinds of challenges societies face today and will confront in the future.

The fast-paced change occurring in domains as different as artificial intelligence, biotechnology and environmental protection presents governments with both opportunities and challenges. While innovations resulting from the rapid development of new technologies have the potential to contribute to prosperity and address grand challenges such as climate change and inequality, their impacts on society, individuals and the environment are uncertain. In this context, the ability of the public sector to proactively govern innovation is increasingly important so that it can be directed towards pathways that are likely to deliver collective benefits, and away from negative consequences.

The OECD Observatory of Public Sector Innovation together with the Investment and Development Agency of Latvia (LIAA) worked together over 2020-2022 to explore how the public sector can contribute to the effective governance of innovation ecosystems in a context of complex challenges and uncertainty.