The public sector cannot be a stranger to innovation. As in the private sector, it needs to be able to implement novel approaches to deliver on its core functions. As technologies, circumstances and needs change it means that it cannot be assumed that existing structures, processes and interventions remain the most appropriate or most effective. New options must be developed and assessed on a continual, consistent and reliable basis in order to be ready for both expected and unexpected challenges. This is true for both the private and public sectors. The process of innovation must therefore take a more central role if government is to remain effective, relevant and suitable.

Governments today are confronted with a complex array of interconnected problems, increased citizen expectations, and fiscal constraints. Technological, geopolitical, economic, social, and environmental changes mean that the operating context for the public sector is one of increasing flux rather than stability. Governments cannot assume that existing policies and programmes remain the most suitable options for today, let alone that they will suffice for tomorrow. Governments therefore require a systemic approach to public sector innovation to develop and deliver novel solutions that meet the existing and emergent needs of citizens.

The OECD has collaborated with the Government of Canada on the first ever country review of a public sector innovation system. As the review is the first of its kind, new research was required to establish an emergent model that could be applied in order to understand the nature of the innovation system of the Public Service of Canada and consider possible options for intervention. This chapter provides a high level overview of the context, the key insights from the review, and explains the methodological steps and structure of the review process and this resultant report.

In order to understand the innovation choices facing Canada in the future, it is necessary to examine the past. This chapter explores the innovation journey of the Public Service of Canada over the past 30 years – a period covering the effective living memory of the system. However, any attempt to develop a single narrative for an inherently ambiguous concept such as innovation presents difficulties. The historical innovation journey is thus viewed in terms of a chronology of relevant developments and through a thematic analysis of observed patterns and trends. The chapter also considers the indicative roles of some of the key actors involved. It concludes by drawing out some of the implications of this historical journey and exploring their meaning for the journey yet to come.

This chapter explores what is known about public sector innovation, and why a shift in governments’ approach towards innovation is necessary. It looks at the characteristics of innovation and examines its implications in the government context. The chapter also assesses current knowledge on innovation and evaluates how it might inform the development of a model for public sector innovation systems. It concludes by analysing which forms of support best ensure consistent and reliable innovation in the context of a changing environment.

This chapter explores the “lived experience” of innovation in the Public Service of Canada. What does innovation mean, what does it look like, what does it involve, and what does it feel like in the context of the Public Service of Canada? The chapter outlines four major understandings of the current state of public sector innovation, and building on these, considers the implications for understanding what shapes and affects the performance of innovation from a systemic perspective.

This chapter proposes an emergent model for understanding the determinants that affect innovation performance at the individual, organisational, and systemic levels. It explores each of the determinants at the system level and illustrates them using examples from different national governments.

This chapter examines the innovation system of the Public Service of Canada through the four lenses of the model, in order to obtain an understanding and appreciation of the impact of current initiatives, drivers and developments.

This chapter uses three differing scenarios to examine different pathways that the public sector innovation system could move along. Each scenario is designed to help explore how the system could play out over time.

This chapter builds on the identified underlying determinants of public sector innovation system performance, the assessment of the Canadian system using those determinants as lenses, and the three scenarios for future pathways, to consider which options might help build an innovation system that is more consistent, reliable and systematic in producing innovative outcomes that deliver value for Canadian citizens.

This chapter outlines how the model may be of relevance to the governments of other countries.

The objectives of the project were that it was to:

The following people were interviewed for this review or participated in workshops during the review process. Many more people contributed either through the GC platforms, through open meetings/focus groups, or through informal discussions.