A literature exploration on challenges in open innovation in the public sector

Abstract

This study develops an Integrated Conceptual Framework for open innovation in the public sector, combining three theoretical lenses: Public Value Theory, Open Innovation in Government, and Collaborative Governance.Through an exploratory literature review, we analyze how this framework addresses persistent innovation barriers including bureaucratic rigidity, risk-averse cultures, and resource constraints. Our findings reveal that adaptive methodologies - particularly Innovation Labs (e.g., MindLab, Nesta) and Living Labs (e.g., La 27e Région) - can bridge stakeholder gaps when implemented within the framework's four dimensions: strategic foundations, organizational capabilities, methodological tools, and evaluation systems. The study contributes three key insights: (1) successful public innovation requires hybrid governance models that balance standardization with experimentation; (2) middle managers are critical as innovation champions, overcoming institutional inertia; and (3) cultural adaptation remains the foremost challenge for global scalability, requiring integrated action across all framework dimensions.