Tackling Policy Challenges Through Public Sector Innovation

A Strategic Portfolio Approach

This report discusses how steering innovation investment in public sector organisations through a portfolio approach can help governments respond to the multi-faceted challenges they face. Portfolio management is a well-known device in the financial sector, allowing for dynamic decision-making processes involving regular reviews of activity and ensuring a coherent distribution of resources among strategic options. The report illustrates how this approach can be applied by public sector organisations to reap a variety of benefits, including avoiding innovation fragmentation and single-point solutionism; tackling risk aversion and learning at the portfolio level; identifying synergies among projects and activities; building value chains among projects and programmes; and layering activities connected to complex reforms. The report also discusses the type of innovation investments or facets a portfolio can help to steer and what these look like in practice.

Available from November 23, 2022

In series:OECD Public Governance Reviewsview more titles


Executive summary
Addressing public policy challenges through public sector innovation4 chapters available
Connecting purpose with solutions - Introduction to the Public Sector Innovation Facet model
Working with innovation portfolios
Innovation portfolios in policy making systems
Towards a strategic, action-oriented innovation portfolio
Working with the public sector innovation facets: An in-depth analysis4 chapters available
Enhancement-oriented innovation
Adaptive innovation
Mission-oriented innovation
Anticipatory innovation
Annexes2 chapters available
Research methodologies
Innovation Capacity Framework – Factors and variables
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