Innovation in the public sector refers to significant improvements to public administration and/or services. It can be defined as the implementation by a public sector organisation of new or significantly improved process, methods or services aimed at improving a public sector unit’s operations or outcomes.

Public sector innovation involves significant improvements in the services that government has a responsibility to provide, including those delivered by third parties. It covers both the content of these services and the instruments used to deliver them. OECD countries pursue various types of innovation in public service delivery. Many of these approaches create services that are more user-focused, are better defined and better target user demand. Innovation can alter both the supply of services, by improving their characteristics, and demand for services, by introducing new ways to articulate demand for and procure them. Civil servants and public employees are at the core of these new ideas and approaches to achieve better service delivery.