Dilemmas in collaborative public sector innovation: the case of state energy efficiency policy

Collaborative innovation can be an advantageous approach for developing new solutions to complex public sector challenges. Despite its significant potential, however, collaborative innovation may promise more than it delivers. Conditions for collaboration and innovation exhibit inherent tensions, which require thorough examination. We investigate dilemmas in collaborative public sector innovation in the context of energy efficiency and conservation policymaking in Pennsylvania. Focusing on the complexity of public problems, institutional arrangement, trust and power relations, and evaluation methods, we trace the stakeholder interactions embedded in the policy design and analyze the conditions under which collaborative innovation occurs and stagnates. The results indicate that sustainable CPSI requires policy design to evolve, addressing emerging internal and external challenges while adapting to stakeholders’ shifting interpretations of policy objectives and evaluation methods.