Financing public sector innovation in the national sphere of government in South Africa

Background: Innovation in the public sector contributes to increased efficiency and effectiveness. However, limited financial resources restrict the government’s ability to effectively scale up public sector innovation (PSI), which impacts existing and future-oriented service delivery mechanisms. As a result, the government is often limited in how much it can upscale innovation. Aim: The aim of this article is to describe financing mechanisms and challenges at the national level of the public sector in South Africa. Setting: The research focuses on three government institutions, namely the Centre of Public Service and Innovation (CPSI), the Department of Science, Technology and Innovation (DSTI) and the Technology Innovation Agency (TIA). Methods: A qualitative research approach was employed using a multiple case study strategy. Primary data were collected through semi-structured interviews. The findings of the research are presented according to each case study and the themes that were derived from the thematic analysis of the interview responses. Results: The research findings highlight that internal structures and systems related to financing innovation require revision to increase the uptake of PSI trends, practices and solutions. Conclusion: The study concludes that there are several funding challenges regarding the fiscal budgets of the CPSI, DSTI and TIA. Contribution: This research contributes to current knowledge on public sector innovation, highlighting the various challenges in open innovation, monetary resources and procurement in innovation programmes and providing recommendations to overcome these challenges. This raises awareness for decision-making and policymaking in the national sphere of government.