Abstract
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.