Innovating Public Services: Drivers and Challenges of Innovation Labs in the Co-Production of E-Government Services

The digital transformation of the public sector towards e-government brings benefits such as greater efficiency and transparency but also faces challenges, including a lag in digital innovation and a low adoption rate compared to the private sector. This gap, exacerbated by limited IT skills and outdated processes in the public sector, undermines public trust and highlights the urgent need for governments to develop the necessary skills and technological knowledge to meet citizens’ needs. Co-production in public sector innovation labs with citizen participation is an effective means of developing citizen-centered services. However, existing research is limited, and these innovation labs often struggle to engage citizens and maximize the benefits of co-production in practice. To better understand these dynamics, we conducted a study of 17 expert interviews, exploring the co-production process, the measures used, and the challenges faced. Our findings discuss the critical role of innovation labs in fostering civic engagement and managing co-production and highlight the complexity of fostering innovation in the public sector.