What tomorrow’s governments need to thrive

When PwC’s 2024 Global Ministers Survey, conducted in collaboration with the 2024 World Governments Summit, asked 50 policymakers from around the world what attributes governments will need in order to thrive in the future, being innovative topped the list, with digital enablement coming in second. The findings suggest that government leaders see tech-driven innovation as the key to tackling critical challenges, from improving the delivery of public services to streamlining regulation and boosting private-sector engagement. Just as it does in the corporate world, fostering innovation in government requires shifts in organisational culture. Leaders can start with the following moves:

• Make upskilling part of the organisation’s DNA. Innovation won’t take off if an organisation can’t retain and recruit the kinds of employees who drive it. Increasingly, winning the war for talent depends on giving employees robust opportunities for learning on the job, according to PwC’s 2024 Global Workforce Hopes and Fears Survey. Of respondents who are planning to switch jobs within a year, more than two-thirds said that the opportunity to learn new skills is a decisive factor in choosing a new employer. And yet, 74% of the government leaders polled in the Global Ministers Survey said they struggle with inadequate financial resources for upskilling. A similarly large share (68%) said they find it hard to retain skilled employees. Overcoming those challenges will require shrewd resource reallocation and the creation of upskilling infrastructure.
• Cultivate novel ideas from the ground up. By creating an inclusive environment that uses digital tools for feedback and collaboration, government leaders can tap into the knowledge and ideas of the employees who are closest to the people whom governments serve. Public-sector entities can also provide safe spaces for experimentation, as well as innovation labs and GenAI training programs. Perks and financial incentives can boost autonomy and encourage employees to make creative ideation part of their everyday work.
• Encourage employees to embrace risk-taking. Failure isn’t a bad word. As practitioners of the ‘fail fast’ business ethos (which emphasises quickly testing ideas and learning from mistakes) can attest, small-scale failures often give way to groundbreaking solutions. Leaders should make clear that experimentation is encouraged, and that getting it wrong on the first try is OK.

For all the importance of cultural change, fostering innovation in government doesn’t just involve looking inward. A solid majority (60%) of the Global Ministers Survey respondents said the government of the future will be “co-creative,” meaning that outside stakeholders will be involved in the development and delivery of public goods and services. An even greater share of respondents (76%) said it’s extremely important to encourage public–private partnerships to support that co-creation. This represents a call to action not just for government leaders—who need to make external collaboration a top priority—but also for business leaders seeking new growth opportunities.