From performance to impact: a diagnostic framework for innovation theater in Public Sector Innovation labs

Abstract

Public Sector Innovation Labs (PSILs), established to foster innovation in bureaucratic environments, often struggle with innovation theater: performative activities that simulate progress but lack tangible impact. This article addresses the challenge of diagnosing systemic constraints (e.g. structural silos and short-term funding) and strategic misalignments (e.g. vague goals and vanity metrics) that drive this disconnect, aiming to enhance PSIL effectiveness and public service delivery. The proposed two-dimensional Nexus–Alignment framework evaluates structural, cultural, and resource barriers (Nexus dimension) alongside purpose clarity and metric validity (Alignment dimension). Published case studies of healthcare and governance labs are used to demonstrate the framework’s application, showing how siloed operations and funding pressures in the Nexus dimension, combined with unclear objectives and output-focused metrics in the Alignment dimension, reinforce risks of innovation theater. The analysis illustrates how both structural and strategic factors contribute to this phenomenon and suggests the framework can help practitioners identify areas where interventions may be needed.