Brazilian Federal Institutions as Intermediaries

Driving Digital Transformation Through Open Innovation

Abstract

The integration of Open Innovation (OI) and Digital Transformation (DT) is relevant in the public sector, particularly in developing countries where resource constraints demand innovative approaches. OI fosters collaboration between governments, businesses, academia, and civil society, enabling the co-creation of digital solutions that enhance public service efficiency and transparency. In this context, intermediaries play a fundamental role in bridging technical capabilities and institutional needs, facilitating policy implementation, and overcoming cultural and financial barriers. However, while OI and DT have been studied independently, little research has examined how intermediary-driven OI influences the digital transition in government settings. This study investigates the role of federal public institutions as intermediaries in Brazil’s OI-driven DT efforts, analyzing how they facilitate innovation adoption at the state and municipal levels. Through a case study of two federal-level institutions, the research identifies key mechanisms by which intermediaries promote digital integration and examines the challenges they face, including budget limitations and resistance to change. The findings identify the strategic role of these institutions in mitigating administrative and legal barriers and in fostering cross-sector collaboration.