The way government does business is changing. We are deep into the context known as the New Normal, with an aging population, changing population trends from rural to urban, decreased government revenue, and higher demands on government. Local and state government are responding by innovating and redesigning. The public sector has been fundamentally disrupted and the principles, process and examples shown in this material help elucidate how innovation can unleash a new period of government efficacy, efficiency and responsiveness. After completing this study, the learners will be able to: describe the context that drives government innovation, classify the different types of government innovation, identify potential areas for innovation in their local government and explain the principles and process that could be taken to design an innovation in a state or local government context.