Innovation gaps reflect the need for both sectors to develop new and innovative solutions to complex problems. The private sector continues to move ahead of governments in its ability to produce and take advantage of innovations. But the best PPPs can allow governments and the private sector to work together to develop these new solutions, positively affecting outcomes. Innovation gaps are the most challenging to overcome. Their very nature suggests a need for solutions that haven't been invented yet. Innovation gaps, like execution gaps, are fundamentally human resources problems. Without public- and private-sector representatives who are prepared to engage with PPPs critically and conceptually, it is difficult for partnerships to develop new structures and solutions. This, in turn, is a political and labor issue-the lack of qualified professionals in both the public and private sectors can be a major obstacle in achieving innovation.
PPPs, once considered mere financing tools, are increasingly being seen as catalysts for innovation. But that innovation is-obviously-contingent upon having officials who are prepared to innovate. Developing professionals who are adept at innovating, and converting these innovative ideas into workable structures is essential to narrowing the innovation gap. But, as we have already discussed, innovation is a complex skill and process. Developing it is challenging. Ultimately, professionals in a PPP must be well-versed in the structures and incentives that underpin PPPs in order to effectively innovate.