Public Sector Capabilities Index (PSCI)

This research project is led by the UCL Institute for Innovation and Public Purpose (UCL IIPP).
Explore all IIPP research projects here. 

Dates of the project: 2023-Present

The Challenge 

Local governments across the world face mounting pressures to address complex urban challenges—from climate change and public health crises to growing inequality and economic transformation. Yet prevailing frameworks for assessing public sector capabilities focus too narrowly on market regulation and economic efficiency, leaving cities without the tools they need to meet today’s urgent demands. 

This gap is compounded by the absence of a comprehensive, data-driven approach to identifying where dynamic capabilities in city governments are strong and where they need to be strengthened. Without this insight, municipalities risk underusing their potential and failing to address residents’ needs effectively. When city-level capabilities remain opaque, national governments and financial entities often avoid taking responsibility for providing necessary support.  

Our Approach 

The Public Sector Capabilities Index becomes the first global measure of where government capacity is strong and where critical public sector skills must be developed. 

In its initial phase, funded by Bloomberg Philanthropies, the UCL Institute for Innovation and Public Purpose (IIPP) designs and tests the Index to prove its viability and usefulness.  

The approach includes: 

• Forming a cross-disciplinary team of experts in public administration, urban governance, economics, digital transformation, data analytics, and public value.
• Establishing a project-specific advisory board of high-level practitioners and academics.
• Working directly with cities and government officials, inviting them to co-create, test, and refine the Index to ensure real-world relevance.
• Embedding on-the-ground experiences into the Index’s design to capture the full spectrum of city government capabilities. 

Why This Matters 

By creating the first global diagnostic tool to measure and understand city government capacity, the Index provides: 

• A clear, actionable picture of where cities excel and where they need targeted investment.
• Opportunities for rapid scaling or strengthening of critical skills, such as:
• Engaging residents through innovation
• Cross-sector collaboration
• Leveraging data infrastructure
• Utilising digital platforms
• An evidence base for resource allocation and strategic decision-making.
• A platform for collaboration between local, national, and state governments, as well as philanthropic and financial institutions, to fund and support capability building. 

This initiative positions city governments to respond strategically to global and local challenges, creating stronger public value and resilience. 

Resources 

Video: From Insight to Action: Scaling the Public Sector Capabilities Index
Speakers: Mariana Mazzucato, Rainer Kattel, James Anderson, Anacláudia Rossbach, Claudio Castro, Kate MacKenzie
Description:
This video marks the launch of the final report of the Public Sector Capabilities Index (PSCI), a groundbreaking initiative co-developed with over 200 officials across 45 cities. It presents a scalable framework for assessing how governments learn, adapt, and deliver in the face of complex challenges. Featuring insights from global leaders in public innovation, the panel explores how cities are using the Index to strengthen governance, guide investment, and build resilience.

Video: Building Dynamic Capabilities: How do Cities Adapt to Tackle Grand Challenges
Speakers: Mariana Mazzucato, Rainer Kattel, Dan Hill, James Anderson, Bridgette Morris, Ruth Puttick.
Description: This video explores how city governments are developing and applying dynamic capabilities to guide investment, redesign governance, and build resilience – featuring insights from leading researchers and practitioners.

Video: Accessing City Government Dynamic Capabilities
Speakers: Rainer Kattel, Mariana Mazzucato.
Description: This video discusses how city governments are using dynamic capabilities to drive transformative change, based on insights from the Public Sector Capabilities Index and recent publications. It explores the benefits and challenges of assessing and applying these capabilities in practice.

Funder

This project is funded by Bloomberg Philanthropies. 

This research project is led by the UCL Institute for Innovation and Public Purpose (UCL IIPP).
Explore all IIPP research projects here.