Cities are reinventing themselves to adapt and respond to their evolving contexts. One instrument that local government is leveraging is innovation. To understand how cities approach public sector innovation, the OECD and Bloomberg Philanthropies carried out a survey on innovation capacity across 89 cities in OECD countries and non-OECD economies. The focus of the survey was to unpack the capacity to innovate in the local public sector and explore the resources – human, financial, and institutional – and how they can work to boost innovation in a city. This report explores the approaches and goals, staffing and structure, data, financial resources, and evaluation efforts that local administrations are making to innovate. It also reviews the outcomes that are resulting from these measures, especially related to resident well-being.