This paper discusses whether collaborative governance always has positive impacts for inclusive policy-making processes and it also has positive effects on performance, success, and sustainability of policies as argued by its supporters? This paper argues that the argument is not always correct. Although collaborative governance has the potential impact to produce creative problem solving through consensus of parties involved and to create public value and innovation, the concept has also the opportunity to be hampered and thus cannot achieve the expected positive outcomes, due to several challenges and/or obstacles.

As one of the initiators of the public sector's innovation, public officials, both in central and regional government agencies, must have a strong innovation capacity to deliver innovations that are beneficial to society. The purpose of this study is to further explore on how is public officials' innovation capacity in central and regional agencies and whether there are differences in the innovation capacity between them. This research uses a quantitative approach. The population in this study are all public officials from central and regional government agencies who completed the Leadership Training in Puslatbang PKASN LAN. The sample is public officials who completed that training in 2019. The data is secondary data processed by the SPSS program version 23. The analysis technique is the Mann -Whitney test. The results showed that the innovation capacity of public officials in central and regional agencies are satisfying and did not differ significantly. Public officials in central agencies have the same innovation capacity as public officials in regional agencies. It means that innovations built by them will have the same quality. By continuing to implement transformative leadership supported by organizational structure and culture could preserve sustainability and increase the innovation capacity.