PurposeThe COVID-19 pandemic showed that public bodies need to develop their services in an innovative way. However, as a result of numerous difficulties and barriers, employees in such agencies are hesitant to innovate. Knowledge sharing and an innovative culture are factors that can help raise innovation. However, empirical evidence is inadequate to demonstrate this claim, especially in the government sector. Thus, the aim of this study is to conduct an empirical analysis to study the impact of knowledge sharing and innovative culture on the service innovation of the United Arab Emirates’ (UAE's) government agencies.Design/methodology/approachThe data were obtained from government institutions in the UAE. The analyses were based on 193 responses retrieved from a survey questionnaire sent to 221 government agencies. The authors used structural equation modelling (SEM) and statistical package for the social sciences (SPSS) to test the proposed hypotheses and do a preliminary study analysis.FindingsThe findings indicate that knowledge sharing has a significant and positive effect on service innovation. The innovative culture also moderates the relationship between knowledge sharing and service innovation.Research limitations/implicationsThese results provide information that is useful to decision-makers and managers in government agencies by emphasising the importance of effective knowledge sharing and innovative culture in improving service innovation in these entities. These relationships amongst knowledge sharing, innovative culture and service innovation may provide a clue regarding how government agencies can promote knowledge sharing and innovative culture to sustain their innovation performance.Originality/valuePrivate-sector organisations are concerned about factors that enhance innovative activities as one of the factors of development, improvement and enhancement of competitive advantage. However, in government, especially in the UAE, research into the role played by innovation remains uncommon, particularly in the role of knowledge sharing and innovative culture in building service innovation. Because of this, it was important to do research on this topic to close the gap and provide evidence to back it up.