Paper/Speech Details of Conference Program for the 20th NISPAcee Annual Conference Program Overview Internationalization and Networking of PA Studies Author(s) Neringa Petrauskaite Vilnius Gediminas Technical University Vilnius Lithuania Title Innovation development and institutional barriers: Challenges and role of the public sector File Paper files are available only for conference participants, please login first. Presenter Neringa Petrauskaite Abstract In terms of institutions the innovation development is an intricate and multipartite process involving a number of institutions varying in form, work organisation principles, objectives, experience etc. Theories of innovation development pursued in the past few decades emphasised that individual elements (institutions) operating in the innovation development system and their interaction were highly important to the effective innovation development. Although such theories of innovation development elaborated different views towards inter-institutional relations, all of them highlighted the importance of the public sector and people working in it to successful implementation of the public sector functions. Thus, the article aims to define the role of the public sector in innovation development in the context of the most advanced theories of innovation development, and to distinguish the requirements for employees of the public sector as well as the priorities in their education relevant to innovation development. For that purpose, the article analyses scientific literature on the subject of innovation development to determine the most advanced theory of innovation development and to define the role of the public sector as well as the requirements for that sector in the sphere of innovation development. In addition, the article will attempt to delineate new requirements posed by the system of innovation development to those employed at the public sector. The article provides an overview of the innovation theories developed in the past few decades, namely the Sabato’s Triangle, concept of national innovation systems and a triple helix model. Moreover, it proves that the triple helix model with overlapping elements is the most effective one for innovation development as it provides the best conditions for networking and knowledge transfer. Based on the analysis of the scientific literature on the subject the importance of the public sector in developing innovations by means of the triple helix model is discussed in greater detail and the functions performed by the public sector are distinguished. A systematic assessment of the interface of the triple helix model allows identifying thee key challenges – which for the most part are related to internal transformations of the sector in question – and the need for new competences necessary to ensure implementation of the innovation agenda.