This theoretical article aims to analyze the underlying challenges to the development of
innovation capabilities in public sector organizations. Several papers have examined the specific
barriers to innovation in the public sector. However, little is known about the root causes of these
barriers. To fill this gap, we apply the concept of organizational ambidexterity, which refers to
the ability of the organization to balance exploitation and exploration and resolve the resulting
tensions. Based on a literature review of the development of innovation in the public sector (116
references), we trace the evolution of the ambidexterity of public organizations, following a
three-period analysis. Our findings highlight the relevance and usefulness of the exploitation–
exploration question, which underlies the development of innovation capabilities, and show that
contemporary public organizations are meeting particular challenges regarding innovation.