The National Audit Office is to examine the risks associated with government promotion of innovation in the public sector.

The study will build on a similar report from 2006 and aims to explore the impact of stimulating or stifling new ideas and research.

“Civil service structures and approaches must be aligned to support innovation,” said minister of science and innovation Ian Pearson.

“Attitudes to risk, budgeting and recruitment all play into this, and those responsible for public service delivery must also learn the lessons of open innovation and adopt practices from the private and third sectors.”

The government must do more to use the spending power of its £150bn annual procurement budget to boost UK innovation, said Pearson.

“Firms must provide the best solutions, and government needs to design procurement so it allows greater innovation,” he said.

Pearson was speaking at the UK Technology Innovation & Growth Forum, and event organsied by intelligence firm Library House.