Today's public sector institutions face a number of challenges that are not different to the most organizations: resources' shortage, digitalization, cost pressure, data management, communications, hybrid type of work, supply change disruptions etc. Nevertheless, weak modernization skills, lack of readiness and flexibility for technology shift, slow and low-quality innovation management and inability to adapt modern technical solutions are obstacles for the improvement of public services. They are typically conservative, cannot afford any risks and therefore tend to keep using conventional way of doing things rather than to look for a new one. The project develops solutions, processes and practices to help public organizations to foster innovations. The project forms positive innovation management practices in BSR by the piloting of scalable extended reality (XR) technology implementation and hackathon organization that both bring positive and measurable outputs for investment attraction, communications and other public services. At the methodological level the project activities also include the generalization of the experience, knowledge transfer and lessons learnt dissemination. The result is given the form of the roadmap for successful innovation management in public sector in the form of manual, handbook and hybrid training course. The project builds new partnerships and capacities, creates good practices for dissemination in the BSR.