This thesis examines the role of policy innovation in advancing e-government within Sweden's public sector, particularly in relation to the European Union's 2030 Digital Compass. The study addresses the challenges of adapting digital governance to a decentralized system while ensuring sustainability, inclusivity, and resilience. Despite Sweden’s established digital maturity, there are still gaps in understanding how to strategically integrate innovative policies to improve service delivery, citizen engagement, and long-term digital resilience.

This research employs a qualitative case study methodology, consisting of interviews with representatives from national, regional, and municipal agencies and document analysis of relevant policies and reports. Thematic analysis was utilized to extract patterns and insights, focusing on policy innovation drivers, strategies, and outcomes.

The findings indicate that policy innovation fosters collaboration, strengthens data governance, and enhances public service transparency. Citizens-centered policies and inter-agency collaboration play crucial roles in promoting digital inclusivity. However, challenges remain, including interoperability issues, varying levels of digital maturity across municipalities, and limited resources, all hindering cohesive progress.

This study highlights the importance of developing adaptive policy frameworks that align EU objectives with Sweden's unique governance structure. This study presents a comprehensive framework (see Table 5-1) and introduces the SMART model, developed by the author, (Table 9-1 in Appendix C) to facilitate the implementation of digitally inclusive, innovative, and resilient e-government solutions. By utilizing best practices and the measurable, systematic approaches outlined in the SMART model, the findings provide actionable recommendations for policymakers. Furthermore, this research contributes to the broader discourse on sustainable e-government transformation by emphasizing the need for policy adaptability, innovation, and digital inclusivity.