The managerial flow framework (MFF) was designed to facilitate improved implementation of public policies through proactive management of planning, governance, selection, partnership, and knowledge gaps (Vecchi & Brusoni, 2012). Within the MFF, this is achieved through managerial decisions and actions that generate managerial assets. For this research, the MFF was used as a lens to analyse the implementation of an innovation policy in a substantive Australian local government authority (LGA) as part of its broader economic development plan.

Using a case study based on qualitative data, our investigation drew upon a review of the literature covering strategic management, public policy, network theory, and relationship marketing and our resultant research questions:

RQ1: How does strategic orientation influence the implementation of innovation policy and affect the planning gap identified by the MFF?

RQ2: How can networks and relationships foster or hinder innovation policy to minimise, close, or address the gaps identified by the MFF?

Within the context of our research, the influence of strategic orientation and the management of networks and relationships for the development and implementation of innovation policy was notably significant in successfully addressing the gaps as characterised in the MFF. Additionally, we found the LGA collaboratively developed its new economic development strategy with key stakeholders at all stages, ensuring flexibility and responsiveness to State and Federal government initiatives. The LGA ensured the new strategy is outcome-oriented through the use of semi-annual assessments against specific key performance indicators.

Our contribution to the understanding of sustainable entrepreneurship in local and regional policy development is twofold. First, we demonstrate how a LGA can moderate the gaps identified in the MFF when implementing its innovation policy. Second, we identify how a LGA can develop outcome-oriented policies by employing a strategic orientation and focusing on networks and relationships.