The resent unprecedented wave of Immigration inflow in Sweden have challenged public sector and the Swedish welfare state but also opened a window of opportunity for new collaborative forms of local policy innovation. One such form – collaborative partnerships between civil society organisations and public actors (CPPs) – attracts civil society organisations for its distinctiveness from market contracts and traditional state grants. The article explores civil society partner abilities to innovate in service and policy development in the context of such partnership that itself is seen here as a systemic innovation (Windrum, 2008) in the Swedish context. A major puzzle is whether and how such collective entrepreneurial service development and innovation efforts may be facilitated by dispersed collective leadership (Crossby et al, 2017) that is enabled by the partnership context. Based on findings from an ongoing evaluation undertaken for H2020 InnoSI project on the largest and still enduring CPP for reception and integration of newcomer unaccompanied minors in Sweden, the article claims that CPP partnerships, and especially dispersed collective leadership, may facilitate front-line service entrepreneurs. The conclusion is that CPP may add value in policy development by facilitating civil society contributions and innovativeness.