Christian Bason discusses the value of public sector innovation and co-creation/co-production with citizens in developing new public policies and services. He outlines two paradigm shifts - from professionals producing to experts co-creating with citizens, and from authorities providing services to citizens to authorities and citizens co-producing outcomes together. Effective co-creation involves experiencing issues from a citizen's perspective, prototyping ideas, and designing with an understanding of human behavior. Co-production can optimize existing systems or redefine them by investing in new capacities and facilitating platforms for different actors to work together. Public managers face challenges in transitioning to more collaborative models and redesigning systems through co-creation and co-production.