This article describes cooperation between authorities and universities in order toincrease innovation capacity and thereby achieve change in performance and executionfor better contribution to a sustainable future. Through action research, the authors havedeveloped new knowledge about results, success factors and obstacles for increasinginnovation capacity. The paper recognizes that administrative and adaptive leadershipmust work together effectively if organizations are to function properly. There is a needfor a dynamic relationship between the formal and the informal in organizations– between top-down administrative forces and complex adaptive emergent forces. Thereis a need for a wider range and simultaneous use of management models adapted todifferent contexts and needs.