This text explores the challenges and competences associated with implementing a culture of innovation in local administration in Portugal, Germany and the Czech Republic. Based on a literature review and consultation with different social actors, the importance of innovation for a more efficient, transparent and quality local administration that is closer to its citizens is emphasised. From a qualitative perspective, a typology of challenges facing the development of innovative projects is analysed and the skills needed by the human resources of local government bodies are classified. The research revealed that, despite the existence of a wide range of barriers and obstacles, there is a growing movement towards the adoption of innovative practices in local administration, which is why the text includes a set of recommendations to trigger, boost or deepen the implementation of this culture of innovation.