This study explores the critical components of systemic innovation capabilities within nine municipalities, confronting the global goals, through a multi-faceted lens of design thinking (DT) and reasoning approaches. It investigates how an integrated innovation management system (IMS) that spans across organizational levels, embedding inductive, deductive, and abductive reasoning can increase the agility and creativity needed for new solutions to complex challenges. Through qualitative analysis of interviews, workshops, seminars, and strategic documents, the study reveals a dichotomy between the strategic intentions for innovation and the practical maturity of innovation management (IM), speciEically the Eindings suggest that there is a willingness to work with innovation but a lack of a corresponding reasoning approach. It highlights the challenges in aligning strategic innovation objectives with operational frameworks, managing unknown uncertainty, and building bridges between diverse knowledge areas. The Eindings emphasize the role of politicians and senior management in championing innovation, by recognizing different approaches to uncertainty, showing courage and prioritizing time for exploration. This contributes to public sector innovation by exploring the systemic innovation capabilities essential for public organizations to navigate and lead in an era of rapid change and complex societal demands using DT. The research provides actionable insights for civil servants to craft preconditions for innovation, supporting transformative governance and community engagement.