Public sector innovation policies increasingly leverage public-private partnerships to enhance efficiency, address pressing challenges, and develop new products and services. However, these partnerships often encounter obstacles such as institutional rigidities, conflicting priorities, and differing levels of risk aversion among stakeholders. While current research frequently interprets these tensions as barriers to innovation, this study posits that contradictions, manifested as tensions, can actually facilitate generative change. Grounded in Cultural-Historical Activity Theory, we theorize that such tensions can energize processes, sharpen focus, and yield new insights. Through an empirical analysis of two Danish eldercare cases, we reveal the complexities inherent in these contradictions. Our findings challenge the prevailing consensus bias in the management of public-private relationships and propose a novel conceptualization of contradictions. We argue that tensions within public-private innovation partnerships can serve as catalysts for transformative change, prompting public actors to critically evaluate and enhance their practices. Based on our findings, we propose a model illustrating how contradictions, manifested as tensions, can lead to generative power within public-private partnerships.
