Innovative projects frequently do not get off the ground because they cannot be aligned with existing policy, programs & projects.
We need a channel of funding and project governance which supports the initiation, funding, resourcing & measuring of what I'd call "Wild Hare" projects. These are projects which may fail, or may be wildly successful - we don't knwo when we start them. So they are inherently risky, and so I'd suggest that funding be strictly capped.
Wild Hares need to be funded on an ongoing (financial year to Fin Yr) basis - and probably best led out of a central agency.
Wild Hares are means by which we test if a Gov 2.0 innovative idea has legs.