The efficiency of the public sector is a requisite for economic competitiveness. The quality of the public administration and of governance impacts the environment in which businesses operate and largely influences a country's overall socioeconomic development and its competitiveness in the global economy. Efficient, cost-effective and high quality public services are essential for the competitiveness of businesses and for the European society as a whole. The challenge of ensuring high quality services despite budgetary constraints requires technological and organisational innovation to enhance the efficiency of public administration and public services. In this regard, the aim of this project is to identify key characteristics of 'excellence in public administration' and to explore their microeconomic links to increased competitiveness. In addition, an assessment framework will be developed and applied to assess and measure 'excellence in public administration' for competitiveness among Member States based on specific criteria and indicators.