This study examines how transformational public management influences the development of an innovation culture within the Luwuk City Government, Banggai Regency, Central Sulawesi. Using a qualitative descriptive approach, data were collected through interviews with 12 key informants, direct observations, and document analysis of innovation reports from 2021–2024. The results show that visionary and participatory leadership practices have significantly encouraged creativity, collaboration, and organizational learning among civil servants. Leadership initiatives such as Luwuk Smart Monday, Luwuk Satu Data, and Sehat Bersama Luwuk illustrate a growing transformation from procedural bureaucracy toward adaptive governance. Institutional barriers such as the absence of formal innovation units, limited technical capacity, and dependence on individual leadership still hinder sustainability. The findings suggest that transformational leadership acts as a bridge between structural reform and cultural change by shifting employee roles from rule enforcers to creative problem solvers. Strengthening policy frameworks, training programs, and innovation incentives is essential to embed innovation as a permanent organizational culture. Overall, Luwuk’s experience demonstrates that visionary leadership and institutional support are key to achieving effective and innovative local governance.