This chapter explores the intersection of demographic decline and digital innovation within public organizations. The first section outlines the principal demographic theories and perspectives throughout modern history, focusing particularly on the first and second demographic transition theories to explain falling fertility rates, depopulation, and aging in advanced countries despite attaining increasingly higher levels of economic well-being compared to the past. The second section reviews relevant literature to define the concepts of innovation and digital innovation in the context of public organizations. Finally, we examine research, theories, and perspectives on the interaction between demographic shifts and innovation to formulate a hypothesis that will be scrutinized throughout the book.