Kushner, 36, currently a senior adviser to the president whose portfolio already has included acting as the administration's point person on Mideast peace, will head the Office of American Innovation (OAI).
The new office will make recommendations to the President on policies and plans that improve government operations and services, improve the quality of life for Americans now and in the future and spur job creation.
These recommendations will be developed in collaboration with career staff along with private-sector and other external thought leaders, the White House said.
"One of the primary reasons I ran for President was the need for new thinking and real change, and I know the Office and its team will help us meet those challenges," Trump said.
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"The Office of American Innovation will bring a creative and strategic approach to many critical issues and intractable problems that affect Americans' quality of life," Kushner said.
"We have an opportunity to identify and implement solutions by combining internal resources with the private sector's innovation and creativity, enabling the Federal Government to better serve Americans," he added.
OAI will create task forces to focus on initiatives such as modernising Government services and information technology, improving services to veterans, creating transformational infrastructure projects, implementing regulatory and process reforms, creating manufacturing jobs, addressing the drug and opioid epidemic, and developing "workforce of the future" programmes, the White House.
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