Foreign minister Julie Bishop has defended a small group of Canberra based public servants charged with delivering radical change to the public service.

Last week, the federal opposition announced it would cut funding for DFAT's Innovation Xchange agency if elected, claiming it "focused on purchasing bean bags".

Foreign Affairs Minister Julie Bishop with InnovationXchange staff. Credit:Andrew Meares

Labor senators have routinely targeted the agency at senate estimates asking public servants to justify a $6300 ping-pong table and three bean bags costing $590 each.

Ms Bishop launched the $140 million agency with a brief to disrupt traditional aid processes and to identify inefficiencies and savings across the workforce.