The significance of cooperative federalism in governance lies in its emphasis on the collaboration between federal and state governments. This approach facilitates the sharing of resources and responsibilities to effectively address complex issues, such as education, healthcare, and infrastructure. Cooperative federalism promotes policy innovation, allowing states to experiment with solutions while benefiting from federal support. Additionally, it enhances democratic accountability as various levels of government can be involved in policymaking, ensuring responsiveness to citizen needs. This system fosters better governance outcomes by harmonizing efforts across different governmental layers.