The inaugural Nitro Athletics events take place in Melbourne next month, with six teams of 24 athletes taking part in non-traditional events such as middle-distance and hurdles relays.
Nine-time Olympic champion Bolt, 30, will captain an 'all-stars' team.
"We need brave, bold ideas that engage fans in events," said Coe.
"Athletics is a global sport with a global following, but we need events that bring back the fun, the kids and the crowds and... add a different dimension to the record-setting events like the world championships.
"Nitro Athletics is a great example of what can be done and what needs to be done to revolutionise how we present our sport and how our fans connect with the sport and the athletes."
Bolt and his team-mates will compete against squads from Australia, China, Japan, New Zealand and England - the latter captained by 2008 Olympic 400m champion Christine Ohuruogu.
The Nitro series will take place at Melbourne's Lakeside Stadium on 4, 9 and 11 February, and will build up to the World Championships in London in August, which is expected to be Bolt's final major competition.

United Utilities has been working at the Mancunian Way site over the weekend to assess the collapse.
A repair plan is "now in place" to stabilise the hole and make it watertight so engineers can repair the damage.
The road will remain closed in both directions while work takes place.
A spokesman for Manchester City Council said: "This initial phase of work could take up to 10 days, but until we are completely satisfied that the area is safe the section of the Mancunian Way will remain closed in both directions."
A diversion remains in place via London Road, Fairfield Street, A665, Hyde Road and Downing Street.
At the weekend, members of the public were warned not to cross a safety cordon as engineering work was being "hindered".
About two weeks' worth of rain fell in about six hours in Manchester on Friday before the hole appeared.
Tony Griffiths, of United Utilities, told the BBC: "An awful lot of rain fell on Friday - a few days' worth - which washed the ground material beneath the carriageway, causing the highway culvert to fail. Debris washed into the sewer, causing a domino effect leading to the collapse."
Mr Griffiths said the hole is still "quite unstable" and needs to be filled in before work can be carried out.
A new athletics team event, headlined by Usain Bolt, could "revolutionise" the sport, according to World Athletics chief Lord Sebastian Coe.
[NEXT_CONCEPT]
A busy Manchester road which partly collapsed when a sinkhole appeared is to remain closed for at least 10 days.