Innovation in Public Service Systems

Abstract

In this chapter, we examine service innovation in the public sector. We outline the characteristics of service innovation and the conditions that in the public sector differ from market-based service sectors. We use the concept of innovation capabilities as the core concept for comparing private and public service innovations. Service innovation within public service systems requires some of the same innovation capabilities as market-based service sectors. However, because public service systems are integrated in political systems, other, partly overlapping, innovation capabilities are required. The political system's lead is a particularity. Innovative co-production with users and the involvement of employees and their bricolage are important capabilities, which we find in both private and public services. Yet, in the public sector, these particular capabilities are related to the fact that employees and 'users' (citizens) may be driven by a public ethos towards adding value to the public sphere (Benington 2011) and service providers cannot abstain from delivering a given service if the context becomes wicked or complex. The capability of externalizing some services to external partners and create networks among public and private actors is important for innovation in public services. It involves such elements as being able to specify the services, coordinate public and private interests, create trust among public and private partners and justify externalization and collaboration vis-a-vis citizens.

The dark side of innovation in local authorities: influential typologies and impacted modalities

“…Moreover, these negative effects can lead to illegal practices in the absence of rigorous legal control during the innovation process (Fuglsang and Sundbo, 2016), to corruption if there are no regular procedures for collaboration with public and private parties (Borins, 2002) or to the squandering of public funds when public innovation fails to deliver on its promise (Jordan ,2014). To overcome these issues, it is necessary to strengthen the public control and public value (McCue et al , 2020).…”

Empowering professionalism in mission-oriented innovation

“…(Fuglsang and Sundbo 2016: 228) Such stimulation and involvement from public employees is also emphasized in theorizing on the importance of bottom-up engagement in public sector innovation (Borins 2001;Albury 2005;Windrum 2008;Arundel et al 2015;Saidi et al 2020). But the notion of 'balanced empowerment' not only reflects the need for both mobilization and engagement of employees, it also refers to controlling and integrating the innovative process into the existing systems of organisational learning on the other (Sundbo 1996;Fuglsang and Sundbo 2016). Although empowering the employees is crucial for exploiting the innovative potential of the organization, innovation should be seen as a process that can and should be organized and managed.…”

“…In order to do so we use the notion of 'balanced empowerment' (Sundbo 1996) from the literature on service innovation which discusses how innovation is enabled by a dual approach of empowerment (agency) and control (structure). In a public sector context 'balanced empowerment' of innovation refers to how governments may restrain from power execution by delegating power to professional employees in the practice field (Fuglsang and Sundbo 2016).…”