ESF project 4895: Meer werk maken van innovatie voor werkgelegenheid en arbeidsmarkt ANALYSIS FICHE OF LITERATURE TITLE OF LITERATURE: Innovation in the public sector AUTHOR : Geoff MULGAN and David ALBURY TYPE OF AUTHOR (academic, consultants, practitioners, other): academic COMMISSIONER OF LITERATURE (IF APPROPRIATE): ORIENTATION OF LITERATURE (check with X): innovation in general: innovation by / within the public sector: X innovation oriented towards citizens: innovation oriented towards social and employment issues typically dealt with by ESF: LESSONS LEARNT REGARDING: A. How to define innovation e.g. in types “New ideas that work” To be more precise: “Successful innovation is the creation and implementation of new processes, products, services and methods of delivery which result in significant improvements in outcomes efficiency, effectiveness or quality”. Types: - - Incremental: relatively minor changes to existing services or processes (e.g. using ICT to handle school finances) Radical: development of new services or fundamentally new ways of organizing or delivering a service Systemic or transformative: major innovations, often driven by the emergence of new technologies: transforming sectors, giving rise to new workforce structures, new types of organization, new relationship between organizations Systemic innovations, driven by changes in mindset or new policies: they entail constructing different relationships between users and services, new institutions and relationship between institutions, new funding regimes, major alterations in governance and responsibilities among the public, managers and professionals Also relevant distinction: - Top down innovation: driven through the delivery system by prescription Bottom-up innovation: originating in an organization or network within the delivery system B. How to formulate an innovation strategy (in terms of scope, types of innovation, requirements) C. How to organize innovation as a process in different stages? Framework to help understand how to foster innovation: Generating possibilities: how can we stimulate and support ideas for innovation? Incubating and prototyping: what mechanisms are there for developing promising ideas and managing attendant risks? Replicating and scaling up: how can we promote the rapid an d effective diffusion of successful innovation? Analyzing and learning: how should we evaluate what works and what doesn’t to promote continuous learning and improvement? D. How to define outputs of innovation e.g. in terms of idea, concept, prototype…? E. How to make decisions regarding progress of an innovation? F. What roles exist for different actors in the innovation process? What competences are required for these roles? For generating possibilities: can be stimulated by giving intensive attention to the views of users, frontline staff and middle managers, by ensuring a strong diversity of staff (different background and way of thinking), by constantly scanning the horizon and margins & learning from others. Formal creativity techniques help organizations and individuals to suspend judgment, linear, rational thought and their proven knowledge to generate the unexpected. There’s a wide range of methods for doing this, including fiction, role playing, imagined worlds, systematic inventive thinking and the six hats techniques of Edward de Bono. For incubating, prototyping and managing risks: the public sector requires high quality risk management and safe spaces in which to test and develop promising ideas within defined parameters. G. How to organize interaction with external stakeholders (open innovation)? Networks of peers play a critical role in learning from and supporting continuous innovation: the formation of real time learning communities around specific innovations or clusters of innovations – combining on-line discussion groups, face-to-face conferences and meetings, and research. H. Specific tools that are explained (list briefly for each tool in what stage, by which role, why, how it is to be used). a) Tool 1: