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The Development of Public Service Innovations by ServPPINs
Paul WindrumInnovations in Public Services Seminar
TSRC & UK-IRCImperial College London
17th June 2013
Public Sector Innovation: A Nascent Research Topic
What do we understand by ‘public sector innovation’?
ServPPINs in public sector innovation
What are the key drivers / barriers?
Public Sector Innovation: A Nascent Research Topic
What do we understand by ‘public sector innovation’?
ServPPINs in public sector innovation
What are the key drivers / barriers?
Public Sector: A Key Source of Innovation
What technology has transformed the business world more than any other over the past 15 years?
Tim Berners-Lee
Biotech
James Watson, Francis Crick & Rosalind Franklin
Nanotechnology
Andre Geim & Konstantin Novoselov: 2010 Nobel prize winners for experiments in graphene.
Public Funding of Science
There is recognition of how universities and large publicly funded scientific organisations develop scientific & engineering breakthroughs (‘blue skies’ research).
These lead to radically new products and whole sectors once taken up and commercialised by private firms.
BUT we find key innovations from many other public sector organisations as well…
SPACE AGENCIES
GPS navigationSatellite TV
(NASA, ESA)
Mobile telephonyGSM standard developed by the European Telecommunications Standards
Institute (ETSI) for technologies underpinning 2G cellular networks.
MILITARY
Laser technologieswithout military and university engineering
developments there would be no CDs, no DVDs, no BluRay.
Compression technologiesWithout Israeli and US military encryption and
compression techniques there would be no MP3 / iPod.
PUBLIC HEALTH SECTOR INNOVATIONS
Intraocular lens (IOLs)
Stents
Education for type 2 diabetes
Portable AEDs
Non-Technological Innovations by Public Sector Organisations
• New services based on existing technologies • Process Innovations in delivery of existing services
(e.g. day cases for minor surgery)• Organisational Innovations: e.g. bringing together of
different branches /components of the service delivery (clinical pathways).
Knowledge-intensive public sector services (KIPS)
• Education (NACE 85)
• Health (NACE 86)
• Public labs & R&D services (NACE 72)
• Social services (NACE 87 & 88)
• Technical & Environmental services (various)
Public Sector Innovation: A Nascent Research Topic
What do we understand by ‘public sector innovation’?
ServPPINs in public sector innovation
What are the key drivers / barriers?
ServPPINs: Public-Private Innovation Networks in Services
ServPPINs are an important means of organizing the development, production, and delivery of new/improved services across public sectors.
• Public sector user-led innovation.
• Needs driven: address major social problems; improve quality and reach of services
• Address institutional failure = market failure + political failure
ServPPINs
ServPPINs differ to PFIs and outsourcing relationships:1. Co-operative innovations between public, private
and third sector organisations. - each partner brings a distinct set of competences
and funding to the development of a new/improved public service + sharing of risk.
2. Public sector service providers are the key knowledge providers, organise the formation of a ServPPIN, and integrate the inputs of partners.
ServPPINs
ServPPINs differ to PFIs and outsourcing relationships:1. Co-operative innovations between public, private
and third sector organisations. - each partner brings a distinct set of competences
and funding to the development of a new/improved public service.
2. Public sector service providers are the key knowledge providers - organise the formation of a ServPPIN, and integrate the inputs of partners.
Public Sector Innovation: A Nascent Research Topic
What do we understand by ‘public sector innovation’?
ServPPINs in public sector innovation
What are the key drivers / barriers?
Two case studies
• Automatic external defibrillators (AEDs) in Austria (Doris Schartinger).
• Transport Innovation Fund (TIF) bid in Manchester.
AED case study: Key Drivers & Barriers
The problem: first-aid measures not applied within five minutes of a cardiac arrest results in a high number of avoidable deaths per year.
Institutional failure: (1) Market failure: no production of AEDs of required
quality that were easy-to-use by the general public.(2) Political failure:
no training of general public on how to use AEDs+ lack of legislation to ensure AEDs are both
widely available (in workplace and in public venues).
AED case study: The Network
Leadership & Organisation of ServPPIN NetworkLed by prominent medical practitioners at General Hospital of Vienna and by Austrian Red Cross.
Other enrolled participants:Media: national and local TV and Radio organisations.Some notable politicians.
AED case study: Success Factors
Addressing market failure:• Stimulate development & production (by local
producers) of an AED that gives voice instructions to the (layperson) user, and automatically delivers the therapeutic dose of electrical energy.
Addressing political failure:• Raising awareness of need for reform, via media,
amongst general population and leading ‘talking heads’ in society.
• New legislation making it compulsory for all workplaces to have hand-held AEDs and staff trained in their use.
AED case study: Success Factors
• Trust: history of personal connections and engagement in previous ServPPINs.
• Complementary & non-competing interests of public, private and third sector participants.
• Well-defined IPR.
Transport Innovation Fund: Key Drivers & Barriers
The problem: To integrate train, bus & car-related services to meet in international emissions targets and reduce economic and health costs of increasing urban congestion
Institutional failure: (1) Market failure: not profitable for a private sector
firms to offer a coordinated set of local services.
(2) Political failure: lack of local political to support a body to be in control of integrated services.
Lack of provision in national legislation.
Transport Innovation Fund: The Network
Leadership & Organisation of ServPPIN NetworkGreater Manchester Passenger Transport Executive (GMPTE).
• Transport Innovation Fund (TIF) : An open competition for funding run by the UK Department for Transport
• Opportunity to finance a major upgrading of the public transport infrastructure and services in Greater Manchester - GMPTE bid for £2.75 billion.
This would transform the GMPTE into a key coordination organisation in Greater Manchester.
User facing competences
Service characteristics
S1
S2
.
.
Ss
PC11
PC12
.
.
PC1t
UC1
UC2
.
.
UCc
UP1
UP2
.
.
UPu
User/ Voter preferences
User / Voter competences
PP11
PP12
.
.
PP1m
SP1
SP2
.
.
SPp
GMPTE provider preferences
National Policy maker’sPreferences (Dept. Transport)
National Policy Maker’s competences
SCB1
SCB2
.
.
SCBf
Back office competences
SCU1
SCU2
.
.
SCUf
PC21
PC22
.
.
PC2t
PP21
PP22
.
.
PP2m
Local Govt’spreferences
Local Govt’s ’competences
User facing competences
Service characteristics
S1
S2
.
.
Ss
PC11
PC12
.
.
PC1t
UC1
UC2
.
.
UCc
UP1
UP2
.
.
UPu
User/ Voter preferences
User / Voter competences
PP11
PP12
.
.
PP1m
SP1
SP2
.
.
SPp
GMPTE provider preferences
National Policy maker’sPreferences (Dept. Transport)
National Policy Maker’s competences
SCB1
SCB2
.
.
SCBf
Back office competences
SCU1
SCU2
.
.
SCUf
PC21
PC22
.
.
PC2t
PP21
PP22
.
.
PP2m
Local Govt’spreferences
Local Govt’s ’competences
Changing local power relationships?
User facing competences
Service characteristics
S1
S2
.
.
Ss
PC11
PC12
.
.
PC1t
UC1
UC2
.
.
UCc
UP1
UP2
.
.
UPu
User/ Voter preferences
User / Voter competences
PP11
PP12
.
.
PP1m
SP1
SP2
.
.
SPp
GMPTE provider preferences
National Policy maker’sPreferences (Dept. Transport)
National Policy Maker’s competences
SCB1
SCB2
.
.
SCBf
Back office competences
SCU1
SCU2
.
.
SCUf
PC21
PC22
.
.
PC2t
PP21
PP22
.
.
PP2m
Local Govt’spreferences
Local Govt’s ’competences
Conflict of interest: Congestion Charge
Transport Innovation Fund: Failure Factors
Political failure:
• National TIF bid required part-funding by local councils – stipulated to be raised by a congestion charge (a targeted tax on car users).
• GMPTE unable to gain political agreement from local councils on AGMA – 3 out of 10 councils voted against the congestion charge.
• Regional referendum held: ‘No’ vote = 79%.Note: No record of any society having voluntarily voted for higher taxes.
Summary & Look Forward
• Public sector organisations are important innovators in their own right.
Initiatives on Metrics for Public Sector Innovation
Pressing need for the UK to empirically measure the direct contribution of public sector innovation to national welfare, and the indirect contribution of links with private and third sector innovation.
Knowledge-intensive public sector services (KIPS)
• Education (NACE 85)
• Health (NACE 86)
• Public labs & R&D services (NACE 72)
• Social services (NACE 87 & 88)
• Technical & Environmental services (various)
Summary & Look Forward
Examples in other countries:
Denmark: Measuring Public Innovation in Nordic Countries (based on CIS)
S. Korea: Government Innovation Index
Australia: Public Sector Innovation Indicators Project European Public Sector Innovation Scoreboard
Summary & Look Forward
ServPPINs are an important mechanism for organizing the development, production, and delivery of new/improved services across public sectors.
• Public sector user-led innovation.
• Needs driven: address major social problems; improve quality and reach of services
• Address institutional failure = market failure + political failure
Summary & Look Forward
Further research on ServPPINs.
• Expand the set of case studies in addition to quantitative research.
• Examine the conditions required for the formation of different types of ServPPINs (e.g. self-organising and directed).
• Identify factors that affect the successful diffusion of the new services developed by ServPPINs
• Implications Government policy: Need for ‘joined up’ IPR, Regional, and National Policy
Focus future research in knowledge-intensive public sector services (KIPS)
• Education (NACE 85)
• Health (NACE 86)
• Public labs & R&D services (NACE 72)
• Social services (NACE 87 & 88)
• Technical & Environmental services (various)