Public sector innovation

Abstract

This entry focuses on public sector innovation, which is distinct from the private sector due to its pluralistic and political nature, requiring leaders to balance various stakeholders’ demands and concern public accountability. Public sector innovation involves multiple actors, creating complexity but also potential strength. Examples from Finnish cities show that engaging local stakeholders in co-creating solutions can enhance sense of community and service quality. However, stakeholders often remain consulted parties rather than equal collaborators throughout the process. The core challenges of collaborative public sector innovation involve ensuring equal opportunities and diversity among participants. Affluent, educated citizens often dominate, leading to representation issues. Managers must balance openness and good governance while avoiding ideological biases. Effective management requires leveraging diverse assets, co-creation, and balancing risks and collaboration across all phases of the innovation process. Overall, successful public sector innovation requires holistic approaches, supportive structures, and careful evaluation of both successes and failures.