the development of public service innovations by serv ppi ns, paul windrum, uni of nottingham, june...

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: 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)

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.

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

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Ss

PC11

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UC1

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User/ Voter preferences

User / Voter competences

PP11

PP12

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PP1m

SP1

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SPp

GMPTE provider preferences

National Policy maker’sPreferences (Dept. Transport)

National Policy Maker’s competences

SCB1

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Back office competences

SCU1

SCU2

.

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PC21

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.

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PP21

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PP2m

Local Govt’spreferences

Local Govt’s ’competences



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PP11

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SCB1

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SCBf


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PC21

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Changing local power relationships?



S1

S2

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UC1

UC2

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UP1

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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)







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


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


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)






the development of public service innovations by serv ppi ns, paul windrum, uni of nottingham, june...

Technology

public sector innovation

public sector user

public sectors

public venues

newimproved public service

training of general

public funding of science

servppins servppins