The innovation deficit in public services

Potts, Jason (2009) The innovation deficit in public services. Innovation: Management Policy and Practice, 11 1: 34-43. doi:10.5172/impp.453.11.1.34

Author Potts, Jason
Title The innovation deficit in public services
Journal name Innovation: Management Policy and Practice   Check publisher's open access policy
ISSN 1447-9338
Publication date 2009-04
Sub-type Article (original research)
DOI 10.5172/impp.453.11.1.34
Volume 11
Issue 1
Start page 34
End page 43
Total pages 10
Editor Mark Dodgson
Place of publication Maleny, QLD, Australia
Publisher eContent Management
Collection year 2010
Language eng
Subject C1
149999 Economics not elsewhere classified
Abstract It has long been recognized that government and public sector services suffer an innovation deficit compared to private or market-based services. This paper argues that this can be explained as an unintended consequence of the concerted public sector drive toward the elimination of waste through efficiency, accountability and transparency. Yet in an evolving economy this can be a false efficiency, as it also eliminates the ‘good waste’ that is a necessary cost of experimentation. This results in a systematic trade-off in the public sector between the static efficiency of minimizing the misuse of public resources and the dynamic efficiency of experimentation. This is inherently biased against risk and uncertainty and, therein, explains why governments find service innovation so difficult. In the drive to eliminate static inefficiencies, many political systems have subsequently overshot and stifled policy innovation. I propose, instead, the ‘Red Queen’ solution of adaptive economic policy.
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: 2010 Higher Education Research Data Collection
School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 22 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 35 times in Scopus Article | Citations
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Created: Tue, 01 Jun 2010, 14:54:42 EST by Mr Andrew Kopittke on behalf of School of Economics