European Center for Government Transformation: How 21st Century Technologies Can Drive Innovation in Europe’s Public Services

The video (3 minutes 31 seconds) shows Accenture’s Olly Benzecry and Oxford Economics’ John Walker discussing the Driving Public Entrepreneurship research highlights at the 2011 Government of the Future annual summit.

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The value of innovation to governments, businesses and society cannot be underestimated as Europe looks to re-gain economic momentum and maintain the quality of public services to which citizens have been accustomed. Focusing on innovation is by no means new. But what is clear is a new sense of urgency. Governments across the world recognise the need for ground-breaking change that is not only about R&D investment or patent applications, but a fundamental transformation of the relationships between citizens, businesses and the state.

Governments must take a different view of innovation.  As a major economic actor in their own right, they must look across the whole spectrum of government capability and ask:

How can we use the size and spending power of government to catalyse growth across the wider economy?

How can governments promote innovation in policy and practice, not only through enabling others, but also by taking a lead and transforming its own ways of working?

Read our research to discover how the answers already lie within the grasp of those working in government and public services.

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To truly transform European economies, governments must consider:

Public service transformation—Aligning collaborative service models with new opportunities for growth. Smarter procurement, mobilizing new forms of finance and creating digital platforms can transform service delivery.

Enabling markets for innovation—Developing and regulating existing and emerging markets. As global economic competitiveness intensifies, entrepreneurs and leading-edge researchers must be rewarded in the context of an attractive investment climate and regulatory regimes that manage—not stifle—innovation.

Shifting the policy context—Reshaping service delivery and enabling markets for innovation can occur only with a set of macro-policies that encourage innovation, free up public service managers, and allow openness and collaboration.

An ageing population, increasing social demand, new technologies and a changing, multi-polar world are all reshaping the landscape, and forcing a rethink of traditional roles and ways of working:

How can public service leaders balance tight budgets and continue to deliver public value with fewer resources?

How can they mobilize the co-productive strength of business and citizen to drive social and economic wellbeing?

How can governments and public service agencies, as key players in this process, focus efforts and use their combined strength to catalyse innovation and growth?

Building on research by Accenture and Oxford Economics, this report uses macroeconomic analysis, case studies and a broad range of interviews with policymakers, academics and public managers to offer answers to these questions.

New Waves of Growth, a recent study from Accenture and Oxford Economics, identifies numerous opportunities for accelerated economic growth and job creation in Europe and beyond. The study is based on in-depth research that marshals evidence from expert panels, secondary data, and extensive economic modeling.

The research shows that, despite pervasive economic uncertainty, massive untapped opportunities for further economic growth and job creation lie within the grasp of both mature and emerging economies. These opportunities are driven by long-term, durable trends that affect us all: an ageing population; the growing scarcity and regulation of energy and national resources; the proliferation and spread of new technologies; and a growing prominence of emerging markets. Though often perceived as challenges, these trends can drive growth within four key areas: the silver economy, the resource economy, the multitechnology future, and the emerging markets surge.

The Silver Economy
An ageing population places new demands and dependencies on traditional welfare states. Areas such as health, social care and pension finance will come under increasing strain. Governments can be instrumental in managing this opportunity by:

Using technologies to transform patient care

Transforming the way we live and work

The Resource Economy
Intelligent energy, green infrastructure, resource management and carbon finance and investment (alongside regulation and environmental targets at national and EU levels) are important drivers for change—for businesses, government, voluntary agencies and private households. Governments can be instrumental in encouraging “green skills” amongst the workforce that help carve out competitive advantage by:

Introducing intelligent cities

Promoting smarter procurement

The Multi-Technology Future
Public investment in technology is already driving growth in the technology sectors. Total global government IT spending is expected to increase by US$52 billion between 2010 and 2014—reaching almost half a trillion dollars—despite a general backdrop of fiscal retrenchment. Three areas are key to the multi-technology future:

Encouraging open data and innovation:

Embracing digital government:

Creating a sound technological infrastructure

The Emerging-Markets Surge
Economic activity and political power are now dispersed among multiple centers around the world. The evergrowing interconnectedness of nations and the rising importance and influence of emerging nations means that the governments of developed nations now have to operate and negotiate in ways considered non-standard a few years ago. Forward-thinking governments can address the emerging markets surge by:

Encouraging collaborative learning and skills development

Establishing new markets for public service innovation

As our research shows, innovation can help turn austerity into opportunity. Public entrepreneurs take a holistic approach to public service transformation, embarking on programs that create synergies in the social and economic ecosystems. Indeed, governments of the future have a powerful hand: to safeguard the quality of public services that citizens and communities need while driving innovation and growth to create jobs and prosperity for the longer term.

In the journey towards value, public service leaders must seek answers to five fundamental questions:

How can I harness resources, many of which are outside my own control, to execute my mission?

How can I creatively deploy public funds and develop new funding models to drive change?

How can I use the full potential of new technologies to drive innovation?

How can I maximise value: serving citizens more effectively and helping catalyse innovation and growth?

How can I foster a cultural shift towards creativity, openness and calculated risk-taking?