Budgets for innovation
The generation and adoption of innovation within the public sector depends on how money and accountability are organised: how public budgets are developed and agreed, and which structures of taxation and financial accountability promote rather than hinder innovation.
The public sector has some well-established tools for financing innovation beyond its borders, particularly through R&D funding for science and technology. But there are also many tools for encouraging staff to innovate, from managers to frontline workers.
Online budget setting tools
An interesting example is the Australian website, Budget Allocator, which offers citizens the chance to shape municipal budgets....
Read moreTop slicing
Top slicing departmental budgets for innovation, for example, 1% of turnover as a rough benchmark (similar to the proportion of GDP now devoted to government support...
Read moreDedicated innovation funds
Dedicated innovation funds and internal public venture funds, such as the UK’s ‘Invest to Save’ budget for cross-cutting innovations, The Enterprise Challenge in Singapore, and the...
Read moreOutcome based budgets
Outcome based budgets which can be used to promote innovation, giving greater freedom to providers to determine how they achieve outcomes, such as lower unemployment....
Read moreHolistic local budgets
Holistic local budgets such as the New Deal for Communities, which gave local communities wide discretion on how to spend large sums of money (typically around...
Read moreRing fencing financial gains from innovation
Ring fencing financial gains from innovation for initiators and developers. Various devices have been developed to improve the incentives for innovation, particularly ones that deliver gains...
Read moreInnovation-related pay
Innovation-related pay such as institutional, team and personal performance bonuses linked to innovation. These have been much discussed in many governments but have proven hard to...
Read moreSocial clauses in public contracts
Social clauses in public contracts, for example to promote innovative methods for employing unemployed people, those with disabilities or to reduce carbon footprints....
Read moreSequencing in funding
Sequencing in funding. For example, starting with input targets (1% of public service budgets to be committed to innovation), then progressing to outcome targets and more...
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