Driving Public Entrepreneurship

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Focusing the Power of Government Scaling up growth-focused innovation demands a profound change in the relationship between government and the wider society. This change goes beyond traditional public, private and civil society distinctions. It is about reconfiguring the state and public services around a shared focus on social and economic outcomes. The process begins by reflecting on the economic size and power of government. Overall, public spending across Europe makes up half of total gross domestic product (GDP), with public sector employees accounting for 20 percent of the workforce. Governments are major consumers too: as a European average, public procurement budgets make up approximately 17 percent of total GDP. Figure 1. The transformative powers of the public entrepreneur Fiscal crisis Rise in demand Squeeze on public funds Technological change The multi-polar world This sheer size and purchasing power means that government and public service leaders have both an obligation and an opportunity. Their obligation: to use this power creatively; to utilise all the levers at their disposal to catalyse innovation towards new waves of growth. Their opportunity: to become new public entrepreneurs who creatively pursue mutually reinforcing goals of social and economic progress. Public service transformation Enabling Drivers for change Government levers Policy shift “If systems are not working we need to have the courage to address the problems and face up to them. It is importance to focus on the outcomes, understand the effect of the changes we make and promptly address what needs to be improved. We need to move beyond simply making ‘checklists’ detailing the current situation.” Michel Praet, Advisor to the President of the European Council 3
Governments have a range of levers at their disposal: from strategies to transform the provision of public services or enabling businesses to flourish and grow; to setting the broad policy context for innovation and job creation. • Public service transformation—Governments must align new, diverse, open and collaborative service models with new opportunities for growth. Through smarter procurement, mobilising new forms of finance and creating digital platforms for service planning, delivery and the engagement of citizens and businesses, governments can meet new social demands—and catalyse innovation in the economy— transforming the way it delivers services. • Enabling markets for innovation—Governments have a key role to play in the development and regulation of existing and emerging markets. As global economic competition intensifies, governments must make sure that entrepreneurs and leading-edge researchers are rewarded, the investment climate is attractive, and regulatory regimes manage—rather than stifle—innovation and risk-taking across public service markets and beyond. • Shifting the policy context—Reshaping service delivery and enabling markets for innovation can only occur with a set of macro-policies that push toward the same direction. As governments recognise the need to focus on growth, they must simultaneously create a macro-policy context that encourages innovation, frees up public service managers, and allows openness and collaboration. The rise of a new form of public entrepreneurship can be the stimulus for revitalised operational models across government and in the wider economy, which seek synergies through partnerships between government, businesses and citizens. Such models will harness new learning and technological advances to achieve innovative solutions to social problems, and secure competitive advantages for European businesses. With entrepreneurial spirit mobilised across the economy, the challenges of today can be turned into opportunities that launch Europe towards a new trajectory of social wellbeing and prosperity for the future. Figure 2. Mobilising the entrepreneurial spirit of government, businesses and citizens Businesses as partners Public service value Growth and job creation Public entrepreneurs Citizens as co-creators To truly transform European economies, governments must begin by examining the key drivers of economic recovery and creating a long-term vision of economic sustainability that can guide reform. This process is not stargazing; it is being smart about the longterm trends that are likely to shape the future of the global economy and harnessing them now. As the United States Government recently argued, “The greatest job and value creators of the future will be activities, jobs, and even industries that don’t exist yet today. The countries that catalyse their development will reap the greatest rewards.” 3 “The financial crisis creates a powerful impetus for change and there are real opportunities for governments to innovate and utilise resources in better ways. Often, doing this entails a more open and co-creative way of working—with different public service agencies across different levels of government, with businesses and, importantly, with citizens.” Christian Bason, Director, Mindlab, Denmark 4
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