Drivers, Enables and conditions for Public Sector Innovation in European Countries

Abstract

This study identifies the factors that influence innovation in the public sector in different countries. To do this, we identified innovation patterns in European countries and established the factors associated with such patterns. A cluster analysis was performed to group countries in terms of public sector innovation, while mean differences tests were used to identify the aspects that characterize these differences. The data are derived from the European Public Sector Innovation Scoreboard database, Hofstede’s cultural dimensions, the European Innovation Scoreboard (eis) 2017 Database, and the Global Competitiveness Report (2017-2018) by the World Economic Forum. The results indicate the existence of three groups of countries, where the factors identified are related to (i) the governance of public services, namely government effectiveness and regulatory quality, share of service innovators that innovate in-house, share of process innovators that innovate in-house, and importance of external knowledge; (ii) national culture, in particular uncertainty avoidance and indulgence; and (iii) national innovation capacity. This study provides empirical insights into the need to develop innovation capabilities as an element of successful innovation in public services.