Performance and Innovation in the Public Sector of the European Union Countries. An Analysis Based on the Dynamics of Perceptions, 2009-2016

Peter Nijkamp,Ramona Ţigănaşu,Gabriela Carmen Pascariu

doi:10.24193/tras.si2019.6

Abstract

Based on empirical perception data, the present paper introduces a new approach in government performance assessment in relation to public innovation capacity and quality of public services. Innovation in the public sector has reached a high level of priority on the public agenda of the EU, while the interest of academics in this topic has steadily increased over the last decade. However, a fundamental theory on this issue is missing, and only a limited amount of research offers an in-depth analysis of the correlations between innovation and different components associated with government effectiveness. This study aims to fill this gap in the literature, by developing an index of government performance for assessing the ability of EU member-state governments to adopt a strategic vision on innovation and to provide good-quality public services. In addition, the dynamics in the interdependencies between the innovation capacity and various drivers of government performance was highlighted, as well as the convergence/divergence trends between Member States. The empirical research in this paper identifies the EU states which may be considered as examples of good practices in adopting an innovative perspective on public administrations, as well as in proposing specific policy recommendations that could foster decision-making processes related to innovation in the public sector.

Highlights

In recent years, innovation and technological development have dominated the European public discourse
In our research we aim to answer the following questions: (1) What factors facilitate the integration of innovation and a strategic vision on the governance system of EU countries? (2) Are governments that integrate this dimension the ones that have more effective public policies and/or a better quality of services? (3) Are there significant differences, on the one hand, between the ability of governments of the Eurozone to perform well, compared with those from Central and Eastern Europe, and, on the other, between the perceptions regarding the capacity of the governments to perform and the government effectiveness resulting from official statistical sources? (4) Do they converge over time, and if so, are they dependent on which specific circumstances?
Starting from the assumption that the capacity of a government to perform is strengthened when the institutional structure is not very rigid, as it manages to cover all areas that favor institutional change and allows for the development of new growth pathways through adaptability (Boschma, 2015), in the index described above we included aspects that refer both to the efficiency of the decision-making process (Factor A_PPE) and to the strategic visions of the government, including those regarding innovation and adaptation to technological changes (Factor B_SVI), and to the quality of public services (Factor C_QPS)

Summary

Introduction

Innovation and technological development have dominated the European public discourse. Innovation should be linked to the effectiveness of the government system, and to the extent of innovative behavior in society, creating an environment directed towards innovation – an ‘architecture of innovation’ (Arundel, Block and Ferguson, 2019), which may generate and intensify positive interactions between the public and private sectors and, to offer a transparency of the decision-making process (Savignon et al, 2018; Zolli and Healy, 2012; Bason, 2010) In this context, various barriers should be removed (e.g., legislative, technical, cultural), new laws and procedures adopted, human capital developed, the financial resources created, the institutional structure and the management system transformed. Do the governments of the EU member states have the capacity to respond effectively to societal challenges by opening up to innovation, adapting to newness, overcoming barriers, contributing to the promotion of optimal conditions for stimulating economic performance and for increasing well-being?

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