Public value innovation

Abstract

The capability to innovate is seen as fundamental to solve the current challenges posed to governments and to create public value to society. However, many studies in the public sector field did not link innovation to existing theories. There are calls for a systemic approach to understand public sector innovation and its complexity, but there are few studies on how to develop a comprehensive analytical model that fits this need. This essay aims to contribute to fill this gap with the development of a theoretical framework to demonstrate how public sector innovations affects public value in a systemic context. We discuss that (1) Public Value Theory (PVT) is adherent to analyze public sector innovation, given its focus on the effects of government action; (2) public sector innovations foster the development of organizational capabilities (Public Service Delivery, Resource Acquisition, Co-production and Public Engagement), which in turn contribute to public value creation in a complex and intertwined manner better captured through System Dynamics. We argue that joining this theoretical fields can elucidate complex and non-linear relationships regarding public sector innovation, assisting scholars and public managers to understand aspects of the organizational environment that can increase or decrease the public value delivered to society over time.