The document discusses the challenge of innovation in public services. It addresses three main challenges: 1) Conceptual challenges in defining innovation and public services given their diversity. 2) Research challenges in studying an under-researched area with unclear frameworks and different units of analysis compared to private sector innovation. 3) Policy challenges in building innovation into public policy through governance reforms, efficiency drives, and systematically assessing innovation to guide policymaking.

1. Session 1B The challenge of innovation in public services IAN MILES Ian.Miles@man.ac.uk http://LES.MAN.AC.UK/PREST/ http://LES.MAN.AC.UK/CRIC/ PREST, IoIR, University of Manchester THE FUTURE OF RESEARCH IN EUROPE – A KNOWLEDGE BASE FOR POLICY AND MANAGEMENT

3. Drawing on http://www.step.no and also other CRIC, PREST work

7. NACE 42 100 Total services 0.1 Extra-territorial organisations and bodies Q 1.6 Private households with employed persons P 7.0 Other community, social and personal service activities O 14.3 Health and social work N 10.0 Education M 11.4 Public administration, defence; compulsory Social Security L 13.0 Real estate, renting and business activities K 5.1 Financial intermediation J 9.2 Transport, storage, communication I 6.0 Hotels and restaurants H 22.2 Wholesale and retail trade G % NACE groups EU employment, 2000

8. NACE 42 Non-market services: public administration and defence, health, education , community services, etc. However, the non-market sections contain several activities, which are market activities (e.g. driving schools, cinema, hairdressing, or health services supplied through the market). The market sections are also liable to contain some activities, which are non-market (Official statisticians mention, for instance, e.g. central banking – but there are “service activities ancilliary to…” most sectors! And broadcasting and certain other important activities…). 100 Total services 0.1 Extra-territorial organisations and bodies Q 1.6 Private households with employed persons P 7.0 Other community, social and personal service activities O 14.3 Health and social work N 10.0 Education M 11.4 Public administration, defence; compulsory Social Security L 13.0 Real estate, renting and business activities K 5.1 Financial intermediation J 9.2 Transport, storage, communication I 6.0 Hotels and restaurants H 22.2 Wholesale and retail trade G NACE groups

12. “ Challenge? What challenge?” 2 Research Challenges α Underresearched – like services innovation, of which it is part – unclear how far concepts and instruments will work – though we can expect many points of convergence (from life cycles to product champions, complementary assets to radical innovations). β Search for commonalities, specificities or both – assimilationist / demarcationist / synthesist γ Units of analysis, problems of large systems, compounded by problems of access and politicisation of issues.

21. Policy for innovation?

27. Public Sector “Modernisation”

30. End of presentation