Business model approach to public service innovation

Abstract

The operating environment of the public sector has undergone a fundamental shift towards a more competitive nature. As these changes accelerate, they are exerting considerable pressure on the government in terms of rising costs and ever-increasing need for innovative service offerings. In order to shed light on these contemporary challenges, this chapter will review and analyse a number of innovative service delivery modes observed in practice, including joint ventures with the private and not-for-profit sectors, public private partnerships, contracting out, franchising, and the use of social bonds and collaborative services. By presenting a new ‘business model’ designed specifically for decision makers in the public sector, this chapter will equip the readers with the means to better understand and manage public service innovations in the increasingly challenging environment.