Open Innovation in the Public Sector

Abstract

Innovation in the Public Sector has been seen as a way to respond the current challenges posed to society. However, the literature shows that little attention has been given to link public sector innovation to existing theories based on system and complexity. This essay aims to contribute to filling this gap with the development of a theoretical framework focused on the relation of organizational capabilities and public value generation in a systemic context. We discuss that the concept of Dynamic Capabilities - Sensing, Seizing and Transforming - is adherent to analyze public sector innovation, especially open innovation in government. In this context, the development of these organizational capabilities contributes to public value creation and can be analyzed through System Dynamics. We argue that these theoretical fields can be joined to elucidate complex and non-linear relationships related to open innovation in the public sector, making possible to scholars and policymakers to understand aspects of the systemic environment that can increase or decrease the creation of public value to providers, users, and beneficiaries.