This conclusion highlights how the above findings on public sector innovation can be translated into action through the upcoming Action Plan and Innovation Strategy, to be co-created as part of this project.
Strengthening the Innovative Capacity of the Public Sector of Latvia
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4. Improving innovative capacity in the Latvian public sector: From insights to action
Abstract
Shifting the direction of the public sector system
The public sector of Latvia is in an important moment where transformation is at its fingertips. With the launch of the National Recovery and Resilience Plan (RRP), Modernisation Plan and a number of extensive EU supported projects, there is a significant influx in funding and appetite for change. The RRP offers 1.8 billion euros of grants targeting digital transformation, green transition, economic and social resilience and more (European Commission, n.d.[1]). Furthermore, the Modernisation Plan has the potential to have transformative impacts on the effectiveness of the public administration, public sector workforce, quality of public services, innovation and decision-making structures (Latvian State Chancellery, 2023[2]). This marks a key opportunity to drive a systemic approach to innovation in order to address complex challenges, transform the public sector and find ways to deliver greater impact to citizens.
This assessment report has detailed a number of challenges across each of the four areas included within the OECD Innovation Capacity Framework: purpose, potential, capacity and impact. While the considerations section of each component details specific actions that could be taken, the shifts presented below take a systemic perspective, proposing directional shifts to move from the current state of the public sector system to a possible future state. To steer the current system towards the desired future state, a number of ‘how might we’ statements have been included to support the development and prioritisation of concrete actions and interventions throughout future phases of this project.
Table 4.1. Prompting directional shifts in the public sector system
From [current state of public sector system] |
To [envisaged state of public sector system] |
How might we …. [prompting questions for the development of an action plan and innovation strategy] |
---|---|---|
Public sector is focused on immediate functioning in a challenging operational environment: often short staffed, suffering from recruitment and retention issues and with limited time and funding to enhance skillsets |
Public sector workforce is equipped with the necessary skills and personnel to deliver public services effectively |
|
Innovative efforts are focused on efficiency and cost cutting |
Innovation used as a strategic resource to tackle challenges, steer towards better futures and improve public outcomes |
|
Strategies and priorities are fragmented drivers of innovative activities |
Strategic agendas and EU funded projects are steering a directed portfolio of innovative efforts and capacity building across the public sector system |
|
Public governance frameworks, particularly regulatory, legislative and procurement are perceived as incompatible with innovation |
Public governance frameworks enable innovative activities to occur, and public servants understand how innovation is possible within the parameters of public sector rules |
|
Fear of risk and punishment, paired with a lack of explicit supports make it difficult to innovate |
Risk tolerance is encouraged in the public sector with safe spaces established to test higher risk initiatives in controlled environments |
|
Measurement and evaluation of public services focuses on operational outcomes and outputs rather than impact |
Iterative evaluation, measurement and learning loops enable constant evaluation of the impact of public services |
|
National and municipal levels of public service do not coordinate in ways that effectively enable innovation |
One civil service effectively communicating and collaborating to innovate in the face of common challenges and goals |
|
Looking forward
This assessment report is the first key deliverable of a larger projected aimed at strengthening the innovative capacity of Latvia’s public sector system. Such efforts will help support the country to remain competitive, improve social and economic outcomes and contribute to strengthened resilience and recovery from recent crises and shocks (OECD and European Commission, 2022[3]). The upcoming project activities will help move from insights to action, such activities include:
A proposal for an action plan to support better innovative capacity awareness, co-ordination, and collaboration
Development of a national innovation strategy proposal for strengthening the public sector’s innovative capacity
Innovative capacity building projects that include collaboration across the central and regional levels
An innovative capacity monitoring framework to track progress and increase awareness in Latvia
The above activities will be designed in a consultative manner to ensure that the action plan, strategy, capacity building initiatives and monitoring framework are fit for purpose, user-centred and developed with a keen awareness of sustainability and implementation requirements.
Latvia’s innovation journey has already been ongoing for decades and steps have already been taken to support innovation such as the introduction of an Innovation Network, adherence to the OECD’s Declaration on Public Sector Innovation and the creation of the Innovation Laboratory. Continuing this journey will require a balance of quick wins to mark progress and maintain momentum (e.g., additional staff in innovation lab, launch of innovation awards) with more systemic changes (e.g. introduction of an innovation strategy, overhaul and improved engagement around procurement and regulatory approaches). Without efforts to steer systems change, transformation in the public sector will be unlikely and a continued emphasis on incremental efficiency improvements will remain. This project, paired with the RRP and Modernisation Plan prevent a clear opportunity to take a systemic approach to public sector innovation and transformation in Latvia.
References
[1] European Commission (n.d.), Latvia’s Recovery and Resilience Plan, https://commission.europa.eu/business-economy-euro/economic-recovery/recovery-and-resilience-facility/latvias-recovery-and-resilience-plan_en.
[2] Latvian State Chancellery (2023), Valsts pārvaldes modernizācijas plāns 2023-2027, https://tapportals.mk.gov.lv/legal_acts/c1b4cf3e-5320-4b7e-8e88-8c47b4288553.
[3] OECD and European Commission (2022), Detailed project description: Further development of the innovative capacity of the public sector of Latvia.