Collective Action Problems in Public Sector Innovation: A Business Model Perspective

We explore how the literature on business models can explain the outcomes of innovation attempts in the public sector. Our findings suggest that governments can access a well-developed knowledge domain for a public sector area but have a weak ability to propagate its value for society. Drawing on the business model literature concerning interdependence and distributed agency, we illustrate how a collective action problem related to innovation may arise in the public sector. We illustrate this new category of public innovation challenge with the (failed) case of the Swedish civil contingencies system and subsequently discuss a new line of inquiry for future research.

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