Capturing the benefits of open innovation in public innovation: a case study

How can the public sector benefit from open innovation? This paper makes a distinction between four frameworks of innovation, which are relevant to understanding service development and innovation in the public sector. They are called entrepreneurial innovation, institutional innovation, open innovation and strategic reflexive innovation, respectively. An example of public innovation, analysed here, is the creation of a healthcare centre in Copenhagen in 2005. This paper argues that a pattern of 'open innovation' (following Chesbrough) is becoming more pertinent to service development in the public sector. Based on the case study, it is discussed how certain public sector actions are needed to capture the benefits of open innovation which relate to the ideas of strategic reflexivity (Fuglsang and Sundbo). These are: getting involved, identifying demand, exploring incentives for co-creation and encouraging entrepreneurship.