In the challenges we face today (fight against climate change, smart cities, advanced medicine, data control and digital privacy, loneliness and aging, industry 4.0, etc.) public administrations have a key role in forging demand for emerging needs, creating the market, reducing risks and generating incentives, catalyzing knowledge, encouraging 'missions' on a territorial scale and ensuring the attraction of talent.

At dot. we have been preaching for some time about the benefits of user-driven innovation as a source of information and action. On the other hand, we have explored the predominant role of private enterprise in funding and leading the cutting edge of innovation.

Even so, thanks to our relationship with key public agents such as the Regional Councils (in projects like ↗ LABe: Digital Gastronomy Lab) or City Councils (with the experience of creating a platform for social innovation and urban health called CityShakers counting with JCDecaux, Ashoka Spain and Barcelona City Council) and Rural Development Agencies (such as ADR Enkarterrialde for our agri-food innovation platform Enkarterrialde Open Lab) our perspective of the public role as a generator of territorial vision, investment trigger and market maker has changed a lot.

The COVID-19 crisis also highlighted the essential role of the state in mobilizing people, businesses and resources in the pursuit of social welfare. Although decentralized citizen networks emerge strongly and have great transformative power, they are often not accessible to citizens and capable of safeguarding a community objective. Therefore, although we had always sensed it, it is now clear to us that public administrations should play a key role in the creation of future economic and social development.

4 keys to activate strategic public innovation

#01 Moonshot thinking

Inspire a vision and set the social purpose of national innovation systems. Betting on the unimaginable (from the public) to see how far we are able to go.

#02 Transformative public investments

The state as a driver of interests, investments and facilitator of new emerging markets.

#03 Intrapreneurial talent

Promote transformation processes within public institutions to launch open innovation programs (quadruple helix).

#04 New participation systems

Promoting a new culture of service design focused on the provision and needs of citizens with healthy and avant-garde participatory processes.

Who is leading it?

We perceive an awakening of 'State-Driven Innovation' at different levels:

China, has a decarbonization plan it has dubbed “The Green Revolution”, where it aspires to have a net-zero emissions economy by 2060. Although it seems complex, this fierce and megalomaniacal governmental vision already represents a $37.7 trillion investment opportunity in the country's energy system.

Although the case may seem old, because it was created in 1958, the U.S. Defense Advanced Research Projects Agency (DARPA) is a good example of the long-term impact that can be generated by this State-Driven Innovation. This federal agency has invested significant funds that have helped to develop technologies that favor the country's security and that have had a great impact on the world: satellites, robots, computer networks, etc.

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Through the brilliant Doughnut Plan of the Amsterdam City Council, the city is committed to creating a fully circular economy by 2050. To carry it out, it applies the doughnut economic model cooked up at Oxford University by economist Kate Raworth. This vision is transforming the city economy towards a circular model.

In our close environment we have the High Commissioner for Spain Entrepreneurial Nation or bets the New fiscal policy in line with the Sustainable Development Goals of the Provincial Council of Bizkaia. There is also a new breeding ground for institutions such as the IE Public Lab.

Our recommended readings

The Entrepreneurial State (Mariana Mazzucato)

The Great Transformation (Karl Polanyi)

The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies (Andrew McAfee and Erik Brynjolfsson)

Leading Public Sector Innovation: Co-creating for a Better Society (Bason)

Leviathan (Thomas Hobbes)