Enhancing Innovation Capacity in City Government

The report "Enhancing Innovation Capacity in City Government," published by the OECD in collaboration with Bloomberg Philanthropies, explores how cities across the globe are enhancing their innovation capacity in local public administrations. The aim is to identify best practices and strategies for local governments to respond to evolving demographic, economic, and environmental challenges. The insights are based on a survey conducted across 89 cities, ranging from populations below 50,000 to over 9 million.

The report identifies three interdependent building blocks that enable cities to innovate: organisational arrangements, data management capability, and openness to external partnerships. These elements collectively influence how effectively city governments can implement innovative solutions to better serve residents.

Out of the surveyed cities, 55% reported having formal innovation goals, while only 49% maintained a formal innovation strategy. Cities with established strategies were found to be more open to experimentation and had greater familiarity with various innovation activities compared to those without such strategies.

Leadership commitment is deemed critical for fostering an environment conducive to innovation. Approximately 80% of respondents indicated that political and managerial leadership is essential for supporting innovation capacity. However, innovation units within city administrations are still relatively new, with only 21% having existed for more than five years. The presence of dedicated innovation teams significantly correlates with cities' familiarity and engagement in innovative practices.

Data plays a significant role in decision-making and innovation initiatives, with 85% of cities acknowledging its importance. However, the type of data collected varies, with urban development, policing, and transportation receiving more attention compared to areas like social welfare and culture. Cities that effectively manage data demonstrate improved innovation capacity and are more likely to engage residents in meaningful ways.

A dedicated funding framework is crucial for supporting innovation. The report indicates that 80% of cities have funding earmarked for innovation, with 94% allocating resources from their municipal budgets. Cities often supplement this with external funding from nonprofit foundations and private sector investments. The findings emphasize the necessity for municipalities to create financial flexibility to support innovative projects effectively.

The evaluation of innovation outcomes remains a challenge, with only 16% of cities performing comprehensive assessments of their innovation strategies. Factors such as limited financial resources and technical capacity hinder systematic evaluations. Nonetheless, cities that prioritize monitoring their innovation efforts are better positioned to scale successful projects and enhance accountability to taxpayers.

Building partnerships with academia, the private sector, and citizens is emphasized as a means to enhance innovation capacity. Approximately 75% of cities reported collaborations aimed at improving data management and fostering innovation. These partnerships can help cities harness additional skills and resources necessary for effective policy implementation.

In conclusion, the OECD report provides a comprehensive look at how cities can leverage innovation to address contemporary challenges, improve public service delivery, and enhance resident well-being through collaborative efforts and strategic planning.