In a recent presentation Josef Konwitz has pointed to the vital importance of innovation as one of the few levers currently available to governments as they seek to pull their economies out of recession (Konwitz, 2010).  He argues that the traditional factors of growth which have served the western world well from the end of the second world war have lost their potency, restricted by the very crisis from which, in earlier times, they would have fostered economic recovery.  Konvitz suggests that probably the least constrained of these factors is innovation. In his view, the burden of growth falls mainly on creativity: the ability to generate and use new knowledge and find new ways of doing things.  Innovation is important for business, governments and people, and attention is turning to strategies for encouraging innovation across the world (see, for example, OECD 2010).

Nowhere is the pressure to innovate currently felt more strongly than in regional and local government.  Many western countries are implementing policies which significantly reduce public expenditure whilst, at the same time, through an emphasis on localism,  seeking to re-define the role and scope of public services within a framework of changed power relationships between central government on the one hand and regional and local government and communities on the other.  The crucial role of ‘sub-national’ government for the delivery of regional economic competitiveness and a quality environment socially and culturally is now widely acknowledged.  In the current climate, especially in western economies, the ability of public agencies and communities to deliver is under pressure as never before.  This paper, drawing on PASCAL’s international network, looks at the kinds of innovation required if hard-pressed local government agencies are to get to grips with the challenge.

ecure opportunity in a flourishing society.  This paper offers some suggestions for making the new bargain a reality.

The full paper is featured below and attached for download...