Abstract:

The purpose of this paper is to increase knowledge of opportunities of collaborative innovation in the public sector from the private sector perspective. Collaborative innovation in the public sector means opening the innovation process up to multiple actors such as private and third sector organizations and citizens instead of keeping it within the boundaries of a particular governmental organization. The knowledge of collaborative innovation in the public sector is scarce so far. Empirically based research knowledge of the opportunities from the private sector perspective is in its infancy, in particular. The present study addresses this knowledge gap. It is based on empirical material collected from 20 private sector informants involved in collaborative innovation in the public sector. As the result, it identifies four main opportunities of collaborative innovation in the public sector and explains them. They are improved quality of solutions purchased by cities; positive financial impact for SMEs; new resources, contacts, and opportunities; as well as positive public image and social innovation. The results of this study have a clear practical implication particularly to urban policy makers and developers, companies and third sector organization collaborating with cities, as well as educators in the field of innovation and urban development.

Keywords:

Collaborative innovation, Public sector innovation, Open innovation, PPP public private partnership, Smart City.