The UK government is neglecting the potential of the public sector by relying on the private sector to deliver innovations in procurement, a think tank has said.
A recent report by the Work Foundation has said that the coalition is failing to deliver the innovation needed by the public sector to boost value for money amid widespread cuts. Instead of ‘outsourcing innovation’ to the private sector, the public sector should learn from and emulate the procurement procedures of private sector organisations to deliver the savings they need.
Lead author Charles Levy said: “Public sector innovation has the potential to radically improve value for money at a time of growing demand. In spite of this, there has been very little research into how public services invest in and support innovation. Putting services out to tender avoids the issue, and with rapid, swingeing cuts now being made across the board, there is a real danger that innovation will be cut along with spending. This would be counterproductive for both public services and the wider UK economy.
“If the Coalition is not to throw the baby out with the bathwater, it must look to the private sector as an example rather than a substitute for public sector innovation.”
The report singled out international education and healthcare as areas which were not achieving their full potential.
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