Measuring Innovation – Applying the Literature-Based Innovation Output Indicator to Public Services

Governments have been encouraging public service organizations to innovate. However, little is known about the extent of innovation in public service organizations. A private sector approach to the measurement of innovation - the literature-based innovation output indicator (LBIOI) - is applied to public service organizations to address this significant information gap. The method is described and then explored in one public service sector, English housing associations. A sample of 257 innovations is constructed and then subject to analysis. This initial testing of the LBIOI indicates that the approach can be applied across public services to create longitudinal data sets, which will enhance the communication of good practice and the use of evidence in public policy, management and research. This methodology is demonstrated to offer initial insights to public service innovation and would allow relationships to be explored notably innovation and performance, a relationship central to government's promotion of innovation.