Public services represent an important innovation challenge – that of dealing with multiple
stakeholders and the ‘contested’ nature of innovation (Hartley 2005). Whilst it may appear
that people have little choice in public services and thus the driver of competitiveness is
lacking, the reality is that there is increasing pressure for change but coming from multiple
and often conflicting directions. Demands for cost cutting on the funding side push
providers towards more efficient solutions but at the same time advocates and lobby groups
on behalf of users are driving towards non-price aspects such as service quality, flexibility
and customization. The result is increasingly a search for complex solutions to complex
problems – and suggests that some of the most radical innovation is actually taking place in
and around the public sector (Albury 2004).