Research report: January 2008

Transformers
How local areas innovate to
address changing social needs
Nicola Bacon, Nusrat Faizullah,
Geoff Mulgan and Saffron Woodcraft
Transformers
How local areas innovate to address changing social needs

Foreword

Innovation in public services is going to prove crucial to the UK’s ability to meet the social
challenges of the 21st century. However, at the moment, the UK does a poor job of developing
innovations in the public sector. We are particularly weak in using innovations in one service to
improve public services in others in the same locality or nearby.

Historically, nearly all innovation policy has been tailored to the needs of for-profit manufacturing
sectors. However, there is an increasing thirst for understanding how finance, policy and
institutions can support social innovation. Over the past year, NESTA and the Young Foundation
have collaborated on two research projects that try to advance understanding of the UK’s ‘social
innovation system’.

In this second project, we have conducted four in-depth case studies of UK local social innovations
as well as five smaller case studies of innovative localities internationally. The findings challenge
many widely-held assumptions about the most favourable conditions for social innovation and lay
out an easy-to-use model and toolkit to help local authorities understand how to make more of the
innovation that currently goes on and how to stimulate more.

NESTA does not like to do research in a vacuum. As such, we intend to take what we have learned
here and put it to work in our practical programmes. Taken together and over time, we hope that
we will develop a compelling vision of how to make the UK more socially innovative – to improve
our economic competitiveness and social wellbeing.

As always, we welcome your input and your comments.

Jonathan Kestenbaum
CEO, NESTA

January, 2008

NESTA is the National Endowment for Science, Technology and the Arts.
Our aim is to transform the UK’s capacity for innovation. We invest in early
stage companies, inform innovation policy and encourage a culture that
helps innovation to flourish.

3
 Executive summary

The ability of local areas to innovate is Some common assumptions about local
unevenly spread innovation are flawed

This report investigates why some places Our research challenges many previously
innovate more effectively to meet social needs widely-held assumptions about social
than others. It is based on a series of case innovation.
studies – in the UK and internationally – which
explore how cities and localities have thrived, It shows that money matters – but in quite
or reversed their decline, by finding new ways complex ways (and too much money can
of tackling problems. sometimes inhibit innovation). In none of
our case studies are deep cultures of social
For our case studies, we looked in detail at very innovation or the impact of particular
diverse places. We found conclusive evidence institutions identified as critical drivers for
that innovative capacity can be nurtured, innovation. Previous innovation studies
even in unpromising circumstances. And we emphasised the importance of local institutions
drew from them some common lessons about having freedom to experiment. This freedom
the importance of facing up to problems and is undoubtedly vital, but our research also
underperformance; the role of leadership and shows that constraints and restrictions can be
organisational cultures; and, crucially, the important triggers and drivers for innovation.
structure of networks within the public sector We found little evidence that citizens and
and across organisational boundaries. public service users influenced innovation – a
symptom of their relatively weak voice and
choice in the UK. And we found little evidence
that the management of innovation consciously
Innovation is sometimes treated as a drew on proven methods – a symptom of the
desirable luxury: in fact it’s essential relative underdevelopment of this field.

Many towns and cities in the industrialised

world have experienced severe downturns
over the last 30 or 40 years. These arose partly The critical factors: the will to change,
because of external forces. But they also strong internal capacity, external
reflected a failure to respond to these shocks, resources and feedback
and to innovate quickly enough to anticipate or
mitigate them. In the case studies, three groups of critical
factors explained much of the dynamic of
Innovation is also essential for local innovation:
government as a whole. One explanation for
the decline of local government’s powers in • The will to change that comes from
the UK over the last 30 years is its failure to awareness of threat or failure (and,
innovate sufficiently, or in the right ways, and occasionally, from a sense of a new
its consequent inability to resist incursions from opportunity).
national government and quangos.

4
• The presence of internal capacities to Local government has paid relatively little
change, including leadership and culture. attention to innovation in recent decades.
Far more effort has gone on performance
• Access to the external resources that help management and compliance with targets.
change happen, including people, money, As a result, although there are many highly
skills and networks, as well as the positive innovative local services and agencies, the
feedback that comes from providing the system of innovation is deficient. Innovators
public with better services. and managers have had little help in navigating
the several dozen contending methods which
From this analysis, we developed a model to they could use. There are few mature systems
describe different aspects of the local social for spreading successful local models. And
innovation process and to explore how local the intermediary or broker roles which are so
social innovation can spread and grow (and essential in other innovation systems are largely
we showed how this model can apply to absent. Too little attention has also been paid
community organisations, frontline services and to the bigger role that could be played by other
entire services). local institutions, such as universities.

A model of local social innovation How to improve innovative capacity

Our model demonstrates the phases through We make a series of recommendations for
which innovations evolve, from a latent phase, supporting local innovation. The new National
through development and mainstreaming to Improvement and Efficiency Strategy for
embedding. The model shows the changing local government1 could provide new ways to
relationship between authority, organisational support local innovation, particularly if the 1. LGA/CLG (2007) ‘National
Improvement and Efficiency
capacities and demonstrable value for the emerging framework for Local Area Agreements Strategy.’ London: LGA.
public. It also sets out the priorities for leaders (LAAs) allows localities greater freedom to
at each stage – and why innovations can fail at experiment, and if central government commits
any point. to sharing the costs, and risks, of innovative
new approaches in priority fields such as youth
A main finding from the case studies is that offending, carbon reduction or eldercare.
local areas can improve their innovative
capacity by building up their networks Although external pressures (including
for collaboration, linking people across inspections) are likely to continue playing
organisational boundaries to share information an important role in triggering change,
and ideas. As we show, the emerging methods performance frameworks need to evolve
of social network analysis (SNA) provide to assess and reward innovation – and the
powerful tools for diagnosing innovative demand for innovation from elsewhere –
capacity and enhancing it. rather than focusing exclusively on current
performance.

Organisational capacity needs to be

The right amount of innovation at the strengthened by nurturing leadership and
right time internal cultures that support innovation. Those
should include more deliberate cultivation of
In most services, at most times, the primary local networks, helped by methods such as
focus must be on effective implementation SNA. Local government, public agencies and
and incremental improvement. However, an voluntary organisations need better access to
organisation should always have some people the necessary skills for successful innovation –
focused on future possibilities – including what current support is patchy (ranging from courses
can be learned from elsewhere and from new on creativity and seminars on improvement
ideas emerging locally. In times of rapid change to peer learning networks) and only weakly
– or underperformance – innovation often grounded in evidence about what works.
needs to move centre stage. The ideal stance
for a locality is a subtle combination of creative Access to external networks of money, people
energy, the willingness to try out new ideas, and skills must be improved. The UK needs
an eagerness to learn from others, and pride in a richer set of funding sources, to cover the
presenting whatever results as utterly rooted in diversity of types of need and risk involved
the area’s own history and culture. in innovation (including grants, loans, equity

5
 and guarantees). We also need a stronger
range of intermediaries to broker links between
different agencies and to connect creative
ideas to practitioners on the ground. We found
no localities which systematically nurture their
own social, civic and public entrepreneurs (and
many that see them as threats). Yet they are
a vital force for renewal and are as important
to the long-term vitality of localities as many
more familiar assets.

All of the current methods in use – such as

formal pilots, pathfinders and collaboratives,
as well as the many methods drawn from
design, technology, communities of practice,
social entrepreneurship and venturing – need
to be developed further and fitted better
to the needs of local authorities and other
organisations. In short, a field which remains
ad hoc and short on evidence needs to mature
quickly to help localities innovate effectively in
response to challenges such as ageing, climate
change, poverty and competitiveness.

6
Acknowledgements
This report was written by Nicola Bacon (Local Projects Director, Young Foundation),
Nusrat Faizullah (Associate, Young Foundation), Geoff Mulgan (Director, Young Foundation) and
Saffron Woodcraft (Programme Leader, Young Foundation).
Additional substantive contributions were made by Richard Halkett (Executive Director of Policy
and Research, NESTA), Neal Harrison (Researcher, Young Foundation) and Liz Bartlett (Researcher,
Young Foundation).
We would like to thank all those who contributed to this project.

7
8
Contents

Transformers
How local areas innovate to address changing social needs

1. Introduction 11

2. Background: why innovation matters 12

2.1 What is social innovation 13
2.2 What stands in the way? 14
2.3 Existing thinking on local innovation 15
2.4 Social innovation clusters 16
2.5 Why are some areas more socially innovative than others? 16

3. Case study summaries 17

4. Findings 19
4.1 What drives local social innovation? 19
4.2 The critical factors 21
4.2.1 The sharp external push that galvanised the will to change 21
4.2.2 Strong internal capacity to develop innovations and put them 21
into practice
4.2.3 Mobilising the right external resources and using public 22
feedback to reinforce change
4.3 Our case studies: the journey to successful innovation 22
4.3.1 The external push 22
4.3.2 Internal capacity 23
4.3.3 Mobilising resources 23

5. Modelling social innovation 24

5.1 The local social innovation lifecycle 24
5.2 Aligning factors in different phases 26
5.3 Explaining the different phases 27
5.4 Maximising the potential for innovation 29

6. Recommendations 31
6.1 Recommended directions of travel 31
6.2 Where research is needed 34

7. Conclusions 34

Sources and References 36

Appendix A: Putting the lessons of the research into practice: a toolkit to support 39

Appendix B: The strategic triangle through the local social innovation lifecycle 44

Appendix C: Case studies 47

Case study 1: Innovation in Children’s Services in the Highlands, Scotland 47
Case study 2: Innovation within Secondary Education in Knowsley, England 55
Case study 3: Innovation to address social exclusion in South Tyneside, England 66
Case study 4: Innovation in Youth Services in the London Borough of 74
Tower Hamlets, England

9
 Case study 5: Gouda, Netherlands: Innovating to tackle community cohesion 82
issues
Case study 6: Cultural regeneration of Lille, France 89
Case study 7: Work force development and unemployment, Pittsburgh, US 96
Case study 8: Social innovation, Portland, US (mini case study) 103
Case study 9: Technological innovation, Cambridge, England (mini case study) 108
Case study 10: An experiment in using Social Network Analysis as a tool for 112
understanding social innovation
Case study References 126

Appendix D: In-depth literature review 128

10
Transformers
How local areas innovate to address changing social needs

1. Introduction It is widely believed, for example, that local

innovation depends on:
This report investigates why some places
innovate more effectively to meet social • significant amounts of free money;
needs than others. We know that most social
innovations start off local – in the creativity • the absence of external inspection or
and enterprise of people trying to solve performance management;
everyday problems. But many areas fail to
make the most either of their own ideas or of • deep cultures and histories of innovation;
innovations that come from elsewhere, and
many fail to adapt quickly enough to change. • the presence of a single entrepreneurial
individual;
This report draws on extensive research,
including literature reviews and case studies • demand from service users; and
from around the world, and from interviews.
It looks at successes as well as failures. It • key institutions, like universities.
aims to clarify which conditions best support
and sustain local social innovation. And it Yet, as we shall show, these assumptions are
provides guidance to future practitioners and at best unproven, at worst wrong. Moreover,
policymakers. although there are many different methods
available for strengthening innovation and
Over the last two decades in the UK, there has innovative capacity (with their origins in
been a strong drive to tighten the performance fields as diverse as design and technology,
management of local government. This has professional development, venture capital and
meant greater measurement and inspection of social movements), remarkably little attention
service delivery, as well as additional support to has been paid to evidence about what works,
achieve improved outcomes. But performance or to the most appropriate tools for particular
management is concerned with the present. tasks.
And all competent organisations must also
address the future if they are to ensure a flow This report aims to provide a more coherent
of new methods which can improve long-term framework for thinking about innovation. It
outcomes. describes some of the key stages of innovation
and how they can be managed well. Our model
Despite its ubiquity, local innovation has explains the links between the authority to
been neglected – it has not been managed, act (which often comes from politics), the
measured, audited, taught or financed. And capacity to act, and the value that is created
the few initiatives which have ostensibly been for the public at each stage of the process
established to support local innovation have as innovations prove their worth. There is no
often been based on flawed assumptions. A universal formula for becoming more innovative
good sign of the field’s neglect is that many – but there are strong messages about how
widely-held beliefs turn out to be at odds with localities can radically change their prospects.
the evidence.

11
 The research 2. Background: why innovation matters
This report is based on four detailed UK case
studies, three international case studies and Innovation is sometimes presented as
several other mini case studies, as well as a desirable extra, something that local
accumulated experience and learning within government or voluntary organisations might
the Young Foundation and its partners. do when they have some spare cash. This study
starts from the premise that innovation is much
The UK case studies were chosen to focus on more basic than this: it is the condition for
four contrasting areas at different stages of the survival in a changing environment. This is true
innovation cycle. The lack of comprehensive in many fields, from biology to business. But, it
data about the effectiveness of innovation is also very clearly the case for localities. Many
meant that the perceptions of key stakeholders towns and cities in industrialised countries
became a key criterion for choosing each case have experienced severe decline over the last
study. Each case study focused on a particular 30 or 40 years, with higher unemployment,
field of activity, recognising that no locality dereliction and weakened institutions. This
would be innovative in every field at any one decline has often been the result of changing
time. The case studies chosen were: patterns of industry, technology and demand;
the places most affected are those dependent
• children’s services in the Highlands; on shipbuilding, steel or domestic tourism.

• Knowsley’s secondary education; Decline partly reflects the impact of external

forces. But it also reflects a relative failure
• social exclusion in South Tyneside; and to respond to these shocks, and a failure
to innovate quickly enough to anticipate or
• youth services in Tower Hamlets. mitigate them. Some places have managed to
2. Mulgan, G., Ali, R., Halkett, R. turn themselves around, and to adapt against
and Sanders, B. (2007) ‘In and
Out of Sync: The challenge of The UK examples are primarily focused on the odds. Others have not, and have paid a
growing social innovations.’ the public sector – partly a reflection of the high price in declining prosperity, population
NESTA Research Report.
London: NESTA. importance of the public sector in the UK and confidence. However, unlike other fields,
3. LGA/CLG (2007) ‘National context, and partly to complement parallel decline in localities is not necessarily terminal.
Improvement and Efficiency
Strategy.’ London: LGA. work we have undertaken recently on Businesses that fail to anticipate market shifts
innovations that grew more through the third go under. In the past, declining nations were
sector.2 conquered by rising ones. But, in today’s
environment, localities can drift downwards
The international case studies looked more and adapt to a lower level of achievement.
broadly at the roles of different sectors. The
international case studies covered: Innovation also matters for local government
as a whole. There are many explanations for
• Gouda in the Netherlands, exploring efforts the decline of local government’s powers in
to deal with the marginalised Moroccan the UK over the last 30 years. But one reason
community; is its failure to innovate sufficiently – or in the
right ways – to resist incursions from national
• Lille in France, with a focus on cultural government and quangos. There have, it is
regeneration; and true, been innovative councils and places, but
there have not been enough. And British local
• Pittsburgh in the United States (US), looking government as a whole has not innovated
particularly at workforce development. sufficiently visibly on the most compelling
issues by comparison with some international
Smaller case studies of Cambridge, England counterparts. This is another reason why local
and Portland in the US also fed into our government should take innovation much
findings and analysis. The research also draws more seriously than it has in the past. In a
on a very wide range of other examples of world of intense competition between places
successful and less successful innovation and between different tiers of governance, its
around the world. future depends on a sharper ability to adapt
and learn new tricks.

The recent National Improvement and

Efficiency Strategy3 signalled that the world of
local government now recognises innovation
as essential to long-term improvement. There

12
are now several organisations dedicated to integrated system demonstrates how efficient
improving local capacity. Some are focused public transport can provide a socially and
on local government (like the IDeA,4 the environmentally superior alternative to the car,
Local Government Association5 and Local and has been influential in new Chinese eco-
Government Leadership Centre6); some on cities such as Dongtan.12
other parts of the public sector (like the NHS
Innovation Centres7); and others are focused The US city of Portland, Oregon has long
on the third sector (like Changeup).8 Whether pioneered new ways of involving the public in 4. The Improvement and
Development Agency for
these initiatives are adequate to the scale of decisions. Other places have also experimented Local Government.
change that local areas may face in the next with citizens’ juries and participatory 5. See www.lga.gov.uk
two decades is unclear given the enormity of budgeting, Planning for Real13 and large 6. See www.localleadership.
gov.uk
the challenges faced: these include adapting to scale consultations. Singapore pioneered new
7. See www.nic.nhs.uk
a low carbon economy, to the new care needs methods of road charging, to be followed more 8. See http://capacitybuilders.
of an ageing population and the integration recently by London. Paris has become a role org.uk
issues presented by growing migration. model for extensive bicycle hiring. Freiburg 9. See Mulgan, G. (2007) ‘Ready
or Not? Taking Innovation in
showed in the eighties and nineties how to cut the Public Sector Seriously.’
Elsewhere in the world, the public sector and car traffic during a period of rising prosperity. NESTA Provocation 03.
London: NESTA. See also
local government are taking innovation much And Barcelona demonstrated how a city’s the string of material
more seriously. We have previously documented public spaces could be transformed. which will be available
on the Social Innovation
some of the new methods developing in Exchange website during
countries as diverse as Denmark and Finland, Sometimes innovation has been very visible. 2008-9. Available at www.
socialinnovationexchange.org
Singapore and Taiwan, New Zealand and Spain. Tirana’s Mayor Edi Rama ordered that several 10. Mulgan, G. (2006) ‘Social
In most of these cases innovative localities are hundred old buildings should be painted in Innovation: what it is,
finding a new relationship with central agencies vivid colours to help kick-start a process of why it matters, how it can
be accelerated.’ London:
and departments – recognising that all benefit renewal. Gateshead’s Angel of the North Basingstoke Press.
from better and faster innovation, and from was another powerful symbol of renewal and 11. Ibid.
some sharing of risk.9 Their experiences will openness to creativity. The Waterfire display 12. Diaz, R. and Schneck, D.
(2000) ‘Innovative Service
provide a useful source of inspiration and in Providence, Rhode Island, a display of one Design Among Bus Rapid
challenge for the UK, hopefully raising the bar hundred sparkling bonfires beside three rivers, Transit Systems in the
Americas’ [online]. Available
against which good examples will be judged. is intended to symbolise the city’s rebirth.14 Lee at: http://www.apta.com/
Myung Bak’s Cheonggyecheon development research/info/briefings/
documents/diaz_schneck.
2.1 What is social innovation? in Seoul, South Korea is an even more striking pdf
We use the term ‘social innovation’ to refer example of a physical redevelopment (a 6km 13. A process of community
consultation that begins
to new ideas (products, services and models) reclaimed river through the middle of the city with contacting local
developed to fulfil unmet social needs. that went from design to delivery in little more community organisations
and residents and concludes
Many are supported by the public sector, than two years) that symbolised an ability to with the formation of an
others by community groups and voluntary innovate and change rapidly.15 Action Plan for taking
forward the decisions made
organisations.10 Social innovation is not during the process.
restricted to any one sector or field. It can Some of the most striking recent examples of 14. Landry, C. (2006) ‘The Art
take the form of a new service, initiative local innovation are technological: the spread of Making Cities.’ London:
Earthscan. See also www.
or organisation, or a new approach to the of single non-emergency phone numbers for waterfire.org.
organisation and delivery of services. Social example, or virtual cities like Amsterdam’s De 15. See http://english.seoul.
go.kr/cheonggye/
innovation can either spread throughout Waag or the Fixmystreet website16 (developed
16. See www.waag.org and
a profession or sector – like education or by MySociety and the Young Foundation). www.fixmystreet.com
healthcare – or geographically from one place There are also innovations in citizen feedback 17. See www.patientopinion.
org.uk, www.schoolsnet.com
to another.11 An extensive literature review of like Patient Opinion, Schoolsnet and Belgium’s and http://www.kafka.be/
social innovation can be found in Appendix D. kafka.be, which encourage citizens to comment
on areas where public services could be
Local innovations and creative places improved.17
Most social innovations start locally. In
this respect, they differ from technological There are also many examples of more formal
innovations which often emanate from testing and evaluation of innovations in
multinational companies or research local areas, such as the ‘Five Cities’ project
collaborations far away from the site of conducted at Stanford in the early nineties,
their eventual application. There are striking and the World Health Organisation’s Healthy
international examples of how a local Cities’ programmes, which showed how to
innovation has led to systemic change. For improve health outcomes by intervening in a
example, the integrated transport system in whole community rather than responding to
Curitiba, Brazil has become a role model for individuals’ disease status.
fast growing cities around the world. This

13
 The UK as a nation of local innovation less about an idea’s origins or novelty than its
The UK has a long history of local social effectiveness.
innovation. Some point to a golden era in
the second half of the 19th century when 2.2 What stands in the way?
local government developed new approaches It has often been assumed that local
to public health, utilities and welfare, whilst government cannot innovate because it is too
sustaining a vibrant civil society. But, in bureaucratic and risk-averse. Town Halls are
recent years, local government has often led frequently seen as inherently conservative –
central government on innovation, despite its more at ease with rules and regulations than
constrained powers and budgets. creativity. National policies can further inhibit
innovation. Specific targets can squeeze
Woking Borough Council, in Surrey, pioneered out the room for creativity; and risk may
radical action around climate change, with be discouraged in a culture where few are
its approach to energy in public buildings. promoted for successful risk taking, but failures
Its Climate Development Good Practice18 is are quickly punished. For elected members,
thought to be the first of its kind, promoting the imperatives of the electoral cycle can
voluntary cooperation between parties involved undermine attempts to push forward more long
in the local development process with a view term plans for innovation.
to achieve an 80 per cent reduction in carbon
dioxide and equivalent emissions, whilst also The voluntary and community sectors have
mitigating against climate change. Other often been thought of as the source of much
recent examples of local social innovation local social innovation in the UK, especially
in the UK include choice-based lettings in in the delivery of specialist services for
Market Harborough, Leicestershire; integrated marginalised or vulnerable groups,20 while
children’s services in Hertfordshire; joined-up business has been seen as the source of
18. See http://www. bereavement services in Wolverhampton; the innovations in service design and technology.
woking.gov.uk/council/
planning/publications/ development of clusters of social enterprises
climateneutral2/summary. to provide cleaning, shopping, gardening and This perception has been reinforced in recent
pdf
19. Audit Commission (2007) care for the elderly in Leeds; ‘village agents’ in years as central controls have made it harder
‘Seeing the Light, Innovation Gloucestershire to provide advice and guidance; for local government to innovate. Tighter
in Local Public Services.’
London: Audit Commission. and new models of affordable housing in prescription of how services should be run
20. Mulgan, G. (2006) ‘Social Basingstoke and Deane, Hampshire.19 and what they should seek to achieve have
Innovation: what it is, tended to reduce the scope for local enterprise.
why it matters, how it can
be accelerated.’ London: What counts as innovation? Similarly, complaints about ‘postcode lotteries’
Basingstoke Press. The word ‘innovation’ means bringing in have led central government to bear down on
something new. As such, it is not inherently local pluralism.
virtuous. Innovations can fail, and they can
damage services. But innovation also enables There are certainly many barriers in the way
many fields of human activity to advance of local innovation – and few councils manage
through the systematic experiment and testing innovation systematically. But the conventional
that demonstrates what does and doesn’t work. accounts are misleading. They underestimate
Markets advance through multiple failures, just how much local innovation takes place
as do science and product design. In the in every sector – even if it is inadequately
public sector, this sort of experimentation is recognised or supported. And they exaggerate
inherently more difficult because failures are the importance of factors such as the
harder to explain and manage in the glare of availability of free money.
public accountability. As we will show, this is
one reason why innovation tends to happen It is true that some cities (like Pittsburgh)
only when other approaches have visibly failed. have benefited from the presence of
foundations reflecting historic wealth, and
However, our focus on innovation is not just some flexible funding often provides the space
about novelty. What is innovative in one for experiment. But our research shows that
area may have been tried elsewhere before. much innovation happens without large-
Innovations can also arise simultaneously in scale additional resources. Indeed, pressure
different places in response to similar needs on resources often acts as more of a spur to
and pressures. Indeed, it is often difficult innovation than plenty. The critical issue is to
to trace the origin of a successful idea, have the right kind of money that can fund
particularly when it is going with the grain of ideas, and force their practical development,
national policy. In any case, the public cares rather than propping up old and unsuccessful
models. Similarly, central government

14
regulation and intervention is often blamed for of industrial districts, through the work
hampering innovation. But, as we will show, of Michael Piore and Charles Sabel in the
although targets can be constraining, the right eighties, to Michael Porter in the nineties. On
kind of external pressure has aided innovation a broader canvas, Peter Hall’s work on creative
more than it has hindered it. cities and milieux has shown how particular
cities have provided the ideas, images and
Local government at its best has shown that arguments that shaped the world at different
it can lead imaginatively, and to an extent periods, and the importance of such factors as
that is hard in national government. Research migration, bridging institutions and the ‘ethos’
published by the Audit Commission in 2007 of a place.24 Hall’s work emphasised how the
indicates that 95 per cent of English local greatest creativity has often come at one
authorities reportedly engaged in some degree remove from the centres of power, in smaller
of innovation in some or all areas of activity.21 cities, or in marginal parts of bigger cities.
Quite what they mean by this is unclear, since Charles Landry’s work over many years has
many in the public sector confuse improvement also examined what makes cities creative, and
and innovation, a confusion exemplified in in this decade Richard Florida has helped to
industry by the difference between the type of spread these and other ideas to a wider public.
continuous improvement of Japanese corporate
culture, like Toyota’s production philosophy of All this work has identified a host of interesting
kaizen, and the flexible ways of working that features of dynamic and creative societies and 21. Audit Commission (2007)
‘Seeing the Light, Innovation
generated a company like Google or products economies – including the roles of intermediary in Local Public Services.’
like the Apple iPod.22 bodies, incubators, universities, finance, London: Audit Commission.
22. Caryl, C. (2007) Why Apple
creative industries and migrant workers, in isn’t Japanese. ‘Newsweek.’
But, in some ways, the remarkably high figure encouraging and supporting the emergence of 10 December 2007.
cited by the Audit Commission is plausible. geographical innovation. 23. Borins, S. (2001) Public
Management Innovation
Look in detail in any locality and it is not in Economically Advanced
hard to find innovation. Much takes place The largest literature has been in the field of and Developing Countries.
‘International Review of
organically at the frontline of service delivery regional and territorial innovation theory. This Administrative Sciences.’ 67,
in health centres, classrooms, youth clubs or has tried to explain the success of places such pp. 715-731.
24. Porter, M. (1998) Clusters
community centres, and sometimes (although as Silicon Valley in California, or Bangalore in and the New Economics
evidence suggests not frequently) as a direct India, both acknowledged worldwide for their of Competition. ‘Harvard
Business Review.’ Nov/Dec
response to demands from individual residents. success in innovation within specific economic 1998, pp. 77-90.
It is rarely formally evaluated or analysed.23 sectors. This literature has also tried to explain 25. Moulaert, F. and Sekia, F.
Because no institutions are charged with why so many emulators have failed – and why (2003) Territorial Innovation
Models: A Critical Survey.
mapping, interpreting and spreading these it is so hard to engineer a new cluster. The ‘Regional Studies.’ 37(3),
innovations, they generally remain local. So the experience of Cambridge in the UK shows how pp. 289-302.
key problem may not be a lack of innovation clusters can sometimes stagnate.25 26. Palmer/Rae Associates
(2004) ‘European Cities of
but a lack of the means of making the most of Culture 1985-1994.’ Study
it. A parallel literature has looked at why some prepared for the European
Commission. Brussels:
places are culturally dynamic – from Memphis Palmer/Rae Associates.
This matters because localness is not always and Hollywood to Mumbai and contemporary 27. See University Continuing
Education Association
a virtue. Wheels can be reinvented; ‘not London. Some places with illustrious pasts website. Available at: www.
invented here’ attitudes can inhibit change; have reinvented themselves: Antwerp, once a ucea.edu/profdev/2008ann
conf/2008neworleans.html
and neighbouring areas are often unaware great trading city, went into serious decline in
of each other’s innovations. Some impressive the seventies and eighties and then reinvented
innovations from local areas in the UK (in fields itself with a very large multicultural population,
as varied as arts policy, crime reduction and with Moroccan, Turkish and Jewish-orthodox
healthcare) only received national attention communities,26 and the work of organisations
when they were taken up in the USA and like Antwerpen Open (which was set up to
marketed back to Britain. In short, we lack a organise big international events). Antwerp’s
mature system of innovation that is good at creativity has been widely recognised, from
developing new ideas, appraising them and being the 1993 European Capital of Culture to
then spreading them. Newsweek Magazine naming Antwerp as one
of the world’s top eight creative cities in 2002.
2.3 Existing thinking on local innovation
An extensive literature exists on why some In the US, New Orleans, the birthplace of jazz
areas are creative and innovative (some of and once the cultural capital of the South,
which is discussed in the literature review in is currently undergoing its own creative
Appendix D). In economics, this work dates renaissance.27 After Hurricane Katrina in 2005,
back to Alfred Marshall’s 19th century study sustaining the arts has been at the forefront

15
 of policy agendas, aiding in the regeneration urban planning policies’, through sustained
of the city. Historic neighbourhoods are being innovation over several decades.30
revitalised with attention being given to
their world-class museums. Organisations to 2.5 Why are some areas more socially
preserve New Orleans’ music tradition such as innovative than others?
the Tipitina’s Music Foundation and Save New So why can some places innovate socially while
Orleans Music have been highly involved in others can not? There is a modest literature on
supporting local talent by providing shelter, social innovation in cities and regions. Works
food, medical support and new instruments like Walker and Gray’s studies of diffusion
to musicians devastated by Hurricane Katrina. of innovations in US states in the sixties and
Such initiatives have maintained New Orleans’ seventies focus on a few key characteristics
reputation as a world-class music hub. So, of innovating places. One is the presence of
music continues to permeate the daily life of strong leaders, and the effect of leadership on
28. Finding from ‘Creating the city. social innovation. These may be Mayors – like
Seedbeds for Social
Innovation.’ Research London’s Ken Livingstone, Jaime Lerner in
conducted by Advanced In the UK, Bristol has also been acknowledged Curitiba or Pierre Mauroy in Lille. Or, they may
Policy Research 2006-2007.
Pittsburgh: H. John Heinz for the strength of its music scene and its be social entrepreneurs, like Fazle Abed the
III School of Public Policy talented young artists. From the late eighties founder of BRAC, a Bangladeshi organisation
and Management, Carnegie
Mellon University. to the mid-nineties Bristol was at the fore of which works with people whose lives are
29. Colomb, C. and URBED new musical genres and talent as bands such dominated by extreme poverty, illiteracy,
London (2006) ‘Making as Portishead and Massive Attack achieved disease and other handicaps.31 In many of our
Connections: Transforming
People and Places in Europe. international recognition. case studies, the passion and commitment of
Roubaix, Lille (France) particular individuals was critical to getting
Case Study.’ (Version 29,
June 2006) Draft version. These examples are all suggestive for the social innovations started.
Unpublished. and public field. They confirm the importance
30. Ozawa, Connie P. (2004)
‘The Portland Edge: of energy and commitment, the sometimes Another body of work has focused on
Challenges and Successes critical role played by institutions and the organisational cultures. These suggest that
in Growing Communities.’
Washington: Island Press. underlying role of culture. They also show that, local innovation is greater where there are
31. See http://www.brac.net/ in some circumstances, places can radically large numbers of organisations which avoid
index2.htm change their reputation and performance. excessively bureaucratic, hierarchical methods
32. Buchanan, D. and
Huczynski, A. (2004)
that hinder innovation.32 They adopt more
‘Organisational Behaviour: 2.4 Social innovation clusters decentralised, organic, and horizontal models33
An introductory text.’ 5th
ed. Harlow: Prentice Hall.
Comparable clusters of social innovation and ‘open’ working cultures where staff
33. Tidd. J., Bessant, J. and exist in the social and public fields. Over the are supported and allowed to experiment.
Pavitt, K. (2005) ‘Managing last decade, for example, Manchester has In principle, places where the main public
Innovation: Integrating
Technological, Market and adopted many new approaches, from changing agencies have an open organisational culture
Organisational Change.’ 3rd behaviour on its most deprived estates to are more likely to innovate than ones that
ed. West Sussex: John Wiley
& Sons. reducing car use. Tower Hamlets, in East don’t.
34. Mulgan, G. (2006) ‘Social London, has a long history of innovation. It
Innovation: what it is,
why it matters, how it can
was the scene of radical welfare initiatives in Our previous work on social innovation
be accelerated.’ London: the twenties, neighbourhood devolution in the suggested some attributes that may be
Basingstoke Press.
eighties and a new approach to youth services important in developing a socially innovative
35. Bart Nooteboom has often
commented on these issues. in the early 21st century. In the last few years, cluster. Innovation often depends on the
See Nooteboom, B. (2006) South Tyneside has energetically innovated to right kinds of difference (what we called the
‘Trust and Innovation.’
Essay written for the Dutch transform service delivery for residents and its ‘connected difference’ theory of innovation).34
Ministry of Economic Affairs, external reputation. Liverpool innovated in new Clusters need to link people and institutions
as background to the 2006
Innovation Lecture on trust ways of delivering services through call centres with sufficiently divergent cognitive frames and
and innovation [Online]. and the web. And, Knowsley is innovating in cultures to spark off new ideas and insights,
Available at: http://
www.bartnooteboom. secondary education, replacing all its secondary while also providing sufficient common and
nl/EZTrust%20and%20 schools with new learning centres by 2010. mutual understanding, and the right brokering
innovation5.pdf
and intermediary bodies.35 This combination
Internationally, Pittsburgh has one of the is particularly visible in some of the most
highest numbers of social enterprises and dynamic industrial clusters; it is also seen in
charities in the US.28 During the last 20 years, some places generating more dynamic social
Lille in France has adopted a number of ideas, which constantly bring together unusual
innovative approaches to regenerate the city, partners, often using the skills and experience
tackling deprivation and other social issues.29 of people new to an area. For the public sector,
Portland in Oregon has been described as the such hybrid working is harder – and public
‘poster child for regional planning, growth sectors have tendencies towards homogeneity
management and a number of innovative that can crush innovation. These theories are

16
borne out in most of our case studies, where The Young Foundation, and its predecessor
a degree of ‘connected difference’ has been the Institute of Community Studies, has used a
either deliberately or fortuitously created, with range of methods to support local innovations.
wide-ranging, dense networks linking diverse One is a social entrepreneurship model in
organisations and individuals in common which new approaches are designed based
projects. on user experiences and research, and then
demonstrated on a small scale in particular
What methods are currently used to support localities. This approach has been used with
local innovation? extended schools, patient-led healthcare,
Many methods have been used by local areas Healthline – the precursor to NHS Direct – and
around the UK to support innovation. National language translation services. Another model
government has used a variety of tools to has involved bringing together groups of local
support and reward innovators with various authorities, national government departments,
degrees of success. In the late nineties, the academics and other innovators to design,
Beacon Councils approach provided additional implement and evaluate new models. Examples
support for strongly performing organisations include the Local Wellbeing Project, and
(based on the assumption that these would be Neighbourhood Action Network, which have
the most innovative or best able to implement involved over 20 local authorities.38 In addition,
innovations). More recently, the Innovation many other methods have arisen out of the
Forum was established by government as arts, and from efforts to spur creativity such as
part of the Comprehensive Performance open space meetings.39
Assessment,36 again to bring together a group
of high performing councils in a loose network. All these methods have advocates. But,
although each is promising, and some have
Since the eighties, national Governments have achieved impressive results, there remains
also encouraged local ‘zones’ in enterprise, surprisingly little hard evidence on which 36. The main way in which the
Audit Commission now
employment, education and health, which methods work best – and where. In principle, assesses the performance of
assumed a latent capacity for innovation, given what is generally assumed about local government. See www.
audit-commission.gov.uk/
either within the public sector or more often innovation theory, their effectiveness should cpa/index.asp
outside, that can be untapped with freedoms. depend on four factors: the urgency of change; 37. See www.communities.
idea.gov.uk, www.
There have also been special budgets with the capital intensity of the service in question; improvementfoundation.org,
competitive bidding for innovative projects the power of the professions; and the level www.innovation-unit.co.uk/
(like the Treasury’s Invest to Save Budget or the of knowledge and evidence about specific 38. See www.youngfoundation.
org
much smaller budgets used in individual public interventions. But, as we shall see in the next 39. Open Space meetings allow
services to reward ideas coming from the front section, one of the findings of our case studies diverse and often very large
groups of people to get
line). was how little common understanding there is together, discuss issues of
of which methods are available and which are concern, share ideas, pool
their knowledge and develop
Local government itself has favoured mutual most useful in different circumstances. This plans for collaborative
support for its own officials (like IDeA’s remains a rather less mature field than spatial action, with no chairperson,
only a facilitator.
communities of practice), while the NHS planning or performance management.
has favoured collaboratives (like the Primary
Care Collaborative), and the education
system has used the Innovation Unit’s Next
Practice approach for teachers and education 3. Case study summaries
managers.37
We drew on some of the ideas and research
Elsewhere in the public sector, different models described in Section 2 to study a variety of
have been used to generate and implement case studies about places and agency initiatives
new ideas: ‘skunk works’, setting up small in the UK, Europe and the US. We also tested
units within or at arm’s length from bigger the factors identified as encouraging and
agencies to develop innovative ideas; in- driving local social innovation. The case studies
house innovation teams such as Denmark’s were chosen to reflect different types of social
MindLab or Kent’s community of practice. In innovation (for example, process or service
this decade, there has been growing interest innovation) in different fields and at different
both in design-led methods – used by firms stages. These are briefly summarised below. For
like Livework, often in collaboration with local a detailed analysis see Appendix C.
councils – and open source methods which
enable commentary on ideas, such as New
Zealand’s recent use of a wiki for rewriting
Police legislation.

17
 The Highlands (UK): Children’s Services seven new learning centres, which will replace
The Highlands covers a third of mainland all of the local authority’s secondary schools
Scotland. It is the largest local authority in when they open in 2010. Knowsley is at
the UK. Since 1999, the Highland Council in the forefront of several national initiatives,
Scotland has radically reorganised the delivery acting as a pathfinder for a number of central
of children’s services, creating effective joint government projects around education.44 This
working between key agencies.40 This approach case study shows how innovation can emerge
was both ahead of mainstream national from a sense of crisis and poor performance.
practice and in tune with the overall direction It also illustrates how strong collaborative
of national policy priorities. The integrated leadership can play an important role in the
service has been praised by Audit Scotland and implementation radical innovation.
has enabled the Council to make significant
service improvements in a short period of Tower Hamlets (UK): Youth Services
40. Highland Council (2005) time.41 In 2006, its success was recognised In 2002, the London Borough of Tower Hamlets
‘For Highland’s Children 2
Integrated Children’s Plan. by the Scottish Executive, which selected the awarded a number of local and thematic
Summary 2005-2008.’ Highlands as a pathfinder for the rest of the contracts to deliver its youth services to third
Inverness: Highland Council.
country. The case study shows innovation sector organisations. Tower Hamlets was one of
41. Stradling, B. and MacNeil,
M. (2007) Delivering coming out of a need to improve outcomes and the first local authorities in England to develop
Integrated Services For arrest population decline, piloted by a small a commissioning model for youth services, one
Children. ‘Highland: An
Overview of Challenges, group of outsiders coming into the authority, element of new third sector strategy for the
Developments and but mainstreamed through new working Borough. Tower Hamlets’ history and culture
Outcomes.’ Inverness:
Highland Council. practices that fundamentally changed frontline of social reform was a key factor that drove
42. South Tyneside Council services innovation. The combination of pressures to
(2007) ‘Councillor
Neighbourhood Champions’. improve services, and a difficult local political
South Shields: South South Tyneside (UK): Social exclusion scene, came together to drive innovation in
Tyneside Council.
South Tyneside Metropolitan Borough Council commissioning, an approach that was radical
43. IDeA (2006) ‘Journey
to Improvement: South is the only unitary council ever to move directly at the time but is now mainstream within the
Tyneside.’ [Online]. London: from ‘fair’ to ‘excellent’ in the Comprehensive authority and across local government.
IDeA. Available at: http://
www.idea.gov.uk/idk/core/ Performance Assessment (CPA).42 Since 2001,
page.do?pageId=5607813 the local authority has developed a number of Lille (France): Cultural regeneration
44. Knowsley Council (2004)
‘Knowsley: Transforming
innovative projects to address social exclusion, The Lille Métropole took advantage of several
Secondary Education.’ including their Neighbourhood Appraisal and decades of decentralisation to push through
[Online]. Available at:
http://www.beacons.idea.
Action Planning project, and the Beacon- a major programme of regeneration. As a
gov.uk/idk/tio/84230 awarded financial inclusion scheme pioneered result, Lille has become an industrial hub
45. Colomb, C. and URBED by leaders in the local voluntary sector.43 South and commercial centre of northwest Europe.
London (2006). ‘Making
Connections: Transforming Tyneside has both pioneered new approaches Projects to revitalise the area have been
People and Places in Europe. and replicated and adapted innovations from supported by innovative alliances,45 although
Roubaix, Lille (France)
Case Study.’ (Version 29, elsewhere. There has been a shift in the local much is attributed to the leadership of Pierre
June 2006) Draft version. authority’s organisational culture to encourage Mauroy, Lille’s Mayor from 1983 to 2001. Lille’s
Unpublished.
46. Finding from ‘Creating
staff at all levels to think creatively. The case experience shows how devolution can drive
Seedbeds for Social study investigated this progression. innovation by freeing public sector agencies
Innovation.’ Research
conducted by Advanced
to act experimentally, to develop partnerships,
Policy Research 2006-2007. South Tyneside demonstrates the potential and to take advantage of key opportunities –
Pittsburgh: H. John Heinz
III School of Public Policy
impact of a charismatic individual acting with in Lille’s case, the Channel Tunnel rail link.
and Management, Carnegie the sanction of local politicians to tackle
Mellon University.
service failure. Innovation has developed Pittsburgh (US): Workforce development
incrementally, but has nevertheless involved and unemployment
considerable risk. Mainstream government Following the decline of many of its industries
funding has been used to reshape the in the eighties, agencies in Pittsburgh are
authority’s culture and service delivery, and has now tackling the resulting deprivation. The
inspired confidence and imagination amongst city has been identified as a hub of socially
staff to experiment across the board. innovative activity.46 Pittsburgh benefits from
the presence of many innovative organisations:
Knowsley (UK): Secondary education several well established Foundations (often
Knowsley has traditionally had some of the supported by wealth from previous eras); a
lowest GCSE results in the country, but is now number of Universities, many with an interest
in the early stages of implementing radical in social innovation; and an active third sector
innovation to improve secondary education, in the city. Pittsburgh is also home to a number
through its ‘Secondary Transformation of renowned social entrepreneurs including Bill
Scheme’. This includes the development of Strickland. His organisation, the Manchester

18
Guild, strives to turn at-risk, disaffected or that time, Cambridge has been known for its
unemployed people into productive workers. technological innovation, establishing science
This model has been replicated, offering parks and formal and informal networks to
programmes and support both for children and sustain this expertise. It remains the UK’s best
adults. Pittsburgh’s experience shows how local known example of a technology cluster.
innovation can emerge outside central or local
government when other organisations have the
resources to experiment and develop new ideas
to respond to social need. It also, however, 4. Findings
illustrates the weaknesses of uncoordinated
innovation, and how this can waste scarce 4.1 What drives local social innovation?
resources and cause unproductive competition The case studies examine what happened
between agencies. in these very diverse places. As always with
such stories, the specifics are often the most
Gouda (Netherlands): Community cohesion fascinating: the dynamic individuals or teams
Gouda, like other cities in the Netherlands, who radiate confidence because of their
has experienced tensions between long- passion and vision; the new narratives that
established Dutch residents and Moroccans helped to give shape to disparate actions; the
– particularly young men – who settled in the crises and moments when disaster appeared
city in certain neighbourhoods from the fifties. imminent, but was then averted. However, 47. Ozawa, Connie P. (2004)
‘The Portland Edge:
Educational achievement among Moroccan there are some common characteristics: in the Challenges and Successes
boys is low, and unemployment high. Against UK cases, in particular, measured or inspected in Growing Communities.’
Washington: Island Press.
the background of national policy debate over underperformance was a powerful spur to 48. Ibid.
‘multi-culturalism’, the state’s national and change. 49. Johnson, S. R. (2006)
local response to the needs of the Moroccan ‘Bowling Together: The Civic
Story of Portland, Oregon:
community has become intensely politicised. There were also several stories which we Achieving sustainability
In Gouda, these tensions play out at the city expected to find but which did not materialise. through reconstructing
the Community Narrative.’
and neighbourhood level. The municipality We wanted to find evidence of bottom- Proposed paper 2006.
was freed from many central government up influence on innovation from citizens De Voe Moore Centre
Symposium. Unpublished.
constraints on its activities in 2000. One and users.50 But, in practice, in most of the 50. Dodgson, M., Gann, D.
result has been the development of intensive UK’s public services, citizens are relatively and Salter, A. (2005)
‘Think, Play, Do:
multi-agency partnership working to support passive onlookers – the key players are Markets, Technology and
young Moroccan men. At the same time, policymakers, managers and professionals. Organization.’ Oxford:
Oxford University Press.
local groups have emerged to support the Although residents’ participation was critical
Moroccan community. Innovation in Gouda is in implementing change in South Tyneside,
springing up in several places to meet pressing their opportunities to influence decisions have
needs. However, there is no overall plan or been more a result of recent innovation than
co-ordination, or even agreement between key a cause of it. Across the UK as a whole, the
parties about what is needed. New initiatives public’s lack of formal powers of voice and
consequently appear to be fragile. choice provide one explanation for this, as do
the absence of competition and the absence
Portland (US): Social innovation of powerful organisations to represent the
Portland is often cited as one of the most interests of users.
liveable cities in the United States47 and as
a model for ‘smart growth’.48 It has been We also expected to find more evidence of
described as a ‘city of engaged citizens’,49 deliberate methods being used to manage
bucking the trend towards declining innovation. In practice, many senior managers
involvement in civic life in the US. This case and politicians have improvised, drawing
study allowed us to investigate a location together insights and experiences – but with
where social innovation has occurred in nothing like the formal support available in
many different sectors and fields and where fields like public procurement or financial
change appears to have come from bottom-up management. As we have described in Section
community pressure. 2.5, there are at least 20 contending methods
for supporting innovation in the public sector,
Cambridge (UK): Technological innovation each with their own advocates, but with very
In Cambridge, population growth from the little help within local government to enable
London region together with the emergence of practitioners to decide which one to use in
new enterprises from University of Cambridge different situations.
staff and students in the 1960s fuelled the
growth of science-based enterprises. Since

19
 Politics is bound to be a big part of the story Manchester or Sandy Bruce-Lockhart in Kent),
of local transformation, and in some cases and local politicians do not play a particularly
political leaders did indeed play a decisive prominent role in the UK case studies.
role, particularly in giving officers permission Backbench councillors are even more cut off
to act boldly. However, a distinctive feature from power.51 By contrast, senior officials take
of the UK scene is the relative weakness of on a crucial leadership role in quite a few of the
elected leaders (with rare exceptions like cases.
Ken Livingstone in London, Richard Leese in

Table 1: Summary of drivers and enablers from case studies

Case study area Trigger Drivers Enablers

Highland Children’s Report by external Underperformance Organisational culture

Services consultancy
Charismatic Collaboration and
Leadership Partnership working

Capacity restraints due National policy

to resources having to framework to
cover sparse integrate
population over a large Children’s Services
geographical area
51. James, S. and Cox, E.
(2007) ‘Ward councillors
Knowsley Secondary 1999 Ofsted Crisis and Political support and
and community leadership: Education inspection underperformance stable political
a future perspective.’ North environment
Yorkshire: Joseph Rowntree Leadership from a
Foundation.
number of different National policy
agencies framework and
international policy
Organisational culture debates e.g. The
that is willing to Excellence in Cities
accept risk Programme, Every
Child Matters,
Building Schools for
the Future Programme

Partnership working

South Tyneside 2000 Ofsted Underperformance Political Support

Social Exclusion inspection and two
Audit Commission Charismatic National policy
reports Leadership framework

Organisational External funding

culture of strong (NRF)
communication, risk
taking and ‘no blame’
ethos

Tower Hamlets Youth Ofsted inspection in Underperformance Capacity of the third

Services the late nineties – sector
threat of service being Local political pressure
identified as failing from unstable political Local culture of
environment innovation

Leadership from local Flexible funding to

political figures and support new
senior officers in the management
Council teams/consultants

20
 Case study area Trigger Drivers Enablers

Pittsburgh Collapse of the steel Crisis Strong informal

Unemployment and and coal industry networks
workforce develop- resulting in mass Collaborative
ment unemployment in the leadership from Local culture of
eighties Universities and innovation
Foundations

Resources from
previous wealth

Lille Leadership in the form Need resulting from Long term leadership
Regeneration of of a new Mayor in widespread deprivation
governance structures 1973 Decentralisation of
Strong collaborative central government
leadership
Attitude to risk
Strong informal concentrating more
networks on meeting needs
than on finance

Gouda Clashes between Leadership and Devolving of power to

Building community Moroccan youth in influence from senior local government
cohesion 2002 officials in the Council
and community Available funding from
organisations central government
funds and housing
Social problems within corporations
the Moroccan
community

Source: Young Foundation (2007)

4.2 The critical factors • This then legitimises urgent action by

From the case studies, we have identified three internal stakeholders - local politicians and
groups of critical factors which together explain senior officials – sometimes allowing them to
a great deal about how and why innovation take actions they already wanted to take.
happened.
• Government policy and the actions of
4.2.1 The sharp external push that regulatory bodies can also act in a similar
galvanised the will to change way.
Social innovation can happen when people
are simply persuaded of a good idea. But it is 4.2.2 Strong internal capacity to develop
much more likely to happen when it becomes innovations and put them into practice
a necessity and when there is a powerful force The pressure to change is a necessary but
to drive it. In the case studies these pressures not sufficient condition for innovation. It also
included very visible service or performance requires the right leadership, structures and
failure, extreme need (in comparison to peers) culture – and we found many cases where there
and the requirements of government policy. was a will to change, but inadequate skills or
capacity to see it through.
Critical factors include:
Critical factors include:
• Recognition of underperformance by
leaders. This can be forced on a locality • Strong leadership from supportive political
by external agencies – such as the Audit leaders or a group of senior management
Commission and other inspectorates in the - often including individuals deliberately
UK. In other cases the pressure may come brought in to galvanise change
from the public, media or business.
• Creation of a responsive organisational
culture with shared understanding of

21
 the task and risk taking encouraged What appeared to be crucial in each of our
and supported both individually and UK case studies was the recognition of failure
institutionally. and the decision by political leaders to act at
a specific time. In South Tyneside, Knowsley
4.2.3 Mobilising the right external resources and the Highlands, the direction of national
and using public feedback to reinforce policy priorities aligned closely with local
change needs, helping to create an environment that
Successful innovations mobilise support and was supportive of innovation. This influenced,
resources from a range of sources – galvanising to different degrees, the local authorities’
stakeholder support, partnerships and funding, approach to innovation. Tower Hamlets’
and mobilising a set of networks to embed experience tells a different story: the Borough’s
change. pioneering work at the outset was not explicitly
encouraged by central government priorities at
Critical factors include: the time, however neither was it in opposition
to mainstream policy.
• Staff with the right skills to innovate and
implement new ideas, who are often the When considering our international case
main resource needed to support innovation. studies, underperformance and a failure to
meet social needs again emerge as drivers of
• Finance to support innovation becomes innovation. Significant deprivation and high
more important in the later stages of the levels of unemployment in Lille and Pittsburgh
process as new ways of working or new following industrial decline drove social
initiatives become established. innovation. In Gouda, the particular social
needs of one community, and the perceived
• Formal or informal networks at a variety of problems this caused others, also spurred
levels allow support to be gathered, and they new ways of working. Portland’s experience
also ensure collaboration – often these have grew out of need but innovation appears to
been very consciously cultivated. have been accelerated by public pressure,
particularly from community activists, more
• Visibly creating value for the public is than by external push factors – a very different
critical to maintaining momentum and trajectory from our other case studies.
building legitimacy.
Recognition from central government
4.3 Our case studies: the journey to Recognition and connections to central
successful innovation government appear to be important factors
Our case studies suggest a clear relationship in consolidating or embedding local social
between these factors at different times in the innovation within the UK. Fieldwork from our
process of local social innovation. UK case studies suggests that this plays a key
role in building a local authority’s reputation for
4.3.1 The external push innovation, which impacts on the confidence
Underperformance and failure of leadership teams and frontline staff. Gaining
In each case study, an underperforming such a reputation, and pursuing policies in
or failing service was the primary driver of line with national priorities, makes it easier to
social innovation. An external intervention access additional resources and to reduce the
(either in the form of a negative performance risks associated with change. A reputation for
assessment or the prospect of one) acted as innovation then changes recruitment patterns
a catalyst for change. But this often built on by attracting new staff interested in working
pre-existing conditions such as awareness of in an innovative and creative environment.
underperformance or local political pressure for However, there is no direct connection between
improvement. the extent and impact of local social innovation
and the level of recognition that local
However, the case studies show that awareness authorities receive from central government
of underperformance is not in itself a and the local authority community. This reflects
sufficiently powerful factor to drive innovation. the limited capacity of UK central government
In each case study, underperformance in a departments to systematically spot, analyse
particular service (or cross-cutting theme and promote local innovations.
in the case of South Tyneside) had been
acknowledged internally and externally for a
number of years, but no action was taken.

22
4.3.2 Internal capacity the frontline. Although this was not formalised,
Leadership staff were empowered to think about
In many of our case studies, the process of improvement and to put forward and test new
innovation followed a very similar pattern. Once ideas. Reflective learning requires a strong
political leaders recognised underperformance, feedback process between agencies working
a political commitment was made to adopt a in partnership, between frontline services and
particular way forward – in effect an innovation senior managers, and between third sector
strategy. This was often followed swiftly by organisations or other external bodies and
the creation of new senior management teams public services.
tasked with implementation. In each UK local
authority, this involved bringing in senior Current thinking in English local government
managers from outside the organisation to encourages improvement and learning through
establish change, or play a key role in driving it the adoption of ‘best practice’ from other
forward. authorities. However, ‘best practice’ had little
or no impact in our UK and international
Leadership can also come from other sectors. In case study areas. For Tower Hamlets, there
South Tyneside, new ways of tackling financial was little or no evidence or experience about
inclusion were driven by an agency leader commissioning models in local government
outside the public sector who used his strong at the time they initiated change that could
informal networks and social capital to build be adopted and applied locally. The unique
partnerships between agencies operating in the geographical and social circumstances in the
area. In Pittsburgh, the city’s well established Highlands prevented the authority from finding
universities and foundations recognised that a model elsewhere that could successfully
social needs were not being met, and worked be applied locally. Knowsley carried out an
together to push forward change; with local extensive review of new approaches to learning
politicians and government playing a far less and education from around the world, but
important role. In Gouda, however, key local found little evidence in the UK that could be
politicians were critical in supporting changes incorporated into its agenda for transforming
in the municipality’s approach. secondary education.

New leadership teams in the UK case studies In our international case studies, there
focused on creating a culture that supported was also limited reference to best practice.
innovation at an early stage. Their emphasis Pittsburgh and Lille focused on their individual
was on communicating a clear vision for change circumstances and set about to address these
and improvement to frontline staff and service needs in ways appropriate to their unique
managers, motivating staff to take on new situation. In Gouda there was no agreement
responsibilities, creating space for people to about ‘best practice’ and what in fact
think about experimentation and innovation, constituted innovation. Indeed, innovation was
and building an environment in which staff felt found to be running contrary to some elements
supported to take risks. of national government policy.

South Tyneside and the Highlands formalised 4.3.3 Mobilising resources

this by creating specific initiatives and Collaboration and partnership working
structures to gather and test new ideas from In Knowsley, South Tyneside, the Highlands,
frontline staff. In South Tyneside, a ‘no blame’ Pittsburgh and Lille, multi-agency collaboration
culture in the authority encouraged staff to was central to innovation and an important
articulate and try new approaches and ideas. driver of change. Partnership working was used
In Tower Hamlets, ‘continuous improvement’ to embed a vision across multiple agencies,
was emphasised by political leaders and senior tackle problems holistically, and improve the
officers. This influenced a wide range of capacity of individual agencies to respond to
services, improving staff morale and creating local needs. In many cases, agencies realised
a new sense of opportunity. In Lille, too, the that they needed to work together across
public and third sectors are now more flexible, sectors to bring about effective change,
particularly about risk and change. recognising their inability to tackle significant
need alone.
Learning
Our fieldwork suggests that reflective learning Access to funding
is important to support innovation. In each The case studies indicate that access to
case study, interviewees reported a new focus significant ‘free’ funding is not always critical
on continual evaluation and experimentation at for innovation. However, in some of the

23
 cases it did play an important role to deliver between national and local government in
innovation, although not necessarily to priority areas.
kickstart new creative thinking. Knowsley used
Neighbourhood Renewal Funding (NRF) and 5. Modelling social innovation
capital resources from the Excellence in Cities
programme to build three learning centres to From this analysis, we have developed a series
pilot new ideas about classroom layouts and of models which help to describe different
new teaching approaches, building on early aspects of the local social innovation process.
work with Liverpool University. South Tyneside
used substantial NRF funding to support the • First, we created a model to illustrate the
early stages of its new approach to social different phases in the local social innovation
exclusion. In the Highlands and Knowsley, lifecycle, based on the experience of our case
government ‘pathfinder’ status increased studies.
resources and led to national recognition. In
Tower Hamlets, new funding through NRF • Second, we identified the alignment
and other sources enabled the local authority of factors needed to drive and enable
to expand its central Youth Services team local social innovation at each phase of
and develop new initiatives. In Pittsburgh, development.
agencies benefited from significant funding
from foundations in the city, though as much • Third, we looked at the networks, structures
to support and sustain existing innovations as and interventions required for innovation to
for new ideas. be transferred from place to place or service
to service, in order for a locality to move from
However, new money can sometimes reduce being innovative in one field to innovating
the pressure to innovate. It can prop up more widely.
52. Public Private Partnerships, failing services and structures (this has been
Private Finance Initiatives
and Business Improvement a common critique of regeneration funding). 5.1 The local social innovation lifecycle
Districts. It is only when new money combines with a Our case studies included both areas where one
reforming leadership and urgency of need that particular service or sector was innovating in
it has the required impact. Additional resources isolation – Children’s Services in the Highlands,
can have most impact in genuine new trials for example – and others where the culture and
and pilots, and their extension, rather than processes necessary to nurture innovation had
simply going into general budgets. As we become more widespread.
argue later, despite the proliferation of new
funding schemes around UK local government In Portland, there are examples of innovation
(including PPPs, PFIs, BIDs52 and others) in fields as diverse as the environment, health,
there has still been very little use of new civic participation and urban planning. In
financing devices to support innovation, such recent years, local authorities in the UK, such
as convertible grants or loans, equity stakes as Manchester and Kent, have also shown an
in new social enterprises, or overt risk sharing ability to innovate in many fields, suggesting

Figure 1: Phases of the local social innovation lifecycle

Early Phases of the Local Social Innovation Life cycle Late

Latent Design & Mobilisation Main streaming Embedding

Discovery
Period of Strategy and Piloting innovative Innovation Value of
under-performance process for ideas, developing becomes routine innovation
or gradual innovation are new structures and as ideas and grows. Systemic
improvement developed terms, and beginnig working innovation may
before innovation to implement practice are occur, where
occurs innovations main streamed in the locality has
one place, service, potential to
or sector innovate in
other sector

Source: Young Foundation (2007)

24
that the potential to innovate had become Phase 1: Design and Discover
embedded in the local authority’s way of The design and discover phase of local social
working. innovation is characterised by turbulence and
a high possibility of failure. In this stage, the
Our findings which led us to develop the social strategy for innovation is developed and a
innovation lifecycle (Figure 1) match other variety of approaches will be discussed and
research which suggests that patterns of social developed. Many of these innovations may be
innovation are fairly similar whether the unit is taken forward below the radar.
a community organisation, a frontline service
or an entire service. These patterns include Phase 2: Mobilisation
the pressures to change, the development of During the mobilisation phase, approaches to
fragmentary new ideas in response to needs innovation are selected and the innovation is
and circumstances, and their subsequent piloted by existing or new teams. Knowsley
development, testing and mainstreaming. is now at this stage in the innovation process,
creating structures and teams to support its
Phase 0: Latent new learning centres. In this phase, various
In the latent phase, the critical issue is innovations may fail and come to an end
what trigger will prompt innovation. In the (possibly because they do not work) or they
majority of our case studies, especially in may not have enough support (internally or
Tower Hamlets, Knowsley, Highlands and from other agencies), resources (staff time or
South Tyneside, underperformance and its money) or leadership.
recognition by external bodies acted as the
trigger for change. In other cases a mix of Phase 3: Mainstreaming
other factors may act as triggers. In Portland, If an innovation is seen to work, it may then
a maturing sense of distinctive civic culture be mainstreamed. Its implementation grows
played a part, providing a narrative into which in scale and becomes routine. Resisters stop
specific innovations could be placed. fighting against the new idea, and resources
come in behind it. The Highlands have now
moved into a period where innovation is being
consolidated and embedded within local
agencies’ work.

Figure 2: Local social innovation lifecycle

v ate
nno
al to i
nti
ote
-p
on
ti
va
no
c in
mi
Syste

n
n ovatio
ted in
- isola
inable
Susta

One model
Trigger chosen
point for
Value innovation

Un Non-sustainable
der
-p e
rform
ance

s
ent
ro vem
Imp

Failed experiments
en route to success

Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Latent Design & Mobilisation Mainstreaming Embedding
Discovery
Time

Source: Young Foundation/NESTA (2007)

25
 Phase 4: Embedding for the public (captured by the left hand axis)
In a fourth phase, the gains made in one and that this is the only genuine measure of
service or sector can help to encourage success.
innovation in other fields or sectors, thanks
to inspiration or infection. As this happens, 5.2 Aligning factors in different phases
the whole area or public sector may come to The leaders and managers who oversee
think of itself as innovative. Our case study innovations are working in risky territory.
of Tower Hamlets found some signs that this As Rosabeth Moss Kanter once put it, every
stage had been reached as the commissioning success looks like a failure in the middle.53 To
approach had been extended to other parts understand how they should best manage the
of the local authority, partly inspired by their different factors that shape innovations we
success in establishing a nationally recognised have adapted the ‘Strategic Triangle’ approach
model. In South Tyneside, the success of developed by Mark Moore as part of his model
their innovations around social exclusion had for public value.54 This triangle helpfully brings
raised confidence across the authority, which together:
was reinforced by national recognition and
an internal cultural change that promoted • Authority: the external pressures that
creativity and controlled risk taking. authorise change (and which are sometimes
refracted through a political leadership);
Maintaining this level of momentum is hard.
Complacency may set in and what was flexible • Organisational capacity: the internal
and flourishing may stagnate. However, there capacities to change and deliver (including
are plenty of places that have sustained a culture, management and staff capability);
strong level of innovation across different fields and
over many years.
53. Kanter, R. M. (2003) ‘On the • Value: the feedback that comes back to
Frontiers of Management.’
Cambridge, MA: Harvard This chart provides a rough picture of these the leadership team, both through external
Business School Press. phases – and a reminder that at each point of networks and through the visible value and
54. Moore, M. H. (1995)
‘Creating Public Value.’ transition the process may go into reverse. It benefits created for the public that provide
Cambridge, MA: Harvard also emphasises our contention that the key legitimacy for any innovation.
University Press.
purpose of innovation is to create new value

Figure 3: The strategic model for local social innovation

Authority
Leadership
External pressure
Internal pressure

Organisational Value
capacity
Outcomes
Resources Replication
Organisational culture Growth
Networks

Source: Young Foundation (2007)

26
 Authority

Authority
5.3 Explaining the different phases innovation. At this stage in the Highlands and
Each set of factors influences the other. Pittsburgh, authority was successfully used
Authority can be used to create organisational to attract resources and generate increased
capacity (as in the Highlands and Lille); that organisational capacity. Failure at this stage
capacity can then be used to create value Organisational
is Value
most likely either if the organisational
Capacity
for the public, which can in turn enhance capacity doesn’t materialise or if Value
Organisational resisters (and
authority. a resistant culture)
Capacity prove too strong to crush
the innovation from the start. This stage of
The importance of each of these three varies innovation is turbulent and often features
at different stages of the innovation lifecycle, many small failures, until one initiative emerges
and in what follows we suggest how their as the dominant innovation.
roles change, using arrows to express the key
relationships, with the size of each triangle
denoting the importance of each cluster of Authority
factors, and with dotted lines indicating a Mobilisation
weak link. For full detail see Appendix B.
Authority

Latent phase Organisational Value

Capacity
Authority
Organisational Value
Capacity

Authority
Organisational Value In the next phase, if the innovation turns out
Capacity to work, we begin to see some value being
created for the public. Authority remains
Authority
important, but effective management (often
including a new team of people better suited
Before social innovation starts, both authority to the new mission) becomes even more
Organisational
and Value and
organisational capacity are limited, critical as the innovation develops. Success
Capacity
relatively little value is being created for the is likely to strengthen the links between
Authority
public. Indeed it is often this which triggers authorising leaders and the people responsible
change. Organisational
for implementation, as resources Valueare diverted
Authority
from Capacity
other activities. A big risk at this stage
(alongside the risks of mobilisation by enemies)
is that the people involved in the earlier stage
Design and discover phase of innovation may be unwilling to hand over
Organisational Value
control to others with better management
Capacity
Authority skills.
Organisational Value
Capacity

Mainstreaming

Authority
Organisational Value
Capacity

At the next stage, authority

Authority (particularly Authority
strong entrepreneurial leadership) becomes Organisational Value
particularly important, as it demands change Capacity
from the system. In practice this often
translates into internal pressure from local
politicians and senior officials who try to create
a new organisationalAuthority
capacity to act on the
Organisational Value Organisational Value
Capacity Capacity

27
 Authority

In the next stage, as the innovation becomes Embedding

part of mainstream activities, authority reduces Authority
in importance. Effective management remains
important – and there will be a greater need
Organisational Value
for organisational capacity through resources,
Capacity
networks and skills. During this stage, the
innovation needs to be aligned with all of the
main drivers of behaviour in the organisation
– including finance, HR, IT and performance Organisational Value
Capacity
management. This is when weaknesses in
leadership, management and partnerships will
most threaten success. Pervasive innovation

Embedding In the final stages of the lifecycle, sustainable

innovation requires a balance between the
Authority
three corners of the triangle, with each
reinforcing the other in turn (the value of the
innovation enhances authority, which in turn
enhances organisational capacity which in turn
further enhances the value of the innovation).

Organisational Value In more ambitious variants, successful

Capacity innovations in one field may be replicated
in other fields as innovation becomes more
Sustainable innovation pervasive. This sort of pervasive innovation
demands exceptional leadership and strong
engagement and support from all parts of the
network.

Figure 4: The lifecycle of innovation – and the implications for strategy

Authority

Authority
Organisational Value
Capacity Trigger
point for
Value innovation

Organisational Value
Capacity

Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Latent Design & Mobilisation Mainstreaming Embedding
Discovery
Time
Source: The Young Foundation/NESTA (2007)

28
5.4 Maximising the potential for innovation every level – recognising promising new ideas
By linking these two sets of diagrams, we can and experiences, and bringing together the
show the lifecycle of local social innovation right mix of resources and authority to nurture
and how the balance between authority, them.
organisational capacity and value changes
at each stage. For greater detail about the This was a particular concern in many of the
strategic triangle during the local social case studies. The Highland Council focused on
innovation lifecycle, please refer to Appendix B. improving links between senior management
and frontline staff so that information and
No locality will ever be able to sustain ideas were not lost in the ‘treacle of middle
innovation in every field at every time. Nor management’; Knowsley encouraged teachers
will this ever be necessary or desirable – as to come up with new ideas for improving
we pointed out earlier, the priority for most pupils’ learning experience that could be
services at most times will be to perform well tried and, if successful, adopted more widely
now. However, every service and agency will throughout the education service. Lessons
always need to know what it is doing about from South Tyneside’s neighbourhood-based
innovation – where it is drawing its ideas, how Participatory Appraisal Projects have been
it is cultivating its own creativity, and how it is applied in other neighbourhoods, for example
connecting with others. through the adoption of see-through plastic
shutters in vacant properties instead of
Here we come to the third dimension of the brown ones, to make residents feel safer and
story. In many of our case studies it is clear that discourage antisocial behaviour.
dynamic innovation doesn’t take place solely
within organisations. Instead, it depends on In our international case studies, the network
dynamic networks that link organisations both structures of innovation were very different.
horizontally and vertically. These networks In Pittsburgh, most social innovation is
include national and regional bodies, local amongst small charities and grassroots groups:
authorities and services, frontline units, NGOs, horizontal links within this level are limited
businesses as well as members of the public, and fragmented, though connections between
residents and service users. A truly innovative foundations and grassroots organisations are
locality is likely to have strong networks linking stronger. In Gouda, the links between layers are

Figure 5: Visualising a local innovation system

Systemic local
social innovation
(region, city,
authority wide)

Sectoral innovation
(service, agency, Flow of
sector) knowledge
learning,
networks,
creativity,
and
recognition
Frontline innovation of what
(neighbourhood and works
community-based
organisation)

Public innovation
(individuals, service users,
neighbourhoods)

Source: The Young Foundation/NESTA (2007)

29
 weak, while in Lille and Portland they appear and to support them to develop strategies to
stronger and more resilient to change. tackle any identified problems.

The following diagram provides a simple This experimental SNA established that the
framework for thinking about these links – method offers a different and important
showing how the different layers of a local perspective on the relationships and networks
innovation system combine horizontal and that underpin innovation. It exposed
vertical links, which may be rich and dense or relationships and networks that are unlikely
thin and atrophied. to have been revealed by traditional research
methods. The exercise confirmed what would
be expected in the area given its stage of
innovation, but pointed to possible weaknesses
Social network analysis: insight into a in future sustainability.
local innovation system
Please refer to Appendix C for a detailed
Social Network Analysis (SNA) is a mapping analysis of the SNA method and the key
process that assesses the networks of influence findings of this exercise. However, the main
and trust that flow through and between lessons include:
individuals, organisations, partnerships and
communities, and identifies key individuals • The locality has a high level of networking
within these networks. It is, potentially, a around innovation compared to other
powerful tool for understanding the intricacies areas
and subtleties of networks that support
innovation, the ways in which ideas and The SNA exercise revealed that in this local
information about innovation spread, and area a relatively large number of individuals
how these relationships and interactions drive are actively involved in the innovation
change and creativity. process, using networks to seek innovative
solutions to problems they faced. These
SNA offers a practical way to interpret the individuals were apparent in different
model of social innovation networks and organisations and agencies within the locality
relationships that emerged from this research and their networks included both frontline
(see Figure 5). An experimental case study was staff and senior management.
conducted in a local authority area in the UK
that is known for innovation in education. • In this area there are strong networks for
seeking new ideas, and many individuals
The SNA model used in this experimental case act as hubs, pulsetakers and gatekeepers
study has been developed by an American
anthropologist Dr Karen Stephenson, who The strength of the networks is high given
has worked widely with the public and private the early stage in the social innovation
sectors in the US, collaborated with the UK lifecycle. A significant contributing factor to
Government – the Home Office, Cabinet Office this is likely to be the large scale and level of
and Communities and Local Government risk within the service transformation.
(CLG) – and whose work has been applied in
13 localities in five regions in the UK. It has • The local authority and a number
not however been used to identify innovation of schools are central to innovation
in multi-agency partnerships until this networks and are leading the innovation
experimental case study. The emphasis to date process
has been on understanding how partnerships
could become more effective rather than The same core group of individuals, including
more innovative. Her methodology has been local authority officers and head teachers,
trademarked as NetForm®. were consistently identified across all seven
networks. This is a strength but could also
The purpose of this case study was twofold: indicate the existence of a dominant and
to explore the effectiveness of NetForm® exclusive clique which could limit the extent
SNA as a diagnostic tool in illuminating (or to which ideas can emerge from other
contradicting) the broader findings of this sources.
study; and to explore how this technique could
be used by agencies to help understand the • The voluntary and community sector,
circumstances fuelling or frustrating innovation student council and residents appear to

30
 be outside the core networks of influence three clusters of factors to be critical in
in the locality enabling places to innovate and be reborn.

This could be either because they are weak • First, the will to change that comes
or because they are being excluded. This from awareness of threat or failure (and
may not pose a problem for implementation occasionally from a sense of a new
at present but could undermine future opportunity), and from that will to change
sustainability, if the current core group leave being channelled by people or organisations
their current posts. It also suggests that there with the authority to act.
may be insufficient ‘connected difference’ to
drive further innovation. • Second, the presence of internal
organisational capacities to change, including
official leadership and culture.

Theoretically – if links between layers are • Third, access to the external resources that
established and maintained – connections can help change happen, including people,
grow to support quick and effective diffusion money, skills and networks. Feedback from
of innovation. In our four UK case studies, the public is also important here, as they
local innovation was driven primarily at the should see the value that flows from a
sectoral innovation layer – at service or agency successful new approach.
level – with a strong emphasis on partnership
working, collaboration or formal integration, to Our research challenges many previously
bring together different agencies and transfer widely-held assumptions about social
thinking and new working practices. Strong innovation. It shows that money matters – but
links (formal and informal) were found between in quite complex ways (indeed, there are many
sectoral and frontline layers, to communicate examples where money has propped up failing
ideas between service managers and frontline structures in spite of urgent need for change).
staff. In none of our case studies have deep cultures
of social innovation or the impact of particular
institutions been identified as necessary factors
in the creation of a socially innovative locality.
6. Recommendations
In contrast to previous work that has
Should every locality aim to innovate all the emphasised the importance of freedom to
time? The short answer is no. In most services, experiment, our research shows that constraints
the primary focus must normally be on effective and restrictions are often important factors
implementation and incremental improvement. in triggering and driving the process of
However, there will be times when services will social innovation. Indeed, in the early stages
experience a pressing need to innovate and of innovation performance management,
change to stay ahead of shifting demands, targets and reporting (in the form of service
opportunities and pressures. assessments) appear to have had a beneficial
effect on local innovation in our UK case
Ideally, a locality will subtly combine creative studies, providing the catalyst to trigger
energy and the willingness to try out new change in each of the four locations.
ideas with an eagerness to learn from others,
taking pride in presenting the results as rooted 6.1 Recommended directions of travel
in the area’s own history and culture. Such a So what positive conclusions can we draw?
position can be cultivated. The research and What are the implications of this analysis
case studies show conclusively that innovative for policy, whether at the level of individual
capacity can be nurtured, even in unpromising localities or nationally? The three clusters point
circumstances. It also shows that innovative clearly to what could be done to support more
capacity can spread from one field to others. local innovation.

Our aim has been to show some common First, pressures for change and authority
factors and patterns. But we also recognise to act
that real processes of innovation in these There are good reasons why the recent
places are messy, and unpredictable. They rely history of targets, audits and inspections has
on a mixture of luck, opportunism and careful been resented by local government. But our
planning. Nevertheless, we have identified analysis shows that they have often been
vital catalysts for change. In the absence of

31
 market and political pressures, it is vital that such things as creativity or user engagement
these pressures don’t disappear. Hopefully, these have not been brought together into a
the risk-based approaches being planned by coherent approach to innovation, drawing on
the Audit Commission will sustain healthy the many methods that can be used to drive
pressure on local authorities and local it. Nor do most localities have senior figures
partnerships – showing up relative failure charged with cultivating and supporting
and rendering complacency less of an option. innovation in the area – wherever it may
Indeed, in other countries, there may be a originate.
need for more transparent performance data
and benchmarking – which can be assisted Third, access to external networks of
by institutions as varied as foundations, money, people and skills
universities and the media. This is the critical area where much more could
be done to support and sustain innovation, and
However, it is also important that audit it is here that we focus our recommendations.
and inspection reward innovation. Existing
processes for overseeing localities are much New kinds of funding
more focused on past and present performance Finance is not all-important in innovation. But,
than on potential. We have found no examples at some point, new models need money which
of senior managers being held to account must either come from existing budgets or be
for failing to provide a pipeline of promising brought in from elsewhere. The public sector
options. Yet some of the best performing local has experimented with a range of different
authorities fear that they will be penalised kinds of funding for innovation. The Invest to
for innovation. This strong bias against the Save Budget56 provided large sums of money
future in earlier work by organisations like for partnerships which could demonstrate
the National Audit Office looks increasingly some joined up ideas. Other funds have been
55. These are groups of anachronistic, and we believe that it is vital established for small projects, to reward good
practitioners in a field of
expertise who share ideas that the new Comprehensive Area Assessments performers, or for pathfinders and pilots. For
and build innovations cover innovation – and the demand for innovation to spread, a range of different types
together.
56. See www.isb.gov.uk innovation from elsewhere – rather than of finance is needed, some of them themselves
57. LGA/CLG (2007) ‘National focusing exclusively on current performance. innovative:
Improvement and Efficiency
Strategy.’ London: LGA.
Our analysis also reinforces the importance of • Easily obtainable small grants for frontline
political leadership in localities. Mayors and and user groups to develop new concepts.
leaders with the authority to act can greatly
enhance a local area’s ability to change quickly • Funding for experimental zones which
– as has been shown by many outstanding allow ideas to be tested and national rules to
examples from around the world, from Seoul be suspended, such as Employment Zones.
and Tirana to Bogota and Barcelona.
• Funding to test out a variety of approaches
Second, internal capacities in tandem with fast learning – for example
There is a strong message from all of our case a series of projects working with young
studies about the importance of leadership and offenders with a common target, or the kinds
innovation-supportive internal cultures. of carbon reduction being experimented with
by the cities in the Clinton Global Initiative.
Here, there is an important role to be played
by umbrella bodies – such as IDeA and the LGA • Establishment of social venture funds –
– in providing coaching, mutual support and like the Young Foundation/NESTA Health
challenge. Our findings in this area mirror many Innovation Accelerator for long-term
other studies of change processes. There are conditions – which focus on priority areas
some obvious areas where more could be done and the development of new models and
– for example, in the training and development enterprises.
of local politicians.
• More complex packages of investment
More could also be done to develop lessons finance for initiatives which bring a mix
about what has worked and communities of of different types of risk (for example,
practice,55 preferably in ways that go beyond infrastructure or housing projects that
the core public sector. There is currently very also involve innovative ways of delivering
little well-grounded training and support on services).
how to manage innovation. Although there
is patchy support and training provision for

32
The new National Improvement and Efficiency Intermediaries may work best when they are
Strategy57 for local government could provide focused on particular sectors or particular
new ways to support local innovation. The problems. Good examples are telehealth
emerging framework for Local Area Agreements networks, which use the telephone and
(LAAs) will allow localities greater freedom video to provide health-related services and
to experiment. However, for its full potential information, and the mySociety approach59
to be realised central government will need to the development of civic websites. But
to commit to sharing the costs, and risks, of intermediaries can also look at innovations
innovative new approaches in priority fields in different fields and spot the scope for
such as youth offending, carbon reduction or their application elsewhere. Brokerage and
eldercare. intermediation is a field where competition
and pluralism are essential and where the
In the long-run, greater fiscal freedoms for natural bureaucratic instinct to task single
local authorities, and more free money in the organisations is particularly inapt. A range
hands of bodies like Community Foundations, of different intermediaries is also important
could provide this range of finance. In the because they can help the public sector reach
medium-term, central government will continue out to other sectors and avoid monopolistic
to have to play its part. instincts.

Developing a labour market for innovation More work is also needed on developing the
skills key skills for successful intermediaries. In some
In recent years, the local government world has cases, these skills are closer to investigative
created a novel labour market for specialists in journalism and venture capital than traditional
turning around failing councils. A parallel field bureaucratic skills. They include the skills
has grown up for head teachers who are good of spotting, investigating and discovering
at turning failing schools around. There are what elements of a particular innovation are 58. See www.nationalschool.
gov.uk
now a significant number of people specialising transferable. 59. See www.mysociety.org
in these roles, and a body of knowledge about 60. Action Learning Sets are
how this is best done. By contrast, there is no Creating collaboratives small groups of individuals
who support one another in
parallel body of people or recognised skills in We favour more overt national and European learning and development in
innovation. funding for collaboratives, linking together an area where they have an
interest and wish to increase
several different places and national their expertise.
This is where bodies like the National School of departments to test out new models, with 61. See http://www.renewal.
net/NNMN/
Government (NSG)58 and IDeA could develop fast learning, evaluation and measurement.
courses to build up the rounded skills needed This approach has been developed by some
for innovation. They could recognise successful pathfinder models, by the Young Foundation
innovators, and encourage local authorities (on wellbeing and neighbourhoods) and at
to recruit such people either into senior an international level by the Clinton Global
management positions or as part of teams Initiative on cities and climate change. It has
when there is a clear need for innovation. One much wider application in issues as varied as
option would be deliberately to develop a cadre care of the elderly and crime reduction. It also
of innovators with successful track records who needs to encompass looser and more flexible
could bring with them preferential access to learning processes such as action learning
funding for individual projects. sets.60

Supporting intermediaries Examples of effective collaboration include

Research on innovation in other fields has the National Neighbourhood Management
repeatedly pointed to the importance of Network61 (a national practitioner network
intermediaries and brokers who can spot, to improve learning and knowledge sharing
assess and adapt innovations. They see the through practical visits, events and action
potential value of innovations that have learning), IDeA’s communities of practice,
succeeded elsewhere or how they need to be and national networks to promote effective
changed. There is a striking absence of such neighbourhood working through action
institutions in the social field and in local research and reflexive learning, such as the
government. Instead there is either too much Young Foundation’s Neighbourhood Action
top-down prescription or too casual a view that Network.
a thousand flowers should be encouraged to
bloom. Mobilising the public
One striking feature of our case studies is
the relatively minor role played by citizens

33
 and users. The truth is that the public remain 6.2 Where research is needed
largely bystanders in processes of innovation, The fields covered in this report have seen
despite the widespread talk over the last sporadic research. But we have identified many
ten or fifteen years about co-production. fields where much more research is needed on
Voice and choice are limited, despite some the critical dimensions of local innovation that
scattered experiments. This absence is likely we have not been able to explore here. These
to be inhibiting localities from developing include:
innovations that really meet user needs (as
opposed to top-down targets). We favour • The relationship between social and public
much more concerted experimentation in sector innovation and broader patterns of
empowering and engaging citizens in processes rebirth and renewal, including economic
of innovation, building on experiences such as turnarounds, the role of culture and the
the involvement of pupils in designing schools, creative industries and political renewal.
residents in regenerating housing estates and This is an under-researched field but could
patients in managing their own illnesses. be helped with the use of social network
analysis and other new tools.
The web can be a powerful tool in enabling the
voice of users to be heard. It can create space • The role of networks and linkages between
for public input or to put pressure on public agencies and individuals, building on our
sector providers. It is true that ‘user-driven’ initial analysis of networks in one area.
innovation can be exaggerated: in practice
in the private sector and elsewhere what is • The role of political leadership in local
happening is often more about engagement innovation – and its relationship to official
of the public in processes that continue to leadership.
be fairly tightly controlled by managers and
designers. But there is undoubtedly a great • The institutional forms for innovation –
untapped resource waiting to be mobilised. including the role that can be played by
special purpose vehicles, public-private
Training good commissioners partnerships and other arm’s length bodies.
A critical issue for the next few years will be
the training and support of commissioners
to back innovation. This is already a priority
in local government as it continues to move 7. Conclusions
more towards commissioning instead of direct
provision, and it is fast becoming a priority in Viewed from a national perspective (or that of
the health service and in the criminal justice a whole system such as the NHS), there is a
system. Good commissioners not only pay strong interest in encouraging experimentation
attention to current performance but also to at a local level. This is how new ideas get
future innovation capacity, and the best use developed and tested on a small scale that can
their powers to ensure that there is a wider then help the whole society adapt quickly to
range of options available after three to five change.
years as well as in the next year.
Yet, for local institutions, genuine innovation
Commissioning for innovation requires is likely to be risky and potentially career-
attention to a set of issues that are very threatening for officials or politicians, making
different from the concerns about efficiency it more rational to watch and copy the
and scale that have dominated the field of innovations of others. However, if everyone
purchasing. Scale is particularly important – too does this, the system will produce too little
large a scale for commissioning guarantees innovation. It follows that higher-tier bodies
that promising local ideas will never have a should have a strong interest in sharing the
chance to demonstrate their worth (an issue costs and risks of local innovation, and doing
that has been a concern in welfare to work, and as much as they can to share positive results.
around offenders). There are also important
issues around risk, where commissioners may In practice, national governments, particularly
often need to support a number of parallel in the UK, have preferred to impose their
models to see what works. Some of the most own policies and innovations on local areas,
subtle challenges for commissioners relate rather than mobilising them as laboratories
to innovations that produce value for many for change. The results have often been
different agencies, for example through helping problematic, as costly, inflexible and unproven
individuals to avoid crime and unemployment.

34
models have been imposed on widely different
areas.

A more sensible approach would be to foster

innovation in the ways described above,
making the most of the evident urge that many
localities have to try out new approaches. For
this to work, a very different division of labour
is needed, with national institutions providing
the right combination of pressure, support and
mutual learning, and local institutions building
up their own internal capacities as well as more
effective external networks.

There will always be places in relative decline

and particular services facing difficulties. But,
with a more mature system of local innovation
in place, more places could move more quickly
from decline to rebirth.

35
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38
Appendix A: Putting the lessons of the research into
practice: a toolkit to support local social innovation

Innovation is very often an unstructured • diagnose position in the innovation cycle

and intuitive process, demanding creativity, (Step One);
invention and sound judgement about
the balance between risk and operational • understand how innovation grows (or fails)
effectiveness. In our case studies we saw the (Step Two); and
confidence that grows from success, from
demonstrating that new approaches can work, • ask the right questions to guide action in
and the pride this brings to a locality. But we each phase (Step Three).
also know that innovation for its own sake
often fails, that many good ideas do not work
in practice in the same way that they were
initially envisaged. So it is wise to limit risks – Step One: Diagnosing where you are in
to draw on experience and evidence, and what the innovation lifecycle
has been learnt by others.
Social innovation within localities evolves
From our case studies – and our wider through a series of phases. Building an
experience of carrying out this research – we understanding of where you sit within this
have put together a toolkit to support the fluid innovation lifecycle will help you and your
and creative process of local innovation. This key stakeholders – politicians, officers, local
sets out three steps to help: agencies and service users – understand their
context and spot possible pitfalls.

Table A1: Typology for local social innovation

Phase 0: This phase features isolated innovation within frontline service delivery.
Latent Innovation remains fragmented with little or no value being gained from it.
There is limited scope for growth.

Phase 1: Innovation is taking place at the frontline and the centre. But it may be failing
Design and at the early stages of development because of a lack of resources and capacity.
discover Other examples may be emerging successfully at a small scale. There may be interest
in innovation, but no infrastructure to support development or embed learning.

Phase 2: Initial resources are available for innovation in one service or sector. Infrastructure
Mobilisation and a change in internal working practices that support innovation are put in place.

Phase 3: The local authority has strategies and infrastructure to support innovation in one
Mainstreaming service or sector. Resources and capacity are available to one service but lessons are
not transferred to other parts of the local authority.

Phase 4: Innovation is taking place collaboratively across several services, sectors or agencies .
Embedding It is at different stages of development. The local authority has a strategy, infrastructure
and investment to support widespread innovation. It is confident enough to recognise
and support good ideas and to ‘kill’ innovations that are not returning public
or organisational value.

39
 Step Two: Understanding how The diagram below illustrates the progression
innovation grows (or fails) through which individual agencies and
local partnerships typically pass. The Y axis
Agencies that have learnt to nurture innovation represents the extent of local innovation, and
develop structures and ways of working that the X axis the degree to which it is embedded.
can support future innovation, where it is
needed. For an area to become one where The practical experience of the agencies
social innovation thrives, these attributes need involved in our case studies has been
to be shared by different agencies who work tabulated, drawing out what is needed to
together to address needs. In the UK context progress innovation, and the common pitfalls.
this appears to work most effectively when
it is galvanised and coordinated by the local
authority.

Figure A1: Progress of innovation over time

High level of
innovation

Design & Embedding

Discovery

Mainstreaming

Mobilisation
Low level of Latent
innovation

Low level of High level of

innovation innovation

40
Table A2: Learning from others’ mistakes

Possible barriers and pitfalls:

Progressing to the next phase
what makes innovation fail
phase
Phase 1: To progress to Phase 2: front line Those in authority fail to spot the
Design and managers responsible for innovation key idea.
discover need to be recognised and rewarded
for their creativity. Leaders fail to expose themselves to
the level of risk needed to back the
Entrepreneurs may need to develop innovation.
stronger conventional management
competencies, and put a new Change is blocked because the
emphasis on implementation and organisational culture is resistant to
development. new ways of working.

Alternatively, management structures

may be weak and may fail to support
change.

Phase 2: To progress to Phase 3: systems, Key stakeholders fail to appreciate

Mobilisation infrastructure and management styles the positive impacts and value
that support change must be put in generated by the innovation.
place, whilst ensuring good process
management continues. The entrepreneurial leadership
needed in earlier stages does not
Resources and capacity must be made evolve into a more structured way of
available to sustain the innovation. working.

Value must be demonstrated to build Conversely, over-rigid management,

support for further growth. with too much emphasis on conven-
tional performance management
criteria, may crush creativity.

Phase 3: To progress to Phase 4: the service or The innovation does not create
Mainstreaming field needs to have developed an enough value, and fails to meet the
identified approach or strategy for targeted social need.
innovation.
Alternatively, value created is not
Value is demonstrated to those in recognised because systems have not
authority within other services or been put in place to assess and
agencies, convincing them of the evaluate it.
need to develop parallel approaches.
Weak operational management,
The practice of auditing services for organisational capacity (including
future requirements must become internal culture, networks and
central to multi-agency working. partnerships) or a lack of resources
may also lead to failure.
Infrastructure and investment need to
be increased to support widespread
innovation

Phase 4: At this stage, innovation is central to There may be insufficient external

Embedding agencies’ work and the area’s and internal pressure to enable the
potential to exploit future needs – innovation to spread – this could also
opportunities for innovation indicate a lack of need.
throughout the locality are strong.
A sustainable culture of innovation
has not been created; innovation is
dependent on organisational
circumstance or a particular individual.

41
 Step Three: Asking the right questions Phase 2: Mobilisation
in different phases
Do you have the capacity to drive forward
This list is intended as an aid to action, helping innovation?
staff at different levels and local politicians to
assess their tactics at key stages of the growth • Can you learn quickly from others and
of innovation. recognise where they are doing things
differently that you could replicate or adapt?

• Can you generate your own ideas, working

Phase 0: Latent innovation with frontline staff, services users, NGOs,
businesses?
Is there urgency for innovation?
Are you making best use of your staff to drive
• Is there pressure to change? Is there demand innovation?
for doing things differently? Are there
opportunities to be exploited? • Have you thought about the different skills
you need at different points, to create ideas,
• What proportion of your staff time is devoted develop concepts, act entrepreneurially,
to innovation compared to the time you are initiate and mainstream those processes?
spending on effectiveness (performance
management and improvement)? • Are you moving people with the right skills
into the right roles to support innovation at
Do you need to innovate? the different stages of the process?

• Would you do better to focus on • Have you thought about creating a team of
improvement? innovation specialists that you could move
between policy areas to support innovation?
• Do you need to put more resources into your
failing area? • Do you have ways of identifying and
rewarding frontline staff who come up with
great ideas, and celebrating their success?

Phase 1: Design and Discover

Do you know about the range of available tools Phase 3: Mainstreaming

and what might work best for you?
Do you have the organisational capacity to
• Are you plugged into the right networks to scale up initial success?
find out what you can borrow? Can you find
people who are already one step ahead of • Can you manage and implement innovation
you? effectively and learn fast from what is
working well and what is proving more
• Have you thought about the different difficult?
approaches that could work for you? These
include: • Can you generate the support from
stakeholders that you will need to
• starting from service users – using design mainstream your ideas?
models (including new models of chronic
disease care, personalised budgets); Do you have the operational resources to scale
up?
• starting from professionals – community of
practice approaches (including new models • Are the right funding and staffing in place to
of teaching or healthcare); support roll out and growth?

• mobilising outside ideas – using social Can you assess the value of innovation?
enterprises (such as new models of youth
provision), • Have you put a measurement method
in place to capture the impact of your
innovation?

42
• Are you capturing feedback from the public,
service users and other agencies?

Phase 4: Embedding

Can you apply what you have learnt to other

services areas, agencies or fields?

• Do you understand what organisational

processes have emerged out of the process
of innovation – possibilities include a
different understanding of risk, stronger
internal communications and reflective
learning practices?

• Are you using local networks to support

innovation, by spreading your lessons and
spotting other opportunities for innovation?

Can you quantify and communicate the value

of your innovation?

• Is the evidence of effectiveness robust

enough to convince other service managers
and local politicians?

• Are you celebrating achievements and

looking for recognition from government and
your peers?

43
 Appendix B: The strategic triangle through the local
social innovation lifecycle

This section describes and explains the Figure B1 represents a unified illustration of
strategic triangle through the possible the relationship between drivers and enablers
trajectories through the local social innovation at different phases of the innovation lifecycle.
lifecycle. The different strategic triangles during the

Figure B1: Strategic triangles of Local Social Innovation in relation to the lifecycle

Trigger
point for
Value innovation

Phase 0 Phase 1 Phase 2 Phase 3 Phase 4

Latent Design & Mobilisation Mainstreaming Embedding
Discovery
Time

Source: The Young Foundation/NESTA (2007)

44
Table B2: Description of strategic triangles through the local social innovation lifecycle

Strategic Triangle Description

Authority In the latent phase before social innovation

Phase 0: Latent

occurs, though both authority and

organisational capacity are present, they are
relatively small and working in isolation. At this
stage, there may or may not be any value.
Organisational Value
Capacity

Success Authority At this stage of the innovation lifecycle,

authority (particularly strong entrepreneurial
leadership) is very important, often through
internal pressure from local politicians and
Phase 1: Design and Discovery

senior officials. Authority creates and builds

Organisational Value upon the locality’s organisational capacity
Capacity as shown by the arrow. The innovation has yet
to directly create any value.

Failure Authority If the locality fails in this initial phase of

innovation, it is usually because a connection
fails to form between the authority and
organisational capacity; leadership fails to
galvanise change, possibly because the
Organisational Value dominant culture is resistant to new ways
Capacity of working.

Success Authority In this phase, organisational capacity begins

to deliver value from innovation. Authority
remains important. The urgency of initial
change has reduced, and strong managerial
leadership becomes critical. A stronger link
forms between authority and the
Phase 2: Mobilisation

Organisational Value
Capacity organisational capacity, as resources are
mobilised and networks strengthen.

Failure Authority Failure occurs if links are not made between

these elements, particularly if key stakeholders
fail to appreciate the new public and
organisational value being created.
The innovation may also fail to progress if
Organisational Value entrepreneurial leadership needed in the earlier
Capacity stages does not evolve into a more managerial
way of working: this will typically happen if
early-stage entrepreneurial innovators fail to
pass control to others with stronger, more
formalised management skills.

45
 Strategic Triangle Description

Success Authority In this phase, authority becomes less important

than in the earlier stages. However, strong
managerial leadership still plays a crucial role
in implementing innovation. There is, however,
an increased need for organisational capacity

Phase 3: Mainstreaming
Organisational Value – resources, networks, a more flexible
Capacity organisational culture and partnerships
– to be mobilised. Value is increased as the
innovation becomes embedded.

Failure Authority If the value produced is not strong enough the

innovation will not be sustained. Weaknesses in
authority (through weak operational
management) or organisational capacity
(for example if partnership support is frail)
Organisational Value may also lead to failure.
Capacity

Pervasive Authority If system change occurs, and the potential for

innovation innovation becomes central to the working of
the different local agencies, the triangle grows
larger. This reflects its impact on the workings of
many agencies and individuals and the greater
Organisational Value value being gained from the innovation.
Capacity
Here, the value from innovation is greatest.
Authority is needed from political and executive
leadership to continue to drive innovation in this
final phase. Organisational capacity from both
entrepreneurial and effective management are
Phase 4: Embedding

also required to sustain effectiveness and

creativity. and support further innovation. The
links between these different aspects of the
strategic triangle are extremely strong.

Sustainable: Authority If the innovation is able to sustain itself without

Isolated achieving system change, a degree of growth
Innovation
occurs due to an increase in the value created.
However, this is not as significant as systemic
innovation. Some authority and a substantial
Organisational Value amount of organisational capacity are required,
Capacity which in turn create value. However, the extent
of each factor is not as great, and this has
prevented the locality from achieving system
change. The links between these factors are also
not as strong.

Failure Authority If social innovation is unsustainable in this final

phase, it may be due to insufficient authority
and organisational capacity. The amount of
value created may also not be enough to ensure
that innovation continues. The links between
Organisational Value these may weaken causing the innovation to fail.
Capacity

46
Appendix C: Case studies

Case study 1: Innovation in Children’s Services in the Highlands, Scotland

Since 1999, the Highland Council has radically reorganised the delivery of Children’s Services
in the area, creating an effective joint working initiative involving a number of key agencies.

The integrated service has been praised by Audit Scotland. It has also enabled the Council
to make significant service improvements in a short period of time. In 2006, the service’s
success was recognised by the Scottish Government, which selected the Highlands as a
Pathfinder for the rest of Scotland.

These innovations were driven by four main factors:

• Underlying demographic trends; specifically, a rapidly declining youth population,

identified by the Council as a threat to future economic performance in the Highlands.

• An external assessment revealing the poor performance of Children’s Services in the

region.

• Resulting pressure for change from senior figures and politicians within the Council.
62. Source: GRO(S) Mid Year
Estimates 1986-1996,
• These drivers were accelerated by the impact of a challenge to the service after the GRO(S) 1994 Based
murder of five year old Danielle Reid. Population Projections
See http://www.
highland.gov.uk/NR/
rdonlyres/732CDEA4-
5772-4E9E-91B4-
38BD8D902A93/0/
Background Data Labour market: highland_trends_97.pdf

Geography: • Of those employed, 31.5 per cent work in

public administration, education and health,
• The Highlands has a total land area of and 27.2 per cent work in distribution, hotels
26,484km2. The largest council area in the and catering.
UK, it covers a third of mainland Scotland
and 11.4 per cent of Great Britain. • The unemployment rate in the Highlands
was 2.1 per cent in 2006. It decreased
Population: significantly from 6.5 per cent in 1996. This
is lower than the rest of Scotland (2.8 per
• The population of the Highlands in 2004 cent) and the UK (2.6 per cent).
was 211,340. It is highly dispersed, with a
population density of just under eight people Council:
per square kilometre.
• The Highland Council has 80 elected
• The population grew by 2.6 per cent members, most of whom are independent,
between 1995-2005, while the rest of although the number of independents has
Scotland saw its population decline. dropped significantly from 53 in 2003 to 34
in 2007. Other significant parties represented
• In mid-2006, it was estimated that 18.3 per are the Liberal Democrats (22), Scottish
cent of the population were aged under 16; National Party (17) and Labour (7).
64.0 per cent were aged 16-64 and 17.7 per
cent were aged 65 and over.

• The age demographic of the region is 1. Summary: Context and Need

increasingly elderly. The proportion of over-
65s grew from 10.9 per cent in 1996 to 17.7 In the late nineties, senior officials and elected
per cent in 2006.62 members recognised that an increasingly

47
 elderly population and a lack of young families delivery, would provide greater freedom for
and children could have serious implications for agencies to meet children’s needs.
the region’s future.
Due to the significant challenges of service
The percentage of young people in the delivery in such a vast and sparsely populated
Highlands was declining due to falling birth region, the Council was unable to identify a
rates and increasing numbers of young people model from elsewhere in Scotland that could
leaving to pursue further education, and failing be successfully adapted to conditions in the
to return. The Council recognised that if this Highlands. So, it began to develop and pioneer
trend were to continue the future workforce its own radical reorganisation.
would be diminished, reducing productivity and
impacting negatively on the region’s industry The Council developed a structure that would
and economy. bring together the education and social care
departments within the authority and with
Some senior figures in the Council viewed the other agencies. This meant not just integration
improvement of Children’s Services as a way to of children’s services within the Council,
attract young families to the region. In 1997, but with the NHS, the Police, the Highland
the Council’s Looking Ahead in the Highlands Wellbeing Alliance65 and Highlands and Islands
policy paper stated: “The vital role of young Enterprise.
people in our communities continues to be the
single most important determinant of the future
success of this region”.63
3. Innovation Process
This report indicates the growing pressure
on the Council to improve Children’s Services 3.1 Leadership: Creating Innovation
63. Highland Council (1997) at that time in order to attract more young Champions
‘Looking Ahead in the
Highlands.’ Policy paper. families to the area. However, the Council and The change process began with the recruitment
Inverness: Highland Council. its partners did not begin to make changes of experienced individuals from outside the
64. Highland Council (2005)
‘For Highland’s Children 2 until the late nineties, when an external Council to senior roles within key agencies,
Integrated Children’s Plan. report commissioned from an independent with the brief to initiate change and to
Summary 2005-2008.’
Inverness: Highland Council. consultancy by the Chief Executive described champion innovation. These appointments
65. A mix of public, voluntary Children’s Services as ‘poor’ and failing the included a new Head of Integrated Children’s
and private organisations area’s children and young people. The report Services66 and a new Director of Social Work.
dedicated to improving the
wellbeing of the people of identified a lack of strategy and coherence Many of the new recruits were employed by
the Highlands. in Children’s Services, and said that the area dual organisations, such as the education and
66. This post, recruited in 2000,
was funded by Education, suffered from a fragmented and uncoordinated social care departments within the Council, and
Social Work and Health. approach where good practice was isolated. the NHS.

The report acted as a catalyst for innovation, With no history or culture of strong
prompting the Council to assess the partnerships and collaboration between
organisation and delivery of Children’s Services, agencies in the Highlands, the new leadership
and to review existing structures, processes and team created a structure for an integrated,
systems. As a result, the Council recognised the multi-agency Children’s Service. Their emphasis
need to make widespread improvements. was on a joined up approach at all levels in
the Council and other agencies, and on more
effective engagement with the voluntary
sector, something that had not previously
2. Innovation Strategy been a priority. The new integrated structure
aimed to ensure strong, collective leadership,
The Council’s objective for service improvement to encourage a genuine commitment to joint
was to place the child at the centre of service working, and to break down barriers and
provision, while creating sustainable services encourage communication between the various
that would strengthen families and value agencies. The joint employment of staff by
children.64 different departments or agencies was viewed
as an important first step in establishing direct
The Council identified an integrated approach connections at a senior level between the main
to Children’s Services, with a single vision and bodies in the Highlands.
strategy, as the best way to improve service
delivery. It believed that a unified approach, The new structure incorporated two new
with less bureaucracy and duplicated service bodies with strategic responsibilities: the Joint

48
Committee for Children and Young People hierarchical structure with clear boundaries
(JCCYP), and Chief Officers’ Group. These were to a more fluid decentralised body has driven
supported by operational structures created to innovation and change throughout Children’s
implement the new strategy, manage service Services.
delivery at the frontline, and to communicate
consistent messages throughout different Alongside the new strategic and operational
agencies. structures, funding for Children’s Services
was pooled by all bodies involved in the
In 2001 the planning document For Highland’s partnership. The lead agencies (NHS Highland,
Children was published by the Council, setting and Highland Council’s Social Work and
out priorities for service development and Education, Culture and Sport Services) spend in
delivery between 2001 and 2004, alongside excess of £190 million each year on Children’s
the national document For Scotland’s Children, Services, equating to more than £4,000 for
which involved a national review of Scotland’s every under-18 year old.68
Children’s Services.
In 2002, the murder of five year old Danielle
3.2 Integration and Joint Working Reid in Inverness led to an independent
The JCCYP was established as a strategic investigation of the Highland’s Children’s
body with oversight of all services for children, Services with a particular focus on child
with the remit to review, develop and protection, and a review of joint working in
implement For Highland’s Children. The JCCYP the area. The review indicated “serious gaps
included elected members and officials from in service provision to the vulnerable and at
the Highland Council, executive and non- risk child”,69 though it also concluded that
executive representatives from NHS Highland the death could not have been prevented
and representatives of community planning by individuals employed by Highland’s child
partners, the Northern Constabulary, the protection agencies. 67. Liaison Groups were
comprised of operational
voluntary sector and the Scottish Reporters’ professionals, formed around
Administration. This high profile incident accelerated the school boundaries to tackle
the needs of children who
innovation that had already begun in the required multi-agency
The Chief Officers’ Group comprised directors Highland’s Children’s Services, motivating involvement. Their activities
include addressing youth
of all lead services, with a remit to develop frontline staff to assist and engage with the offending behaviour,
and coordinate strategy. The group ensured changes taking place. advances in the provision of
respite, coordinated projects
the implementation of policy and best to address substance abuse,
practice models, and was supported by middle 3.3 Embedding innovation as well as advances made
concerning vocational
managers. Interviewees reported that these structural education in the Highlands.
changes have engaged and empowered 68. Ibid.
New operational structures ensured joint frontline staff. Many respondents felt that the 69. Herbison, J. (2006) ‘Danielle
Reid: Independent Review
working at the frontline and to take forward formation of bodies such as the JCCYP and into the Circumstances
policy and practice locally. The Area Children’s Chief Officers’ groups have enabled the visions Surrounding her Death.’
Inverness: Highland Child
Services Forum (ACSF) and local Liaison67 and goals of senior managers and leaders to Protection Committee.
and Youth Offender Groups were led by be articulated to frontline staff more clearly.
managers from each community area. They had Interviews revealed that the frontline staff are
responsibility for local delivery against strategic enthused by a greater understanding of their
priorities, such as healthy eating and living role in the overall service. Area Forums and
initiatives for young people. They also brought Liaison Groups have enabled them to operate
together individuals from other local services, more effectively on the frontline. Collaborating
public bodies and the voluntary and community more with other frontline workers has increased
sector to improve information sharing and their capacity and resources to do the job. This
create opportunities for frontline staff to can make a great difference in the Highlands
generate new ideas. where frontline workers suffer from lack of
resources and challenging geography.
To create a more integrated structure, certain
members of staff from different agencies Feedback from frontline staff, middle managers
and groups were co-located at the Council and senior officers shows that the improved
headquarters in Inverness. This placed a communication has helped create a more
greater emphasis on their role in the overall effective integrated service. One interviewee
service, rather than the specific department stated that: “[partnerships] played a big part,
or organisation for whom they worked, in the [they] helped raise awareness of what other
process helping to embed the principles of practitioners deal with, what structures they
joint working. This movement away from a work within …I think that’s been a trigger in

49
 helping people assess their practice and change of working, and ensuring that the culture of
it.” innovation is sustainable in the long-term.

Communication between agencies at the senior

level has also greatly improved with this new
structure. One senior manager said: “we’ve got 4. Outcomes
very good working relationships at most senior
levels across the agencies and there’s a real A number of performance targets were
openness to engage with change.” established by the partnership at the start
of the integration and innovation process
The success of the communication of this as benchmarks of success. These included
vision from senior officials to frontline staff was reducing rates of teenage pregnancy among 13
an important achievement, given the size of to 15 year olds, increasing access to Early Years
the area that staff must cover and the isolated Services, increasing respite services for young
nature of many communities and workers. people with complex disabilities and reducing
the number of persistent young offenders.70
In 2001, For Scotland’s Children proposed
a national review of Scotland’s Children’s Since 2001, the Highland Council has reported
Services. This led to Getting it Right for Every a steady improvement in performance against
Child (GIRFEC) in 2004, a national approach these targets. Improvements have been
to reforming Children’s Services in Scotland. reported in educational and health outcomes,
GIRFEC goals included: through heightened planning and assessment,
including a steady increase in the educational
• Practice change: including shared tools, achievement of the lowest attaining 20 per
guidance and a shared approach. cent of students, and in groups such as looked-
70. Stradling, B. and MacNeil, after children.71
M. (2007) Delivering
Integrated Services For • Removing barriers: identifying and removing
Children. ‘Highland: An obstacles to collaboration between agencies, A 2007 inspection of Child Protection Services
Overview of Challenges,
Developments and children and families. in the Highlands by HM Inspectorate of
Outcomes.’ Inverness: Education highlighted a number of strengths
Highland Council.
71. Ibid. • Legislation: making agencies responsible for including the effectiveness of early intervention
72. Ibid. collaboration with each other and sharing services, good communications, professional
73. Ibid. information as appropriate. Ensuring that commitment, voluntary sector service quality
professionals are alert to the needs of and clarity of vision. When compared to the
children and that they take action to meet weaknesses in the overall strategy identified
them. in earlier inspections, this represented a
significant improvement in the Service.
The Highlands was identified by the Scottish
Government as a suitable place to pilot the However, the Council has acknowledged that
GIRFEC initiative, because of its pioneering changes of the magnitude it wants to see
work towards integrated service provision. The require time before the effects become widely
Highland Pathfinder launched in September apparent. An evaluation commissioned by the
2006 as a regional programme to test the Council to evaluate the effect of integration
GIRFEC principles. This pilot began with has found that the “change in practice has
changes to how services were organised, been spectacular in some areas of Children’s
starting with those for newborn children from Services, and slower to emerge in others”.72 The
May 2006. Later phases will cover early years evaluation also pointed out that “sea change
and school transitions. GIRFEC brought in will only take place once there is clear evidence
significant funding to the Highland’s Children’s of positive outcomes for the child, the family
Services, further accelerating innovation. and those professionals in universal services
who work with them on a day-to-day basis”.73
The first phase of the GIRFEC Pathfinder
ended with a consultation on the Children’s And there are some remaining tensions
Services Bill in 2007, which is currently being between the participating agencies in the new
analysed. As the GIRFEC project is rolled out integrated service. Bringing together different
and established in other Scottish authorities, organisational cultures has created challenges
the Council is now moving to the next phase about different working practices. It has
of its innovation cycle, with an emphasis on also raised practical issues about employees
consolidating change, embedding new ways working together in comparable roles being
remunerated on different pay scales. This has

50
been a particular issue for social workers; some charisma, passion, drive and vision of the
agencies have reported the loss of frontline individuals on the leadership team were crucial
social workers as a result. to the success of innovation in the Service.
Most of these individuals remain in post today.
5. Analysis: Drivers and Enablers of
Innovation in the Highlands More than three-quarters of the people
interviewed for this project identified the Head
5.1 Drivers: Underperformance of Children’s Services, Bill Alexander, appointed
The underperformance of the Highland’s in January 2000, as one of the most crucial
Children’s Services revealed by the negative elements in the success of the integration
report in 1999 spurred the Council to take strategy. Interviewees described him as: driving
practical steps to improve the Service, forward the strategy to place children at the
appointing new senior leaders, developing a centre of service provision; acting as a pioneer
new strategy and creating new structures. and champion for innovation; communicating
a clear vision regarding Children’s Services; and
5.2 Drivers: Leadership creating a positive momentum in the area.
Strong leadership was a driving force for
innovation in the Highlands. However, One interviewee from the voluntary sector
leadership was not restricted to one charismatic described the Head of Children’s Services as
individual but involved several people from having: “been fundamental in driving change…
different agencies, each playing different roles he has created the vision and strategy”.
at different stages of the innovation cycle.
Another interviewee said: “I might agree with
Interviews have identified Councillor Margaret Bill on some things and not on others but
Davidson as an important catalyst for change. without a doubt he is very gifted at driving
Councillor Davidson raised the inadequacy of forward the agenda”.
Children’s Services and advocated radical and
risky changes before 1999. By gaining support However, frontline staff interviewed for this
from other elected members, she ensured project also voiced fears about over-reliance on
Children’s Services remained a priority on the individual leaders and the risks this may pose
Council agenda. Described as a “woman of to continuing innovation and improvements in
great passion for Children’s Services” by one the Highlands should these individuals leave.
senior manager, Margaret became the chair of The responsibility for innovation in Children’s
the Children’s Committee in 1999, a position Services is currently concentrated in a relatively
she still holds after eight years. small number of individuals, who own and
drive the innovation process. This reinforces
Her political leadership was essential in the importance of embedding a culture of
initiating changes. It created a strong innovation within the Service and building the
internal pressure which catalysed activity capacity for continuous change and learning,
and innovation in the Council. Councillor so that innovation is sustainable in the long
Davidson has since played a principal role term.
in implementing changes by acting as the
Children’s Champion on the JCCYP and working 5.3 Drivers: Capacity Restraints
closely with officials within the Council’s other Capacity restraints encouraged the Council and
bodies, using her networks and relationships to other agencies to be innovative, particularly
gain support for a more integrated system of limited human resources to cover a wide
working. geographical area as well as difficulties in
retaining qualified and experienced staff.
The leadership team appointed to implement
the changes to Children’s Services included a Integrated services and partnership working
new Head of Children’s Services, Director of were believed to increase effectiveness,
Social Work and Director of Education. These reducing duplication, making agencies
senior leaders were responsible for transforming more efficient. This drove the organisations
the culture of Children’s Services. They created involved in the integrated Children’s Services
an environment that encouraged staff at all and subsequent GIRFEC Pathfinder. Strong
levels to work towards a shared vision, with partnerships have increased the capacity of
greater organisational ambition as well as individual organisations, with many central
measured risk-taking and experimentation. bodies pooling their funding for Children’s
Interviews with a variety of frontline staff Services to maximise impact.
and managers identified that the individual

51
 A lack of skilled individuals – and retention evaluating its successes and failures. A variety
difficulties – have also encouraged the Service of research projects has been commissioned
to develop creative approaches to tackle from universities and other external bodies.
skills shortages. New posts such as Children’s The Council has benefited from working closely
Services Workers represent a particularly with researchers investigating their practices
innovative approach to handling the lack of who can assess and provide feedback about
qualified social workers. One senior manager their practices. This enables the Council to
said: “the creation of certain posts that aren’t learn lessons that enable them to change
social workers, aren’t teachers, aren’t health their strategy and direction when necessary.
visitors, but are Children’s Services workers, This has also been translated into a culture of
has been innovative”. However this has not organisational learning, which has helped to
solved the problem of retaining and attracting drive innovation as senior managers are able
frontline staff in some areas. to reflect on and assess their own performance
and direction. However this process is less
The Highland Council has also been particularly apparent on the frontline.
adept at identifying funding opportunities
and placing bids for resources. It is known Over the last eight years, the Highland
to be keen to be involved in new pilot or Council has developed a reputation for
pathfinder initiatives. This strategy of being at being an innovative, campaigning and
the forefront of national developments in order leading Scottish council. Council leaders are
to gain substantial resources has driven the extremely vocal in their awareness of social
Highlands to innovate. The Council shows great innovation, communicating their knowledge
ability in attracting external resources through and understanding of social innovation
participation in these high profile projects. and its terminology to different agencies
and departments. At all levels within the
5.4 Enabler: Organisational Culture organisation, staff are acutely aware of the
Once the new leadership team and structures external recognition and praise from the
were in place, good internal communication Scottish Government for its innovation in
was important in establishing a shared vision Children’s Services, as well as awards for
for all the agencies involved in the new improvements and outcomes connected to
integrated Children’s Services. this innovation. This has helped to increase
organisational and individual ambitions around
Communication and consultation among improvements in Children’s Services, especially
staff were widespread before changes were among frontline staff. Interviews revealed
introduced to Children’s Services. This helped that many staff now feel the Highlands has
staff to engage with the innovation process a ‘culture of continual change’ focused on
and made them aware of the overall vision improving and innovating all the time.
for the future of Children’s Services. The
message that dramatic structural changes and 5.5 Enablers: Networks and Informal
organisational innovations were necessary Relationships
to improve children’s lives was successfully Geographically isolated from the rest of
communicated. Interviews identified that staff Scotland, the Highland’s Children’s Services
feel that the drive for innovation was driven has weak connections to agencies and bodies
by a genuine desire to improve services, even outside the region, apart from the Scottish
though some staff may not agree with aspects Government.
of the integration strategy.
Its unique geographical circumstances also
To embed the culture of joint working mean that there is a sense that it is hard to
and collaboration, senior managers have identify lessons and good practice from other
instigated greater consultations between councils than can be imported and adapted
different agencies. Alongside this, they have to the Highlands. As a result, many Highland
brought together individuals from different agencies involved in Children’s Services have
backgrounds, with a variety of expertise and difficulties interacting or engaging with
skills. All staff are actively encouraged to share equivalent agencies outside the region.
information and ideas through structures such
as the JCCYP and area forums and to think However, the region has very strong informal
about innovation in their day-to-day job. networks and good communication links
between different agencies, despite staff
The Council places great importance on working across an enormous area often based
continuous learning from its innovations and in offices miles apart from each other. These

52
strong informal relationships have played a vital The traditionally risk-averse Council has taken
part in encouraging and supporting innovation great pride in the support and recognition it
and change. has received from the Scottish Government,
which has encouraged its innovation and
The Highlands is quite a tight-knit community. reduced the risks associated with restructuring.
Many frontline staff and middle managers
have lived and worked in the Highlands for
a substantial period of time, some of them
for generations. Migration of staff between 6. Summary and conclusions
agencies is quite common. So, there are strong
informal personal relationships between these A clear picture has emerged about the factors
individuals and their communities. Strong that triggered and enabled innovation in
informal communication between senior Children’s Services in the Highlands. The
officials and elected members at the start of Council’s recognition of its underperformance
the innovation process had already created in Children’s Services in the late nineties,
a degree of collaboration and integration; combined with concerns about a declining
this was further developed through the new young population and the long-term
structures and bodies introduced, ensuring implications for the region’s economy, acted
senior ‘buy in’ and commitment to the as a spur for innovation. Strong political and
integration process early in the innovation managerial leadership were crucial to driving
cycle. forward changes and supporting the creation
of an organisational culture that was conducive
The leadership team could draw on strong to change, risk taking and experimentation.
networks that gave Highland’s Children’s Consultation and strong communication
Services connections upwards to the Scottish played a key role in encouraging agencies
Government, and downwards to the frontline. to collaborate. And, the lack of human 74. Stradling, B. and MacNeil,
M. (2007) Delivering
This enabled the team to raise awareness and financial resources accelerated this Integrated Services For
nationally of innovation in the Highlands and collaboration by pressing agencies to work Children. ‘Highland: An
Overview of Challenges,
gave them access to advice and resources, together to overcome capacity restraints. Developments and
such as the GIRFEC Pathfinder. It also helped Outcomes.’ Inverness:
Highland Council.
them to communicate the vision for change The Council pioneered an approach to 75. Ibid.
successfully, motivating frontline staff. integrating Children’s Services in Scotland that
was ahead of national strategy and practice
5.6 Enablers: Connections to Central in this field but was in tune with the direction
Government of national policy priorities. This enabled the
The Scottish Government has been heavily Council to gain support from the Scottish
involved in supporting innovation in Highland’s Government including financial resources
Children’s Services. This is due to a number and national recognition through the GIRFEC
of factors. The strong informal links between Pathfinder. Strong informal networks between
the two bodies are particularly important, the individual leaders of Children’s Services,
supported further by the migration of senior Highlands agencies, the Council and the
personnel from the Highland agencies to the Scottish Government helped to strengthen this
Scottish Government. relationship.

The Council’s role as Pathfinder for the The Council’s development of an integrated,
Getting it Right for Every Child initiative has multi-agency Children’s Service can be
enabled the Council and its partners to consult described as a radical innovation in the
closely with the Government, evaluating context of local and national approaches to
progress and informing national policy about service delivery. The changes resulted in the
Children’s Services. Early involvement in the development of a new philosophy and the
GIRFEC project has enabled the Council to fundamental re-organisation of planning
access substantial additional funding. While and delivery of services. The Council has
the Scottish Government has made clear its reported steady improvements against certain
expectations and goals for initiatives such health and education targets in Children’s
as GIRFEC, the Council has also benefited Services, which suggest that integration was
from the space and flexibility to be creative a valuable innovation.74 This includes a steady
in how it meets these targets and implements increase in the educational achievement of
innovations. the lowest attaining 20 per cent of students,
and of groups such as looked-after children.75
However, many changes are still underway

53
 and it is too early to claim that innovation
in Children’s Services has led to widespread
innovation across other services in the
Highlands. Fieldwork suggests that a strong
culture of innovation has been established
successfully in Children’s Services, both at
the centre and at the frontline. Interviewees
feel empowered and supported to experiment
and take risks. If the lessons from Children’s
Services can be transferred to other services,
then ideas about local social innovation may
spread to other services and agencies in the
Highlands.

Timeline 1: Innovation in Highland Council’s Children’s Services

First phase of Second phase of

GIRFEC Project GIRFEC Project

HM
Margaret Inspectorate
‘Looking Davidson Scottish highlights
Ahead in the becomes Executive Highland strengths of
Highlands’ Chair of publishes Danielle First Phase GIRFEC Child
published by Children’s ‘For Scotland’s Reid of GIRFEC Pathfinder Protection
Council Committee Children’ murder project begins launched Services

1997 1999 2000 2001 2002 2004 2006 2007

Negative Bill Alexander Highland Scottish End to Scottish

performance becomes Council Executive Highland’s Executive
identified by Head of publishes develops Children Consultation
Council Children’s ‘For Highland’s ‘Getting it phase I on draft
Services Children’ Right for Children’s
Every Child Services Bill
(GIRFEC)’

Joint Committee for Children and Young People

(JCCYP) and Chief Office’s Group formed.
These structures still continue to operate

54
 Case study 2: Innovation within Secondary Education in Knowsley, England

Knowsley Metropolitan Borough Council has put in place a number of radical changes to
the Borough’s secondary school system through its ‘Secondary Transformation Scheme’.
This includes the development of seven new learning centres, which will replace all of the
Borough’s secondary schools by 2010.

Innovation in Knowsley was driven by the following factors:

• A history of poor performance in education, in particular poor examination results, which

placed Knowsley at the bottom of national league tables.

• A challenge to Knowsley’s schooling system, caused by students transferring to schools in

neighbouring boroughs, which resulted in the closure of schools and comparatively high
levels of secondary pupil absenteeism.

• Pressure within the Council to ensure school leavers had the right skills to create an
adequate workforce for the future, linked to lower than average entry levels into Further
and Higher Education and persistently high levels of unemployment in the 16-24 year old
age group.

• National and international policy initiatives and debates about the future direction of
education (such as The Excellence in Cities Programme, the Every Child Matters agenda
and the Building Schools for the Future programme) and new research (including thinking
about the use of technology and information, research into the brain and learning styles).

• Strong leadership from the new Director of Education and other senior officials who put
in place a vision for change and developed partnerships between agencies in Knowsley to
implement the Secondary Transformation Scheme.

Knowsley background data Labour Market:

Geography: • Unemployment in Knowsley at 4.3 per cent

is higher than the national average of 3.4 per
• Knowsley is a small metropolitan borough in cent. In 2001 it stood at 5.9 per cent.
Merseyside which covers an area of 86 km2.
• By the mid-seventies, almost 50 per
Population: cent of all employed persons worked in
manufacturing; by the 2001 census, this had
• The Borough has a population of around fallen to just over 15 per cent. By contrast,
150,000 people. the percentage of persons employed in the
service industry increased from around 40
• Between 1981 and 2005, the population per cent to over 70 per cent.
of Knowsley fell by around 24,200 people
(approximately 1,000 per annum) from Deprivation:
173,600 to 149,400, a decline of 13.9
per cent overall. The main reduction in • Knowsley is an area of significant
population occurred before 1988, since when deprivation, placed as the sixth most
the decline has been more gradual. deprived borough nationally in the
Department of Environment, Transport and
• The number and percentage of children has the Regions Index of Deprivation in 2000.
declined and is declining, whilst the number
of elderly is growing. Council:

• Knowsley is historically a stable Labour

constituency.

55
 • Knowsley Council is currently dominated system was in crisis and required significant
by Labour councillors (50), with a modest improvement.
but significant number of Liberal Democrat
councillors (13). They perceived the challenge as twofold. First,
how to make the existing system work better
for those who were not being sufficiently well
provided for, and second, to begin to examine
1. Summary: Context and Need what structural reforms were required to
transform the system into one that would and
The Metropolitan Borough of Knowsley is could sustain longer-term improvement.
situated in Merseyside, in the heart of the
North West region. Knowsley was identified as The most immediate challenge was the
the eighth most deprived borough nationally in performance of those young people who were
the Office of the Deputy Prime Minister Index falling out of the education system and failing
of Deprivation in 2004, with higher levels of to get into training or employment.
social and economic disadvantage than the
national average. Eighteen of the Borough’s The Council’s response was to examine how
22 wards fall within the most deprived 10 the entire schooling process could become
per cent of wards in England. One in three more seamless for students. This would
households is in receipt of Council Tax Benefit. mean creating greater continuity between
Unemployment is 4.3 per cent, above the traditionally separate stages of schooling to
national average of 3.4 per cent. prevent young people from disengaging. It
would particularly require better routes in to
In 1999, an area-wide inspection by Ofsted, vocational training, which would enable young
the schools inspectorate, led the Council to people to obtain the skills they needed for
76. Ofsted (1999) ‘Inspection act to address the Borough’s record of poor further learning and employment.
report Knowsley Local
Education Authority.’ performance in education. In 1997, only 51
London: Ofsted. per cent of pupils aged 16 were in full-time At this point, work was already underway, in
education, compared to 67 per cent nationally, partnership with the University of Liverpool,
and a growing number of pupils were choosing to explore how broad socio-economic factors
to attend schools in neighbouring boroughs. would influence the future organisation of
In 1999, there was a net loss of over 14 per schools. The Borough was developing plans to
cent of pupils to secondary schools outside use regeneration funding to establish a ‘School
the Borough,76 resulting in school closures. of the Future’ project to help counteract
Knowsley was ranked consistently at the historic underperformance. The work with
bottom of national league tables for GCSE Liverpool University looked at challenges
results since their introduction in the eighties. facing the education system in the 21st century
Surplus school places looked set to continue and the readiness of the existing system in
to grow due to a declining youth population in Knowsley to meet them. This work was to
the Borough. be highly influential in informing Knowsley’s
innovation strategy, with much of the thinking
The inspectors reported that Knowsley was around introducing technology to encourage
failing to tackle pupils’ low attainment and interactive and personalised learning.
aspirations. Ofsted was particularly concerned
about the needs of post-16 year olds, noting The Ofsted inspection acted as a catalyst
that 14 per cent of all pupils achieved no to drive forward this work. At this point, a
grades at GCSE (compared with the national number of critical decisions were made about
average of 6.1 per cent) and many were developing a new philosophy for education in
failing to continue their education or to enter the Borough, including:
employment. The report also acknowledged
that a: “significant culture shift was needed” in • The decision to develop and adopt a new
the Local Education Authority. teaching philosophy and strategy that would
more effectively develop pupils’ skills and
enable them to take ownership of their
learning. This involved moving away from an
2. Innovation Strategy emphasis on remembering facts to one that
developed their thinking skills, and which
Following the inspection, elected members and would encourage a culture of research in
senior officials in the Council and educational schools.
establishments recognised that the education

56
• The decision to integrate the education layouts and approaches to standard classrooms.
system, which involved reassessing the These will open in 2009.
existing, traditional educational stages at
ages 14-16 and post-16, and combining The five programmes making up the
these into a new phase of 14-19. The Transformation Agenda enabled Knowsley to
11-13 phase was still considered a separate tackle different aspects of its education system
educational stage. using a variety of strategies and measures.
Whilst some of these initiatives were adopted
This philosophy was formalised into strategy to show short-term improvement and results
in 2001, when the Council created the (such as the Plus One Challenge), others such
Transformation Agenda, with the aim of as the 14-19 Collegiate were designed to have
increasing attainment in Knowsley’s primary a more lasting effect on the educational system
and secondary schools. The Transformation in the Borough.
Agenda brought together five different
programmes to initiate change in different For example, the Plus One Challenge consisted
aspects of the Borough’s education system. of a number of different measures to help
These were: Transforming Teaching and pupils to gain an exam result at least one
Learning; 14-19 Collegiate; Plus One grade higher than their predicted grades. This
Challenge; Year 5-8 Transition Project included access to websites, online virtual
(designed specifically to improve transition examinations and accessing e-mentors through
from primary education to secondary education the internet to support revision. It also used
by improving the transfer of data on the child), mobile phones to aid pupils’ revision by
and the Excellence in Cities programme, which sending text messages to students’ phones
played a crucial part in Knowsley’s innovation with revision tips and subject quizzes.
strategy.
The Transforming Teaching and Learning
The Excellence in Cities Programme (EiC) was Project focused on developing the new
launched by the Department for Education teaching strategy and ensuring that teaching
and Employment in 1999 to drive up standards in the Borough reflected the change in
in schools in major cities to those found in approach towards a more pupil-led system
the best schools in England. The Programme of learning. This used partnerships with a
covered entire local authority areas, with a local variety of external agencies and bodies such
partnership between the local authority and as the National College of School Leadership,
headteachers leading the initiative locally. the Centre for Education Leadership at the
University of Manchester, and private agencies
Excellence in Cities involved seven key strands such as Alite, and more recently Microsoft, all
of activity to tackle a range of educational of whom brought expertise and knowledge to
issues, from Learning Support Units to help the Borough’s schools. These partnerships and
pupils at risk of exclusion and Learning this strand of the Transformation Agenda also
Mentors to reduce barriers to learning by included action research projects that enabled
addressing underlying issues affecting pupils, schools to reflect on their current practices and
to a programme to support gifted and talented support the progressive development of the
children. A key element of the programme for new teaching and learning methods.
Knowsley was the City Learning Centres strand,
which provided local authorities with capital Excellence in Cities and the wider
resources to establish high-tech facilities Transformation Agenda were crucial to
designed to enhance the whole curriculum. The Knowsley’s innovation programme. Together
aim was to raise educational standards and skill they provided access to resources and the
levels in order to promote employability and focus to enable the Borough and schools to
social inclusion, with the City Learning Centres experiment with new concepts and approaches
providing resources to be shared not only by to education. As one interviewee put it, they
schools but by the community. were: “a road out of desperation for many of
our schools”.
This initiative enabled Knowsley to build three
new City Learning Centres, using a combination This was a turning point in Knowsley’s
of funding from EiC and regeneration monies. innovation strategy. Performance began to
It also provided an opportunity to take forward improve significantly. However, at this point,
and experiment with the earlier ‘Schools of the the Council and educational partnerships
Future’ work, resulting in markedly different recognised that it would be increasingly
difficult to focus on improving the existing

57
 system and fundamentally reforming it at the Policy document (2003) played an important
same time. Despite rapid improvements in role in establishing Knowsley’s case for Wave
some schools, the existing system remained 1 BSF funding. To date, Knowsley Council has
flawed and the earlier work on the challenges been allocated approximately £250 million
to education in the 21st century had identified through BSF.
questions around the long-term viability of the
system. Knowsley has used BSF to support a radical
programme of innovation, which will see all the
In response, the Council adopted a twin-track Borough’s secondary schools replaced by seven
innovation strategy: new learning centres. The new learning centres
will open from 2010 onwards and are described
• First, to maintain the Transformation Agenda by Children Services’ officers as the physical
around the improvement and reform of the manifestation of Knowsley’s Transformation
existing system. Agenda and pupil-centred learning philosophy.

• Second, to carry out further development Students, residents and teachers have played
work to ensure the Borough’s education an active role in the design of the new
system would be adequate to meet new buildings. The centres will make greater use
challenges. of ICT in classrooms to create an environment
more conducive to personalised learning.
Track two of this strategy involved two These learning centres will be integrated within
key areas of work. First, they appointed an Knowsley’s local communities, with many of
independent Schools’ Commission in 2002. the Council’s public services delivered from
Second, the Every Child Matters agenda, which their buildings. The learning centres’ facilities
aligned the work of schools with the overall will also be available for use by the local
needs of the child, was introduced. Both these community, including adult learners. Securing
areas of work were important in identifying BSF funding also required a more fundamental
the long term challenges to education and evaluation of the existing system in areas such
reinforcing the fact that Knowsley’s education as leadership, management, and governance.
system would not be viable without significant
change. Knowsley proposes to introduce federated
governance structures for the new learning
The Schools’ Commission consisted of centres, which will merge governing bodies
four leading national experts, who were from former secondary schools and involve
appointed to analyse the local school system. a variety of local stakeholders. The new
The Commission produced two key reports governance structures are currently being
in late 2002 and early 2003, setting out developed with the support of the Innovation
12 propositions. These included proposals Unit and will come into practice when all
on school size, the nature of buildings, the learning centres are opened in 2010.
extended schools, inclusion, partnership and The aim is to involve external partners and
collaboration, and pupil retention. It also communities in collective decision-making
recommended the creation of a new type of about the learning centres, and wider issues
school and the closure or amalgamation of such as neighbourhood regeneration and
around 25 schools in the area. public service delivery. Knowsley’s decision to
develop federated governance structures has
In 2003, Knowsley published its key Schools been controversial – going against the grain of
Policy document Options for Change: Future Whitehall policy – despite the Borough’s wider
Schooling in Knowsley: A Joint Statement of work on BSF reflecting national government
Intent in partnership with the local Catholic priorities.
Archdiocese and Anglican Diocese. While the
new school proposal was not taken forward,
the wider propositions remained intact.
3. Innovation process
In late 2003, the Government announced its
intention to establish the Building Schools 3.1 Leadership: creating innovation
for the Future (BSF) programme to support champions
educational reform. Based on its work during Innovation in Knowsley has been driven by
the previous two years, Knowsley was able strong leaders within the Borough Council
to access significant funding to support and in different educational agencies. In
investment in buildings and ICT. The Schools 2000, a new leadership team was appointed

58
to implement Knowsley’s innovation strategy. suited to their individual needs. This will
However, prior to these appointments, the support the young people of Knowsley,
Council had demonstrated strong leadership in by addressing the challenges ahead that
undertaking significant work to identify issues will contribute to raising attainment,
that would impact on Knowsley’s education achievement and employability, positively
system in the future. impacting on the economic and social
development of the Borough and its
The new leadership team included the residents.”
appointment a new Director of Education
in 2000, Steve Munby, who had previously The 14-19 Collegiate consisted of a number
worked with the Borough’s new Chief Executive of partners and representatives from a range
at another local authority. Interviewees felt this of different agencies including the Council,
relationship was beneficial for Knowsley: secondary schools and colleges, work-based
learning providers, and private organisations
“The two of them had an understanding. such as Jaguar. The partnership had the
So, the Director of Education actually following objectives:
developed the vision and the Chief
Executive supported him and got the • To widen the choice of curriculum pathways
members’ ‘buy-in’ and so on. So it was a from the age of 14 and increase progression
very useful bit of leadership.” to Further and Higher Education.

The other leaders central to the innovation • To promote the role of innovation within
process were the College Principal at Knowsley education.
College, the Chief Executive of Connexions,
and the Director of the local Learning and Skills • To extend high-quality provision that puts
Council (LSC). individual student needs at the heart of the
process.
These individuals instilled a vision for the
future of Knowsley’s educational services • To maximise the use of the Vocational Skills
within different agencies. Research suggests Centre, which will allow students to access
the fact that these leaders were present in learning pathways within technological
both the Council and key agencies within the environments that replicate the workplace.
education system also created a partnership
between these bodies and a collaborative • To promote the achievement of recognised
approach to improving the education system. vocational qualifications.

Individuals such as the Chief Executive of • To promote the role of enterprise and
Connexions and the College Principal were entrepreneurship within education.
crucial in instilling the vision and gaining
support amongst frontline workers and staff in This partnership also brought together funding
their own institutions as well as more broadly, in order to bring about change and services in
using their wider professional networks to a coherent manner. One interviewee described
access government decision-makers. this approach:

3.2 Organisational restructuring “The 14-19 collegiate was a partnership

The formation of the 14-19 Collegiate in 2001 venture between the local authority, local
was designed to integrate different educational connexions, schools, colleges, local learning
phases in order to address low attainment and and skills council, private sector and
continuation onto Further Education post-16. training provider, which brought together
The 14-19 Collegiate was a partnership with a mosaic of funding while presenting a
the aim of developing a new, more vocational sustainable curriculum offer for over 1,000
curriculum for 14-19 year olds, with the goal of pupils outside of their host schools.”
ensuring that each young person in Knowsley
would be able to plan a coherent learning This work underpinned further major
pathway with sound advice and guidance. The reorganisation under the BSF programme,
partnership would enable: which will see Knowsley shut down all the
Borough’s secondary schools and replace
“a new coherent and flexible single 14-19 them with seven new learning centres. These
phase of education that will enable young will open from 2010 onwards and are central
people to learn and achieve in ways best

59
 to the Borough’s new pupil-centred learning Following the securing of BSF Wave 1 status,
philosophy. the authority also held a two-day Design
Festival for 150 young people from across all
3.3 Community involvement and secondary schools. This looked into the issues
consultation facing young people in schools and their
Community involvement and consultation wishes for a new learning environment.
have been central to the process of innovation
in Knowsley. The Council felt this was This approach was further rolled out into
fundamental given the scope of the proposed the formal process of securing private sector
changes to secondary education, both to partners for BSF. Twelve focus groups were
reflect local needs and priorities and to gauge created as an ongoing panel for the BSF
peoples’ fears and worries. programme, with a total of 150 pupils,
teachers, governors and parents. These
The Council and other agencies involved in groups have often been central to decision-
the education system have created a culture making about the learning centres and
of local collaboration that is partly led by played an important role in the evaluation
service users and communities to ensure that and commissioning processes for the design
changes and innovation reflect their needs and and building of the learning centres. Officers
requirements. At the start of the innovation articulated the value of the focus groups to the
process, Liverpool FC’s Anfield ground was local authority and affirmed they will use this
hired for a ‘visioning’ conference bringing format for consultation in future projects. One
together council officers, heads, teachers, interviewee describes the impact of the focus
governors and other interested community groups:
groups to discuss the way forward. Many
of those present said that this was the first “In terms of the consultation exercises,
77. Table 15a in http://www. time they had been asked their opinions or and the way in which we have drawn the
dfes.gov.uk/rsgateway/DB/
SFR/s000754/index.shtml. felt involved, and the event was felt to be a school population into redesigning the
78. Knowsley Council (2004) way to communicate how collaboration and schools, I think that in itself has been quite
‘Knowsley: Transforming
Secondary Education.’ consultation would be at the heart of the innovative. We have really looked, for
[Online]. Available at: Transformation Agenda. example, at involving pupils in the design
http://www.beacons.idea.
gov.uk/idk/tio/84230 of the learning centres… we have asked
79. Ibid. Consultation with experts was also critical the local school population what they want
80. Ibid. to innovation in Knowsley. The four national from their building.”
experts that made up the independent School
Commission in 2002 were able to analyse the
current system and formulate a strategy for
change. The seventies steered debate away 4. Outcomes
from the concerns of individual schools and
analysed issues on a system-wide basis. Most In spite of the fact that Knowsley still
importantly, it set out a succession of reforming struggles with performance at GCSE level with
principles around which the Council and its key only 26.3 per cent gaining five good GCSEs
partners could agree. The effects of this work including English and Maths,77 there have
are clearly identifiable in the BSF programme been significant improvements in performance.
in that it is the only programme nationally to Over the last eight years, the number of
close all existing schools and replace them as students in Knowsley gaining five or more A*
institutions with a radically new concept. to C GCSE grades or their equivalent in any
subject has doubled from 23.6 per cent in
The Schools’ Commission process was also 1999 to 50.4 per cent in 2007, four times the
consultative, consisting of meetings with national rate of improvement over the same
stakeholders to discuss their ambitions period.78 In Key Stage 3 results Knowsley has
for education in the Borough as well as shown a performance increase that exceeded
visiting each school in the Borough. Their the national rate in both English and Maths.79
recommendations were then taken out by the Knowsley also met some Government targets
Council into community forums and public early with no schools achieving below 20 per
meetings. Responses were actively encouraged cent of 5 A* to C GCSE grades.80
not just to proposals for individual schools but
also to the fundamental principles for wider Government data shows that local authorities
reform. involved in the EiC programmes achieved
rates of improvement in GCSE performance of
around twice that of non-EiC areas. However,

60
Knowsley exceeded these rates, with the “We identified that of the eleven original
Borough’s EiC schools improving from 28.2 schools in the Borough at least four would
per cent of pupils achieving 5+ A*-C GCSES in have to close.”
2001, to 45.4 per cent of pupils in 2005.81
The 1999 Ofsted inspection acted as a catalyst
Evaluating bodies such as Ofsted and the Adult to drive forward new thinking and plans for
Learning Inspectorate have also identified education innovation that were already being
improvements, commenting in 2005 after a developed in the Borough.
joint inspection that:
5.2 Driver: National Policy Frameworks
“Education and training in Knowsley Central government has directly and indirectly
are outstanding at meeting the needs of supported Knowsley’s Transformation Agenda.
learners, employers and the community.”82 At times, elements of the Borough’s innovation
strategy have run in parallel with many
Knowsley has also gained much national different national policy initiatives and projects
recognition for being chosen as one of the (as discussed below), while at other times it has
first authorities to participate in the BSF challenged the Government’s agenda.
Authority initiative. The Audit Commission’s
Comprehensive Performance Assessment Where there has been alignment, Knowsley
in 2005 rated the Authority as ‘excellent’. has been able to access significant funding
Knowsley has been chosen by the Innovation and resources to support its innovation
Unit as a Pathfinder to investigate new forms strategy. Arguably, without access to resources
of governance and leadership, which it is to develop a new physical infrastructure for
currently developing in conjunction with the education, the Borough would not have been
development of their new learning centres. The able to make as much progress even with its
Borough was also highlighted in the Schools’ significant work to develop new thinking about 81. DfES (1999) ‘The Excellence
in Cities Programme
White Paper in late 2005 as an example of best educational reform and innovation. 1999-2000.’ London: DfES.
practice in linking the transformation of public 82. Ofsted (2005) ‘Education
and Training in Knowsley
services to investment.83 Knowsley’s ability and Knowsley’s Secondary Transformation Agenda are Outstanding despite
desire to innovate around education has also was aligned to government priorities for reform High Levels of Disadvantage
in the Borough.’ [Online].
gained international recognition and support and modernisation. The Borough’s involvement London: Ofsted. Available
with a secondary school being designated in the Excellence in Cities programme provided at: http://www.ofsted.gov.
uk/portal/site/Internet/
by Microsoft as one of its fifteen Innovative access to capital resources and support menuitem.e11147abaed5f
Worldwide Schools. that proved to be crucial for the long-term 711828a0d8308c08a0c/?v
gnextoid=b14bcc0eaaf3c0
development of the Building Schools for the 10VgnVCM200000360764
Future programme. 0aRCRD
83. DfES (2005) ‘Higher
Standards, Better Schools for
5. Analysis: Drivers and Enablers of The Borough’s decision to integrate 14-19 All.’ p.111. London: DfES.
Innovation in Knowsley year-olds into a single educational phase has 84. DfES (2005) ‘14-19
Education and Skills.’
since been adopted by central government. London: DfES.
5.1 Driver: Crisis and Underperformance The Government recognised that, compared
The consistently poor performance of to other countries, the UK had a relatively low
Knowsley’s education system against a series proportion of students continuing in education
of performance measures had led to a sense after sixteen and felt that by looking at 14-19
of growing crisis in the Borough. Drastic and as one stage in education they would be able
radical innovation was seen as the only method to better challenge this trend. In a 2005 White
to bring about the improvements needed to Paper, the Government described its concerns,
lift Knowsley from the bottom of the national recognising that:
league tables.
“Many employers are not satisfied with the
The increase of surplus school places and the basic skills of school leavers going directly
increasing number of pupils leaving Knowsley’s into jobs. Some young people drift outside
schools for neighbouring boroughs was an education, employment or training between
additional factor that contributed to senior the ages of 16 and 19. The most able
officials’ and elected members’ belief, that young people are not as fully stretched as
without change, many of the Borough’s schools they could be.”84
would be unsustainable and would have to
close. As one interviewee described: Between 2003 and 2005, the Government
created the 14-19 Pathfinders programme,
which developed and implemented approaches

61
 to 14-19 learning. This included 39 about innovative leadership with regard
Pathfinders, introduced in two phases, covering to the LSC and these three key players,
a range of geographical and socio-economic connections, these managers, senior
circumstances. Knowsley was chosen as a managers came together and said, ‘listen
Pathfinder in the first phase of this programme, we need to do something different, what
with the aim of creating: should we do?’”

“Through partnership, a new coherent and Leadership was especially critical to the
flexible single 14-19 phase of education innovation process in Knowsley because of
that will enable young people to learn the scale and radical nature of the proposed
and achieve in ways best suited to their changes, which would involve a large number
individual needs. This will support the of staff from multiple agencies. The leadership
young people of Knowsley by addressing team worked closely with staff and were able to
the challenges ahead that will contribute communicate a strong vision for change across
to raising attainment, achievement and the many institutions involved.
employability, positively impacting on the
economic and social development of the The initial leadership team has now moved
Borough and its residents.”85 on but a succession team that supported the
original senior management team has carried
In Knowsley, the Pathfinder supported the forward the original vision and values for
innovative work already occurring around transforming education in Knowsley. Officers
the 14-19 Collegiate, helping to extend its and frontline staff felt that this continuity
activities into new vocational areas. The was an important factor in embedding and
Pathfinder also provided funding to create a consolidating innovation and change in
new Vocation and Skills Centre in 2003, and Knowsley. One interviewee described that past
85. DfES (2005) ‘Knowsley included much work exploring and evaluating leaders have “been very inclusive with their
Pathfinder Description.’
[Online]. London: DfES. new models of funding that were introduced to own leadership teams … the baton has been
Available at: http://www. the area. passed on really.” Past and current leadership
dfes.gov.uk/14-19/dsp_
pfdetails.cfm?pf=9 has created a culture that embraces innovation
86. Ofsted (2003) ‘Inspection Knowsley has also acted as a Wave 1 Authority and is prepared to take risks.
report: Knowsley Local
Education Authority.’ for the Government’s BSF programme, which
London: Ofsted. consists of a substantial amount of funding to 5.4 Drivers: Organisational Culture
renew England’s secondary schools. The BSF Knowsley had previously been described as a
programme has brought together significant ‘depressed authority’ suffering from a culture
investment in buildings and in ICT in order to of ‘low aspiration’.86 As one interviewee
support the Government’s educational reform described:
agenda. Knowsley was chosen as one of the
first local authorities for the BSF programme in “There were a lot of talented people,
2004. but also a lot of low self-esteem in the
community, in schools and the department.”
However, Knowsley’s decision to approach
the BSF programme on a system reform The leadership team recognised that if the
basis, introducing innovative new federated proposed changes were to be successfully
governance structures, has been controversial. implemented, it would be crucial to create a
positive working environment and a culture
5.3 Drivers: Leadership that embraced change and risk-taking. The
Leadership from a combination of individuals first step was to communicate to all staff
was central to driving innovation in Knowsley. and agencies why there was a need to aspire
In the early stages, key figures such as the towards better education provision. One senior
Director of Education, Principal of Knowsley official interviewed commented: “you have to
College, representatives from the Learning inspire before you can aspire.”
and Skills Council (LSC), and the Chief
Executive of Connexions, played an important Innovation has been encouraged both formally
role in initiating changes. One interviewee and informally. Many frontline staff are
commented: encouraged to take time to come up with new
ideas for improving the classroom environment
“We had strong senior leadership which or creative approaches to learning. In some
made it happen. And I’m talking about cases, time is built into teaching schedules
leadership in the college; I’m talking about for researching new ideas and for networking
leadership in the local authority. I’m talking with peers in other schools and other parts

62
of the country. As a result, some creative and formalised structures such as the 14-19
approaches have been trialled and adopted to Collegiate were used to encourage and support
improve pupil learning. Examples include the partnerships between the Borough’s schools,
distribution of soft music mood CDs to help colleges, local authority, training services,
relax pupils and assist in their revision and the private sector, Learning and Skills Councils
creation of research journals by schools on and local Connexions service. One interviewee
pedagogy. described the impact of the integrated
approach:
The innovation strategy consisted of both
short- and long-term changes. This enabled the “In Knowsley when we started to look at
Borough to achieve some early improvements partnership work, it was totally new. It was
in attainment, thereby making the value of the totally innovative. Areas, schools, colleges
overall innovation process clear to managers hadn’t worked together.”
and frontline workers. These early outcomes
helped to compel frontline staff in the Borough Partnership working also enabled the Council
to adopt and support the changes that were to understand better the needs of communities
taking place. This momentum has more recently and young people, and to communicate and
been supported by recognition from national translate the vision for the future of Knowsley’s
bodies and the Government, which have education system to those in different
chosen Knowsley as a Pathfinder for a number agencies, from senior managers to frontline
of different initiatives. staff. This was done through an emphasis on
consultation and strong informal collaboration
5.5 Enabler: Political Support and Stable between many senior officials at different
Political Environment agencies and across different sectors.
Innovation in Knowsley has been possible
because of the stable political environment. Collaboration enabled the Council to gain
The majority of interviewees commented ‘buy-in’ for the partnership approach from all
on how radical change would have been of the schools involved. This also ensured that
difficult to introduce in a less stable political this ownership was reflected back in press and
setting, where the emphasis may have been media messages and avoided the alienation of
on minimising risk, and how important local the educational institutes who would be most
political support has been to the innovation affected by the changes. Schools and colleges
process. One interviewee said: “one particular were also well represented on bodies such as
political factor is important and that is the the 14-19 Collegiate, which acted as a vehicle
general stability of the political leadership.” for them to put forward their ideas, concerns
and opinions.
However, there is conflicting evidence in the
literature about innovation that suggests that The Council also formed partnerships with a
political volatility can be equally important as number of private sector organisations in the
a catalyst and driver of local social change. Borough, including them in the educational
Research by the National Audit Office and process and using them to support the
Audit Commission has suggested that political Council’s strategy of developing vocational
crisis or a change in political leadership can be routes. This included a partnership with Jaguar,
a cause of innovation in the public sector (this which approached the 14-19 Collegiate
is further expanded in the literature review because the company wanted to invest in skills
found in Section 5). development to support local regeneration.

5.6 Enabler: Partnerships Jaguar viewed this partnership as part of its

Prior to the Excellence in Cities programme corporate social responsibility role and was in
in Knowsley there had been a limited amount the process of developing educational centres
of partnership working and collaboration at all its plants. The company was able to
between agencies in the Borough, with schools contribute to the development of the 14-19
and colleges often working in isolation, Collegiate, including by helping design a new
moderated by a small number of ad hoc and Engineering and Manufacturing GCSE and
pragmatic partnership-based projects. The work experience module. Jaguar also seconded
Council’s strategy to bring about change within a member of staff to lead the development
secondary education was to implement a of the this course with college staff. This
cross-borough programme – the Transformation subsequently developed into a pilot for the
Agenda. The common agenda and priorities Government’s new Student Apprenticeships.
encouraged agencies to work in collaboration,

63
 Knowsley also established a partnership in the context of the Education and Inspection
with Microsoft in 2007 as part of its Global Act 2006 while continuing to give the Borough
Innovative Schools initiative, which involves the opportunity to experiment with a genuinely
applying technological expertise to education new and innovative structure.
at Bowring School. This support includes
the provision of resources and technology to Innovation in Knowsley is at a relatively early
support teaching, as well as Microsoft sharing stage. However, the Borough has already
its experience of how to use technology in the developed an international reputation for its
classroom to make teaching more effective and radical new models for schooling. Knowsley
learning more personalised. has recognised the need to create a culture of
innovation to assist the Borough in creating a
modern education system which will be able
to adapt to economic and social change in the
6. Summary and conclusions 21st century.

Knowsley’s innovation in secondary education This stimulated the Council to develop a

has been driven and enabled by a combination strategy for radical innovation with the support
of factors. The Council’s recognition of its of an independent Schools Commission. This
underperforming schools and failure to innovation has involved redesigning the entire
challenge the poor attainment of students was secondary education system and undertaking
brought to light through external evaluations radical reorganisation which will see all the
conducted by Ofsted. The Borough was also Borough’s secondary schools close and be
heading towards a state of crisis with a rising replaced by seven new learning centres in the
number of surplus school places and the coming years.
resultant closure of some of its secondary
87. The Innovation Unit was schools, as pupils chose to join schools in As with South Tyneside and the Highlands,
established in 2002 to
promote innovation to neighbouring boroughs. political and managerial leadership and
improve education. It was collaboration between different agencies
part of the Department for
Education until 2007 when The 1999 inspection acted as a catalyst to were critical to establish a clear vision for
it became an independent, drive forward innovative ideas and approaches change and to achieve ‘buy-in’ from the many
government-funded
organisation. to education that the Borough had been different schools that would be affected by the
developing for some time. International Transformation Agenda.
policy debates about the future direction and
challenges to education provided context to Many respondents identified political support
Knowsley’s experience and access to new ideas and a stable political environment as crucial
about improving the learning experience for enablers of innovation in Knowsley. It was
pupils. felt that the Borough’s radical programme
of innovation would not have been possible
At the same time, Knowsley’s innovation without a strong political leadership that could
strategy has been aligned with central support risk taking without concerns about
government’s national policy agenda at undermining the stability of the majority party.
crucial points in its development, allowing
the Borough to access significant capital
resources and support through the Excellence
in Cities Programme and Every Child Matters.
The Borough’s Secondary Transformation
Agenda was aligned to government priorities
for educational reform and modernisation.
However, at other times Knowsley’s strategy
has directly challenged government priorities.
The Borough’s decision to approach BSF
without introducing a strong role for Academies
has been controversial. Critical in this is
Knowsley’s work with the the Innovation Unit87
to examine ways in which governance can be
reformed to support the wider educational and
social objectives of the BSF programme, out of
which came the plan for federated governance.
Government continues to support this work
and is examining how it might be taken forward

64
Timeline 2: Innovation in Secondary Education in Knowsley

Government
Council launches the
creates Independent Building Joint
Transformation School’s Schools inspection
Agenda. Commission for the future by Ofsted
Ofsted ‘Excellence in produces two programme. and the Adult
inspection Cities’ created reports Knowsley Learning Council
reveals poor to drive up highlighting receives Inspectorate establishes
performance school key reform Wave 1 report partnership
in education standards needed status improvements with Microsoft

1999 2000 2001 2002 2003 2004 2005 2007 2009-2010

Partnered New Director Council Council Borough is Audit Opening of

with Liverpool of Education appoints publishes recognised Commission new Learning
University appointed by independent ‘Options for as the 8th rates the Centres
to find Council’s School’s Change: most deprived Council as
challenges new Chief Commission Future by the Office ‘excellent’
facing the Executive Schooling in of the Deputy
education Knowsley’ Prime Minister
system

Knowsley chosen as a Pathfinder

in the first phase of the Government’s 14-19
Pathfinder programme between 2003-2005

65
 Case study 3: Innovation to address social exclusion in South Tyneside, England

South Tyneside has developed a number of innovative projects to address social exclusion,
including the Council-led Neighbourhood Appraisal and Action Planning project, as well as
the Beacon-awarded financial inclusion scheme pioneered by leaders in the local voluntary
sector. South Tyneside has successfully pioneered new projects as well as replicating and
adapting other socially innovative projects.

The innovation was driven by the following factors:

• Poor performance assessed by inspections and a realisation that the Council was not
actively challenging the decline in the area.

• Deprivation, population decline and multiple interrelated needs in the area.

• Strong leadership from the new Chief Executive and other senior officials, who have since
established a culture of innovation in South Tyneside.

88. Non-decent homes are those

that fail to meet at least one
of the following criteria: the
current minimum standard South Tyneside Background Data and social work, and manufacturing. These
for housing (the fitness
standard), a reasonable state sectors employ 23 per cent, 17.1 per cent
of repair, reasonably modern Geography and 13.8 per cent of the local population
facilities and services,
a reasonable degree of respectively.
thermal comfort. • With an area of 64km2, South Tyneside is
89. A Super Output Area is
an aggregate of existing
England’s smallest metropolitan borough. Council
output areas, such as council Situated in North East England, the Borough
wards, designed to ensure
comparability of statistics
is sandwiched between the North Sea to the • Consists of 54 elected members of whom
over time. They have two east, the River Tyne to the north and an area 34 are Labour, seven Independents, six
sizes – lower SOAs have
between 1,000-5,000
of green belt to the south and south-west. Progressives, four Liberal Democrats and
people and middle SOAs three Conservative.
have over 5,000 people
living in them.
Population
90. IDeA (2006) ‘Journey
to Improvement: South • The total population of South Tyneside is in
Tyneside.’ [Online] London:
IDeA. Available at: http:// decline, having fallen by 2 per cent between 1. Summary: Context and Need
www.idea.gov.uk/idk/core/ 1998 and 2005.
page.do?pageId=5607813
South Tyneside is a small metropolitan borough
• It is a very deprived area with 74.5 per in North East England, bordering Newcastle
cent of social sector housing classified as and Gateshead. The Borough consists of three
‘non-decent’,88 one of the highest levels in distinct towns – Jarrow, South Shields and
England. Hebburn. With a history of heavy industry,
South Tyneside was once responsible for
• 19.4 per cent of the Super Output Areas89 in building a quarter of the world’s ships, as well
South Tyneside are ranked in the top ten per as having extensive coalmining and chemical
cent most deprived in England. industries. During the latter half of the 20th
century, these industries declined, resulting
• It is a predominantly white area (97.29 per in high unemployment, population loss and
cent) with a small Asian, mainly Bangladeshi, deprivation. South Tyneside contains nineteen
community (1.58 per cent) and Arab of the UK’s most deprived neighbourhoods,
community. according to the Index of Multiple
Deprivation.90
Labour market
In the nineties, South Tyneside Council received
• Unemployment is high at 6.25 per cent national recognition for its performance.
compared to the UK average of 5.4 per cent However, in 2000, an Ofsted Inspection
due to the decline of industry. and two Best Value reports from the Audit
Commission revealed that South Tyneside was
• The main industrial and economic sectors underperforming; while services were doing
are retail, hotels and restaurants, health well in isolation, they were not effectively

66
working together to meet complex social needs and to bring departments together behind a
in the Borough. coherent vision for innovation in order to better
serve the needs of the Borough’s communities
This evaluation has been described by the and residents. Assessments showed the
current Chief Executive, Irene Lucas, as coming Borough was ‘drowning under a plethora of
as “a real shock to the Council … [and] acting unrelated plans’93 and there was a need to
as a catalyst for change in the authority”.91 This establish a clear framework for change, whilst
was followed in 2004 by an IDeA report that working against the ‘that’s how we do it here’
identified South Tyneside as having poor levels attitude and culture prevalent in the Council at
of health and educational achievement, as well that time.
as high levels of social exclusion and reported
crime. These interrelated needs are one of the Following the COMEDIA report in 2002, a new
underlying pressures driving innovation in the Chief Executive, Irene Lucas, was employed
area, with social and financial exclusion closely to bring about improvement, change and
linked to the area’s deprivation. integration across the Council and its services.
With a new executive team she began the
After the Council’s acknowledgement of the process of transformational change to
need for change, the international urban policy modernise the Council.
consultancy COMEDIA, was commissioned in
2002 by the Local Strategic Partnership (LSP) At this point, the Council decided to pursue a 91. Farrer, M. (2003)
‘Chief executive, South
to evaluate the Council’s performance and localisation strategy, reorganising both strategy Tyneside Councillor.’
service delivery. and operations around neighbourhoods, to [Online]. London: The
Guardian. Available at:
create a structure better able to focus on the http://society.guardian.
COMEDIA’s report was seen by the Council as very local problems and issues connected to co.uk/publicvoices/
story/0,,670296,00.html
the first milestone in South Tyneside’s decision social exclusion. 92. COMEDIA (2002) ‘From
to innovate and its subsequent transformation. Ordinary to Extraordinary,
Transforming South
The report contained an array of suggestions to Neighbourhood working was seen by the Tyneside’s Future.’ South
support transformation, acting as an embryonic leadership as a tool to assist this process and Shields: South Tyneside
Council.
action plan for future change, and setting to improve the coordination of services. A
93. IDeA (2004) ‘Local
out recommendations for the LSP. It also localised structure was also envisaged as a way Government Improvement
highlighted the untapped potential for change to devolve decision-making, and make better Programme, Visit to South
Tyneside Council Report.’
in South Tyneside, above all stating the need use of the skills and expertise of individuals on London: IDeA.
for a change of culture within the LSP.92 the frontline. The aim was to create a Council 94. South Tyneside Council
(2003) ‘Performing Together
structure more attuned to the varying needs of 2003-2006.’ [Online].
different neighbourhoods and more effective in Available at: http://
www.southtyneside.info/
addressing social exclusion. It was also felt that search/tempDocuments/
2. Innovation Strategy structural changes would reduce duplication tmp_38373.pdf
and facilitate the pooling of resources.
Creating and retaining wealth was a core This strategy enabled the most deprived
element of South Tyneside Council’s corporate neighbourhoods to be tackled differently from
strategy for tackling social exclusion. the rest of the Borough.
Consultations with communities identified
poverty and financial exclusion as primary South Tyneside’s corporate plan Performing
concerns for residents. Tackling financial Together, published in 2003, provided a
exclusion and over-indebtedness were framework for change. The report stated
identified as key elements of the Council’s four specific objectives agreed by the LSP to
‘closing the gap’ approach to regeneration and address and tackle social exclusion:
transformation.
• Stimulating people to become involved in
South Tyneside recognised the impact of social their community.
exclusion on all the Council’s services, and
their importance in reducing that exclusion. • Helping people to get involved.
As a cross-cutting issue rather than a service
function, the Council acknowledged that if • Celebrating the diversity of our communities.
social exclusion was successfully to be tackled,
it had to be seen as ‘everyone’s problem’, as • Tackling deprivation in the community.94
one senior official described it.
National policy has particular relevance to
The core objective of the Council and LSP was innovation in South Tyneside. The strategy
to overcome the ‘silo mentality’ within services adopted by the Council to transform the

67
 Borough by tackling social exclusion consultation technique that is widely used
through neighbourhood-based renewal and by development agencies and NGOs in the
regeneration was very much in tune with southern hemisphere.
central government’s National Strategy for
Neighbourhood Renewal.95 This meant that The method was piloted in three of South
their decisions to localise engagement and Tyneside’s most deprived neighbourhoods
service delivery in neighbourhoods could (Horsley Hill, Biddick Hall and Lukes Lane) in
be supported and recognised within the 2004, using Neighbourhood Renewal Funding,
prevailing policy and performance frameworks and in partnership with Northumbria University
including Neighbourhood Renewal Funding, and the Borough’s Community Empowerment
Government Office interventions and the Audit Network. The pilots involved training local
Commission’s Comprehensive Performance people to carry out their own research using
Assessment. their local knowledge to engage others in
their communities. A community development
approach96 was used to build relationships
between residents’ and community groups and
3. Innovation process service providers. This also helped residents to
identify their own solutions to the issues that
3.1 Localisation and a ‘One Team’ Approach they faced. Communities then became actively
In 2003, the Council identified a total of involved in the planning and delivery of these
71 natural neighbourhoods and created a services.
Forum structure of six community areas each
comprising two or three political wards. The Participatory Appraisal, a technique which
Council collated information around these places equal value on the knowledge and
neighbourhoods to provide a base from which experience of local people and their capacity to
95. Social Exclusion Unit (2001) to address social exclusion issues. The new come up with solutions to problems affecting
‘A New Commitment to
Neighbourhood Renewal: structure made frontline staff much more them, was used for two reasons:
National Strategy Action aware of the issues and needs of specific
Plan Report.’ London:
Cabinet Office. communities. This localised approach to • With an increasingly diverse range of needs,
96. This is an approach which strategy is felt by many frontline staff to be the individual citizens are more aware of their
involves building social
capital from the ‘bottom-up’ main driver of innovation in South Tyneside, own needs than others.
within a community. enabling ideas from communities to be
97. IDeA (2006) ‘South Tyneside successfully communicated and taken further • Positive outcomes depended on individuals
community engagement.’
[Online] London: IDeA. by the Council. within a community as well as the quality of
Available at: http://www. public services, so individuals needed to be
idea.gov.uk/idk/core/page.
do?pageId=5608104 The new structures enabled the Council to empowered within their localities.
address issues on an area and neighbourhood
basis, facilitating partnerships within the The considerable structural changes and
separate neighbourhood areas. These movement towards neighbourhood working
improvements have led other bodies in has resulted in many innovative projects such
the area such as the Police to reorganise as ‘Blitz It’, an area-based street maintenance
their operations into these identified initiative that encourages local communities
neighbourhoods. One senior manager to take collective action visibly to improve
explained: “following the success of our the local environment, whilst also raising
work, our partners such as the Police have awareness of general environmental issues
reorganised their area inspectors on the through education and publicity. Through
same geographical boundaries and have improved communication structures within
neighbourhood managers that are now South Tyneside, this project empowers local
aligned.” This process also enabled South residents to address and vocalise their concerns
Tyneside to target the 19 most deprived about their local environment. Other innovative
neighbourhoods with specific social exclusion pilot projects include initiatives for engaging
initiatives, and to pilot new ideas. the community in health scrutiny such as the
‘Alcohol Harm Reduction Project’. The Pride of
In 2003, the Council established an area South Tyneside awards and an initiative called
coordination team to develop its new ‘We asked …. You said …. We did’ also raised
approach. This team brought together external awareness of local activity and how the Council
funding opportunities, resources and social and its partners were addressing community
regeneration initiatives. The team suggested needs.97
piloting the Participatory Appraisal Approach to
neighbourhood working, a community-based

68
The Chief Executive also initiated a ‘one organisations had to work effectively in
team’ approach, where all departments partnership.
and services would work in collaboration to
engage with South Tyneside’s communities in Using his own personal networks and informal
neighbourhoods. relationships, Scott was able to form an anti-
poverty partnership consisting of the Council,
3.2 Leadership: Creating Innovation TEDCO, South Tyneside Credit Union, South
Champions Tyneside Resources for Initiating Development
Strong leadership from managers and of the Economy and the South Tyneside
officers was seen by senior officials and Citizens Advice Bureau. This partnership
elected members as crucial in bringing about combined forces that served the same client
change. To support stronger leadership, group, and used a collaborative approach to
senior managers had their management skills analyse need and develop customised services.
improved so they could better motivate staff to The partners worked together to tackle
work across departments. This supported the disadvantage on different levels by offering
Council in embedding the ‘one team’ approach a range of different services. These helped
and creating a more positive mentality to maximise benefit and tax credit take-up,
supportive of innovation. improve financial awareness and grow South
Tyneside Credit Union. They also helped to
This process included significant changes to promote enterprise in disadvantaged areas
the political, directorate and management through more affordable loans, business
structures of South Tyneside. This included support and microfinance, all of which were
clarifying members’ performance management designed to stimulate a vibrant and mixed
roles, as well as using community perceptions economy.
to measure and improve service performance.
These changes empowered frontline staff, 98. South Tyneside Council
(2007) ‘Councillor
since agencies became more receptive to their Neighbourhood Champions.’
ideas and expertise. The changes established 4. Outcomes South Shields: South
Tyneside Council.
a transformation in South Tyneside’s culture, 99. Ibid.
creating a more responsive organisation where Innovation to address social exclusion and 100. Ibid.
innovation was able to flourish. neighbourhood working in South Tyneside
has led to an overall improvement in the
3.3 Recognising and Supporting Innovation Borough’s performance. In both 2002 and
Creating and retaining wealth was a core 2003 the Council was judged as ‘fair’ by the
element of South Tyneside Council’s corporate Audit Commission during its Comprehensive
strategy. Financial exclusion and tackling over- Performance Assessment (CPA). However in
indebtedness were seen as important issues in 2004, South Tyneside achieved an ‘excellent’
the process of regeneration and transformation. status becoming the only unitary council in the
six years of CPA to move directly from ‘fair’ to
The Council was quick to recognise and support ‘excellent’.98 The Council was acknowledged
voluntary sector projects to tackle these as having addressed challenges from past
issues. One such project was the ‘Enterprise in Corporate Assessments and was judged as a
Disadvantaged Communities’ project (EDC), ‘four star, improving strongly council’ amongst
a multiple activity Neighbourhood Renewal the top ten in the country.99
Fund Project aimed at reducing hardship that
ran in South Tyneside from 2004 to 2006. The Borough’s Beacon Assessment in 2007 also
According to those involved in the project, noted that:
the Council became a central body in this
project’s partnership, providing resources and “In a number of successful initiatives and
support without dominating and taking over programmes they are effectively delivering
the project, realising and valuing the skills, quality services for local people and
expertise and experience of the other partners devolving power to communities to improve
involved. their environment and quality of life.”100

The EDC project was driven by the same Innovation around social exclusion has also
pressures driving the Council’s strategy to been recognised by the Audit Commission, with
tackle poverty in the area. Doug Scott, the the body reporting in 2007:
head of the Tyneside Economic Development
Company Ltd (TEDCO), realised that in order “[The] Council continues to take significant
more effectively to address these needs, action to improve its engagement with local

69
 people and their overall satisfaction with “Our Area and Neighbourhood Working
the Council has improved significantly.”101 Strategy sets the pace nationally on
delivering area and neighbourhood
The positive impacts of the Borough’s working, detailing how action planning
Participatory Appraisal Method have also been and governance arrangements are to be
documented. For example, the ‘Horsley Hill developed at area and neighbourhood
Estate Community Appraisal’, describing the levels.”104
work done through the Participatory Appraisal
Method between 2005 and 2006, showed A survey conducted by Ipsos-MORI in
that the project in the neighbourhood of 2006, found that South Tyneside’s residents
Horsley Hill involved 1,300 voluntary hours, believed that the Council’s performance was
speaking to over 600 people and collating improving.105 In 2002, 20 per cent of residents
1,400 responses. One of the residents involved agreed or strongly agreed that the Council’s
commented: “we have always been the performance had improved in the last five
experts about what is wrong with the area. years. In 2006, that figure rose to 39 per cent.
Now someone has asked us and we have the In 2006, 41 per cent of residents were recorded
confidence to explain.”102 as feeling that the Council asks for the views
of local people, an increase from a figure of 29
The Council has been very vocal in per cent recorded in 2002. Public attendance at
communicating the positive impact on South Tyneside’s Community Area Forums has
operations and development of the also increased by 33.7 per cent from 2002-03
Participatory Appraisal Method: to 2005-06.106

“Our unique neighbourhood appraisal

and action-planning process has further
101. Audit Commission developed service standards.”103
(2007) ‘Annual Audit and
Inspection Letter: South
Tyneside Council.’ London:
Audit Commission.
102. South Tyneside Council
(2007) ‘Councillor Figure C1: Perceptions of the quality of South Tyneside Council’s communication with its
Neighbourhood
Champions.’ South Shields: communities
South Tyneside Council.
103. Ibid.
104. Ibid. 45
105. Ibid.
106. Ibid. 40
Percentage agreeing with statement

35

30

25

20

15

10

0
2002 2004

The Council listens to The Council asks for The Council’s performance has
views of local people views of local people improved over the last 5 years

Source: South Tyneside Council, (2007)

70
South Tyneside’s innovation in financial its 2003 Beacon Bid for Financial Inclusion the
exclusion has also been nationally recognised, Council stated: “Financial inclusion and tackling
with the Borough being awarded a Beacon over indebtedness is on the agenda, because
Award in 2007 for Promoting Financial the community told us it was important.”
Inclusion and Tackling Indebtedness. The
authority was praised for: 5.2 Drivers: Leadership
Irene Lucas’s appointment as Chief Executive
“A measurable increase in the number in 2002 stimulated change. Many interviewees
of individuals with access to appropriate associated the changes in organisational
banking, affordable credit and free face- culture and new vision with her arrival in South
to-face money advice amongst groups most Tyneside. In effect, she acted as a champion
likely to suffer from financial exclusion.”107 for change and innovation. Her charismatic
leadership and passion enthused senior
managers and frontline workers; she has been
consistently referred to by staff as driving the
5. Analysis: Drivers and Enablers of innovation. One interviewee commented that:
Innovation in South Tyneside “the Chief Executive has been the champion
really…helping to transfer a transparent
5.1 Driver: Need and Underperformance approach.”
South Tyneside’s widespread deprivation and
its high levels of social and financial exclusion The Chief Executive’s ‘one team’ strategy
were the underlying pressures for change. sought to overcome departmental and ‘silo’
However, several reports in 2000 revealing mentality with services and sectors working
the Council’s poor performance triggered together. This was further communicated to
innovation by acting as an external catalyst for services and agencies external to the council
change. through her motto “one of us is not cleverer 107. South Tyneside Council
(2007) ‘Councillor
than all of us.” Neighbourhood
The LSP was acutely aware of the area’s high Champions.’ South Shields:
South Tyneside Council.
levels of deprivation, in particular its poor Her role in working more effectively with 108. South Tyneside Council
health, high crime and high unemployment. partners was also identified by the voluntary (2007) ‘Regeneration
and Resources Scrutiny
It felt pressured to innovate to address these and community sector, with one interviewee Committee Scrutiny
problems. Twelve of South Tyneside’s 21 commenting: “that was the catalyst, that Irene Commission on External
Funding.’ South Shields:
wards are in the lowest decile for deprivation was not only willing to play the partnership South Tyneside Council.
nationally. As a result, South Tyneside received game, but she was very active in promoting it
£15.6 million of Neighbourhood Renewal and visible in supporting it.”
Funding between 2006 and 2008.108
Her Area Coordination team also helped to
The new structure of dividing the Borough drive innovation in South Tyneside. This new
into six community area forums and 71 core of individuals used their position to
neighbourhoods enabled service providers and find innovative approaches to tackle social
the LSP better to gauge the needs of different exclusion in neighbourhoods with high levels of
communities, and assisted in directing the deprivation and social and financial exclusion.
actions of the Council and other agencies. This With support from senior officials within the
was further supported by involvement and Council, the team were given the freedom and
collaboration with the Borough’s voluntary and space to be creative in their proposals.
community sector.
Strong leadership was also essential outside the
Lord Layard of Highgate stated in 2006 that: Council. Doug Scott, the Head of TEDCO, had
“through engaging with their customers and a personal vision of an effective partnership
communities, South Tyneside Council are that he drove with his own personal links
establishing what needs are unmet and with and informal relationships. The organisations
partners, particularly Voluntary and Community involved in the antipoverty partnership had
Sector partners, devising and implementing no prior history of collaboration and many
solutions to address the needs of those most were unsure of how they could effectively
disadvantaged.” work together to alleviate poverty, being
more concerned with their differences. Scott’s
The innovation around financial exclusion has charismatic leadership and strong vision
also been driven by need, with the partnership brought these organisations together as
working closely with communities to develop a he pioneered the project using his informal
range of services to address their hardship. In networks and social capital. One interviewee

71
 involved in the partnership commented: “I as the EDC Financial Exclusion Scheme and the
would say the fundamental difference is effects of the Neighbourhood Participatory
probably an individual. Doug Scott, he was Appraisal, as well as smaller schemes such as
the one who had the vision of pulling all these a project pioneered by the Citizens’ Advice
different aspects together.” Bureau to tackle the financial exclusion of
ethnic minority groups.
Both within the Council and in the voluntary
sector, charismatic individual leadership, in 5.5 Enabler: finance
combination with effective team working, was In July 2005, the Government announced
crucial in driving forward innovation to address funding allocations to local authorities which
both social and financial exclusion. it considered needed extra help to work
with partners to tackle crime, education,
5.3 Drivers: Organisational Culture housing, liveability, health inequalities and
Changing organisational culture is unemployment. South Tyneside was allocated
acknowledged to be a long and complex £15.6 million through the Neighbourhood
process. However, South Tyneside was able to Renewal Fund – £8.3 million for 2006-07 and
establish a change in mentality and culture £7.3 million for 2007-08. This has been used to
relatively quickly, something acknowledged by pilot and fund new innovations and projects.
the Audit Commission in its 2004 report. This funding enabled the Neighbourhood
Participatory Appraisal pilot and Financial
Since Lucas’s appointment, the Council has Inclusion Scheme to be supported and
made rapid changes to move away from its ‘silo extended. Without this funding it may have
mentality’, and to create an environment that been more difficult to allocate resources to
focuses on partnership working and frontline these innovative high risk initiatives.
integration. Planning documents such as South
Tyneside’s corporate plan Performing Together, 5.6 Enabler: Partnerships
as well as the LSP’s A Spirit of Change, have The partnerships and collaboration in South
enabled the Council and agencies to work Tyneside have been fundamental in enabling
together to tackle social exclusion. and supporting the transformation of the
culture of agencies and the way in which they
The Council actively promotes innovation, approach innovation in a more cohesive and
encouraging staff to suggest and try creative integrated way. The importance of partnership
methods by which to tackle social exclusion. working was acknowledged by all the agencies
The leadership team believes that frontline involved in South Tyneside’s LSP at an early
staff and communities often hold the solutions stage, and set out in key documents.
to meeting social problems and have tried to
capture their ideas by devolving authority and
decision-making to neighbourhood level. The
Council encourages staff to experiment and 6. Summary and conclusions
put forward new ideas for development. Many
interviewees commented on the Council’s The Council’s recognition of its
receptiveness to their suggestions and the underperformance and problems associated
space and freedom they have to be creative. with ‘silo’ working were brought to light
The Council has also taken steps to create a ‘no through external evaluations and an internal
blame culture’, acknowledging that failure is a report in 2000. These events, which could
part of innovation by encouraging greater risk be described as ‘external shocks’, combined
taking among staff. with high levels of deprivation in the area,
stimulated the Council to develop a strategy for
5.4 Enabler: political support innovation to address both social and financial
Political support within the Council from exclusion issues.
councillors and local MPs, and their recognition
of innovative projects and initiatives, has As in the Highlands, strong leadership and
enabled innovation and supported the growth partnership played an important role in
and diffusion of existing innovation. initiating and driving change in South Tyneside.
A new Chief Executive and leadership team,
Councillors and local MPs have helped bring supported by political leaders and the voluntary
recognition to good examples of local work and and community sector, were champions for
validate projects addressing social exclusion. innovation. The LSP played an important role
The MP for South Shields, David Miliband, has in setting out a vision for collaboration and
been very vocal in his support for projects such partnership working, which helped to break

72
down silos within the Council and to tackle the
broad theme of social exclusion by working
across a number of services.

The Council’s decision to develop a

neighbourhood working strategy with localised
planning, decision-making and service
delivery, enabled it to target resources to
the most deprived neighbourhoods and to
develop focused social and financial exclusion
initiatives.

Arguably this decision aligned South Tyneside’s

innovative strategy with national policy
priorities, in particular the National Strategy
for Neighbourhood Renewal. This enabled the
Council to secure Neighbourhood Renewal
Funding to support local innovation. Perhaps
more interestingly, this alignment with national
policy has enabled South Tyneside quickly to
gain significant recognition for its achievements
within the local government community and
from national government. Compared with
local authorities (for example, Tower Hamlets or
Knowsley) where innovation can genuinely be
described as radical or systematic, innovation
in South Tyneside has been highly effective
but incremental. This seems to suggest that
alignment of local social innovation with
national policy priorities can enable localities to
capitalise on central government’s awareness
and interest in particular services at particular
times, irrespective of the true extent of that
innovation.

Timeline 3: Innovation in South Tyneside to address social exclusion

Participatory
Appraisal
Formation of 71 neighbourhoods Approach
Local Strategic new executive identified piloted in
Partnership team and establishment Horsley Hill, Continuation of
Praise from commissions corporate plan of Area Biddick Hall, Participatory Appraisal
national COMEDIA Performing Coordination and Luck Approach into new
newspapers for evaluation Togeth’er Team Lanes neighbourhoods

1990 2000 2002 2003 2004 2005 2006

Ofsted Irene Lucas ‘Fair’ Local ‘Excellent’

Inspection new Chief performance Strategic performance
and two Best Executive results by Audit Partnership results by Audit
Value reports appointed Commission publish A Spirit Commission
reported poor Of Change
performance

73
 Case study 4: Innovation in Youth Services in the London Borough of Tower
Hamlets, England

In 2002, the London Borough of Tower Hamlets developed a commissioning model for the
delivery of its Youth Services, which involved letting a series of local and thematic contracts
to voluntary and community sector organisations. Tower Hamlets was one of the first local
authorities in England to develop a commissioning model for youth services; it was part of a
wider decision to develop a Third Sector Strategy for the entire Borough.

These innovations were driven by four main factors:

• Pressure from residents and local councillors to improve and modernise services and
facilities (for young people in the Borough), which were acknowledged to be failing.

• The highly political nature of youth services in Tower Hamlets, a Borough with a large
youth population and high levels of councillor involvement in local youth groups.

• An impending Ofsted inspection which meant the long-term failure of the service would
be brought to light.

• Changes to political leadership, which created a desire for change and improvement within
the Council.

Tower Hamlets background data compared to the national average of 38 per

cent.
Geography
Labour market
• Tower Hamlets is an inner city borough
located to the east of the City of London. • Despite recent economic growth, Tower
Hamlets has the lowest employment rate
• Several large pockets of deprivation remain, in Great Britain: it was just 52.6 per cent in
despite regeneration since the eighties, 2006.
which led to economic development,
particularly in Canary Wharf and Docklands. • The area is blighted by benefit dependency,
with 21 per cent of people of working age
Population claiming a key benefit in 2001, one-and-
a-half times the national average of 14 per
• Tower Hamlets has a long history of in- cent.
migration, resulting in high ethnic diversity,
with Bangladeshis making up one-third of Council
the population.
• This traditional Labour stronghold has had a
• Largely as a result of this migration, Tower more volatile recent history: the Council was
Hamlets had the third highest population controlled by the Liberal Democrats from
increase of any local authority area in 1986 until 1994. It has since been Labour,
England between 1991 and 2001. It now has although the newly-formed Respect party
the fifth highest population density of any became the main opposition at the last local
local authority in England and Wales, causing elections.
severe levels of overcrowding.
• The Council is currently made up of 26
• The Borough has a very young and growing Labour, 12 Respect, seven Conservative and
population, with the number of dependent six Liberal Democrat councillors. The council
children and young adults significantly is led by a Labour councillor.
higher than the national average. 52 per cent
of the population fall under the age of 30

74
1. Summary: context and need the Service was thought to suffer from a
lack of structured provision, direction and
The London Borough of Tower Hamlets is coordination, and was felt to be out of step
located east of the City of London, just north with thinking about modern youth work
of the River Thames. One of the smallest practice.
boroughs in London, it has historically suffered
from great need and is ranked as the fourth But this was to change because of the
most deprived borough in England in terms of development of a new commissioning model
average deprivation.109 for youth services. Interviewees identified
the political context in Tower Hamlets as an
The Borough is one of great diversity, featuring important factor influencing this innovation.
the affluent finance and business centres of Many ward councillors were involved directly
the Docklands alongside many of the most with youth groups. Combined with the high
deprived neighbourhoods in the country. It is proportion of young people in the Borough,
also one of the most densely populated areas this made youth services and young people
in Britain, suffering from overcrowding as its highly politicised. As a result, many young
population continues to grow at a fast rate. people saw youth work as a potential route
to local power and resources. This was
Despite the redevelopment of financial districts complemented by the highly competitive
such as Canary Wharf and the Docklands, nature of local politics in the Borough, which 109. Tower Hamlets Primary
Care Trust (2005) ‘Tower
much of this regeneration has failed to benefit encouraged councillors to campaign for Hamlets PCT Public Health
many of the Borough’s local communities. improvements to youth services, creating Report.’ London: Tower
Hamlets PCT.
This deprivation has had a large impact on the strong pressure within the Council for change. 110. Ibid.
Borough’s young people. In 2004, 58.7 per 111. Tower Hamlets Council
cent of all children in Tower Hamlets were living In the late nineties, Ofsted inspections had (2007) ‘Tower Hamlets’
Borough Statistics.’
in low income families.110 already identified a number of authorities that London: Tower Hamlets
were failing to deliver an acceptable youth Council.
112. Tower Hamlets Primary
Tower Hamlets has one of the youngest service. Interviews indicate that innovation in Care Trust (2005) ‘Tower
populations in the UK, with 52 per cent under the Borough’s Youth Service was partly driven Hamlets PCT Public Health
Report.’ London: Tower
the age of 30, compared to the national in response to an impending inspection which Hamlets PCT.
average of 38 per cent.111 Tower Hamlets many believed would declare the Borough’s 113. Audit Commission (2002)
also has one of the most ethnically diverse Youth Service to be failing. ‘Tower Hamlets Corporate
Assessment.’ London:
populations in London. In the 2001 census, Audit Commission.
58 per cent belonged to an ethnic group 114. The ‘third sector’ is a
other than White British. Ethnic diversity is term encompassing the
voluntary and community
even more prominent in the Borough’s youth 2. Innovation strategy sector and social
population, with 78 per cent of young people enterprises.

belonging to an ethnic group other than White In 2001, the Council agreed to commission
British. A third of the Borough’s population is a number of ‘third sector’114 organisations to
of Bangladeshi origin.112 deliver the Borough’s Youth Services. At the
time this was a bold decision as third sector
In the nineties, services and facilities for young commissioning was not an accepted model
people in the Borough were recognised to be in local or central government. At the time,
outdated and insufficient to meet the needs only Bromley in Kent had adopted a similar
and demands of a modern youth population. ‘commissioning model’ for delivering its youth
In the late eighties and early nineties, Tower services, but it was not felt to be working
Hamlets had a budget of approximately £10 well. So, there was little evidence or direct
million for Youth Services. A decade later this experience to draw on, and little chance of
had been reduced to just £3m (in part due to gaining support or interest from others in local
the abolition of the Inner London Education government.
Authority) and many of the Borough’s youth
facilities had been sold off with Youth Services The Council’s decision to adopt a
staff seconded to voluntary organisations. The commissioning model was driven by a number
Audit Commission described the Borough’s of reasons. First, despite several previous
services as “performing poorly in the mid- attempts to restructure Youth Services to
nineties”.113 improve performance, the Service continued
to fail. Second, the Council recognised that
At this time, the Youth Service had lost much local youth work capacity and expertise
credibility within the Council among politicians, was in the Borough’s particularly vibrant third
youth workers and young people. In particular, sector organisations. These were better placed

75
 than the Council to engage with hard-to- The consultants identified a lack of
reach groups and would also have significant commissioning guidelines not only within the
opportunities to lever in funding from external Tower Hamlets, but across local government.
sources. Third, the Council’s Youth Services The first task was to develop a set of principles
had lost credibility with young people, youth and guidelines for the Youth Services
workers, politicians and officers. It was felt commissioning model. Several important
that only a radical change to the Service could strategic decisions were made in these early
improve performance and rebuild confidence. stages. First, the Council needed to retain
strategic control of Youth Services in order
A commissioning model was felt to offer the to manage the commissioning process and
most effective route to improve and modernise subsequent contracts, as well as monitoring
services for young people, and to increase and assessing service delivery. This was
the Council’s collaboration with the third felt to be a crucial decision, one that was
sector. The decision to adopt this model was different from Bromley, where all aspects of
taken alongside broader discussions within Youth Services had been outsourced. The
the Council about the development of a Third management team and consultants felt that
Sector Strategy for the entire Borough, which without central control of the Service and
would enable the authority to support social opportunities for scrutiny and overview, the
enterprise in Tower Hamlets by identifying a Council could not guarantee quality or address
range of public services that could be delivered any problems with third sector delivery.
by local organisations.
Second, it was necessary to create a wide
Research suggests that many councillors and market for the commissioning of services. This
local youth groups strongly supported the meant opening the process to organisations
commissioning model in the early days, when it outside the Borough, and allowing any local
115. Libra Consulting is part of was thought that decentralising service delivery or national organisation, whether in the
Capital Consulting.
would create significant opportunities for local voluntary, public or private sector, to bid for
groups to control services and new sources a contract. However, the management team
of funding. However, as the commissioning and consultants acknowledged the importance
model was developed, it became apparent that of involving local organisations in the
a more strategic approach to commissioning commissioning process and so worked together
was being adopted, in which the Council would to assess the scope and capacity of the market
retain control over some elements of service in Tower Hamlets.
delivery. Interviewees describe how there was
some opposition from backbench councillors The first stage of this scoping work focused
at this point, and how strong leadership from on researching the capacity of the third sector
executive members and senior officers was in the Borough. The consultants sought to
required to support and drive through changes identify the scale of the sector, by developing
to the Service. databases to record and monitor the work of
local organisations. They found that despite
As commissioning was not a widely accepted the active and dynamic nature of the sector,
model at the time, the Council appointed Libra many organisations had neither the capacity to
consultants115 to work with officers to develop take part in the bidding process nor to manage
the Borough’s Third Sector Strategy and a contracts.
model and process for commissioning Youth
Services. The Council agreed to provide initial support
to these organisations to build their capacity
to enable them to bid for contracts, as
individual organisations or in partnerships.
3. Innovation process The Youth Services management team and
consultants developed a cohort of locally-
3.1 Developing a commissioning model based consultants to work with the third sector
A new senior management team was created to build capacity around different areas, such
to drive forward innovation and change as human resources and the management of
in the Youth Services. This team included finances. To support this research a number of
newly-appointed outsiders as well as existing papers were also commissioned from specialists
Council staff. They worked closely with the exploring the Voluntary and Community
consultants to develop a strategy and model Sector further. This included research into the
for commissioning. European standardisation of nomenclature for

76
the sector, as well as a paper on the use of An Ofsted inspection in 2005 also identified
existing grants and money in the sector. weaknesses in the new model, such as that:
“too much of the provision in youth clubs
This was felt by the Council to be a successful lacks educational purpose…Young people
process because of the high level of bids the are insufficiently involved in the planning and
Council received from local organisations evaluation of programmes at a local level”.116
during the initial phase of the commissioning
process. These issues were reflected in the second
round of contracts, which were let in 2006.
The first round of commissioning took place in These contracts had a value of £2.4 million and
2001. Eight area contracts were let for three were agreed for five years, with the possibility
years with scope for a two-year extension. of two-year extensions. Three new providers
These eight areas aligned with Tower Hamlets won contracts in this round.
Local Area Partnerships (LAPS), which act as
local engagement and influencing structures. The core Youth Services team has grown
Four curriculum programmes were also considerably since the first round of contracts
established to reflect more strategic cross- was issued, and has amalgamated with other
borough themes such as special educational organisations such as Connexions to form a
needs or sport. Both the local and strategic group of 30 people working on strategic youth
dimensions would enhance the commissioning services tasks. Their work now includes strategy
process. The total value of the contracts was management, developing youth employment
£1.8 million. opportunities and increasing outreach
work – in addition to their management of
A core team within Youth Services strategically commissioning and contracts. Four of the
oversaw the commissioning process and team are from within the Council, whilst
management of the contracts. Although some others are externally funded through partner 116. Ofsted (2005) ‘Inspection
report: Tower Hamlets
service providers opposed this approach, the organisations. Youth Services.’ London:
core team enabled the Council to retain strong Ofsted.

accountability for the overall service and Alongside these initiatives, the Council has
to manage the risks of commissioning. The used money from the Neighbourhood Renewal
approach was vindicated when one outsourced Fund to improve facilities for young people.
contract failed and had to be brought back A programme of renovation and building new
into the Council temporarily before it could be premises for youth projects has improved
reallocated to another service provider. satisfaction with services and improved staff
morale.
A core part of the commissioning strategy was
to develop ‘zip’ projects, which would link
the outsourced services in the Borough to the
work of the central team within the Council. 4. Outcomes
One such project was the Rapid Response
Team, a joint initiative between the Police The radical changes to the structure and
and the Youth Service to respond quickly to delivery of Tower Hamlets Youth Services led
serious youth gang disorder. The Team runs a to some initial difficulties. Senior officials from
street work programme to reduce anti-social the Council who were interviewed for this
behaviour, youth conflicts and youth crime. project describe how the first 18 months of
the new commissioning model were extremely
Lessons from the first round of commissioning challenging.
included the need:
The management team encountered significant
• to extend the length of contracts to allow disapproval and dissatisfaction with the new
time for new relationships to be established; system among staff, especially some long-
term youth workers, and staff turnover rates
• to set stronger targets for service providers were high in the first two years. However, the
to ensure improved and consistent levels of central Youth Services team focused on training
delivery (for example, the number of young frontline youth workers and modernising
people to be involved, targets for the late approaches and practices in the Borough.
night opening of youth projects); and Interviewees report that this created a new
sense of opportunity and opened up new
• to improve evaluation and management of career opportunities, which helped to change
the Service. the atmosphere within the Service.

77
 In 2003, the Council conducted an internal and requirements of the significant and
inspection of their Youth Services which growing youth population was a central driver
highlighted the need to improve quality of innovation.
assurance and to increase youth participation
in the running of the Service. Since then, The political nature of youth work and youth
significant improvements have been made. facilities in the Borough created strong
The Council claims to have seen very direct pressures for change from local politicians,
improvement in frontline service delivery, communities and residents. The Council’s
which they believe is due to their innovative underlying awareness of the failing system and
approach. the lack of credibility and confidence in the
Borough’s Youth Services, combined with the
The 2005 Ofsted inspection found that new Ofsted regime, an imminent inspection
Tower Hamlets provided an adequate Youth and fears that the authority would be identified
Service with good strategic leadership and as failing, acted as a catalyst for change within
management from elected members and senior the Council.
managers. The inspection also noted that
rigorous quality assurance procedures had led Alongside these pressing drivers, Youth Services
to significant progress and improved the quality were viewed by the Council as a powerful
of provision, and that successful partnerships vehicle to support community cohesion
had effectively met the needs of young people. between the different ethnic groups within the
Standards of young people’s achievement and Borough. Concerns had been raised about the
the quality of youth work practice were also need to engage with minority groups to ensure
found to be very high in some targeted work.117 they did not become isolated. One interviewee
In Tower Hamlets’ 2006 Annual Performance commented:
Assessment by Ofsted, the Borough was graded
117. Ibid. as ‘outstanding’ in maintaining and improving “I know that what they need is facilities and
118. Audit Commission (2006)
‘London Borough of Tower outcomes for children and young people; support and so on but at the moment they
Hamlets Comprehensive the Council’s overall capacity to improve its are really angry and frustrated – they have
Performance Assessment
Scorecard 2006.’ London: services for children and young people; and nothing to do.”
Audit Commission. the contribution of the local authority’s social
119. The Youth Opportunity care services in maintaining and improving 5.2 Drivers: local political pressure
Card works like a debit
card. Cash values can be outcomes for children and young people. Tower Hamlets has had a turbulent political
downloaded on to the history. In the eighties the Borough’s radical
card and then used to
purchase services often at Comprehensive Performance Assessments programme of decentralisation under Liberal
a discount, such as access undertaken by the Audit Commission in 2005 Democrat leadership attracted widespread
to leisure centres and
swimming pools. and 2006 also rated Tower Hamlets Children’s attention . Significant power and devolved
and Youth Services as performing strongly.118 budgets were controlled by ward councillors
with little accountability to the central
Tower Hamlets is now receiving national administration, resulting in political infighting
recognition for its Youth Services and funding and the politicisation of ultra-local issues.
from central government for new initiatives
such as the Youth Opportunity Card, which will The strong connection between local politics
be tested in 2008.119 This project has received and youth work in Tower Hamlets played an
£1 million in funding from the Department for important role in pushing the issue of young
Children, Schools and Families (DCSF). people and youth services up the agenda
within the Council and creating great pressure
The Council has developed a borough-wide to innovate in order to address these concerns.
Third Sector Strategy. Its pioneering status has
gained Tower Hamlets national recognition The local political instability in Tower Hamlets
as commissioning has become increasingly has also encouraged local politicians to drive
popular with Government. forward innovation in the Borough, as they
have been keen to be seen as addressing the
issues with which local communities are most
concerned and interested with the aim of
5. Analysis: drivers and enablers of retaining their seats. One interviewee said:
innovation in Tower Hamlets
“There is a selfish element to local
5.1 Drivers: underperformance politicians’ focus on the youth agenda.
Underperformance in Tower Hamlets’ Youth With so many youth, it is an issue central
Services and their failure to meet the needs to the community. That’s why it gains local

78
 political attention; Tower Hamlets needs the an environment where striving for continuous
young, they’re not just some add on, these improvement was encouraged at all levels and
are the future voters, the community have a across all departments. Despite the fact that
vested interest in their engagement.” the political and corporate leaders who instilled
this culture have now left, officers feel the
5.3 Drivers: leadership attitude has remained and become embedded
Many interviewees cited strong political in the Council’s organisational culture.
leadership as an important factor in driving
innovation. In 1999, the Labour council In Youth Services, the sense of urgency and
leadership adopted a new executive structure, drive for improvement focused on the need to
which was felt by many to create a great deal with ‘today’s cohort of children and their
thrust for change within the Borough. One problems’, and not just on developing long-
interviewee described the new political term strategies. In practical terms, interviewees
leadership that came about in Tower Hamlets: described how this meant that the senior
management team aspired towards success,
“Executive members in the Borough were which resulted in ideas being successfully
very supportive of the commissioning implemented.
model, and through this support were able
to dissipate the risk associated with this Interviewees reported that national recognition
approach.” of the Borough’s pioneering role in developing
third sector commissioning has made staff
One interviewee described how both the Lead more motivated and comfortable with change
member for education and Lead member for and risk-taking. Tower Hamlets’ reputation as
youth played a key role in pushing through an innovative local authority has also strongly
change and supporting changes to Youth impacted on the Council’s recruitment. One
Services: interviewee explained how in the last three
years there has been a significant change in
“Education, the Youth Service, all these recruitment patterns in the Council, with more
things were given a kind of real importance, highly skilled and ambitious people wanting
and also that kind of message about to work in Tower Hamlets. This has created a
equality underpinned all that. That was a sense of pride in the Council and helped to
big moment I think.” support and sustain the culture of innovation.
One interviewee commented:
Interviewees identified the then Chief
Executive, Christine Gilbert, as crucial to “We have some very good staff and
innovation because of the role she played managers and that makes a huge
in instilling a new culture and enthusiasm difference. And we’ve had managers
for improvement within the Council. One prepared to work 24/7 and you can’t
interviewee described that without the Chief legislate for that element of luck. Once you
Executive’s leadership at that time, it would have a few good people you can get more.
have been likely that Ofsted would have Tower Hamlets is a borough of total change
imposed special measures in the Borough: and that’s exciting, a very rich borough in
money and humanity; it’s fun and creates
“When Christine Gilbert came here, she had an energy that attracts certain people.”
a message … the issue is what do you need
to put in place to enable young people in Additionally, many communities in Tower
Tower Hamlets to compete on the national Hamlets such as the Borough’s substantial
stage. So deprivation is not an excuse and Bangladeshi community have recently come
that kind of message of striving, achieving, of age, with a new generation of individuals
which she then carried on when she became from these communities joining agencies and
Chief Executive. I suppose that’s an event establishments in the Borough, including
and that’s a personality.” the Council. These individuals have also
contributed to creating a culture of innovation,
Many interviewees describe the sense of enabling the Council to benefit from a better
‘urgency’ within the Council that this new understanding of the Borough’s community
leadership created. Interviewees felt there needs.
was a change from a culture of low self-
esteem, where staff felt constrained and 5.4 Enabler: history and culture
powerless to tackle the deprivation and Tower Hamlets has a strong history and culture
challenging circumstances in the Borough, to of social reform and innovation that has

79
 impacted the innovation that has occurred in 5.5 Enabler: capacity of the third sector
the Borough’s Youth Services. One interviewee The established and active third sector has also
commented on the unique history of the area: enabled innovation in the Borough. Although
many local organisations required initial
“There’ve been those kind of great political support to build specific capabilities around
moments: the birth of the Labour party service management, tendering, financial
or its first MP in West Ham, just down the planning and human resources, the original
road, the Unions in the docks, the reaction capacity of the sector was crucial in enabling
against Moseley and fascism, the 70s anti- the Council to envisage the possibility of
racism, you know. The Respect party locally commissioning out their Youth Services.
at the moment, you know, there’s just a
kind of wealth of all that stuff.” 5.6 Enabler: funding
The availability of flexible funding to support
Whilst it is difficult to distinguish the factors the very early stages of the commissioning
that have created this historic culture of strategy was identified as a crucial enabler
innovation, many of those interviewed for innovation. Although investment was
attributed this culture to the constant change relatively small (approximately £150,000), it
that has been associated with the Borough’s was sufficient to support the new management
long history of migrant communities moving team and consultants to research and develop
into the area. One interviewee said: the commissioning model.

“I think historically, this has been one of Further funding was attracted when
the most innovative places in the country - improvements to the service became apparent.
and you can go back centuries. But in the This enabled the management team to bid
last sort of century [you can look] to the for growth and to receive Neighbourhood
settlements movement where many social Renewal Funding, which supported training
reformers came here in this area because it programmes, a renovation and new build
was a place where exciting things happened programme, and the new Rapid Response
at grass roots level, at community level. And Team.
I think it’s partly because of its history, it’s a
place that’s always been quite edgy; there’s Now that the Council has received national
been a long history of migration.” recognition for its Youth Services, it has
attracted funding for new pilots and initiatives.
Many other interviewees felt that much of this
innovation stems from the need to address the
great poverty and deprivation of the area. One
interviewee said: 6. Summary and conclusions

“In the last 20 or so years, there’s been a Tower Hamlets’ pioneering approach to third
lot of work at the community level. A lot of sector commissioning can be described as a
grassroots activism which has been matched radical innovation. The Council has adopted a
with community-based organisations; and new organisational model, changed its patterns
in the eighties there were, because of the of service delivery, developed new services and
high levels of unemployment, huge social initiatives, and created an innovative culture
inequalities.” within Youth Services and more broadly across
other service functions.
This sense of innovation and opportunity has
helped to create a strong and vibrant third Arguably, of the four case studies, Tower
sector, and has encouraged much innovation Hamlets is the only authority than can be
around youth engagement at grassroots said to be comprehensively innovative with
level as well as within the Council, as one significant changes being made in education,
respondent put it: Children’s Services, initiatives to promote social
enterprise and the adoption of a borough-wide
“[It’s] been a rich history, which I guess Third Sector Strategy.
sometimes we kind of forget. We somehow
think that all of these things that we do are A unique set of political, socio-economic,
bright modern ideas, but they come from a cultural and historical factors have exerted
culture of a place.” pressure on Tower Hamlets to innovate.
Political change and the strong relationship
between local politics and the growing youth

80
population in Tower Hamlets created pressure
for change. The Council’s recognition of its
underperforming Youth Services in the late
nineties, combined with concerns that an
Ofsted inspection would identify the service as
failing, acted as a catalyst for change. The scale
of the problems in the Youth Service prompted
the Council to develop a radical solution.

The Borough’s dynamic third sector acted as an

important enabler for innovation. The strength
of the third sector was a crucial element in the
Council’s decision to adopt a commissioning
strategy, despite recognition that it would have
to support a programme of capacity building
around certain key skills.

Interviewees felt that Tower Hamlets’ history

of experimentation and social innovation, and
its proximity to Whitehall, have all enabled
the Borough to gain a high profile in central
government and among local government
peers.

Timeline 4: Innovation in Tower Hamlets to address Youth Services

Second round of
commissioning begins

Consultants Ofsted finds

Christine from Libra that Tower
Gilbert Council decides Consulting are Hamlets
Tower Hamlets joins the to commission commissioned provides
Youth Services Council as Introduction out Youth to help support adequate
recognised by Corporate of new Services. the Council in Youth Services
Council as Director of modernised First round of adopting a with good
underperforming Education political commissioning commissioning strategic
and outdated in 1997 structures begins model leadership

1995 1997 1999 2000 2001 2002 2003 2004 2006 2007

The Audit Local elections New leadership First round of Tendering Audit
Commission result in new group created commissioning process Commission
assesses that political to formulate ends begins. evaluates
services are leadership strategy and In 2003/04 Tower
‘performing in the Council pioneer change Council Hamlets’
poorly’ led by Steve contracts Children’s
Sipple the service to and Youth
Youth Action Services
UK, Poplar as excellent
Harcaand
Oxford
House

81
 Case study 5: Gouda, Netherlands: Innovating to tackle community cohesion
issues

Gouda, like other cities in the Netherlands, has experienced tensions between long
established Dutch residents and Moroccans – particularly young men – who settled
in particular neighbourhoods from the 1950s. The municipality was freed from central
government constraints in 2000; one result has been the development of intensive multi-
agency partnership working to support young Moroccan men. At the same time, very local
groups have emerged to support the Moroccan community.

These innovations were driven by a number of main factors:

• Low educational achievement and high unemployment among Moroccan boys.

• Social problems and a sense of crisis as clashes between Moroccan young people
intensified in 2002.

• Leadership from senior city officials, as well as certain agencies and individuals in the
voluntary and community sector.

Background data municipalities. Twelve provinces are each

120. Announced by the Central governed by a provincial council (Provinciale
Bureau of Statistics in
2006. Staten) whose members are elected
Geography: every four years. The provincial executive
(Gedeputeerde Staten) is responsible for
• Gouda is a medium-sized city and day-to-day management. There are 458
municipality in the province of South Holland municipalities, the lowest tier of government.
in the western Netherlands. The city covers Municipal council (Gemeenteraad) members
an area of 1,811 hectares. are also elected every four years.

Population:

• In 2007, Gouda’s population was 70,943, and 1. Summary: Context and need
increasing. The population density was 39.2
inhabitants per hectare. Approximately nine Gouda is a small city in the western delta of
per cent of the population are Moroccan, the the Netherlands. Like many other Dutch cities
largest ethnic minority group in the city. it has experienced tensions between white
Dutch (described in the Netherlands as ‘original
Labour market: Dutch’) and Muslim residents over the past five
years.
• Gouda was originally famous for its cheese
and smoking pipes. Yet it has also had a The Netherlands has nearly one million
history of economic deprivation as one of Muslim residents from countries including
the poorest Dutch cities – indeed, the term Somalia, Morocco and Turkey.120 Social
“Goudaner” was once a colloquialism for problems affecting Muslim communities, such
beggars. However, large scale development as unemployment and the poor performance
in the 20th century benefited the city’s of boys in the Dutch education system, have
economy, which now includes automation undermined community cohesion in many of
services, business administration, engineering the country’s major cities including Rotterdam,
offices, health and welfare, and retail and The Hague and Amsterdam.
wholesale trade. Health care and business
services are the largest employment sectors. These tensions have been fuelled by a
number of high profile incidents including
• Local government structure: The Netherlands the assassination in 2002 of the right-wing
has three tiers of government. There are two politician Pim Fortuyn, a controversial figure
levels of local government: provinces and with strong anti-immigration policies and

82
negative views about Islamic culture. Although Moroccan boys and young men are most
Fortuyn was murdered by a Dutch national affected by these problems. Compared to
his death was described by Dutch media as a Moroccan girls, they suffer lower aspirations,
politically motivated attack. In 2004, the film- lower educational attainment, and higher
maker Theo van Gogh was murdered by Islamic levels of unemployment, which in turn, have
extremist Mohammed Bouyeri. This incident increased involvement in petty crime, anti-
has been described by many commentators as social behaviour and drug abuse.
a turning point for many liberal Dutch voters
and politicians and has contributed to growing Fear of crime has also become an issue, despite
public hostility and mistrust towards Dutch crime rates being no higher than in other
Muslims. Dutch cities. This perception was compounded
by clashes between Moroccan youths on the
Over the past two years, anti-immigration streets of Korter Akkeren and Gouda Oost
discourse among mainstream political parties in 2002. Some municipal officials question
(that a decade ago would have been unlikely) whether the city’s Moroccan youth are a ‘lost
has created much public and political debate. generation’. These issues have had a negative
There has been a move to ban the Burqa. impact on all parts of Gouda’s Moroccan
There have also been proposals to tighten communities, fuelling crude stereotypes about
immigration controls by increasing the age criminality.
and income limits for immigrants, preventing
unmarried spouses entering the country, and Gouda is not the only city trying to improve
requiring new migrants to speak Dutch. One community cohesion. However, the city’s
controversial proposal even suggested that new approach is notable because it involves so
migrants watch a two-hour video about Dutch many groups working in partnership – the
liberal values, which includes a scene of two voluntary and community sector, business
men kissing; that film led to accusations that it and the public sector – and because it has
was intended to discourage Muslim migrants. been driven by both grassroots organisations
In 2006, the centre-right Dutch Government and the municipality taking different but
collapsed after a row about extremist complementary approaches. Gouda’s
immigration policy. Today the Government is experience is also interesting in the way it is
a coalition of Christian Democratic Appeal, aligned with some national policy priorities yet
Labour Party and Christian Union. New directly challenges others.
elections are not required until 2011.

In Gouda, tensions between Muslim and

original Dutch residents reflect these national 2. Innovation strategy
problems. But they have been intensified by
two factors. First, Gouda is unusual in that Local social innovation in Gouda has been
the overwhelming majority of its non-white driven by grassroots community action and two
population originates from Morocco. Other initiatives developed by the municipality and
Dutch cities have a greater mix of ethnicities. local public agencies. However, this work has
Moroccan communities have been established not developed as part of an overall strategy
in Gouda for over 50 years; they were actively led by the municipality but appears to have
recruited to work in the city’s pottery and evolved in response to persistent social issues,
meat handling industries. However, historically, with different agencies taking the lead at
Gouda was a conservative city with a strong different times. In this way, the city’s approach
and devout Protestant community. The to innovation is distinct from UK case studies
absence of a broader experience of ‘diversity’ like Knowsley or Tower Hamlets that set out to
to accustom people to living with other develop an overall strategy for innovation in a
values and lifestyles has intensified divisions particular service.
between these two communities. Second,
Gouda’s Moroccan Muslim residents are There are three complementary strands to
concentrated in two of the city’s most deprived Gouda’s work on community cohesion:
neighbourhoods, Gouda Oost and Korter
Akkeren. This has resulted in a geographical • Grassroots activity: initiated and led by
concentration of social problems, including residents and community groups.
poor housing, lack of infrastructure and
unemployment. • Neighbourhood renewal: initiated by
the municipality with a focus on physical

83
 and social regeneration in priority At times it has struggled to engage with
neighbourhoods. the municipality; on other occasions, it has
received strong support from the council and
• New approach to partnership working: local politicians. In 1997, it was established
to share data and target interventions at as ‘Every Youngster is One’. In 2000, it
Moroccan youth. started a Foundation and was encouraged
by the municipality to become part of the
city’s social welfare agency, although this
approach was rejected by the founders. In
3. Innovation Process 2004 the Foundation was abolished but the
Activity Centre was retained. Today, the R&M
3.1 Grassroots activity Activity Centre operates as a neighbourhood
Gouda has a number of grassroots projects and association with 527 paying members and is
initiatives designed to tackle social problems staffed entirely by volunteers.
in the city’s Muslim communities. The most
high profile and well organised of these is the The R&M Activity Centre has close connections
Rachid and Melchior (R&M) Activity Centre in to the municipality, local politicians and
Gouda Oost. agencies, and works with Factor G, the delivery
agency for local welfare services, on initiatives
Gouda Oost is a neighbourhood just to the to target Moroccan youth. The organisation
east of the city centre with a population of receives small grants from the municipality to
approximately 5,500, of whom more than 60 support individual projects to tackle community
per cent are of non-Dutch origin. There is a cohesion. It also works closely with the city’s
high proportion of rented social housing in the social welfare agencies to reach some of the
neighbourhood and a high turnover of tenants. most disaffected young Moroccan boys and
The neighbourhood has many social issues men, and runs its own projects targeting young
including low quality housing, generational people.
tensions between first generation immigrants
and young people, low aspirations and poor However, there are also tensions between
educational attainment among boys and young R&M and the local authorities. R&M has been
men, and unemployment. offered relatively large-scale funding in the
past to deliver community welfare and youth
R&M operates from a former school building services for the municipality. This offer was
in the middle of the neighbourhood, offering rejected by R&M, which preferred to remain
a café, gym, internet access, theatre groups, independent. However few, if any, of R&M’s
Arabic lessons, targeted youth work and a projects are self funding; they rely entirely
warden scheme known as neighbourhood on volunteer support and donations from
‘parents’. The association’s approach is low key, neighbourhood association members. Recently,
encouraging people to come in and take part in some of the Activity Centre’s services have
social activities, and develop their confidence been cut back due to a lack of volunteers to
to go out and do more in the community. staff the building.
The Activity Centre building belongs to
the municipality and is rented by R&M at a In the long-term, the municipality’s plans for
subsidised rate. neighbourhood regeneration pose a greater
threat to the sustainability of the R&M Activity
R&M was established as a youth project in Centre.The building that currently houses the
1997 by local Moroccan businessman, Rachid Centre will be demolished within four years. A
Tighadouini and former economist and civil proposed new community and sports centre will
servant, Melchior Verstegen. Its aims were provide some space for community initiatives.
to demonstrate that municipal social welfare However, these will no longer be at the centre
services were not dealing with entrenched of the neighbourhood and the municipality
problems effectively and to develop alternative is proposing to significantly increase rents
approaches to tackle problems with disaffected for community groups. This raises serious
youth. By doing so it hoped to improve the questions about the long-term sustainability of
overall quality of life, to unify the Moroccan the R&M Activity Centre and other grassroots
community and build bridges between original cohesion and neighbourhood initiatives in
Dutch and Moroccan residents. Gouda.

R&M has gone through a number of There are also tensions between community
organisational changes in the last decade. organisations and public agencies about the

84
municipality’s approach to targeting Moroccan Work began on the programmes in 2004
youth. The criticisms voiced were that although and will continue until 2015. In both
the work is intensive and highly targeted, it neighbourhoods, the renewal programme
does not empower the Moroccan community will involve significant investment in physical
to improve their own quality of life, and that regeneration, focusing on improvements
its services do not benefit many Moroccan to housing stock, landscaping, community
women. facilities and transport connections, and
economic and social regeneration activities.
Opinions differ on whether R&M’s structure Action plans have already been put in place
and range of activities are in themselves and investments made in neighbourhood
innovative. R&M maintained that they are, policing and CCTV cameras to tackle crime and
but others argued that similar organisations fear of crime in the two neighbourhoods. Social
exist in other cities. However the organisation enterprise initiatives include a programme to
undeniably plays an important role in Gouda’s tackle unemployment by encouraging young
overall approach to tackling community Moroccans to set up local businesses. Although
cohesion. R&M’s founding partnership between only 30 young men are currently involved in
a Moroccan businessman and an original Dutch this programme, the municipality believe it is
economist was unusual and has attracted much raising aspirations. Another initiative targets
attention. Although Verstegen is no longer a Moroccan mothers who do not work but play a
board member of the R&M and is much less crucial role in the domestic lives of families.
involved in its activities, current board members
are high profile and well networked within the Gouda’s focus on neighbourhood renewal
city. These strong personal connections with is aligned with a new national interest in
the municipality, local politicians, academics neighbourhoods. Central government has
and business community have enabled R&M recently identified the country’s 40 most
to gain political support and involvement deprived neighbourhoods. It proposes to
(two members of the Centre’s board are local target investment and interventions to these
councillors) and a high profile for the Centre’s communities in an initiative similar to the
work over the past decade, which has helped Neighbourhood Renewal Programme in
to perpetuate the organisation’s reputation for England. However, Gouda Oost and Korter
innovation. Akkeren are not included in the national list
of priority neighbourhoods because their
3.2 Neighbourhood regeneration postcodes include pockets of relative affluence.
Historically, Gouda has had high levels of
central government intervention. Located in Project Wijkontwikkeling, the city’s
one of the lowest parts of the country, the area Neighbourhood Development office, is
has received significant investment for tackling responsible for the redevelopment, working
irrigation, flood defences and issues with with advisory boards of local residents. The
poor quality soil. In 1999, central government regeneration programme is funded jointly by
oversight of the city’s spending was removed central government, the municipality and the
and it devolved a range of powers to the local housing corporations. The Netherlands
municipality that enabled it to take control has a strong tradition of rented social housing
over its own spending and priorities for the without the stigma that is attached to it in
first time in 25 years. The transfer of power the UK. Half of Dutch residents own their
was accompanied by a lump sum payment from own home compared to 70 per cent in the
central government to the municipality for UK. Moreover, half of Dutch housing stock
tackling local issues. belongs to local housing corporations, which
are similar to British housing associations,
In 2000, the municipality identified the most but more powerful. Central government is
pressing social issues in the city as including now encouraging housing corporations to sell
problems with housing, physical infrastructure housing stock to generate money that can be
and worklessness in Gouda Oost and Korter invested in the social and physical regeneration
Akkeren. In response, the municipality decided of neighbourhoods. This is being negotiated
to develop a regeneration programme to target nationally, mirrored in local conversations
these two neighbourhoods involving both between municipalities and housing
physical improvements and social programmes corporations.
to improve quality of life. A visioning exercise
in 2003 sought to develop regeneration plans. In the early stages, Gouda’s neighbourhood
renewal programme was led by officers with
frontline responsibilities and the housing

85
 corporations. The programme now has partnership focuses on 10-26 year olds, both as
political support although the social aspect individuals and in groups, and has two different
of the renewal programme is not universally levels.
supported. Some in the municipality feel that
a more direct, hardline approach to tackling At the senior level, the local authority, the
crime and anti-social behaviour would be a Police and welfare institutions meet every
more effective way to tackle the divisions three weeks to share information between
between the original Dutch and Moroccan partners about what is happening in the
residents. priority neighbourhoods and problems
related to groups of young people. Locally,
3.3 Agency integration and targeted frontline workers from key agencies share
interventions data about individuals and how interventions
The third strand of local social innovation in can be targeted to support them. Meetings
Gouda is a new partnership between the city’s are organised by the municipality, which has
agencies. appointed an officer to integrate all the records
held by different agencies about targeted
Although partnerships between public agencies individuals. These include detailed records on
are common in the Netherlands, Gouda’s young people under 25, including their family
approach is unusual both in its intensive focus context, which can be used by the participating
on targeting Moroccan youth and the data- agencies to target welfare and social support.
sharing initiatives – the ‘persoonigerichte
aanpak’ – that have been developed by local One initiative is an intensive coaching
partners. programme for Moroccan boys, which currently
involves two hundred individuals. Each boy
The driver for the data-sharing initiative came has a case manager from one of the agencies
in 2002, when Gouda experienced disturbances involved who has oversight of their progress.
involving Moroccan young people, the first The coaching programme involves intensive
time that the city had experienced this type of work to help the boys to regain some structure
problem. These incidents created significant in their lives and to tackle specific individual
public concern. Gouda’s public agencies with problems. Professionals meet weekly with the
responsibility for youth protection, crime, boys to talk about family issues, encourage the
social services and welfare acknowledged they boys to go to school or back to work, and to
did not have the experience or information to tackle problems with money or drug abuse.
respond to the crisis and multiple, inter-related
social problems. The overall approach goes against the grain
of current Dutch national policy which
Conversations with the community and discourages social welfare interventions
frontline agency staff to discuss possible targeted at particular ethnic groups. National
strategies for tackling the problems began policy has emerged from debate and anxiety
within a week at neighbourhood level. about multi-culturalism. However, Gouda’s
However, across the city it took another year Labour party and its partner agencies have
to bring together the municipality and relevant chosen a different stance in their strategy
agencies to commit to tackling problems aimed at creating community cohesion.
together.

The result is an intensive partnership launched

in 2005, bringing together the city’s key public 4. Outcomes
agencies to share information and to develop a
new ‘cure and prevention’ approach to tackling There is little hard independent evaluation of
entrenched social problems. the outcomes of Gouda’s various initiatives to
tackle community cohesion issues. However,
In practice, the partnership brings together anecdotal evidence indicates that collectively
different agencies including the Police, the the initiatives are having impact.
municipal council, youth and child protection
agencies, legal officers, the Department of Factor G, the agency responsible for delivering
Justice, and welfare institutions, in a new welfare services and a key agency in the
data sharing system – SOS – that collates partnership working initiative, claims the
information on what is happening in the programme has had a significant impact
two priority neighbourhoods and helps to on the ability of agencies to improve their
develop joint responses to social problems. The effectiveness and has delivered targeted

86
interventions. The agency claims that 80 per of experience or the remit to deal with the
cent of the Moroccan boys involved in the problems individually. While agency leaders
coaching programme succeed in restoring some quickly committed to working together, it took
structure to their lives, enabling them to return another year for the idea to gain support from
to school or work. Success is also measured by the municipality’s political leaders.
the partnership in terms of a reduction in Police
contact with the Moroccan boys. Gouda’s SOS 5.3 Enabler: National policy context
data sharing system is widely acknowledged to Gouda is an interesting case study because
be an effective response to the city’s problems local innovation has been enabled indirectly by
and the municipality now wants to extend the changes in policy at national government level.
approach to other sectors. In particular, the decision to devolve power to
the municipality allowed the city to identify
Grassroots initiatives and investments local spending priorities and national policy
in neighbourhood policing, CCTV and to focus public investment on neighbourhood
physical improvements in the two priority renewal. However, the municipality’s targeted
neighbourhoods have resulted in lower crime interventions to reach Moroccan young people
rates, cleaner streets and improvements in clash with a recent change in national policy,
perceptions about crime levels. which now focuses on the shared problems that
cut across different social, cultural and ethnic
groups, discouraging initiatives that target
individual cultural groups.
5. Analysis: drivers and enablers of
innovation in Gouda 5.4 Enabler: Resources
The availability of central government funds
5.1 Driver: Social problems and crisis as a result of the devolution of powers to the
Both grassroots innovation and the municipality, and of resources from the housing
municipality’s neighbourhood renewal corporations, has enabled the city to invest in
programme have been driven by persistent physical and social regeneration programmes
and concentrated social problems in Gouda’s targeting priority neighbourhoods.
Moroccan communities. The clashes between
Moroccan youths in 2002 acted as a trigger for
innovation in partnership working in the city.
6. Summary and conclusions
5.2 Driver: Leadership and Influence
R&M’s original founders, Rachid Tighadouini Local innovation in Gouda has emerged in a
and Melchior Verstegen, were an unusual and more organic way than some of our other case
charismatic partnership with strong networks studies. All three initiatives have been driven
in Gouda’s business and political communities. by pressing social problems that impact most
These informal links enabled R&M to gain significantly on the city’s Moroccan residents
support from local political leaders, including and are concentrated in two of the most
the Mayor, aldermen and councillors, at crucial deprived neighbourhoods.
times in R&M’s development. When R&M
became a Foundation in 2000, these networks Grassroots activity has responded to public
were extended to influential academic contacts concern and local social problems and has
who became part of the Board, enabling evolved into practical initiatives, activities and
R&M to gain profile for its activities in the groups targeting the Moroccan community.
academic community in a way that other similar In themselves, these grassroots activities are
organisations have not achieved. R&M has also probably not unusual, but as part of the city’s
been criticised for having too many white board overall response to community cohesion issues,
members, although this is now less true than in they play an important role in ensuring that
the past. public agencies better meet residents’ needs.

Leadership has also been important to the The municipality’s response to local problems
development of the city’s partnership working is innovative in its combination of intensive
initiative. Immediately after the riots of 2002 partnership working, data sharing and
senior officers from the city’s different agencies integrated agency responses, and the focus
came together to discuss the way forward. on highly targeted interventions to reach
Individual agencies recognised the city’s lack of Moroccan young people at a time when
experience in dealing with community cohesion national government policy is stressing a
issues and that no agency had the breadth different kind of approach.

87
 There was a notable lack of co-ordination
between the different initiatives. Grassroots
activists did not know about the data-sharing
and targeted resources; and neighbourhood
regeneration initiatives appeared to be
disconnected from both. There was some
cynicism amongst different stakeholders
about the appropriateness of other agencies’
activities. There are questions around the
sustainability of Gouda’s grassroots initiatives,
particularly future funding and provision of
subsidised accommodation. Similarly data
sharing and targeting of resources towards
Moroccan youth appears to be held together
by a fragile consensus, which could easily be
destabilised by political change.

Timeline 5: Innovation in Gouda

Takes a year to engage agencies
in municipality and make
Central it in a citywide conversation
R&M set
Government
up first
devolves
project to
decision-making
improve Municipality
power to
relations brings together
Gouda
between different
municipality
original agencies to
Dutch and commit Data sharing
Moroccan Municipality to work partnership
communities committed together established

1997 1999 2000 2002 2003 2004 2005

R&M Tensions Neighbourhood

Fundation escalate and regeneration
created end in street programmes
clashes-local start in
Gouda Oost conversations Gouda Oost
& Korter start and Korter
Akkeren immediately Akkeren
identified as between
areas where community
unemployment/ groups, welfare
housing agencies to
problems tackle problems
are most
concentrated

Municipality starts process

to identify city’s
worst social problems

88
 Case study 6: Cultural regeneration of Lille, France

Assisted by the ongoing process of decentralisation, the Urban Community of Lille in

France has undergone significant regeneration in the last 20 years, tackling the effects
of deindustrialisation. Lille has now established itself as an industrial hub and commercial
centre of Northwest Europe. Many of its projects to revitalise the area have been
supplemented by innovative alliances and government structures.

Innovation has been driven by four main factors:

• Charismatic leadership from the Mayor of Lille, Pierre Mauroy.

• Strong informal networks between the different agencies and sectors.

• The impact of Lille’s bid to become Europe’s Capital of Culture in 2004, and to host the
2004 Olympics, which strengthened existing networks.

• The opportunities that arose from Lille’s emergence as a transport hub through the
development of the Channel Tunnel interchange station in 1987.

Background data Local government structure:

Geography: • The commune is the lowest tier of

government in France. Although there is
• Lille is the main city of France’s fourth no exact British equivalent a commune
largest metropolitan area. It is located to the has a status that falls somewhere between
country’s north, on the Deûle River, near the that of local government districts and civil
border with Belgium. parishes. The average area of a commune is
around 15 km_. 88 communes join together
Population: to form the Lille Métropole Communauté
Urbaine, one of the 14 Métropoles in France
• Lille has 220,000 inhabitants, making it the created in 1966 to assist in the devolution
tenth largest city in France. The wider urban of power from central government. This
area, Metropolitan Lille, has a population of acts as a metropolitan authority that
over one million inhabitants and is France’s shares the income from local taxes with the
fourth largest urban area. 36 per cent of the communes. The President of Lille Métropole
population of Metropolitan Lille is under 25. Communauté Urbaine is former French Prime
Minister, Pierre Mauroy.
Labour market:

• Lille has France’s third largest university

complex after Paris and Nantes. It is the 1. Summary: context and need
European capital for catalogue sales and
mass distribution. It is France’s leading Located in the Nord-Pas-de-Calais region in
centre for clothing and technical textiles; the Northern France, Lille Métropole Communauté
country’s second city for accommodating Urbaine (LMCU) covers an area that spans
international head offices and the third both France and Belgium. Including the
largest centre for banking, food processing Belgian cities that are also incorporated in
and mechanical and electrical industries. the urban area of Lille, the entire city-region
Lille was a major textiles manufacturing has a population of just under two million.
centre until the eighties and the collapse The LMCU is the strategic authority that
of this industry led to high unemployment encompasses the Lille city-region. LMCU acts
particularly for the immigrant population. as a local public authority, made up of 88
The unemployment rate was 14 per cent in extremely varied communes. The core includes
2001, above the national average of 9 per the cities of Roubaix, Tourcoing and Villeneuve
cent. d’Ascq.

89
 Lille has had a richer history than its French in this unification process between Lille’s many
counterparts, having been ruled for centuries communes. These projects brought together
by the Spanish, only joining France in 1668. both public and private investment.
This mixed heritage is still apparent and the
Métropole has a more distinct culture and Whilst Lille’s strategy for innovation has
appearance than other French areas. Lille also emphasised the physical regeneration of the
was affected greatly by the two world wars; in area, this was not the focal point of innovation.
both cases the city was occupied by foreign The strategy for rejuvenating the Métropole
troops. consisted first of improving the image of
the city to both the outside world and its
Lille historically built its prosperity upon the inhabitants. The local authorities, cities and
textiles industry, being located in what was LMCU decided upon a long-term strategy to
known as ‘the cradle’ of French industrial rehabilitate the Métropole’s general image. The
revolution. Lille’s economic growth and thriving repositioning of the area’s image supported the
industry resulted in a rapid population increase: reorganisation of Lille’s economy by helping
for example, in Roubaix, the population grew to attract external investment. A long-term
from 8,000 in 1806 to 125,000 in 1900. physical and cultural strategy helped to tackle
However, in the seventies, the area was greatly the interrelated dimensions of regeneration,
affected by deindustrialisation, leading to the requiring commitment from local public
closure of many factories and high levels of agencies irrespective of changes in national
unemployment with a resultant increase in policy.
poverty and need. The collapse of the textile
industry also led to population loss and an Lille implemented major schemes and
excess of vacant property. Some communes developed flagship projects around different
became ‘ghost towns’. themes such as bio-medical research and
121. L’Agence de modern textiles, which they called ‘poles
développement et
d’urbanisme de Lille As Lille’s industries continued to decline and for private investments’. These built upon
Métropole (2006) ‘The unemployment grew rapidly, senior officials, existing strengths, expertise and experience.
Urban Regeneration of Lille
Metropole.’ Lille: L’Agence politicians and business leaders recognised Lille sought to identify new opportunities
de développement et the need for Lille to diversify its economy, complementing the area’s cultural regeneration,
d’urbanisme de Lille
Métropole. build new industry and establish new markets. by building upon its unique history and
122. Ibid. Pierre Mauroy, who became Mayor of Lille identity. The strategy also included moving
in 1973, used his leadership to help create from a largely industrial to a more service-
consensus between the Mayors of the four oriented economy.
main cities within the LMCU. The new Mayor
also led and supported the LMCU in taking a These high profile projects began in the late
more strategic role in developing a vision for eighties with the development of EuraLille, a
economic development and urban regeneration major business and retail centre. The centre
and implementing a proactive strategy of was based on the idea of creating “a new
development and regeneration. Pierre Mauroy, district typical of the intricacy and functional
who has also served as Prime Minister of co-existence of the metropolises, right at the
France in the early eighties, is now head of the centre of a city that already exists”.121 This
LMCU. innovative and symbolic project was designed
to take advantage of the planned arrival of
Eurostar and interchange station at Lille for
North-West Europe. The EuraLille project was
2. Innovation strategy supported by a public-private partnership
in 1990 based upon the French ‘Sociétés
Lille’s strategy for innovation began with a d’Economie Mixte’ costing an estimated five
period of stabilisation and consensus-building billion francs, 1.5 billion of which were from
in the eighties. Mauroy recognised the need for public funds and the remainder from private
collaboration between communes and senior investors.122 EuraLille’s shopping centre, which
officials to formulate a strategy that they could opened in 1994, the same year as the Channel
jointly implement. This consensus was achieved Tunnel, has since become a popular attraction
using existing structures such as the LMCU, for tourists and the local community, helping to
which until then had played a largely technical reposition Lille’s image.
role. An alliance was also created by the
LMCU’s leading cities, Lille, Roubaix, Tourcoing Other projects which have been launched by
and Villeneuve d’Ascq. During the eighties the the LMCU in connection with private investors
LMCU launched a number of projects to assist include Eurasanté, a business park and service

90
centre specialising in bio-medical research and • Launching public building refurbishment and
hospitals. Lille has also developed Haute Borne, public area reclamation programmes.
a science park containing almost 60 research
laboratories and five engineering schools. • Coordinating and integrating social action
Spurred by a sense of competition with and participatory approaches.
other French local authorities, these projects
increased the international profile of the area
and helped boost the local economy, attracting
investors as well as accelerating cultural 3. Innovation process
regeneration. Lille has also attempted to spread
these different projects and sites across the 3.1 Creating structures and a consensus for
Métropole to ensure that the regeneration innovation
benefited the whole city-region. In 1985, the elected Mayors of the LMCU’s
four largest cities (Lille, Roubaix, Tourcoing and 123. Colomb C. and URBED
London (2006) ‘Making
Alongside these high profile projects, the Villeneuve d’Ascq) created an alliance. This Connections: Transforming
LMCU’s strategy also enforced the ‘ville was initially formed to “overcome what was People and Places in
Europe. Roubaix, Lille
renouvelée’ policy, a strategy which seeks to seen as the dominance of the small towns”.125 (France) Case Study.’
address the problems of economic, social, The alliance acted as a strategic framework in (Version 29, June 2006)
Draft version. Unpublished.
cultural, environmental and urban decay. This the development of a partnership between the
124. Euro Cities (2006)
was achieved by building upon potential assets many communes within the Métropole’s vast ‘Liveable Cities, Case
whilst restricting urban expansion in areas of area to address cultural regeneration. Report. Monitoring
progress management
natural beauty or farming districts. The strategy systems, evaluation: A
aimed to launch specific projects in Lille’s most Existing structures were used to regenerate main issue for sustainable
urban management plans
deprived areas, tailored to inhabitants’ needs. the Métropole’s cultural image. These included of European Cities.’
This ‘ville renouvelée’ policy included the the LMCU, which until then had performed Lille: Lille Métropole
Communauté Urbaine.
following key elements:123 a largely technical role in managing simple 125. Nicholas Falk (2006)
infrastructure and day-to-day street issues. ‘Learning from Lille and
Roubaix: Sub regional
• Recreating attractive and safe public spaces The structure was also blighted by local politics planning and the
and promoting the architectural heritage of connected to the smaller communes.126 coordination of transport
and development.’ London:
the city. URBED and TEN Group.
Mauroy decided to use this existing structure 126. Colomb C. and URBED
• Bringing retail back to the city and making to help realise a vision and strategy for the London (2006) ‘Making
Connections: Transforming
the city a shopping destination. urban regeneration and economic development People and Places in
of the region. The structure connected Europe. Roubaix, Lille
(France) Case Study.’
• Encouraging economic development through representatives from all of Lille’s smaller towns, (Version 29, June 2006)
a designated ‘Enterprise Zone’ and other with approximately 170 local councillors Draft version. Unpublished.
127. Euro Cities (2006)
targeted development. elected by the communes. The LMCU enabled ‘Liveable Cities, Case
a coherent strategy to be developed in Report. Monitoring
progress management
• Developing an innovative and proactive partnership. In 2002 the LMCU’s strategic focus systems, evaluation: A
cultural strategy to make the city of Roubaix shifted from urban development to economic main issue for sustainable
urban management plans
a focus of culture and tourism. development as well as the environment and of European Cities.’
major cultural events. More recently, the LMCU Lille: Lille Métropole
Communauté Urbaine.
• Supporting housing renewal for the benefit has been used to develop and implement a
of the local population, seen as crucial in strategy for housing renewal and provision
retaining and attracting new residents. across the Métropole.

The Lille Métropole Basic Master Plan, a key The LMCU has also developed several papers
component of the metropolitan urban project, which lay out Lille’s framework for sustainable
describes the six coordinated objectives of the development. This includes the Development
strategy as:124 and Urbanisation Master Urban Plan (DUMP)
which focuses on enhancing urban life in Lille
• Rethinking the territory’s economic and from both a social and economic viewpoint.
urban activities. The DUMP consists of seven development
fields, bringing together institutional
• A large scale renewal of the housing stock. stakeholders in the implementation of its
outlined strategies. This included the State, the
• Upgrading urban road systems and gaps. Region Nord-Pas de Calais, the Department
du Nord, local authorities, economic managers
• Upgrading and dealing with brownfield sites and not-for-profit organisations.127 The
as well as polluted and abandoned areas. existing structure of the LMCU has provided

91
 a platform for social innovation, benefiting also been promoted through La Piscine. Lille
from the continuing decentralisation of central has chosen to build upon its previous strengths
government power since its creation. and expertise: a good example is Roubaix’s
highly specialised textile cluster which contains
New structures have also been created to many innovative small and medium-sized
help support innovation. These include the textiles enterprises, some specialising in new
Comité Grand Lille (CGL), a forum started products such as fire resistant textiles or space
in 1993 by a proactive regional industrialist, textiles. Unable to complete globally with the
Bruno Bonduelle, to strengthen informal mass production of textiles, Lille has built
Lille networks. CGL brings together many upon its prior knowledge and historic identity
representatives from different agencies, by moving towards a more highly skilled and
encouraging collaboration and strengthening specialised area of the textiles industry.
relationships within the area. Its organic and
somewhat relaxed form helps to support These different methods describe how
innovation, with its goal of creating genuine Lille developed the Métropole’s identity by
and natural alliances and partnerships, rather capturing and building upon its history. Lille
than the more mechanistic and rigid system has also put forward high profile bids to
provided by other structures such as the restore local pride. In 1994, the city bid to
LMCU and APIM. The CGL culture drives and host the 2004 Olympic Games. The process
facilitates creativity, and was often described of putting together the Olympic bid brought
by interviewees as an exciting place to together many of the region’s agencies,
introduce and discuss new ideas. building relationships between them and
strengthening informal networks. Leaders in
3.2 Creating a culture for innovation both the public, private and not-for-profit
The people of Lille suffered acute low self- sectors came together within the CGL to
128. Colomb C. and URBED esteem following deindustrialisation and the formulate and lobby for Lille to host the 2004
London (2006) ‘Making
Connections: Transforming area’s resultant poverty. Reversing what was Games. Whilst the bid was unsuccessful, the
People and Places in described as a negative and self-defeatist process significantly increased the confidence
Europe. Roubaix, Lille
(France) Case Study.’ attitude was seen as central to creating a and pride of local communities and residents.
(Version 29, June 2006) culture that would support regeneration. The bid raised Lille’s profile nationally, re-
Draft version. Unpublished.
129. Ibid. establishing the city’s image within the rest of
The LMCU’s strength was in its realisation France. The bid also created a strong network
that to regenerate the area and develop its between agencies and actors within Lille,
economy, it would also have to address the strengthening the structure of the CGL and
cultural and social elements of regeneration. the relationship between important individuals
The LMCU introduced a proactive cultural in local business, the local political arena and
policy, developing and promoting Lille’s rich Lille’s public sector.
cultural and historical heritage128 including the
modern art museum in Villeneuve d’Ascq, and Shortly afterwards, Lille was nominated as
La Piscine, a disused railway station converted the European Capital of Culture for 2004.
into a museum of arts and industry in Roubaix, This brought together the same actors and
which has encouraged private investment. agencies as the Olympics bid, reinforcing and
Lille has encouraged and supported the work embedding their relationships, and making
of artists through projects such as Quartier them more sustainable in the long term. Lille
du Monde, where designers, painters and used this opportunity to develop a large and
bakers collaborate with distributors to sell rich programme of events, involving the whole
their products. Lille has also made an effort region. The selection as Capital of Culture
to strengthen and develop its musical scene further raised Lille’s profile internationally,
through actions such as the refurbishment establishing it as a tourist destination. Lille’s
of the city’s Opera House. These projects image was further repositioned, perceived as
supported local talent, giving confidence to “a dynamic, creative, young city with lots of
Lille’s cultural industries, and encouraged potential and qualities”.129
innovation.

Lille’s strategy has focused on building on

existing and historical strengths. Much work 4. Outcomes
has been undertaken to protect and sustain the
area’s rich architectural heritage, with certain Despite its loss of jobs and increased poverty,
neighbourhoods dating back to the 16th Lille has managed successfully to innovate
century. The region’s strong industrial past has and revive the urban area, diversifying the

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economy and sustaining physical and cultural problems and needs could not be addressed by
regeneration. communes working in isolation.

This innovation has had a number of impacts Competition was also important in driving
on the Métropole. Lille has transformed its innovation, as awareness grew of the
economy to one that is much more service- Métropole’s relative performance against other
oriented. Fifteen per cent of the new jobs French areas and other European cities. This
created have been in the city’s cultural acknowledgment helped to justify the need to
industries. Unemployment has also fallen take appropriate risks. One interviewee recalled
from 33 per cent in the eighties to 22 per how, as the region saw other areas doing better
cent in 2005.130 Inward investment from both and becoming wealthier, senior officials in Lille
individuals and businesses has increased as new felt greater pressure to act and innovate.
companies have moved to the area. Population
decline in the LMCU’s inner cities also stopped 5.2 Drivers: Transportation hub
during the nineties.131 Cities which were Following the announcement of the
severely affected by deindustrialisation, such as French-British cooperation agreement for
Roubaix, are also now gradually attracting back the construction of the Channel Tunnel in
middle-class residents. 1986, the Mayor of Lille began to campaign
and lobby central government to place an
Perceptions of Lille have improved and Lille has interchange station for North-West Europe in
also established itself as a tourist destination. Lille. In 1987 Lille received a contract for TGV
Tourist flows have increased significantly in and Eurostar linking Lille to London, Paris and
the last ten years and Lille is now a city with a Brussels. The city became a transportation hub,
vibrant image.132 central to North West Europe. The train station
was situated at the heart of the city, connected
to the local, well developed metro and tram 130. Academy for Sustainable
Communities (unknown)
line. Lille had previously been associated with ‘Case study 6: Urban
5. Analysis: drivers and enablers of innovation in transportation, designing and renewal: Roubaix France.’
Leeds: Skills for the Future.
innovation in Lille constructing the first driverless metro system 131. Colomb C. and URBED
in 1983. London (2006) ‘Making
Connections: Transforming
5.1 Drivers: Need, economic crisis and People and Places in
competition Lille’s transformation into a transportation hub Europe. Roubaix, Lille
(France) Case Study.’
In earlier centuries, Lille greatly benefited from gave rise to many opportunities in regenerating (Version 29, June 2006)
the industrialisation of France. Its population the area, repositioning its image and Draft version. Unpublished.
and prosperity grew. Following the closure of developing its economy. Leaders were quick 132. Ibid.

Lille’s coal and textiles industry in the eighties, to recognise this opportunity and maximise
the economy collapsed, resulting in high benefits. This included the construction of the
unemployment and deprivation. An economic EuraLille development, acting as a landmark
crisis and the resultant need to address it acted and tourist destination in the city. Projects such
as key drivers in the innovation process. as EuraLille have helped to establish Lille as a
significant European city.
Senior officials, politicians and leaders in Lille’s
private and not-for-profit sector recognised 5.3 Drivers: Leadership
the need to regenerate the area by building Many of those interviewed attribute the
new industries, high-tech parks and creating success and innovation to charismatic
new markets. The economic crisis brought leadership provided by the former Mayor
agencies and actors together to regenerate of Lille, Pierre Mauroy. A French Socialist
the area both physically and culturally. The Politician, Mauroy was Mayor from 1973 to
LMCU and CGL also appreciated the complex 2001. He also served as Prime Minister of
nature of regeneration and prioritised the France from 1981 to 1984, under President
need to reposition Lille’s image and address its François Mitterrand. His leadership was
inhabitants’ low self-esteem. crucial in triggering the innovation processes,
revitalising existing structures and using
The sense of crisis also helped to create political clout to lobby the French government
a culture of innovation. Key agencies and to place the Eurostar station and TGV
individuals realised that taking risks was interchange station in Lille.
necessary to revitalise the area. The crisis also
helped to create a general consensus in the Mauroy also played an important role in
region, with many realising that Lille’s social building consensus within Lille. He used his
strong informal networks and social capital to

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 communicate a vision for Lille’s future, creating innovation. As the area of Lille has evolved,
a stable environment in which politicians leadership has begun to come from many
worked together. different sources. The small select set of
individuals whose input was central at the
After his time as Mayor of Lille, Mauroy start is reported as no longer crucial to the
became the director of the LMCU, a position he innovation process. Innovation is found in
holds today. This has enabled him to continue many different aspects of Lille’s regeneration.
playing an active role in the regeneration of Some interviewees described how they now
the city, helping to put into place the strategies felt that if individuals such as Pierre Mauroy
formulated to continue economic development. were to leave the area, innovation would be
sustained. Many more people are now actively
Leaders in Lille’s different communes and involved in the innovation process due to
regions also played an important role, structures such as the LMCU and CGL.
translating the overarching strategy for change
to individual cities and communes. One such 5.6 Enablers: political stability and
was Michel David, head of education, culture, consensus
and urban regeneration in Roubaix, who was Innovation in Lille has been possible because
an important leader in the innovation process of a stable political consensus and commitment
within Roubaix. Other important leaders for change. The majority of interviewees felt
include Bruno Bonduelle, a proactive regional that such radical change would have been
industrialist who created the CGL. Leadership difficult to introduce in a less stable political
in the private sector has helped to facilitate setting and they noted how important it was
collaboration between agencies and to attract that Lille’s politicians were able to work well in
joint private and public funding. collaboration, irrespective of their individual
parties.
133. L’Agence de 5.4 Driver: Strong informal networks and
développement et
d’urbanisme de Lille collaboration 5.7 Enablers: Decentralisation and the
Métropole (2006) ‘The The dialogue between Lille’s different public devolving of power
Urban Regeneration of Lille
Metropole.’ Lille: L’Agence and private actors through structures such as There has been an on-going process of
de développement et the LMCU and CGL has often been the starting decentralisation of government power in
d’urbanisme de Lille
Métropole. point for many innovations. Strong informal France supported by legislation in 1968, 1982,
networks that were strengthened under Pierre 1986 and 2003. The LMCU is a new tier of local
Mauroy’s leadership, have helped to create a government composed of cities and suburbs,
culture of innovation through the sharing of with fiscal power. This gradual devolution of
knowledge and ideas. power from central government has enabled
the social innovation, providing the Métropole
The organic nature of the CGL has also helped with the space and freedom to experiment.
to drive innovation. Much creativity and many One interviewee believed that central
innovative approaches have started and been government facilitated long-term innovation
developed within this forum. The bringing in Lille by accepting experimental regional
together of representatives from different government.
organisations, sectors and levels has improved
information-sharing through its cross-cutting LMCU’s fiscal power gave it control over
structure. a significantly large amount of resources,
enabling the body to utilise and apply them
Such networks have also helped to according to its own priorities and agenda. In
communicate a strategy for regeneration and 2005 the LMCU budget was €1.4 billion.133
bring agencies together to put into place a The bulk of this is invested in key fields such
clear vision. Collaboration has also ensured as public transport, urban ecology, the road
‘buy in’ from many crucial individuals in network, land planning and development.
both the private and public sector. With an The LMCU has become more active and a
incredibly diverse area consisting of small rural key public stakeholder in the development
towns as well as very large cities, consensus processes.
and collaboration is essential to the success
of the wide-scale and complex strategy of
regeneration.
6. Summary and conclusions
5.5 Enabler: Continuation of leaders
Lille has benefited from long-term leadership, In Lille, local authorities, cities and the LMCU
which has helped to sustain and implement have been implementing a careful urban

94
regeneration strategy for several years now. vision for change. The creation of a new
The approach has successfully rehabilitated organisational culture also helped to support
the Métropole’s image, repositioning it as a innovation in Lille, not unlike the structures
place associated with a dynamic, creative and for innovation developed by the Highland and
youthful image. This innovation was driven Knowsley Councils. The long term leadership of
and enabled by a number of clearly identified certain figures and the gradual creation of an
factors. innovative culture has meant that Lille appears
to have entered a phase where innovation can
The placing of the new Eurostar and be sustained and is no longer dependant on
interchange station in the city transformed key individuals.
Lille into a transportation hub. However the
city’s agencies were quick to capitalise on the Innovation in Lille is much further along in
benefits from this opportunity. The need and the innovation process than our other case
deprivation caused by the deindustrialisation studies. Innovation has spread beyond cultural
of Lille and the long-term implications for regeneration and is now apparent in a number
the region’s economy also created strong of other fields, including housing. Lille has
internal pressures from agencies, officials and also benefited greatly from decentralisation
politicians. As with a number of our UK-based in France, taking advantage of the freedom
case studies, including South Tyneside and and control associated with the devolution of
the Highlands, leadership from politicians power, able to use fiscal autonomy to support
was crucial in triggering and acting as a spur the area’s own agenda and regeneration
for innovation, establishing a strategy and strategy.

Timeline 6: Innovation in Lille

Pierre
Mauroy
Lille is becomes
affected by Prime Development
deindustrialisation, Minister of of Channel
Lille leading to the France Tunnel Comité
Métropole closure of between Interchange Grand Lille
is created factories 1981-1984 station created

1965 1970 1975 1980 1985 1990 1995 2000 2005

Pierre Mauroy Elected Lille Euraille Lille chosen LMCU’s focus

becomes Mayors of the receives project is to be French shifts to
Mayor of Lille LMCU’s four contract set up with a representative economic,
largest cities for TGV public-private for the 2004 environmental
create an and Eurostar partnership Olympic Games and cultural
alliance and named development
as European and housing
Capital of
Culture 2004

95
 Case study 7: Work force development and unemployment, Pittsburgh, US

Following the decline of many of its industries in the eighties, Pittsburgh has repositioned
its economy to address deprivation in the area. Even though the voluntary and community
sector in the US is larger and more established than in the UK , Pittsburgh contains many
socially innovative organisations and has one of the most active voluntary and community
sectors in the country. Innovation is present in a number of different fields including
workforce development, healthcare, regeneration and the environment. This innovation is
driven by:

• Deprivation and resultant need following the collapse of the steel and coal industries.

• A high concentration of finance and support in well-established foundations, created

through wealth earned from previous economic success.

• Collaborative leadership from a number of Pittsburgh’s universities and foundations, many

with an interest in social innovation.

Background data Local government structure:

Geography: • Pittsburgh City Council is the legislative

branch of government and has nine
• Located in South Western Pennsylvania, members. Each member represents one
Pittsburgh city has a total area of 151km2 council district, and is appointed to chair
and is the thirteenth largest city in the a committee which corresponds to a city
United States. department.

Population: • From the American Civil War to the 1930s,

Pittsburgh was a Republican stronghold.
• The population of Pittsburgh in 2000 was However, Democratic candidates have
334,563 with 2,658,695 in the surrounding controlled the Mayor’s office consecutively
metropolitan area. The population is since 1933.
declining and had fallen to 312,819 by 2006.
Twenty per cent of the population lived • Like the council, the Mayor serves a four-
below the poverty line in 2000. year term. After the death of Mayor Bob
O’Connor in September 2006, City Council
• The demographic of the region is diverse, President Luke Ravenstahl was sworn in as
reflecting the city’s immigrant history the new Mayor. Aged just 26, he was the
including African American, Jewish, Irish youngest ever Mayor in any major American
American, Italian American, German American city. City council members are chosen by
and Eastern European communities. In 2000, plurality elections in each of nine districts.
68 per cent of the population was white and
27 per cent African-American.

Labour market: 1. Summary: context and need

• Since the decline of steel, Pittsburgh’s The city of Pittsburgh is situated in Allegheny
primary industries have shifted to advanced County in south-western Pennsylvania. The city
technology, including robotics and centres on the meeting point of the Allegheny
biomedical technology; education is also a and Monongahela Rivers, which then form the
major employer. Pittsburgh still maintains its Ohio River.
status as a corporate headquarters city, with
seven Fortune 500 companies calling the city Pittsburgh has a rich industrial past. It started
home. The unemployment rate in Pittsburgh in the early nineteenth century as the region
was six per cent in 2000 compared to the US began producing significant quantities of iron,
average of four per cent in 1999. brass, tin and glass products. By 1875, it had

96
transformed into an industrial centre, with 939 moved away in search of employment. The
factories located in Pittsburgh and the nearby population in Pittsburgh has more than halved
Allegheny City, employing more than 10,000 since the fifties.
workers and producing almost $12 million
worth of goods. Using its rivers, Pittsburgh
became one of the busiest ports in the US.
2. Innovation strategy
This success continued to the early twentieth
century, as Pittsburgh became an industrial The voluntary and community sector
centre for steel manufacture. The growth of have addressed the need of Pittsburgh’s
the steel and coal industries resulted in large communities. Non-profit and grassroots
population growth fuelled by many European organisations were thought by the foundations
immigrant populations. Among this influx were and universities to be better placed to innovate
Irish, Scottish, Italian, German and Eastern and meet the needs of the unemployed and
European communities, settling in different deprived. Often operating on a neighbourhood
neighbourhoods in the city. Pittsburgh’s level, grassroots organisations were seen as
patchwork of neighbourhoods has survived, better able to gauge the needs of specific
with many still possessing their original ethnic communities that were not being met by
character. Communities still have very strong Pittsburgh’s overstretched public sector. One
relationships with particular neighbourhoods. interviewee reported: “from my experience
much of the innovation that we’ve witnessed
Pittsburgh’s industrial success was not good for hasn’t been from the public sector; the
the environment. The city suffered from poor leadership and innovation in Pittsburgh has
air quality and a river filled with pollutants. really come from our not-for-profit sector”.
Referred to as the ‘smoky city’, thick smog
meant that streetlights sometimes had to be lit Individuals involved in such grassroots 134. The Forbes Funds (2006)
‘2006 Tropman Reports:
during the day. The first of Pittsburgh’s social organisations were often local champions, Applied research about
innovations in urban development started in able to use their social capital and informal the Pittsburgh Region’s
Nonprofit Sector.’
the first decade of the 20th century as the city networks to support innovation. The size and Pittsburgh: The Forbes
used public-private partnerships to revitalise organic nature of many organisations in the Funds.

the city. This clean air and civic revitalisation voluntary and community sector also facilitated
included projects to create grand public spaces innovation, as these organisations were seen
and architecturally significant office buildings. as being more flexible and responsive to
In recent history, there has been further bottom-up pressures and need, unlike larger
innovation in the voluntary and community organisations such as Pittsburgh’s foundations.
sector around the environment including A research paper by Pittsburgh’s Forbes
projects such as GTECH which aims to tackle Foundation articulated this view: “nonprofits
the contamination of Pittsburgh’s land, or occupy a special niche as the first responders
Venture Outdoors, a social enterprise that to a host of social and economic problems
encourages sports and activities. that impede hopeful progress, as the first
providers of many of the services that attract
Industrial success and wealth made Pittsburgh and hold the region’s workforce, and as among
the home of many wealthy and world renowned the area’s first champions of change toward
industrialists. This includes Andrew Carnegie organisational effectiveness”.134
who was referred to as the ‘Steel King of
America’ and retired as the richest man in the Whilst the voluntary and community sector
world, selling his steel empire to J.P. Morgan were seen to occupy an important role in social
in 1901 for $400 million. Other prominent innovation, other agencies and sectors also
industrialists included Henry Clay Frick, Henry realised that they had an important part to
J. Heinz, Andrew W. Mellon, and Charles M. play in the innovation process. Pittsburgh’s
Schwab, who all built their fortunes in the city. foundations have supported and developed the
As philanthropists, they invested significant non-profit sector to address social problems.
sums of money in projects such as the Carnegie They identify social innovation and then
Institute of Technology in Pittsburgh, now the provide both resources and guidance to sustain
Carnegie Mellon University. and scale up many projects. Whilst a lack of
capital is often seen as the major barrier to
In the seventies, the steel industry began sustainability of non-profits and innovation,
to collapse. The loss of jobs and closure of many of those interviewed emphasised the
factories resulted in high unemployment and importance of the additional support and
a steady decrease in population as workers practical advice provided by foundations in

97
 helping organisations to meet their aims and to economic development and improving
goals. One interviewee explained that: “without residents’ quality of life. The Forbes Fund
foundation support and more importantly of The Pittsburgh Foundation was created,
guidance, we would not have achieved what we combining grants, loans and technical
have; I don’t think we’d be here. We’ve always assistance to help agencies facing financial
has the ideas, but the foundations helped us to turmoil.
get there”.
To help promote a culture of innovation,
The universities in Pittsburgh have also Pittsburgh’s universities, including the Heinz
played an important role in building the School’s Institute for Social Innovation also
capacity of the third sector. Institutions helped to support innovation by mentoring
such as Carnegie Mellon have conducted budding innovators and entrepreneurs among
research and collaborative work with the their students. They did this by developing
voluntary and community sector to gain a new opportunities for hands-on learning;
better understanding of social innovation and conducting data-driven and evidence-based
how non-profits can best be supported. The research while building useful models and
relatively greater awareness of social enterprise tools; coordinating university-community
and social innovation in Pittsburgh compared partnerships; supporting social sector spin-offs
to other US cities has legitimised the sector in Pittsburgh; and strengthening organisations
and its activities. driven by a social mission.

More recently, the amount of available funding Organisations and social entrepreneurs were
for the voluntary and community sector has identified and supported to help create
decreased and competition for these funds and develop a culture of innovation. They
has increased. Pittsburgh’s foundations and included entrepreneurs such as Bill Strickland,
135. Mair, J. and Marti, universities have sought to make organisations who is now seen as ‘one of the world’s great
I. (2006) Social
Entrepreneurship Research: in this sector self-sufficient by turning their social innovators’. As head of both the
A Source of Explanation, attentions towards the potential of social Manchester Craftsmen’s Guild and the Bidwell
Prediction and Delight.
‘Journal of World Business.’ enterprise and trading arms. Training Centre, Strickland created a youth
41(1), pp. 36-44. development and adult training centre, with a
Social enterprises straddle both the non-profit distinct ethos and culture, in an environment
and for-profit sectors and can be formed surrounded by art and jazz. Starting with
when a non-profit organisation launches ceramics, photography and music, this facility
initiatives to earn additional revenues. They provides free programmes to enable young
are also formed when commercial businesses adults and school pupils to go on to college.
undertake collaborations or alliances to engage The project also supports and trains adults so
in socially responsible practices. And they that they can gain employment in fields such
include businesses formed in response to a as pharmaceuticals, culinary arts, horticultural
social problem.135 Institutions such as the Heinz technology or medical coding.
Schools’ Institute for Social Innovation say
that they are striving to transform Pittsburgh 3.2 Making social innovation sustainable
into: “a Silicon Valley for social enterprise and To increase their impact, many foundations
innovation”. began to recruit staff and consultants to help
target grants at community issues. Foundations
realised the need to be more targeted, as
there was increased competition for funding
3. Innovation process from a growing number of non-profits and
a parallel decrease in the amount of finance
3.1 Identifying and supporting local social available for the non-profit sector. This trend
innovation has caused a reassessment of support for
During the collapse of the steel industry, the non-profit sector, which now focuses on
unemployment in Pittsburgh reached 12 the sustainability and robustness of socially
per cent. At the same time, many social innovative organisations in the voluntary and
welfare programmes were reduced, bringing community sector. For example Pittsburgh’s
a significant number of agencies close to Heinz School founded the Institute for Social
financial crisis. Pittsburgh’s foundation Innovation to help local nonprofits become
community and universities filled the void in more financially self-sufficient: “to foster
the absence of other leadership to address innovation and entrepreneurship in the social
the growing need. Many foundations began sector through education, research, and local
to change their aims from arts and culture and global partnerships”.

98
Local universities in Pittsburgh have also duplication and an incoherent approach to
assisted by offering social enterprise courses to tackling need. Whilst these organisations are
both practitioners and students. Foundations addressing different communities, problems
have supported the creation of active social such as homelessness and unemployment are
enterprises in Pittsburgh in a number of being tackled by these small non-profits in
ways, including holding workshops where a haphazard manner without strategic focus,
practitioners are able to learn about social leading to a significantly lower impact than can
enterprise by meeting with strategists, be achieved. One interviewee described how:
attorneys and venture capitalists. Peer learning “we (Pittsburgh) aren’t actively addressing the
groups have also been formed to support the problems, there’s just a sprinkling of assets
sector. across 2,800 non-profits, but we aren’t solving
the problems, or even making a dent into
The Social Innovation Accelerator (SIA) was them”.
also created in 2002 amid growing concerns
about the sustainability of non-profit
organisations in Pittsburgh. The SIA works
with non-profit organisations that have a 5. Analysis: drivers and enablers of
goal of developing self-sustaining, profitable innovation in Pittsburgh
enterprises with the aim to complement the
support of foundations by helping to develop 5.1 Drivers: Economic crisis and need
non-profits’ organisational capacity. The deindustrialisation of Pittsburgh in the
eighties was an important driver for subsequent
innovation in the region. Like many other
cities positioned on the American rust belt,
4. Outcomes Pittsburgh suffered greatly when growing
global competition resulted in the closure of 136. ‘Creating Seedbeds
for Social Innovation.’
Pittsburgh has transformed itself from a the city’s steel and coal factories. Their closure Research conducted by
city that faced significant economic crisis resulted in a dramatic population decrease. Advanced Policy Research
2006-2007. Pittsburgh:
after the decline of its traditional industries High unemployment and underemployment H. John Heinz III School
to one where service-based and advanced meant that laid-off workers took lower-paying, of Public Policy and
Management, Carnegie
technology industries are at the heart of its non-union jobs. Pittsburgh’s foundations and Mellon University.
economy. Unemployment has significantly universities began to work collaboratively to
decreased from 12 per cent in the eighties address this need. One interviewee believed
to six per cent in 2000, although it remains that: “innovation in Pittsburgh has been driven
above the US national average. Following this by two things, inspiration and desperation.
transformation Pittsburgh now has clean air, a Without that crisis that created the desperation
diversified economy, a low cost of living, and a I don’t think we would have seen the same
rich infrastructure for education and culture, a levels of activity and innovation that we have
combination that has seen it ranked as one of here. That desperation caused our foundations
the World’s Most Liveable Cities. and universities to take charge”.

Pittsburgh now has over 2,700 non-profit Innovation in Pittsburgh’s voluntary and
organisations, many of which have taken community sector has also been driven by
innovative approaches to addressing social need. For example, in 1981, a non-profit
needs. In a study investigating social organisation called the Bethlehem Haven was
innovation in the US, Pittsburgh was identified founded in response to the growing need for
as possessing a high concentration of socially emergency shelter for homeless women. The
innovative organisations.136 This has led to organisation has evolved and now provides a
innovation across the board, driven by the comprehensive approach to helping chronically
needs of communities. For example there homeless women and men in Allegheny
has been recent increased innovation around County. Another such organisation is the
environmental issues. North Community Hills Outreach Programme,
a non-profit organisation addressing the needs
However, despite the high levels of activity of people suffering from crisis, hardship and
and the strength of Pittsburgh’s voluntary poverty. This organisation was created in 1987
and community sector, there are growing following flooding in the North Hills section
worries about the impact and efficiency of the of the city, which mobilised local religious and
current system for social innovation. The sheer community leaders into working collaboratively
number of non-profit organisations operating with civic groups, communities and local
to address similar problems has led to much business.

99
 5.2 Drivers: Resources from previous wealth worked in partnership to support and develop
of region the city’s non-profit sector, benefiting from
Pittsburgh’s previous industrial prosperity strong informal links between senior officials
has created one of the America’s most active at these establishments. One interview said: “if
Foundation communities. Modern philanthropy you want to answer the question of why here,
is believed to have begun in Pittsburgh, it’s the universities, the foundations, that’s
with the steel industry’s Andrew Carnegie where the real leadership is coming from, and
acknowledged as the world’s richest man in they are, always have been working together,
1901. Carnegie built 3,000 public libraries that’s what’s different”. Another frontline
across the world, as well as the Carnegie worker explained: “It’s the foundations that
Institute of Pittsburgh, the Carnegie Institute have always been pushing the innovation
of Technology and the Carnegie Institution here, in combination with Carnegie Mellon
of Washington for research into the natural University, the academic community and
and physical sciences. He wrote in his essay, the Social Innovation Accelerator, I don’t
The Gospel of Wealth, that the noblest use think we’ve had political leadership… the
of his wealth was on the lives of ‘the toilers government here has been really constrained,
of Pittsburgh’.137 Andrew Carnegie and other that created a vacuum during the chaotic
philanthropists have had a vast impact on change and I suppose that allowed the non-
Pittsburgh’s social welfare, and are thought by profit sector to take charge”.
many of those interviewed to have contributed
in the creation of a culture of philanthropy in The universities and foundations have worked
the city. collaboratively, complementing each other’s
actions. Whilst the foundation community
The existence of a large amount of capital finances and guides innovation, the universities
for non-profits from foundations is thought have attempted to research, train and educate.
137. Andrew Carnegie (1889) by many of those interviewed to have driven Over 60,000 students are enrolled in colleges
‘The Gospel of Wealth.’
Carlisle, MA: Applewood. social innovation in the voluntary and and universities including the University
community sector. For example, the Pittsburgh of Pittsburgh, Carnegie Mellon University,
Foundation’s total assets are valued at and Robert Morris University. A number of
approximately $537 million, with grant-making these universities have established dedicated
reaching $24 million in 2003. Another such centres for social innovation or leadership in
source of financial resources is the Sprout the non-profit sector. Some students have
Fund, a non-profit organisation supporting started innovative projects whilst studying
innovative ideas and grassroots community in Pittsburgh. One foundation member
projects. The Sprout Fund is currently interviewed enthused: “I think it’s an exciting
deliberating on a million dollar grant to support time, we have this group of young, enthusiastic
projects linking to the community in innovative people, with all this energy that bring a
ways, called Community Connections. The freshness to here, the universities bring these
Heinz Endowments have also prioritised social people here, we need to work on getting them
innovation, naming social innovation as one of to stay”.
their three key goals.
5.4 Enabler: Support from agencies with an
More recently, as available funding from interest in social innovation
foundations has started to decrease and the Social innovation in Pittsburgh has been
environment for non-profits has become enabled through the support and guidance
more competitive, some of those interviewed of the different agencies in the city with an
said that they felt under increasing pressure interest in social innovation. These include
to suggest more innovative approaches Pittsburgh’s universities, foundations and the
and projects in order to continue accessing Social Innovation Accelerator, all of which have
dwindling funding streams. attempted to identify existing examples of
socially innovative organisations and support
5.3 Drivers: Collaborative leadership from them in succeeding to meet their goals and
universities and foundations sustaining their operations. These agencies
Pittsburgh’s considerable and active foundation have also scaled up and helped to replicate
community, in collaboration with the city’s the work of successful social entrepreneurs,
numerous universities, have provided enabling them to spread their benefits.
leadership for social innovation in the region.
With the aim of addressing the needs of 5.5 Enablers: Local culture of innovation
the city’s people, further accelerated by the Pittsburgh appears to have a history and
eighties economic crisis, these agencies have culture of innovation. One interviewee

100
commented: “Pittsburgh has always been innovation, with growing pressure to create
a hotbed for innovation, if we go to the more robust and self-sufficient ventures
beginning, to the steel industry they were for social innovation, with a new emphasis
innovators, we led that era here in the US”. on social enterprise. Greater public sector
Pittsburgh has also had an innovative history involvement and coordinated efforts including
of medical research, with Dr Jonas Salk Pittsburgh’s many foundation and universities
introducing the polio vaccine in the city in could help in the development of a strategic
1955. This has continued through innovation and collaborative approach to tackling need in
in healthcare in establishments such as the the city, and utilising resources effectively.
Pittsburgh medical centre and the city’s
children’s hospital which is one of the first to
focus on environmental medicine. The city has
successfully managed a successful transition
from an industrial steel mill town to one that is
seen as high-tech, referred to as ‘Roboburgh’
and successfully innovating and acting as one
of the leaders in technological innovation
connected to robotics.

6. Summary and conclusions

Pittsburgh displays social innovation in

a number of fields, including workforce
development and tackling unemployment.
Innovation has been mainly found in the
city’s voluntary and community sector, where
a vast number of non-profits and grassroots
organisation have worked closely with local
communities innovating to meet their needs.
Innovation has been driven by a number of
factors, including strong leadership from the
foundation community and universities and
agencies. Unlike our other case studies such
as Lille, Gouda and all of our UK-based case
studies, the public sector and local government
have not played a strong role in driving and
enabling innovation.

Innovation has also been driven and enabled

by a high concentration of wealth and potential
financing for non-profits and social innovation
from the city’s foundations, built through
Pittsburgh’s previous prosperity. The trigger
for innovation was the collapse of the steel
industry in the eighties.

Pittsburgh has been able successfully to revive

itself. However, the lack of an overarching
strategy for social innovation has limited the
impact of the city’s voluntary and community
sector. A fragmented and incoherent approach
to meeting social needs has meant that
many organisations innovate to meet similar
needs, resulting in duplication of effort and
inefficiency. Available funding has sustained
some organisations which maybe are not
meeting needs most effectively. This has
caused a re-evaluation of approach to social

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 Timeline 7: Innovation in Pittsburgh

A number
of foundations Decrease in
Pittsburgh are created available
builds a including The funds and
thriving Pittsburgh Voluntary and growing concern
economy Foundation Community about efficiency
and experiences and Heinz sector is leads to
a high increase endowments supported by foundations
in population creating foundations adopting a
due to the a culture of and universities more strategic
city’s iron and philanthropy to meet method of
steel industry in the city social needs philanthropy

1900s 1970s 1980 1990s 2000

Andrew Steel industry Pittsburgh Social

Carnegie collapses launches Innovation
sells his mills due to regeneration Accelerator
and retires increasing projects is launched
the richest global Renaissance to support
man in the competition; 1&2 non-profits
world and this leads to become
begins to use to mass more sustainable
his fortunes unemployment and to help the
investing and a decrease establishment
in Pittsburgh in population of social
enterprises

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 Case study 8: Social innovation, Portland, US (mini case study)

Portland has a reputation of being innovative, with social innovation in a variety of fields.
Described as the “poster child for regional planning, growth management and a number of
innovative urban planning policies”, Portland is often cited as one of the most liveable cities
in the United States and as a model for ‘smart growth’.138 Portland has been described as a
“city of engaged citizens”, bucking the trend towards declining involvement in civic life in
the US. Widespread consultation and community engagement has been acknowledged as an
important driver of innovation in the city and has helped to foster a sense of involvement
and creative experimentation in the city.

This innovation is driven and enabled by the following factors:

• A culture that embraces innovation as well as pioneering and adopting new ideas and
practices.

• Civic participation and strong bottom-up pressures from community activists.

• Partnerships and collaboration between Portland’s public, private and voluntary/

community sectors.

• Strong leadership and commitment from the public sector.

138. Ozawa, Connie P. (2004)

‘The Portland Edge:
Challenges and Successes
Background data Metropolitan economy has grown 119 per in Growing Communities.’
Washington: Island Press.
cent since 1975, from 463,000 jobs to
Geography: 1,015,200 in 2006. Of those employed in
Portland, 29 per cent work in services and 25
• Portland is a city located near the confluence per cent in trade.
of the Willamette and Columbia rivers in the
US state of Oregon. The city has a total land Local government structure:
area of 375.3km2.
• The Government of Portland is through a
Population: city commission. Elected officials include a
Mayor, a City Council and a City Auditor. The
• The population of Portland city in 2006 was Mayor and commissioners (members of City
537,081, with 2,337,565 in the metropolitan Council) are responsible for legislative policy:
area. It is Oregon’s most populous city, and they oversee the various bureaux responsible
the third largest city in the Pacific Northwest. for the day-to-day operation of the city. The
Though the population is increasing, the auditor is responsible for ensuring that the
number of children is diminishing – only 21 government operates in good faith. Each
per cent were under the age of 18 in 2000. elected official serves four-year terms, with
Portland is becoming increasingly racially no maximum number of terms. City Council
diverse: 78 per cent of the city’s population seats, as well as the post of City Auditor, are
are white, seven per cent African-American non-partisan, elected positions. The current
and six per cent Asian. Portland also has a City Mayor is Tom Potter. In May 2007,
strong lesbian, gay, bisexual and transgender Portland citizens rejected a ballot proposal to
population, with one in every seven introduce a more powerful mayoral system;
unmarried couples in Multnomah County similar changes have been rejected several
being a same-sex couple. times over the years.

Labour market: • Portland is the county seat of Multnomah

County, and the core of Metro, a regional
• Portland Metropolitan’s unemployment rate government primarily concerned with
in 2006 was comparable to the national land-use planning. Both these government
rate of five per cent. Measured by total entities strongly impact on city policy .
employment, the size of the Portland

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 1. Context Examples of such social innovation are briefly
described below.
Located in the northwestern United States,
Portland, Oregon has a metropolitan 2.1 Sustainability and the environment
population of over two million. It is often cited Sustainable living has been a priority in
as one of the most liveable American cities and Portland for decades; until recently, this has
as a model for ‘smart growth’, a doctrine that meant going against the trend of many other
promotes dense urban development and public US cities. More than 30 years ago, when
transport.139 many other American cities were building new
freeways, Portland was tearing down a six-lane
As with many US cities, in the post-war expressway to make room for a waterfront
economic boom, families began moving from park. Oregon’s 1971 bottle bill, introduced by
the city centre into the suburbs, resulting in the governor, Thomas McCall, was the first US
urban decline. In the late sixties and early container deposit legislation to be passed. The
seventies, Portland was not immune to the law required carbonated soft drink and beer
civic unrest that was a feature of US urban life; containers sold in the state to be returnable,
the city suffered strikes and violent clashes with a minimum refund value, to reduce litter
between protestors and the authorities. After and increase recycling.
the first unrest in the sixties, the emergent
political leadership sought to harness the In 1993 Portland became the first US local
rising tide of activism rather than resisting government to adopt a plan to address global
new forms of collective behaviour. Civic warming. As a result, the city has limited
activism, with people working together through emissions at a time when the local economy
neighbourhood associations and non-profit was expanding. A more recent innovation is
advocacy groups, were encouraged to bring a plan to penalise builders if they don’t build
139. Innovation Briefs (2003) about change and social innovation. energy-efficient homes. Portland General
The “Smart Growth”
Debate Continues. Electric, Oregon’s largest utility, complements
‘Innovation Briefs.’ 14 (3). The activists who emerged from the sixties this environmental enthusiasm by selling more
Potomac: Urban Mobility
Corporation. social movements recognised the need for kilowatts of renewable power to its residential
urban rejuvenation and land planning to customers than any other utility in the country,
impede further suburban sprawl. In Portland, regardless of size. The Portland market also
this counter-culture was institutionalised ranks number one in the nation for per capita
with many sixties activists holding prominent sales of environmentally-friendly hybrid
public office. There were also more advocacy vehicles.
art and culture groups, as well as community
associations. The city’s urban growth boundary protects over
ten million hectares of forest and farmland.
Innovation in Portland involves civic Portland has started a solid-waste programme
participation and an emphasis on the city as that recycles more than half of the city’s
an enjoyable place to live. Urban planning has waste. It has also erected more than 50 public
stifled the flight from the metropolitan area buildings that meet high environmental and
to the suburbs, while public investment has sustainability standards set by the US Green
supported environmental sustainability with Building Council.
parks and waterfront rejuvenation, improved
public transportation and social programmes. Innovation to protect the environment has
As a result, while many city centres have been a collective effort. Citizens and politicians
either grown very slowly or declined in recent have worked together to ensure the city sets
decades, Portland’s city centre has grown the standard for an emerging clean technology
almost as fast as its suburbs. economy. For example, in 1995, voters in the
Portland metropolitan region passed a regional
bond measure to acquire valuable natural
areas for fish, wildlife and people; ten years
2. Social innovation in Portland later, more than 3,200 hectares of ecologically
valuable natural areas had been purchased and
Social innovation in Portland is prevalent permanently protected for the public.
in different fields and across sectors. This
innovation appears to centre on issues Portland’s Office of Sustainable Development
connected to place, particularly with respect (OSD) partners with public agencies,
to the environment, sustainability, urban community organisations, businesses and
planning, infrastructure and transportation. residents to support Portland City Council’s

104
goal of protecting and enhancing the natural As well as trains, buses and streetcars, there
and built environment. The OSD carries out will be an aerial tram, a public-use heliport
direct work in the community: OSD’s Fix-It- and a free transit downtown. More than 60
Fairs deliver money-saving solutions as well as per cent of metro Portland’s residents rated
healthy, environmentally friendly home, yard their transportation system good or excellent,
and garden ideas directly to Portland residents. compared to only 35 per cent of all Americans.
Streetcar extensions and other public
One interviewee remarked how: “even transport improvements have also benefited
businesses are saying, let us differentiate the environment by reducing the demand for
ourselves by building green and environmental parking.
practices”. This shows how an awareness of
environmental issues is now prevalent across However, the city has also recognised the need
Portland’s different sectors, with agencies for low-cost parking to support city centre
working together to keep Portland at the businesses. So it has created SmartPark, which
forefront of innovation. The many initiatives provides seven large garages conveniently
and projects described also illustrate how located near shops, restaurants and businesses.
social innovation to make Portland a ‘green Shoppers, business clients and visitors are able
city’ involves the whole community, from local to use seven downtown city SmartParks, with
residents to the leadership of Portland’s public nearly 4,000 public spaces. SmartPark partners
and private sectors. with over 700 businesses to offer free parking
with purchases. It also invests in other city
2.2 Infrastructure and urban planning transport improvements.
Portland has been described as the
“poster child for regional planning, growth Cyclists have long revered Portland for its
management and a number of innovative bicycle-friendly culture and infrastructure.
urban planning policies”.140 The city’s approach The city began planning its network of bike 140. Ozawa, Connie P. (2004)
‘The Portland Edge:
to planning is inclusive. So, the Portland lanes in the early seventies. As a result, a larger Challenges and Successes
Development Commission (PDC), the city’s proportion of Portlanders commute by bicycle in Growing Communities.’
Washington: Island Press.
agency for urban renewal, works in partnership than in any other large American city – eight
with the city’s private development community times the national average, according to the
and public agencies to support the growth of U.S. Census Bureau.
local businesses, to revitalise neighbourhoods
and to help low-income families to buy or
repair their homes.
3. Drivers and Enablers of social
Urban renewal through the PDC is a state- innovation in Portland
authorised redevelopment and finance
programme that helps communities redevelop 3.1 Driver: Culture of civic participation and
areas, whether they are rundown, economically bottom-up pressures from communities and
stagnant, unsafe or poorly planned. Public activists
investment is often used to stimulate much Portland is described as a ‘city of engaged
larger private investment in such urban renewal citizens’. It is bucking the trend against civic
areas. Neighbourhoods are also significantly engagement in the US. After the first social
involved in the process. This strategy enables movement unrest in sixties Portland, the
Portland to guide private development toward emergent political leadership harnessed the
public policy goals. rising tide of activism rather than resisting new
forms of collective behaviour. One interviewee
This better planning has produced real benefits described how activists in Portland were not
for the city, with more open space, more seen as a threat, but as a part of Portland’s
efficient traffic patterns, better transportation community. Their voices were therefore heard.
options, diversified housing choices, job growth
and significant crime reduction. Early successful examples of participatory
action bred institutions which solicit citizens’
2.3 Transportation opinions of the citizens. For example, the urban
Portland’s metropolitan population growth stream, Johnson Creek was notorious for its
continues to outpace projections. To help poor water quality and degraded habitat. The
accommodate this growth with minimal city government produced studies with citizens
congestion, the City is continuing to build and over 175 non-profit organisations. Though
a transportation system, which will enable a time-consuming approach, their solutions
travellers to use multiple modes of travel. were social as well as environmental as citizen

105
 activists became well-informed amateur 3.2 Enabler: A culture that embraces social
scientists. innovation
Portland seems to possess a culture that
Portland’s ability to consult its local embraces social innovation and approaches
communities and respond to bottom-up problems differently. As one interviewee said:
pressures from activists has driven innovation “Oregon used to be the place where all the
in the area. The subsequent culture of civic hippies came…they are used to out-of-the-
participation and involvement has also been box thinkers”. The city and state had a history
a key driver to innovation, as needs and of attracting people who wanted to live in a
ideas have been successfully communicated place associated with innovation. Thinkers
to Portland’s agencies. Some of Portland’s such as Governor McCall, who pioneered
protesters from the seventies are now officials legislation and practices around environmental
in public office, continuing to drive social sustainability, helped to create a culture
innovation from within. of innovation. They placed the city at the
forefront of the current movement towards
Structures have also been created to help ‘green’ and environmentally-friendly practices.
encourage and continue Portland’s legacy
of civic participation. The Portland Future This culture of social innovation has been
Focus Policy Committee (established by sustained through the city’s civic engagement
the City of Portland in the nineties) and and pride in its reputation for innovation. One
the Coalition for a Livable Future are two interviewee explained that the city is: “proud
examples of participative structures designed of being innovative and plain weird”. Indeed,
to involve a wide range of individuals in many cars are adorned with bumper stickers
developing a coherent vision for the city. featuring the logo ‘Keep Portland weird’.
The Coalition involves 60 activist groups Many organisations have also continued to
141. Ozawa, Connie P. (2004) working in partnership to drive policy on aspire to be innovative. As one individual put
‘The Portland Edge:
Challenges and Successes urban growth, focusing on areas such as urban it, there is a: “thirst for new ideas…openness
in Growing Communities.’ design, economic development and affordable for trying things”. This culture and appetite
Washington: Island Press.
housing.141 for innovation has enabled much innovation in
Portland.
Much of the innovation seen in Portland has
been a response to the interests and needs of 3.3 Enabler: Collaboration between the
Portland’s communities and groups. They have private and public sector
communicated their wishes through structures But the city’s social innovation has also been
such the Office of Neighbourhood Involvement enabled by collaboration between the city’s
and the Future Focus Policy Committee. The public and private sectors. Organisations
city’s Office of Neighbourhood Involvement and agencies have worked in partnership to
serves as a conduit between city government implement citywide strategies for innovation.
and 95 neighbourhood associations (which Structures have been created to help
are grouped into seven coalitions). These facilitate this collaboration around different
associations organise training so that citizens issues, including the promotion of Portland
can understand city budgeting and master metropolitan region as a vital economic centre.
other bureaucratic issues. The process has led
to much innovation in fields such as urban Such collaborations include Portland Regional
planning, environmental sustainability and Partners for Business, a public-private
transportation. partnership that helps businesses stay, expand
and recruit. It also produces marketing
This culture of civic participation is now strategies and recommendations for policy
embedded in the city. In the nineties, a study development. The Portland Future Focus
showed that Portland’s suburbs were two Policy Committee has 40 members, including
to three times ‘more civic’ than comparable business representatives, government officials
suburbs, while the city was three to four times and lay citizens working together to create
more civic than other cities. Thirty to thirty-five a vision for the community. The PDC also
per cent of Portlanders had attended at least works in partnership with the city’s private
one public meeting on town affairs, a figure development community and public agencies.
three times the US national average of 11 per The collaboration between Portland’s different
cent. This civic involvement continues to drive agencies and sectors has enabled innovation by
social innovation in Portland. helping pool resources, and adopt a city-wide
strategy for change and innovation.

106
4. Summary and conclusions

Social innovation is apparent in a number

of different sectors and fields including
environmental sustainability, urban
development, planning and transportation.
This innovation has been driven and enabled
by a number of common factors, including
substantial civic participation and engagement,
with a focus on issues that activists and
communities prioritise. This culture of civic
participation has generated bottom-up
pressures which have driven social innovation.

Wider innovation is enabled through

effective partnerships between the city’s
private, public, voluntary and community
sectors. Structures such as the Portland
Regional Partners for Business and Portland
Development Commission have also facilitated
this collaboration and act as forums to discuss
innovative ideas and consult with different
agencies and sectors. Collaboration has
been identified as a key enabler and driver
to innovation in almost all our case studies,
signifying its importance in creating socially
innovative localities, irrespective of what need
is being met.

Whilst there is a great deal of innovation in

Portland, it is by no means universal. Portland
has been particularly good at innovating
around issues connected to ‘place’, such as
urban development and sustainability. But
not all populations have been able to benefit
from this innovation, and there have been
some concerns that the African-American
community in Portland has been excluded.
However some more recent innovations have
sought to broaden the fields covered, with
recent projects around new areas such as youth
homelessness or alternative education to tackle
high drop-out rates among 14-18 year olds.
These projects are examples of how Portland
is looking to sustain its innovative culture and
evolve into a city which innovates in even more
fields and sectors.

107
 Case study 9: Technological innovation, Cambridge, England (mini case study)

In Cambridge, population growth from the London region together with the emergence
of new enterprises developed by University of Cambridge staff and students in the sixties
fuelled the growth of science-based enterprises. Since then, Cambridge has been known for
its technological innovation, establishing science parks with formal and informal networks to
sustain this expertise.

This innovation is driven by the following factors:

• Bottom-up pressure from small and medium-sized enterprises in the region.

• Pressure from the University of Cambridge.

• Leadership from the University of Cambridge, innovation centres, local businesses and
local political leaders.

142. Segal Quince and Partners

(1985) ‘The Cambridge
Phenomenon: The Growth
of High Technology 1. Summary: context and need rarity in an area noted for its political infighting
Industry in a University
Town.’ Cambridge: Segal – Cambridge Science Park was established on
Quince and Partners. Located in Cambridgeshire in the wider region land owned by Trinity College in 1970.
143. Porter, M. (1998) Clusters
and the New Economics
of East England, the ‘Cambridge Cluster’ is
of Competition. ‘Harvard approximately a 32km radius around the City of This science park acted as a catalyst for
Business Review.’ Nov/Dec
1998, pp. 77-90.
Cambridge where there are over 1,000 high- innovation, encouraging the clustering
144. Moore, B. (2003) ‘Silicon tech companies generating over £1.5 billion in of high-tech activity. Its success led local
Fen – The Cambridge revenue a year. The area has been historically entrepreneurs, politicians and university leaders
Phenomenon As a Case-
History of Present-Day dominated by the University of Cambridge. to recognise the need for further collaboration.
Industrial Clustering.’ It also encouraged greater support for
Diebold Institute,
Working paper No. 24. Until the 1960s, Cambridgeshire was a wealthy businesses and infrastructural maintenance
The Cambridge Network agricultural region, with a small dispersed from local and central government.
is an informal high-tech
community which enables population and poor transport links to the
collaboration between rest of the United Kingdom. In the sixties,
the University, firms and
research institutes. people began moving into the area from an
overcrowded London. Between 1960 and 1981, 2. Innovation strategy
the population increased by 28 per cent.142
The success of high-tech clusters like Silicon
Even though the County Council sought to Valley in California served as a model for
limit new large-scale production activity with industrial revitalisation in Cambridge. High-
planning controls, new small and medium-sized tech clusters are agglomerations of inter-
enterprises began to spring up in the area related industries in an area engaging in
during the sixties and seventies. This growing building an educated and trained workforce,
population and economic activity, together creating networks of suppliers, knowledge
with the indigenous growth of a small business diffusion, and venture capital availability.
community from the University, placed Clusters can affect the competitive advantage
increased pressures on local employment, of an area by increasing the productivity of
housing and transport. businesses within the cluster, encourage new
start-ups, and drive innovation.143
The 1967 Mott Report, published by a
sub-committee of the University Senate, A high-tech cluster has emerged around
recommended a science park for the growth Cambridge based on collective interactions
and development of the new enterprises. The within the universities, the geographical
science park would specialise in the production proximity of London and Oxford, organisational
of high-tech manufactured goods and services. re-configuration with the growth of small
Cambridge City Council and local employers businesses and new linkages like the
backed the idea, seeing in it an opportunity to Cambridge Network.144
address local housing problems and a shortage
of skilled workers. With such consensus – a

108
The main sectoral innovation in Cambridge The relationships between local authorities
has been high-tech companies specialising in and greater partnerships within the local area
computing, electronics, scientific instruments, have since been evolving. For instance, the
technology consultancy, telecommunications, East of England Development Agency (EEDA)
and most recently, biotechnology. These new has been described as having: “an increased
companies concentrate on research, design, role in channelling funding from central
and development rather than production. This Government”.145 These finances now come from
focus enhances their production value and is a ‘Single Programme’ combining funds from
more valuable to the economy. various Government departments to develop
the economy and support businesses.

3.2 Creating structures for innovation

3. Innovation process – Technological The consensus reached around the
innovation Science Park and the need for subsequent
infrastructural developments generated
3.1 Creating a consensus for innovation numerous physical innovations and networks in
In the late sixties, the University, local authority the Cambridge Cluster. These structures have
leaders and employers reached a consensus been described as ‘constructive chaos’, where
that the future of the economy depended new initiatives continually emerge as no one
on forming an industrial cluster to support group organises the cluster.146
more high-tech innovation from University
students and staff. This meant creating a The universities in the area have had a
new infrastructure, and the first step was the particularly important role as traditional
establishment of the Cambridge Science Park suppliers of an educated workforce. They have
by Trinity College in 1970. also encouraged innovation, launched networks
linking high-tech activity and business and 145. St John’s Innovation
Centre (2006) ‘Cambridge
The new park triggered the growth of more given institutional support. Trinity College’s Technopole Report: An
science-based businesses, consultancy firms, land was the site of the first science park and Overview of the UK’s
Leading High-Technology
innovation centres and investment. The the University of Cambridge has organised Business Cluster.’
emergence of this high-tech cluster was first various forums and conferences for business Cambridge: St John’s
Innovation Centre Limited.
highlighted in the mid-eighties with the Segal, networking. 146. Ibid.
Quince, and Partners report, The Cambridge 147. Ibid.
Phenomenon. Their report documented the Various other networks and incubators provide
cluster’s growth and confirmed that ‘something the growth and sustainability of Cambridge.
new’ was happening in Cambridge involving For example, St John’s Innovation Centre,
high-tech industry and the University. established with funding by Barclays Bank
in 1987, provides business support and
In the late nineties, a second ‘phenomenon’ accommodation for early-stage companies.
was believed to be taking place around Cambridge Network links its members to a
telecommunications and biotechnology. Segal, collective resource, enabling further diffusion
Quince and Wicksteed prepared another report, of ideas and innovation.
The Cambridge Phenomenon Revisited, which
gave an updated overview of the cluster and
criticised the lack of support from central
government to supply the necessary physical 4. Outcomes
infrastructure.
In 1978, there were around 20 high-tech
Following this second report, there was companies in Cambridge. Since then the cluster
agreement between the University and business has grown extensively and by 2006 the area
leaders that further planning was needed to was home to over 1,500 high-tech enterprises
sustain the significant growth of the high- employing around 45,000 people.147 Large
tech area. One result was the establishment in multi-national companies recently establishing
1998 of the Greater Cambridge Partnership, a presence in Cambridge have included
an umbrella organisation of public and private Microsoft, which made the city its European
sector interests. This initiative has produced headquarters.
other partnerships and studies about issues
such as land use, transport systems as well The area has been recognised as one of
as collaboration between the University and the world’s leading high-tech clusters. The
industry. European Commission has hailed its excellence
as an innovative region and its support for

109
 high-tech start-ups. Newsweek magazine reputation for academic excellence, scientific
ranked Cambridge in 1998 as one of the most discovery and invention. Liberal intellectual
ground-breaking clusters in the world.148 property rights at the University were an
important factor in the creation and diffusion
But interviewees reported that the area has of most original innovation in Cambridge.
recently stalled in growth. This is confirmed by Staff and students could take risks in using
the statistics: in 2005, “£125m was invested in knowledge learned and created at the
companies in the Cluster compared to £154m University and exploit it in new businesses. As
and £133m in 2004 and 2003 respectively”.149 a result, “the University of Cambridge people
However, the Cambridge Cluster continues to and technology have been at the heart of over
be a well-established centre of innovation, 300 new high-tech ventures in the past ten
accounting for 12 per cent of venture years, many of which now lead their industry
capital investment in the UK in 2005, and sectors”.153
approximately five per cent of overall European
venture capital investment.150 The University continues to be a fundamental
incubator for innovation. Institutional support
The area has no shortage of human and for technological innovation has been
financial resources, formal and informal through the increase in science parks and
networks, or experienced business people. innovation centres, which have been primarily
148. Newsweek (1998) ‘Where Various leaders in the University, research established by the Cambridge Colleges.
Wired is a Way of Life.’
November, 1998. institutes, innovation centres and firms have The recent establishment of the Cambridge
149. Library House (2006) ‘The criticised the lack of infrastructure support Entrepreneurship Centre demonstrates the
Supercluster Question: The
Cambridge Cluster Report
from local and central government. They dedicated role of the University in driving the
2006.’ Cambridge: Library want the Cambridge Cluster to meet global relationship between high-tech activity and
House Limited.
competition by evolving into a ‘Supercluster’, business.
150. Ibid.
151. St John’s Innovation
comprising Cambridge, Oxford, Reading, and
Centre (2006) ‘Cambridge London.151 5.3 Driver: Leadership
Technopole Report: An
Overview of the UK’s
The consensus that economic prosperity relies
Leading High-Technology on infrastructural and network support for new
Business Cluster.’
Cambridge: St John’s
enterprises has been driven by leaders from the
Innovation Centre Limited. 5. Analysis: drivers and enablers of University of Cambridge, innovation centres, as
152. Moore, B. (2003) ‘Silicon technological innovation in Cambridge well as business and local political leaders. The
Fen – The Cambridge
Phenomenon As a Case- ‘constructive chaos’ of the Cambridge Cluster
History of Present-Day 5.1 Driver: Bottom-up pressure from evolved from the need for spatial distribution
Industrial Clustering.’
Diebold Institute, Working enterprises of high-tech activity. This led to the formation
paper No. 24. In the late sixties and early seventies, there of groups like the Greater Cambridge
153. St John’s Innovation was a significant population and economic Partnership and Cambridge Network. Their
Centre (2006) ‘Cambridge
Technopole Report: An movement from London to Cambridge. There policy and strategy continue to reflect liberal
Overview of the UK’s was also a significant indigenous growth of approaches to business and infrastructural
Leading High-Technology
Business Cluster.’ new small and medium-sized enterprises in maintenance, and their credibility is illustrated
Cambridge: St John’s the area. These developments put pressure by their ability to organise and lobby the
Innovation Centre Limited.
on the local authorities to improve the local government.
infrastructure and create more affordable
housing. 5.4 Enabler: Human and financial resources
The availability of human and financial
The growth of new businesses also encouraged resources has enabled the growth and
other entrepreneurs to create high-tech sustainability of technological innovation in the
enterprises and drive technological innovation. Cambridge area.
These small businesses have shown themselves
to be more likely to take risks to innovate, Cambridge has had significant human resources
collaborate with other businesses and use from the local universities. Many students wish
external business advice. One reason cited to stay and start their own businesses or work
for this is the higher degree of trust between for an already established firm. The University
businesses in the Cambridge area.152 of Cambridge and innovation centres like St
John’s Innovation Centre provide staff and
5.2 Driver: Bottom-up pressure from the students with entrepreneurial skills that enable
University of Cambridge them to succeed in the cluster.
The University of Cambridge has played
an enormous role in driving technological Thirty years ago, when the cluster first started,
innovation, drawing on its international there were insufficient finances to fund

110
potential start-ups. Barclays Bank was one of Although interviews and recent reports
the first to fill this gap by supplying financial voice concern over the area’s stalled growth,
backing. Since then, the area has rarely had Cambridge has no shortage of resources,
a shortage of venture capitalists and angel networks, and experienced leaders. The factors
funds and central government has provided tax which helped make the Cambridge Cluster
incentives to businesses and research grants to one of the most important high-tech bases in
research councils and university departments. the world over the last 30 years continue to
support the area’s growth and innovation.
5.5 Enabler: Networks and informal
relationships
Social networking and open labour markets,
where individuals can pursue their ideas and
collaborate with others, have encouraged
technological innovation. The sense of
community created by the concentration
of like-minded individuals has meant that
different actors are more willing to collaborate
by helping others and sharing knowledge. The
Cambridge Cluster has developed networking
and information institutions such as the
Cambridge Network and Cambridge High-
tech Association of Small Enterprises (CHASE)
and various forums for considering the future
of the area including the Greater Cambridge
Partnership.

6. Summary and conclusions

The high-tech clustering and technological

innovation in the Cambridge area has been
driven by a combination of factors. In
the sixties, the recognition by university,
local authority and business leaders that
economic growth depended on the growth of
science-based enterprises contributed to the
establishment of science parks. It also spawned
new formal and informal networks. The need
for this development was re-enforced by the
population increase from the London region
and the emergence of new enterprises by
University of Cambridge staff and students,
which put employment and housing pressures
on the area.

The strategy to support the clustering of

high-tech activity was a process modelled on
the success of other high-tech clusters like
Silicon Valley. The process involved nurturing
the development of enterprises in the area
by creating an environment conducive to
knowledge diffusion with science parks and
innovation centres, while also supplying
improved transportation and housing. Human
resources, especially with the University, and
financial resources provided by banks, venture
capitalists and government grants, enabled the
Cambridge Cluster to sustain its growth.

111
 Case study 10: An experiment in using Social Network Analysis as a tool for
understanding social innovation

Social Network Analysis (SNA) is a method for mapping networks of influence and trust
within and across organisations, partnerships and communities. It helps to identify the key
relationships, including the individuals who make collaboration work in practice, as well as
the key blockages. SNA has the potential to reveal some of the dynamics of innovation,
and why otherwise similar areas perform very differently in response to threats and
opportunities. An experimental case study was therefore conducted in a local authority area
in the UK that is known for innovation in education.

The purpose was twofold: to explore the effectiveness of SNA as a diagnostic tool in
illuminating (or contradicting) the broader findings of this study; and to explore how this
technique could be used by agencies to help understand the circumstances fuelling or
frustrating innovation and to support them to develop strategies to tackle any identified
problems.

The case study confirmed that the method offers a different and important perspective
154. For two examples on the relationships and networks that underpin innovation. It exposed relationships and
see Allen, T.J. (1977)
‘Managing the Flow of networks that are unlikely to have been revealed by traditional research methods. The
Technology.’ Cambridge, exercise confirmed what would be expected in the area given its stage of innovation, but
MA: The MIT Press;
and Doreian, P. (1971) pointed to possible weaknesses in future sustainability. It found that:
‘Mathematics and the
Study of Social Relations.’
New York: Schocken. • the locality has a high level of networking around innovation compared to other areas;
155. For two examples see
Boissevain, J. (1974)
‘Friends of Friends.’
• there are strong networks for seeking new ideas, and many individuals act as hubs,
Oxford: Basil Blackwell; pulsetakers and gatekeepers. The strength of the networks is high given the early stage in
and Mitchell, J.C. (1969)
‘Social Networks in Urban
the social innovation lifecycle. A significant contributing factor may be the high perceived
Situations.’ Manchester: level of risk involved as services go through a major transformation;
Manchester University
Press.
156. See for example Hage, P. • the local authority and a number of schools are central to innovation networks and
(1974) The atom of kinship are leading the innovation process. The same core group of individuals, including
as a directed graph. ‘Man.’
11, pp. 558-68. local authority officers and head teachers, were consistently identified across all seven
157. See for example Freeman, networks. This is a strength but could also indicate the existence of a dominant and
L.C. (1979) Centrality
in social networks I:
exclusive clique; and
conceptual clarification.
‘Social Networks.’ 1, pp.
215-39.
• the voluntary and community sector, student council and residents appear to be outside
158. See for example Burt, R. the core networks of influence. This could be either because they are weak or because
(1992) ‘Structural Holes.’ they are being excluded. This may not pose a problem for implementation at present but
Cambridge, MA: Harvard
University Press. could undermine future sustainability, if the current core group leave their current posts.
159. Stephenson. K. (2007)
The Community
Network Solution.
‘Strategy+Business.’
Issue 49, Q4, 32:7. Her
methodology has been
trademarked as NetForm®. 1. Background The SNA model used in this experimental case
study has been developed by an American
Different models of network analysis have been anthropologist DrKaren Stephenson, who has
used in the United States since the 1970s154 worked widely with the public and private
and even earlier in community studies in sectors in the US. Working with Jeremy
England in the 1950s.155 Hawkins, she has also collaborated with the UK
Government – the Home Office, Cabinet Office
Early pioneers of the field156 focused on and Communities and Local Government (CLG)
identifying the important connectors in a – and the method has been used in 13 localities
network and assessing their value to the in five regions in the UK, primarily to explore
network in terms of mathematical prediction157 relationships within multi-agency teams and
or social capital.158 However, these approaches Local Strategic Partnerships. It has not however
did not take into account the impact of been used to identify innovation in multi-
different types of networks. agency partnerships until this experimental case
study.159 A parallel study has been completed

112
by the Young Foundation and Jeremy Hawkins hierarchical structures. The thesis of much of the
applying the method to relationships in a local work in this field is that hierarchies and networks
community (in north Norfolk). influence each other and evolve in tandem.162

Figure C2 shows, on the left, a typical

organogram or hierarchical chart for an
2. What is SNA? organisation. This traditionally enables
employees and external observers to assess
SNA is designed to map how networks status and career achievement and through
of influence flow through and between this understand how the agency works. Each
individuals, organisations, partnerships and rectangular box represents a person or team
communities and whether or not they are of people and the lines drawn between them
aligned with the ‘will’ of the agency (or represent the accepted formal lines of authority
partnership, or community). This analytical through which requests and/or orders are given
process maps the informal connections among and information in response to those requests
key stakeholders and identifies individuals – and orders is passed. The box at the top is the
‘key connectors’ – who hold pivotal positions ‘leader’.
within these networks.
The image to the right in the figure is a network
SNA (coupled with structured and semi- representing the informal ways in which people
structured interviews for validation) is a get their jobs done but which often are unseen
recognised academic approach for diagnosing at senior levels. The black boxes or ‘nodes’
what is informally unfolding ‘on the ground’.160 represent individuals and the lines connecting
One senior human resources executive them are their responses to a survey asking them
at Merrill Lynch & Company during the who they work with on a daily, trusted basis.
late 1990s, who commissioned Professor 160. See for example Barabasi,
A.L. (2002) ‘Linked: The
Stephenson for a study of the company’s If such networks are not recognised they will be New Science of Networks.’
human resources function described social invisible, unrecognised and undervalued, with Cambridge, MA: Perseus
Publishing.
network analysis as “a high-level MRI of the the potential to derail strategic plans. Mapping 161. Kleiner, A. (2002) Karen
organization”.161 these networks can add value: if individuals Stephenson’s Quantum
Theory of Trust. ‘Strategy
within networks are recognised and rewarded + Business.’ Issue 29, Q4,
2.1 The relationship between networks and then a complementary shadow system can be 3:14.
hierarchies created that is aligned with the overall direction 162. Ibid.

SNA concentrates on analysis of the networks – of the enterprise – single or multi-agency

both overt and covert – within organisations or – enabling greater efficiencies and overall
partnerships that exist in parallel with traditional effectiveness.

Figure C2: Hierarchies and networks

Human Capital Social Capital

(HIERARCHY) (NETWORKS)

Source: NetForm®

113
 Figure C3: Flow chart of a typical SNA process

Step1 Step2 Step3 Step4

Select Sample Online Questionnaire Generation of SNA Analysis of findings
maps and charts

Sample must include Sample completes Survey results are used Analysis of data by
all people involved in online survey about to generate maps consultants using
the innovation in who they interact with showing interaction, insight and support
different agencies and for decision-making, analyse social capital from individuals
on different levels expert advice, seeking and identify the involved in the
new idea, keeping up different roles survey who can
The list is circulated
to date etc. individuals may take provide context to
to ensure all relevant
within the networks the findings
people are included

2.2 The SNA process Individuals can then be shown to play different
The SNA process is web-based. A sample roles:163
of informants is selected, and all are asked
to complete an online survey. SNA maps • Hubs are people who have many direct ties
and charts are generated from this data, with people; they know everyone. They are
and findings are analysed working closely shown as yellow nodes.
with individuals involved in the survey to
contextualise the results. • Gatekeepers are connected to few people,
but a ‘strategic few’. They know the ‘right’
Each individual that responds to the survey people. They are the green nodes.
163. Stephenson, K. and Zelen, produces what is called an ‘egocentric’ network
M. (1989) Rethinking
centrality. ‘Social – the unique connections emanating from their • Pulsetakers are connected to many people
Networks.’ 1, pp. 1-37. particular ‘node’. NetForm® then aggregates but not through direct links, like the Hub,
each unique individual egocentric network but through indirect links. They know the
into one large (partnership, community or people who know the right people. They are
organisational) network. What any one person the red nodes.
imagines as ‘their network’ may appear very
differently when viewed at a strategic level.

Figure C4: The network key connector model

Pulsetaker

Hub Gatekeeper

Pulsetaker

Source: NetForm®

114
Networks are analysed using the NetForm® tradition and may clash with the keepers of
software, and key connectors emerge and are corporate lore and expertise, dismissing them
identified. Although everyone surveyed will as relics.
have some connections, individuals in any
workplace or structure will be connected very • The Expert Knowledge Network: to
differently. The top five per cent of these are whom do you turn for expertise or
shown as coloured nodes in the analysis. advice? Organisations have core networks
whose key members hold the critical and
2.3 The ‘seven pillars’ of knowledge established, yet tacit, knowledge of the
The particular brand of SNA used by Netform® enterprise. Like the Coca-Cola formula,
Social Network Analysis164 is based on a this kind of knowledge is frequently kept
hierarchy of knowledge and the way key secret. Key people in this network are often
networks of knowledge align in practice. For threatened by innovation; they’re likely to
example, when innovation is not aligned with clash with innovators and think of them as
expertise, this produces a healthy tension. On “undisciplined”.
the other hand, when strategy is not aligned
with decision-making this produces a lack • The Career Guidance or Strategic
of confidence in leaders, which can lead to Network: to whom do you go for advice
malaise and disengagement. These and other about the future? If people tend to rely on
correlations are the basis of the predictive others in the same company for mentoring
algorithms from which seven types of networks and career guidance, then that in itself
have been derived. Each network generates the indicates a high level of trust. This network
questions which are core to each SNA survey, often directly influences corporate strategy;
albeit adapted to different circumstances and decisions about careers and strategic moves,
needs. The excerpt below explains in more after all, are both focused on the future.
detail how the networks function.165 164. Kleiner, A. (2002) Karen
Stephenson’s Quantum
• The Learning Network: whom do you Theory of Trust. ‘Strategy
work with to improve existing processes + Business.’ Issue 29, Q4,
3:14; and K. Stephenson
or methods? Key people in this network (2007) The Community
• The Work Network: with whom do may end up as bridges between hubs in the Network Solution.
‘Strategy+Business.’ Issue
you exchange information as part of expert and innovation networks, translating 49, Q4, 32:7.
your daily work routines? The everyday between the old guard and the new. Since 165. Kleiner, A. (2002) Karen
Stephenson’s Quantum
contacts of routinised operations represent most people are afraid of genuine change, Theory of Trust. ‘Strategy
the habitual, mundane ‘resting pulse’ of a this network tends to lie dormant until the + Business.’ Issue 29, Q4,
3:14.
culture. “The functions and dysfunctions; change awakens a renewed sense of trust. “It
the favors and flaws always become evident takes a tough kind of love”, says Professor
here,” says Professor Stephenson. Stephenson, “to entrust people to tell you
what they know about your established
• The Social Network: with whom do you habits, rules and practices”.
‘check in’, inside and outside the office,
to find out what is going on? This is
important, primarily as an indicator of trust
within a culture. Healthy organisations are 2.4 Generating ‘social capital’ reports
those whose numbers fall within a normative In this context, ‘social capital’ will be held by
range, with enough social ‘tensile strength’ a relatively small number of key connectors
to withstand stress and uncertainty, but not who transmit their knowledge through their
so much that they are overdemanding of trusted relationships. As this information is tacit
people’s personal time and invested social and not explicit, there is rarely any record or
capital. documentation of its existence. It can however
be captured by tracking the traces of informal
• The Innovation Network: with whom communication using a technique such as SNA
do you collaborate or kick around new which looks beyond people’s perceptions and
ideas? There is a guilelessness and childlike understandings of what is known.
wonderment to conversations conducted in
this network, as people talk openly about Analysis of the networks is combined with
their perceptions, ideas, and experiments. findings on the key connectors to produce a
For instance, “Why do we use four separate series of social capital reports. These identify
assembly lines where three would do?” Or, key individuals, who are categorised as:
“Hey, let’s try it and see what happens!” Key
people in this network take a dim view of

115
 • leaders – both potential and recognised flag is raised prompting further investigation to
leaders; explore whether there is some form of conflict
or collusion.
• mentors and mentees – who provide or
seek expert advice, professional development
or coaching;
3. SNA and local social innovation
• problem solvers – including innovators or
implementers; and 3.1 Informal and formal networks are critical
to local social innovation
• rising stars – individuals who have great The experimental case study exercise began
potential to be outstanding in their fields. with the hypothesis that SNA in general and
NetForm® network analysis in particular can be
The contention is that identifying these a useful tool in understanding and accelerating
individuals will help inform and direct innovation. In particular, in how it could be
organisational development; improve used to explore the intricacies and subtleties of
organisational, team and individual communication networks and the relationships
performance through improved planning and and interactions that may be driving forward
decision-making; and result in considerable social innovation in an area.
time and resource savings.
The case study findings as well as literature
An important dimension of networks that reviews have highlighted the need for both
must be borne in mind is their density. internal and external networks to exist
There needs to be enough connection to be at a variety of levels in order to sustain
sustainable, however high levels of connection collaboration. The other case studies
can suggest the existence of a clique or cartel carried out through this research exposed
which can block or kill innovation. The 400 different patterns of networks underpinning
case database established by NetForm® over innovation: in Pittsburgh, for example, strong
30 years has determined normative ranges networks between foundations and third
(which are constantly updated with each sector organisations were key in stimulating
analysis performed). When network densities innovation. In Lille, strong networks connected
fall outside the normative ranges, a software to the Métropole legitimised and strengthened

Figure C5: Visualising a local innovation system

Systemic local
social innovation
(region, city,
authority wide)

Sectoral innovation
(service, agency, Flow of
sector) knowledge
learning,
networks,
creativity,
and
recognition
Frontline innovation of what
(neighbourhood and works
community-based
organisation)

Public innovation
(individuals, service users,
neighbourhoods)

Source: The Young Foundation/NESTA (2007)

116
by political leadership were critical in 3.3 A NetForm® SNA of an economic region
sustaining innovation. In South Tyneside, the in the US
strengthening of networks amongst frontline A previous NetForm® SNA of community effort
staff to initiate and share ideas was very in the US illustrates how the SNA process
important in their service transformation. was used to build sustainable innovation and
leadership networks in the Philadelphia region,
Analysis of the case studies highlighted the an area that is home to approximately five
importance of networks, of collaboration, million US citizens.168
communication and consultation, to create
the processes and synergies that are needed Philadelphia was the first capital of the US,
for innovation to flow, as illustrated in Figure the place where Benjamin Franklin led 13
C5. The hope was that SNA would enable a independent colonies in unity against colonial
fuller exploration of the relationships that may rule. This legacy of rising to the challenge in
facilitate or obstruct social innovation. difficult circumstances has become tarnished
in recent history, which has seen rising crime,
3.2 Frequent two-way communication graft and serial corruption charges against a
is critical for creating an innovative long line of elected officials.
organisational culture
The broader literature also stresses the SNA was used to scan the economic region
importance of communication. For example, for its hidden connectors. Two newspapers –
insight into communication networks can previously more known for competition than
also indicate the state of cultural health of collaboration – worked together and asked
a local area, agency or organisation.166 Also, their readers to nominate their ‘hidden leaders’
an innovative organisational culture will tend through a SNA survey. Leading community
to include influential boundary spanners or organisations helped broadcast the message
gatekeepers to enable the free flow of ideas to their constituencies. Five thousand names 166. Chesbrough, H. (2005)
Open Innovation: A
between departments and organisations – see were suggested and of the five thousand, two New Paradigm for
Figure C6 below. hundred names emerged as the top nominees. Understanding Industrial
Innovation. In Chesbrough,
H. (2005) ‘Open
Innovation: Researching a
New Paradigm.’ [Online].
Available at: http://www.
druid.dk/uploads/tx_
picturedb/ds2005-1592.
pdf
Figure C6: Chesbrough’s model of open innovation showing boundary spanners167 167. Ibid.
168. Stephenson K. (2007)
The Community
Network Solution.
Research Development ‘Strategy+Business.’ Issue
49, Q4, 32:7; and www.
leadershipphiladelphia.org/
connect_overview.html
[Accessed January 2008].

Research projects Markets

Firm boundaries

Closed innovation

Research Development

New Market

Research projects Current Market

Firm boundaries

Open innovation

117
 Further analysis of the data established a Figure C7 contains a sampling of the maps
‘working population’ of 101 individuals. This obtained from this second survey. The 101
phase of the project corresponds to Step 1 in ‘hidden leaders’ naturally divided into four
Figure C3 – determining the population size. categories: the not-for-profit sector (the largest
Once the 101 were contacted, they were then sector), the for-profit, private or corporate
extensively interviewed as well as asked to sector (the next to largest sector), government
complete a second survey, a NetForm® SNA and academia (the smallest sector) – see
questionnaire consisting of four questions Section A.
modified from the initial seven questions.
Section B shows collaboration across the
boundaries of each sector. Noticeable in

Figure C7: Networks and connectors in Philadelphia

Gov.
Not for profit F

Academia
F
M

M Private sector
F

Section A

Gov.
Not for profit F

F
M Academia
M

Section B Private sector

Gov.
Not for profit

1 3 3

Academia

Private sector
10 2 8
4 4 5 4

5 8
5 2
5
6 2 7
6
45
4 8 3 11

5 7 Hub
G at ek
6 P ul seta

Section C

Section A (top): the template; section B (middle): the inter- and intra-expertise network;
Section C (bottom): the intra-innovation network among the different sectors of not-for
profit, private, government and academia.

118
Section B is the lack of connection between • The model has been adapted to teach high
government and academia. This prompted a school students across the Philadelphia
further analysis showing how the connections region before they enter college and
within each sector work, shown in Section graduate school about the advantages of
C. Also shown are the locations of the key ‘connecting’ as leaders, a competency that is
connectors (shown in yellow, green and currently not taught in traditional leadership
red circles, indicating respectively hubs, courses in public policy and business schools.
gatekeepers and pulsetakers).

Section C illustrates strong connections within

and between the not-for-profit and private 4. SNA of one UK socially innovative
sectors. Further investigation established that locality
the paucity of communication among the two
smallest sectors – government and academia – 4.1 The case study
is not explained by the smaller numbers but by An SNA of a UK local authority which is known
the impact of competition for limited resources. for innovation in education was conducted as
However academics did play a significant role an experimental pilot. The survey of individuals
in forging the early networks among the not- involved in education was carried out in
for-profit and private sectors, the majority of Autumn 2007. Ninety-two respondents from
whom were educated in the region and who the private, statutory, voluntary and community
later returned to Philadelphia with aspirations sectors completed the survey, including
to ‘make a difference’. representatives from other local authorities
with an interest in the new developments,
Although it was not established definitively, cross-sector partnerships and some individual
it was suggested that there was something residents. This was a 67 per cent response rate.
in the way people were connected early in
their college and post-graduate schooling In this experimental case study, SNA was used
that stayed with them and brought them to explore the relationships between different
back to Philadelphia. It emerged that the stakeholders involved in the change agenda,
majority of the connectors were not native to to identify how informal and formal networks
the area, which was an unexpected insight. In operate, the strength of these networks and
the majority of US cities the core connectors the role they play in supporting local social
linking the most significant networks are native innovation. The questions focused on the seven
to the city – and tend to exert a paternalistic different networks that are important to the
influence over who is influential in civic affairs. NetForm® approach.
This was not the case in Philadelphia.
The results have been anonymised so that
It is still unclear what the impact of this they may be generalised for broader use.
exercise is in the medium to long term, or what This area is at a relatively early stage in the
happens when key connectors are identified innovation cycle, however already large
and provided with additional opportunity amounts of investment have been committed
to be connected. A few early examples have to implementation. It would therefore be
emerged of positive impact; whether these are expected that networks supporting innovation
sustainable or not remains to be seen: may show some instability because of their
relative newness, and that there may be some
• Chris Satullo, the Philadelphia Inquirer anxiety amongst key individuals because of the
columnist, now runs workshops with key high exposure to risk.
connectors on city improvement.
4.2 The findings
• Groups of key connectors have Figure C8 is divided into two sections, A
spontaneously collaborated on a number of and B. Section A is the generic template
city projects. showing the layout location of the various
stakeholders (local authority in upper left,
• Leadership Philadelphia (a long-standing schools and colleges in upper right; voluntary
organisation set up to mobilise private sector and community sector, student council and
involvement in civic activities) has develop residents are the groups below). Section
a new leadership competency model for B displays the two-way ties of innovation
use in continuing adult education in civic identified through answers to the question
leadership. “whom do you seek out regarding new ideas
and novel approaches?”

119
 Council
Figure C8: Networks and connections inand
Schools thecolleges
case study 21

Council
6 16 8

4 6 3
14 5 221 14
13 14

Schools and colleges

1 3 4

13 11

7 21 13
10 20

8 22
8 19 6 16 8 7 12
4 6 3 14 15
14 5 221 14
9 5 18 15
13 14 1 3 4
12 10
22 14 17
13 11
14 19 9
7 13
10 20
21

2 1 5 20
9 7 8 8 19
22
7 12
3 4 11 11 14 17 14 15

13 13 16 9 5 18 9 15
18 10 9
12 6 12 10
22 14 17

14 19 9

21

2 1 5 20

Student Council
9 7

Private sector org. 3 4 11 11 14 17

18 10 9
13 13 16

12 Residents
6
9

Private sector org. Student Council

Residents

Others
V and C

Others
V and C

Section A

Council
21
Schools and colleges

Council
6 16 8

4 6 3
14 5 2 21 14
13 14 1 3 4

7
13 11

21 13
Schools and colleges
10 20

8 8 19
22 6 16 8 7 12
4 6 3 14 15
14 5 2 21 14
9 5 18 15
13 14 1 3 4
12 10
22 14 17
13 11
14 19 9
7 13
10 20
21

2 1 5 20

9 7 8 8
22 19
7 12
3 4 11 11 14 17 14 15

13 13 16 9 5 18 9 15
18 10 9
12 10
22 14 17 12 6

14 19 9

21

2 1 5 20

Private sector org. 3 4 11 11 14

9 7

Student Council 17

18 10 9
13 13 16

12 Residents 6
9

Private sector org. Student Council

Residents

Others
V and C

Section B Others
V and C
Section A is the template showing key connectors (yellow, green and red circles denoting
respectively hubs, gatekeepers and pulsetakers). Section B shows the inter- and intra-
innovation network across all sectors.

4.3 Emerging messages taken from another local authority where there
is a paucity of innovation.
4.3.1 The locality has a high level of
networking around innovation compared to The presence of good innovative ideas does
other areas not necessarily guarantee good networking,
The locality exhibited a high level of but here there is evidence that in this area
networking – compared to other authorities innovation is well rooted in relationships and
analysed in the UK. Compared to other surveys, networks. However, the existence of good
a high proportion of people are actively networking does not by itself directly lead
seeking ideas and innovative solutions. This to or guarantee an innovative programme or
is illustrated by the relatively high density of initiative, or the successful implementation of
connection between the local authority and the innovation.
schools and colleges in Figure C9. Figure C10 is

120
Figure C9: Networks connected to innovation in the locality
Council
Schools and colleges

K
All

Bowrii

ur

Broo

Ed

Halewoo
St Brigi

St Ag

Simons
igherr
igh

Knowsl
K )
Holy

Know
now

Residents
resident

14-19
14
Youth
h r IInnova

Studentt Council
Stude
Knows

Balfour
alfour B tty Capital Projects
Beatty

W
Work B Lif
Lifelo
Com

Student Council Te
Team a
Liverp

Know Knows Mers

R
Royal
Roya o

Micros
Mi os

V and C
Pu
Public

Others

4.3.2 The local authority has strong internal or who can be depended on to carry a good
networks for seeking new ideas, and idea and make it happen.
includes many individuals acting as hubs,
pulsetakers and gatekeepers The strength of this network is high given the
Figure C11 shows the internal networks within early stage in the social innovation lifecycle
the local authority. The map indicates that (see Figure 1 of the main report). A significant
this network is not nascent but consists of contributing factor to this is likely to be the
significant and mature networking abilities, scale of the changes happening to services.
particularly regarding innovation and new
ideas. This is shown in two ways: by the 4.3.3 The local authority and a number of
existence of connections (blue lines) between schools are central to innovation networks
different individuals within the local authority and are leading the innovation process
and more importantly by the existence of The local authority and the schools and
a significant number of hubs, pulsetakers colleges form the ‘real’ network for innovation
and gatekeepers identified within the local in the locality. The local authority appears to
authority. This included both senior and have strong connections between internal
frontline staff. decision-makers and frontline staff which have
assisted in and helped to drive innovation.
The number of hubs, pulsetakers and
gatekeepers is critical within this. If an A consistent pattern across all seven identified
individual is identified as one of the five networks shown in Figure C12 demonstrates
per cent of key connectors it requires that the existence of a core group of individuals
they are not only directly connected with including local authority officers as well as a
many individuals but also ‘strategically’ number of head teachers – these are the key
connected (either directly or indirectly) to figures in all seven networks. In the context
other key connected individuals. This form of of this case study, both the scale of service
direct and indirect connection is impossible transformation and the need to manage
to ‘manipulate’ by any one person (largely the risk of a high profile capital programme
because people tend to only see their direct are likely to be important in explaining the
connections, not their indirect connections) but strength of the core group.
arises out of a collective sense of who to trust,

121
 Figure C10: Innovation networks at the intra- and inter-levels in a comparable local authority
where there is less innovation

Generic Orgs Councillors

2818
Notts CC
41

32 1712
31

263430

2127 21

2332
2540
2

22
161635

MASP
31 17

34
5 5 6

3 33
7 8 94 11
2624 Neighbourhood team
23

Community reps
Religious 26 5
3540

Police reps 3019 20

MDC staff/officers Neighbourhood

27
29

warden
1111
14
19
164416 33
29 15 1 4 4
31
1621
31
2139
2225
44 45

38
2 6 7

CVS/Voluntary/
9 9

6 2 23

Community Others
41 8
Job Centre+
131336 30
26 3036
2943
37

28 2112
182833
8 10 1
13
304242 38 14 7
19 31 24

Health 1224

18 41

1015
27
Fire
15 31

2020

1722
22 18
104310
1114

2425
37

39

Schools and colleges

Internal networks

Generic Orgs Councillors

2818
41
Notts CC
32 1712
31

263430

2127 21

2332
2540
2

22

1616 35

MASP
31 17

34
5 5 6

3 3 3
7 8 4
9 1 11
2624 Neighbourhood team

Community reps
23

Religious 26 53540

Police reps 3019 20

MDC staff/officers Neighbourhood

27
29

warden
1111
14
19
164416 33
29 15 1 4 4
31
16 21
31
2139
2225
44 45

38
2 6 7
9 9

CVS/Voluntary/ Others
Community
6 2 23

41 8
Job Centre+
131336 30
26 3036
2943
37

28 2112
182833
8 10 1
13
304242 38 14 7
19 31 24

Health 1224

18 41

1015
27
15 31
Fire
2020

1722
22 18
10 4310
1114

2425
37

39

Schools and colleges

External networks

122
Figure C11: Networks within the local authority for seeking new ideas

Figure C12: A consistent pattern across all seven networks

123
 These individuals are crucial to the locality’s completed the survey. This finding is consistent
innovation networks, in terms of seeking with comparable SNAs of other areas and
and promoting new ideas, making decisions is probably linked to the weakness of the
and communicating about day-to-day work. voluntary and third sector within networks. It
Much of the locality’s social capital or tacit is often found in the UK that local authorities
knowledge around innovation is concentrated ‘dominate’ the innovation process, and tend
in this core group of individuals. to isolate the voluntary and community sector,
the sector which is most likely to connect
In the case study, the strength of networks innovation to residents and consumer voice.
within the local authority itself was less
surprising – although many comparable local The implications of this finding could suggest
authorities and other large organisations that the local authority and schools are not
struggle with their internal relationships. exploiting the potential of others to input ideas
The strong relationships with many schools, and suggestions into innovation; that they
however, indicate high levels of social capital. are missing opportunities to involve the user
The danger of this is if these individuals perspective; and that their ideas are failing to
dominate thinking and relationships and come influence all the agencies they should (which
to act as a clique or cartel, controlling the could lead to failure to understand the need for
implementation of ideas and making it difficult change or at worst active blocking of new ideas
for people outside this network to put forward and initiatives). However it could be that at this
suggestions. It also raises questions about stage of innovation they do not actually need
the schools that are not part of the networks to involve service users in order to progress.
driving innovation – do they feel excluded by The finding could become more significant in
the strength of the core group or is it simply the future: if some of the current core group
that they are less interested or involved in the leave their current jobs and support for the
development of new thinking? Further detailed innovation is not widely embedded in the area,
analysis with survey participants is needed to the innovation may come to lack champions
answer this question. and its sustainability may be threatened. It also
limits the sources for the new ideas which will
4.3.4 The voluntary and community sector, be needed to refresh innovation in the future.
student council and residents appear to be
outside the core networks of influence in It also raises the question of whether there is
the locality sufficient ‘connected difference’ to stimulate
Network analysis shows both the flow of fresh thinking in the future.
information and ideas within the centre of
any agency or partnership, and also indicates 4.4 Conclusions: the value of the
how ideas are allowed to flow in from experimental SNA
external agencies or individuals. Any core The SNA of this locality has generated a fuller
group of individuals must be receptive to understanding of the networks and interactions
external information and ideas but here some which have driven and facilitated innovation.
vulnerabilities were identified in the case study. It has also revealed where there are significant
gaps in relationships and networks that need to
The maps show that voluntary and community be overcome to ensure that the input of all the
sector organisations are not included in different stakeholders is maximised and that
identified networks. This suggests that the the best prospects are created for the future
influence and decision-making power of this sustainability of new ideas. It has raised critical
sector is limited and that these organisations questions which can only be answered with the
are not assuming an active role in influencing, help of the local stakeholders who participated
sharing and participating in innovation. They in the survey. This exercise revealed a different
were also found to be failing to network well level of detail compared with more traditional
with each other. This could be either because research and evaluation exercises.
the sector’s capacity is weak – because it is
being excluded from conversations – or a Although the analysis identified a relatively
combination of the two. high number of individuals who were actively
involved in innovation, and who were using
In this locality, the two lowest levels of the networks to seek new solutions to problems
system (the public and grassroots levels) that they faced, this active network was not
are also poorly connected to the higher enabling knowledge and ideas to flow to all
levels. For example, views were sought from members of the locality.
members of the Student Council but none

124
The local authority, as well as a number of
schools and colleges, appears to dominate
the innovation process. With risky innovation
comes the need for strong strategic control,
but this approach may limit the extent to
which ideas emerge from the frontline and
how communities will adapt locally to the new
innovations.

Additionally, turnover of elected members and

officers may mean that the sustainability of
the innovation network over time is fragile.
Sustainability would be boosted by spreading
innovation out into the broader community of
practice, actively involving the voluntary and
community sector and the student councils in
gathering new ideas as well as disseminating
new ideas to the frontline. Unless there is an
intervention to change the relationship with
other constituencies, innovation will be isolated
at the local authority level.

More detailed discussion with agencies in

the case study locality will help interpret and
understand the implications of the results.

The potential of SNA in furthering the

understanding of local social innovation, as
well as in maximising and building sustainable
innovation by strengthening communication
networks is largely untapped. Further
research is required to compare SNAs of
other innovative localities, exploring, for
example, the various stages of innovation.
How are ideas developed, winnowed down
and matured for the different phases of
innovation? Can interventions be designed that
take advantage of existing network structures
and accelerate the adoption of ideas? A key
question is whether comparative studies of
local authorities can be developed into a
standardised approach that can be scaled up
across the UK and compared with the growing
body of international experience.

125
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 Appendix D: In-depth literature review

1. What is social innovation? organisations, vocal or organised activists

or pressure groups, or strong connections
The term ‘social innovation’ refers to new between central and local government.
ideas, institutions or ways of working that aim
to meet social needs or tackle social problems. This pattern has also been recognised in the
This might include, for example, new ways of field of technological and business innovation.
working to reduce poverty or discrimination, Studies such as Canepa and Stoneman’s
169. Mulgan, G. (2006) ‘Social or new services and organisations to care for investigation of technological innovation
Innovation: what it is,
why it matters, how it can those suffering from illness. Other examples in Germany showed that certain locations
be accelerated.’ London: of social innovation include the NHS (a radical foster much greater innovation than others.170
Basingstoke Press.
170. Canepa, A. and new way to deliver health care at the time of Synergies can be created among these
Stoneman, P. (2004) its inception), the use of cognitive behavioural stakeholders and supported by the combined
‘Financial Constraints to
Innovation in Europe: therapy (CBT) to treat certain mental health effect of other factors, such as investment,
Policy and Evidence.’ conditions or The Big Issue organisation human capacity and ambition, to produce an
EIFC - Technology and
Finance Working Papers that produces magazines sold by homeless environment where innovation can flourish.
36. United Nations people.169
University: Institute for
New Technologies. Regional and territorial innovation theory tries
171. Moulaert, F. and Sekia, Social innovations can take the form of a new to explore the reasons why some locations,
F. (2003) Territorial service, initiative or an organisation, or a radical such as Silicon Valley in California or Bangalore
Innovation Models: A
Critical Survey. ‘Regional new approach to the organisation and delivery in India, produce large amounts of innovation
Studies.’ 37(3), pp. of services. Both approaches have the potential compared to others. Silicon Valley and
289-302.
to spread throughout a profession or sector, Bangalore are both acknowledged worldwide
like education or health care, or geographically for their success in sectoral innovation and
from one place to another. seem to possess a distinctive environment that
is able to cultivate high levels of innovation
and creativity.171

2. Why do some places innovate? This geographical locus for innovation has
fascinated many researchers who have
Some geographical locations appear to exhibit attempted to distil their behaviour to
a flurry of socially innovative practices and create models and theories that connect
behaviour, while others seem much less adept environmental factors to the innovation levels
at finding creative and imaginative ways to an area exhibits. There has been a great deal of
address the same social goals and needs. recent research on the characteristics that make
local economies innovative and the connection
Every region, city or neighbourhood possesses between innovation and place. This work dates
a different range of actors and stakeholders back to Alfred Marshall’s 19th century study
who can drive innovation. There may be of industrial districts. More recently, it includes
strong individual leaders who are motivated the work of Michael Piore and Charles Sabel
to achieve social change (such as politicians, in the eighties, Michael Porter in the nineties,
business leaders, entrepreneurs). There may Peter Hall on creative cities and milieux, and
also be strong or weak networks of third sector the more recent suggestions of figures like

128
Richard Florida. Their work has identified a or imaginative solutions to public-good
host of interesting features of dynamic and objectives.
creative economies – including the roles of
intermediary bodies, incubators, universities, Landry identifies the characteristics creative
finance, creative industries and migrant cities need to nurture and sustain talent, many
workers, in encouraging and supporting the of which can be applied to thinking about how
emergence of geographical innovation. Other places can develop a culture of innovation. He
research about innovation and place has argues that the city must identify, nurture and
identified clustering and proximity as important sustain its talent and must take measured risks.
factors in the concentration and transfer of It must have widespread leadership, a sense of
knowledge in specific locations, such as those destination, determination and the strength to
found in Silicon Valley, as well as their impact go beyond the political cycle.173
on creating deep pools of specialised labour.
The idea of a creative centre has been adopted
Innovation in a geographical area appears to some extent by some British cities, such
to occur due to a number of individual as Liverpool, Sheffield, Manchester and
factors that combine to create an innovative Birmingham, which have attempted to place
environment. cultural industries at the centre of their
physical redevelopments. Florida identified the
2.1 Creative cities and innovation need to draw in people from a global skilled
Creative is an adjective that can only be truly class to drive these new industries; he rated
applied to a few cities across the world. The cities on a ‘gay index’ of how cosmopolitan and
concept of the ‘creative city’ emerged in attractive cities were to gay and lesbian people.
the eighties from a vacuum caused by the
death of industry in many Western cities. Hall claims that all cities that have enjoyed
Creativity had to be embedded through ‘hard’ a ‘golden age’ have had some things in 172. Landry, C. (2006)
‘Lineages of the Creative
and ‘soft’ infrastructure, such as the built common. They have all had access to resources City.’ [Online]. Available at:
environment and transport but also education in the form of a tax or revenue collection www.charleslandry.com/
index.php?l=freebies
and atmosphere. Landry argues that a new system that has allowed some money to be 173. Landry, C. (2006)
approach to the development of urban space directed towards the arts. They have also ‘Lineages of the Creative
City.’ [Online]. Available at:
is crucial to the creation of cities in which had a dominant social class that has acted as www.charleslandry.com/
innovative solutions to problems can be found patrons. However, these conditions have not index.php?l=freebies
and where human culture can thrive.172 He inevitably led to innovation. Hall believes that 174. Hall, P. (1998) ‘Cities
in Civilisation.’ London:
outlines the following principles for good city- more important than resources is a spark that Weidenfeld & Nicolson.
making: arises almost through serendipity – creative
people having chance conversations and ideas
• Every city should seek not to compete with following from that.174 This is also an important
those around it but should aim to be the best consideration in thinking about the factors that
for the world, meaning that this development need to align in order for local social innovation
must have an ethical and moral foundation. to occur. It is not sufficient for a place to
have resources and capacity. Places also need
• Cities should reflect local cultures but also be triggers in the form of individuals and events
open to new ideas from outside. that provide inspiration or vision.

• Users should be involved in the decision-

making process (ordinary people can make
the extraordinary happen). 3. Public sector innovation: drivers and
enablers
• Professionals should learn from other
examples but not copy slavishly. While some of these concepts can be
transferred to an investigation of local social
• Projects that make economic sense but also innovation, very little work has been conducted
reinforce ethical values, therefore balancing specifically about the characteristics of
individual and collective needs and desires, geographical social or public sector innovation.
should be encouraged.
This body of work demonstrates the growing
• There is a need to create an environment interest in social innovation within the public
where thinking and imagination are present sector. A 2007 study of local government
and where tenacity and courage can lead to innovation in England by the Audit Commission
positive change, i.e. to foster ‘civic creativity’ indicates that 43 per cent of local authorities

129
 claim to be engaged in a great deal of social were comprehensively innovative, despite the
innovation practices, whilst an additional 52 projects in question being initiated and led by
per cent claimed to be engaged in ‘some’ organisations from different sectors – 69 per
innovation.175 These findings illustrate an cent initiated by the voluntary/community
increasing awareness of social innovation in sector, 22 per cent by the public sector and
local authorities as a means to meet social nine per cent by the private.178
needs.
Hartley et al. identify that innovation processes
There is an emerging body of research about in the public sector are unlike those in the
public service innovation, including recent work private sector, with innovation coming from
by the National Audit Office and the Audit different sources and through different
Commission about local government innovation processes, described as:
in England, and several academic studies
exploring the impact of best practice networks • Policy-driven – ‘top-down’ from central
in spreading learning about innovation. government.

Pressure for innovation in the public sector • Organisation-driven – ‘bottom-up’ meeting

primarily comes from changing needs in needs and expectations of users.
society, not competition as in the private
175. Audit Commission sector. The Audit Commission data indicates • Professional-driven – ‘sideways-in’
(2007) ‘Seeing the Light,
Innovation in Local Public that poor performance is an important driver comparison with other organisations.
Services.’ London: Audit of innovation. English local authorities have
Commission.
176. Brannan, T., Durose, C.,
a statutory duty to undertake continuous • User-driven – groups of users developing and
John, P. and Wolman, improvement and are much more likely to do advocating their own innovation.
H. (2007) Assessing
Best Practice as a Means
so in areas where their provision is poor. This
of Innovation. ‘Annual claim is supported by Boyne et al., who identify A wide range of studies by bodies such as the
Conference of the Urban
Affairs Association,
that poor performance can spur authorities on Audit Commission and NAO refer to the factors
Montreal, 2006.’ to adopt ‘best practice’,176 and Hämäläinen and required to generate innovation in the public
177. Hämäläinen, T. and Heiskala’s study of social innovation, which sector. These can be summarised as:
Heiskala, R. (eds)
(2006/2007) ‘Social suggests that the best performing local areas
Innovations, Institutional are not necessarily the most innovative.177 • Political crisis or change in leadership.
Change and Economic
Performance.’ (Draft
publication). Unpublished. Aydalot identifies three kinds of innovation: • Symbolic triggers such as statements of
178. Barton, H. (2000)
‘Sustainable communities:
in-house corporate restructuring; the re- intent, charters, or strategy documents.
the potential for eco- energising of old industries by the application
neighbourhoods.’ London:
Earthscan.
of new technologies; and the production of • Ambition at the executive level which
knowledge and its application. Much public must then percolate through the whole
sector innovation appears to fall into the latter organisation. Strong leadership is vital to this
category. process.

A number of studies appear to suggest that • Joined-up working which allows staff to
public or third sector innovation is focused, share information and understand in more
rather than being a general organisational depth the way in which the organisation
strategy. Studies found that local authorities functions.
innovating in one field were not necessarily
innovating in others. This makes sense in that • Supporting staff to be inventive and allowing
it reduces overall exposure to risk and focuses space for creative thinking.
resources on the most pressing needs.
• Strong relationships with councillors, other
This finding is reinforced by evidence from partner organisations and external agencies.
studies of innovation in other sectors.
Perroux’s work identifies that innovation • Local activists or campaign groups, some
does not happen everywhere at once but likely to be mavericks.
fits the pattern he called the ‘growth pole’,
a point in historic time and space when • Good links to users and residents to engage
entrepreneurial forces vigorously stimulate their experiences and opinions.
economic growth (either an individual firm or
an industry). Barton and Kleiner’s study of 55 • A strong awareness of ongoing policy
innovative communities found that only a tiny debates in the public sector.
proportion of neighbourhoods in this group

130
• Research and pilots to test local social of bridges across different sets of stakeholders,
innovations. facilitating and sustaining the innovation.
Leadership that drives innovation is not
• Mainstreaming through a culture of restricted to single individuals but can also
determination and aspiration. refer to top management’s commitment
to innovation. An innovative organisation
• A strategy to embed and sustain innovation. may feature a collective of individuals who
prioritise innovation and hence are receptive
Hartley et al. describe a specific role for to ideas, willing to take on risk and embrace
politicians in catalysing public sector change. Such leadership is often able to
innovation. This is reinforced by the Audit cross organisational boundaries and stimulate
Commission 2007 report investigating innovation in other such organisations through
innovation in public services in which many partnerships and alliances.
local authorities described internal pressure
from politicians and demands from staff A study by the Audit Commission into
as more influential than external pressures innovation in local government found that
for improvement from central government ambition was a key component in driving
or regulatory bodies. However, this type of forward and encouraging innovation.179
external pressure should not be discounted. It Unfortunately, it is often inefficient change
appears to often act as an underlying trigger management, poor implementation or 179. Audit Commission
(2007) ‘Seeing the Light,
for innovation and change, which requires inefficient risk management that stifles Innovation in Local Public
internal pressure to act as a catalyst to initiate innovation in an area and creates inertia within Services.’ London: Audit
Commission.
change. an organisation. 180. Brannan, T., Durose, C.,
John, P. and Wolman,
H. (2007) Assessing
Other forms of external pressure, such as There is conflicting evidence about the impact Best Practice as a Means
competition between peers or between local of political stability on a local authority’s of Innovation. ‘Annual
Conference of the Urban
authorities, are also important underlying willingness to take risks. Wejnert suggests that Affairs Association,
drivers of innovation. This pressure takes the politically unstable authorities may be more Montreal, 2006.’
form of best practice or awards for innovation, risk adverse, whereas a large majority may give 181. Tidd. J., Bessant, J.
and Pavitt, K. (2005)
which encourage improvement and adoption of a significant mandate for change. However, ‘Managing Innovation:
ideas from other authorities. Walker suggests that long-standing majorities Integrating Technological,
Market and Organisational
may make authorities complacent.180 Change.’ 3rd ed. West
Sussex: John Wiley & Sons.

4. Leadership
5. Organisational culture
There is a significant body of evidence about
the catalysing effect that strong leadership Innovation is not a straightforward process
and charismatic individuals have on initiating and is often associated with significant risk.
innovation and change. This is reflected in the Establishing an innovative culture is crucial
limited evidence about social and public sector in encouraging and fostering innovation
innovation. and an organisation’s structure can affect
innovation, by either encouraging or inhibiting
Much existing academic literature that the generation and spread of good ideas,
addresses the effect of leadership on as illustrated in the research undertaken by
social innovation looks at the role of social Burns and Stalker in the 1950s who classified
entrepreneurs who act as pioneers of socially organisations as epitomising either mechanistic
innovative ideas. An example of this is the or organic structures.181
recent Nobel Peace Prize winner Muhammad
Yunus, who established the Grameen Bank, The factors that create an innovative
which uses the model of micro finance to organisational culture depend on a delicate
alleviate deprivation in the developing world. balance and blend of components. It is possible
In this case, much of Grameen’s success relied to identify a number of characteristics that are
on Muhammed Yunus’s vision, dedication and common to innovative organisations across the
the strong relationships he has developed with public and private sectors.
business leaders, government officials, donors,
academics and poor villagers. In recent years, many private and public sector
organisations have moved away from rigid,
Strong leadership from individuals pioneering hierarchical, mechanistic structures with clear
social innovations often features the building boundaries between departments to adopt

131
 looser, more integrated, decentralised, organic maintained.185 Open innovation also allows
formations. Organic structures are recognised intellectual property rights to be used not
as facilitating innovation due to their greater just to defend ideas but also to make ideas
flexibility and stronger communication. tradable to outside organisations willing to
Combined with a culture that is receptive take them further, with a role for intermediaries
to new ideas, this style of working can be a to provide information, access and finance
powerful enabler of innovation. This is further during this transfer of ideas and products.
supported by Rothwell and Dodgson’s research This model has largely been developed from
on innovation and firm size, which recognised experience in American hi-tech industries. It
smaller firms as being much more innovative is questionable how relevant these ideas are
than their larger counterparts due to their to other types of industries, however, the idea
organic nature, which supports a more creative of open innovation is transferable to public
climate for staff to operate in.182 sector innovation because of the emphasis on
co-production of ideas and learning through
A common characteristic of innovative best practice.
organisations is an ‘open’ working culture
where staff are supported and allowed to
experiment, and where management does not
universally impose decisions and choices on 6. Learning and best practice
182. Dodgson, M. (2000) staff. A degree of risk-taking is an inevitable
‘The Management of
Technological Innovation.’ conclusion to this as developing new ideas will An organisation must acknowledge the
Oxford: Oxford University lead to failure in some cases. importance of learning if it is to prevent
Press.
183. Tidd. J., Bessant, J.
innovation from becoming an isolated rare
and Pavitt, K. (2005) Creative staff can be a hugely significant source event and if it wants to establish a culture of
‘Managing Innovation:
Integrating Technological,
of ideas and must be provided with the space innovative behaviour. Innovation involves both
Market and Organisational for creative thinking. Without support from failures and successes due to the large amounts
Change.’ 3rd ed. West
Sussex: John Wiley & Sons.
executive level members, good ideas can often of risk and thus it is crucial to ensure lessons
184. Audit Commission (2006) ‘run into the organisational sand’.183 from past practice are captured and not lost as
‘Achieving Growth in a new innovation cycle begins.
Central Government
Organisations.’ London: A recent study into innovation in central
Audit Commission. government found only limited innovation in Innovative organisations are characterised by
185. Chesbrough, H. (2005)
Open Innovation: A
many departments. The cause was identified strong communication and effective evaluation
New Paradigm for as the hierarchical nature of the civil service, of projects, in order to learn from experience
Understanding Industrial
Innovation. In Chesbrough,
which discouraged staff from experimentation, and consolidate what has been accomplished.
H. (2005) ‘Open because of fears that failure could affect their
Innovation: Researching a
New Paradigm.’ [Online].
careers. Recommendations to improve this This is not restricted to learning from within an
Available at: http://www. situation included supporting staff to be more organisation. Much can be learnt from other
druid.dk/uploads/tx_
picturedb/ds2005-1592.
creative and the civil service becoming more organisations and collective learning can also
pdf open to risk-taking.184 greatly impact social innovation. Regional
186. Brannan, T., Durose, C., innovation system theory describes how
John, P. and Wolman,
H. (2007) Assessing Chesbrough’s model of ‘open innovation’ learning in a cumulative activity occurs through
Best Practice as a Means shows innovation excels when ideas are free to interaction.
of Innovation. ‘Annual
Conference of the Urban flow between departments and organisations.
Affairs Association, This has also been shown in much research There are a variety of studies that explore
Montreal, 2006.’
undertaken about firms that adopt a project- how ‘best practice’ is used and adopted in
based approach to joined-up working and the public sector. Brannan et al. identify ‘best
cross-cutting structures that allow greater practice’ and innovation as conceptually two
flows of information and staff to see a bigger different things, but ‘best practice’ is often a
picture, facilitating innovation. tool to disseminate innovative ideas and helps
prevent local government from ‘reinventing
An open approach allows for promising the wheel’. Using ‘best practice’ implies the
ideas, that might otherwise have been involvement of a central body to determine
abandoned, to be picked up by others, relevant examples and coordinate the system.
investigated, and possibly to come to fruition. In the UK local government context, the
In Chesbrough’s model, communication with Improvement and Development Agency for
external stakeholders is also fundamental in Local Government and the Local Government
encouraging innovation, as often knowledge Association play a key role.
gained from external agencies such as
competitors, academia and allies is important Brannan surveyed local authorities about their
and hence links with them must be built and adoption of ‘best practice’ in two policy areas,

132
regeneration and community safety. Innovation • Professional – professionals tend to interact
was most likely in policy areas that had been in silos, and also struggle to share knowledge
identified as a priority area for some time. that is tacit in nature.
There was also a link to the level of available
funding in both highly competent authorities
and those with poor records, demonstrating
that both a culture of excellence and the 7. Networks and people
‘burning platform’ of lack of success can act as
drivers for innovation. Collaboration and working with outsiders
can be beneficial in generating innovation
The study identified a number of problems with because it allows greater access to knowledge,
the use of ‘best practice’ to inform innovation capabilities and resources. These benefits are
(from most to least problematic):186 greatest when there is a degree of ‘cognitive
distance’ between the organisations, that is,
• Assessing the appropriateness of the some level of difference in the way that the
example of ‘best practice’. two organisations view the situation, as this
can provide novel insights.188
• Judging whether it really was ‘best practice’.
But such collaboration can also be risky.
• Identifying what ‘best practice’ is. Where the distance is too great between 187. Hartley, J. (2006)
‘Innovation and
partners, there can be a complete lack of improvement in Local
• Evaluating it once implanted; knowing where mutual understanding. The risks associated Government.’ [Online].
Available at: www.ipeg.
to find ‘best practice’. with collaboration are situations where org.uk/presentations/
partners can absorb knowledge and use this bp_hartley_pres.pdf?PHPS
ESSID=f3f227c19c18b317
• Implementing and convincing the local to gain an advantage, a process known as 19e4b0c170ce2489
authority to adopt or accept ‘best practice’. ‘spill-over’. However, this is less of a risk in 188. Nooteboom, B. (2006)
‘Trust and Innovation.’
the context of public sector innovation. Trust Essay written for the Dutch
In England, central government has instituted between organisations is important in building Ministry of Economic
Affairs, as background
the ‘Beacon Scheme’ (conceived of by meaningful partnerships, but at its most to the 2006 Innovation
Hartley and Benington), which recognises extreme can lead to dependence and blindness Lecture on trust and
innovation [online].
and awards excellence and innovation in local towards other organisations or ideas. Available from: http://
authorities’ service delivery, and which aims www.bartnooteboom.nl/
EZTrust per cent20and per
to encourage the spread of best practice. For many industries, organisations and cent20innovation5.pdf
Experience is shared through National Beacon companies have tended to cluster in a 189. Brenner, T. and Greif, S.
conferences, open days in each Beacon, particular geographical area, most famously (2006) The Dependence
of Innovativeness on the
learning opportunities such as mentoring the IT industry in Silicon Valley. Historically Local Firm Population – An
and shadowing as well as web materials. An this was seen as a way to reduce the costs of Empirical Study of German
Patents. ‘Industry and
evaluation of the outcomes of this scheme transferring raw materials and finished products Innovation.’ 13(1), pp.
found significant improvements in service throughout the production process, which is of 21-39.
delivery and partnership working.187 course more relevant for industrial production
than modern ‘knowledge’ industries. The
The major finding from the research was that presence of large companies often encouraged
adaptation rather than adoption, or ‘graft smaller firms that specialised in part of a
and grow’ rather than ‘cut and paste’, was process or in producing one component to
central to the success of best practice and spring up around them and act as satellites.
that key to this was reciprocal knowledge
transfer, customisation of ideas, trust and Investigation into the benefits that clustering
collaboration with respect for diversity, and can provide to an industry as a whole revealed
face-to-face contact between staff of different that in some cases, such as the chemicals
organisations. industry, it was vital, but that in others it
did not provide such significant advantages.
Two significant boundaries to knowledge Benefits were thought to come from ‘spill-
sharing are: over’: co-operation – particularly between
buyers and suppliers; the availability of a skilled
• Organisational – individuals may hoard local work force – and in some cases a local
knowledge in competitive situations, and also specialised education infrastructure and an
government policy may inhibit knowledge ‘innovative milieu’; and a positive ‘buzz’ in the
sharing. local population and among policymakers.189

133
 Partnership working, collaboration and joined- to exchange information with its citizens and
up working can greatly spur and facilitate local the private sector in order to improve internal
innovation. The IDeA has reported a trend efficiency, the delivery of services, and
towards partnership working within the public democratic participation.
sector, both on the regional and local level in
order to increase effectiveness and efficiency. • T-government, or transformational
Greater engagement with the voluntary and government, is an initiative propagated by
community sector has also enabled local the UK Government with the publication of
government to gain a better understanding Transformational Government: Enabled by
of local need and use the voluntary sectors’ Technology in November 2005.191 This report
experience and expertise to meet them. This outlines ways to transform public service
has also been seen in the growing trend of deliveries and to improve the efficiency
Councils commissioning certain services to the of government structures with the use of
voluntary and community sector. information technology designed around the
citizen.
Network organisational structure was
introduced into parts of the NHS as an • Innovation Forum between central and local
alternative to market, or hierarchical systems, government.
because it was thought that they would
190. Public Money and improve capacity for knowledge transfer. • Beacon Award schemes for health, schools,
Management (2006)
Knowledge Management local government, central government,
issue. ‘Journal of Public The move was welcomed by many staff police, transport, national parks and waste
Money and Management.’
26(2). because it reflected how many people had been management.
191. Cabinet Office (2005) working informally. However, once formally
‘Transformational
Government: Enabled by
introduced, the networks grew in a way that • NHS collaborations.192
Technology.’ London: TSO. was managed and not organic. Research into
192. Public Money and the success of these changes in the case of
Management (2006)
Knowledge Management cancer treatment found that networks did
issue. ‘Journal of Public provide some new opportunities for knowledge 8. Resources
Money and Management.’
26(2). transfer. However, the existence of targets and
193. Rothwell, R. (1983) the move towards greater centralisation (and Successful innovation requires an organisation
Innovation and firm
size: a case of dynamic
competition to become centres of excellence) to be able to invest resources to bring about
complementarity; or, is resulted in knowledge management being necessary change. Innovation is often a
small really so beautiful?
‘Journal of General
marginal to other considerations. Networks time-consuming, labour- intensive and
Management.’ 8(3), pp. failed to develop a shared epistemology as expensive process associated with high levels
5-25.
knowledge management theory suggested they of associated risk. Private sector organisations
would. Government spending on knowledge with constrained resources are often unable to
sharing is much lower than that for inspection justify such expenditures and investment when
and auditing (£10 million compared to positive returns and improvement cannot be
£90 million for local government in 2002). guaranteed. This can create a sense of inertia
Inspection implies that best practice is known that prevents innovation.
and agreed, but knowledge sharing allows
for diversity, innovation and learning through Much research regarding technological
failure. innovation demonstrates there is a direct
correlation between the availability of financial
Government has acknowledged the importance resources and the amount of innovation within
of learning through electronic knowledge an establishment. Rothwell and Dodgson’s
transfer and visits, but has not expressed research regarding innovation and firm size
a theory of knowledge management, its cites availability of financial investment as a
strengths and weakness or how networks key advantage to innovation in larger firms.193
should be formed and sustained. Currently Both Walker and Rogers argue that those
there is too much dissemination and the ‘copy with greater resources in terms of finance,
and paste’ approach. More needs to be done to personnel, facilities and skills have more
‘graft and grow’.190 potential for economies of scale and greater
experience in policy areas that are most
Examples of the introduction of networks in responsive to innovation. Research into social
the public sphere are: innovation has also shown that organisations
facing financial constraints are less likely
• E-government, or electronic government, to experiment or adopt new ideas and
refers to the use of information technology technologies.

134
However, a recent study by the Audit
Commission suggests that the availability
of funding and finance to innovate is not as
crucial as widely believed in the context of
innovation in the public sector. This research
has shown that many English local authorities
are innovating in response to problems
associated with deprivation, where there is
a lack of financial resources but great social
need.

In these situations, other resources are

enabling innovation such as the availability of
skilled staff, or access to local partnerships.
Innovation is fundamentally about people and
hence an organisation’s capacity to innovate is
limited by the type and quality of staff within
the organisation. An important constraint
on innovation is the lack of staff that are
consciously invested into the innovation
process; in practical terms, given the time
and space to think creatively. Research by
Saxenian, Porter and Enright has identified
clustering and proximity as important factors
in the concentration and transfer of knowledge
in specific locations, such as those found 194. Moulaert, F. and Sekia,
F. (2003) Territorial
in Silicon Valley, as well as their impact on Innovation Models: A
creating deep pools of specialised labour.194 Critical Survey. ‘Regional
Studies.’ 37(3), pp.
Frank Moulaert has researched territorial 289-302.
innovation in both a private and now more
social setting, in order to unravel the reasons
behind, and ways in which geographical areas
innovate.

Partnerships and alliances are an essential

way to overcome capacity restraints. Through
working together, organisations can pool
resources and dissipate risk. This is of particular
importance in the case of social innovation
where resources are limited.

However, the availability of financial or human

resources does not automatically lead to
innovation. Evidence suggests that constrained
resources can act as a spur for organisations to
think creatively, and much social innovation has
been demonstrated by areas and organisations
with limited funding and capacity.

135
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Published: January 2008

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