Public Sector Innovation in Denmark

Mette Lindgaard, Deloitte Global Social Services Leader

May 2013, Chile

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Danish design and innovation

- and design failures

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Introducing Denmark

– a small country with a strong confidence

The Danish innovation case

The innovation environment

Lessons learned in Denmark

Content

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Introducing Denmark – a small country with a strong confidence

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A small nation but a great Kingdom

Denmark Faroe Island Greenland Chile

Population 5,556,452 49,709 57,714 17,216,945

Sq Km 43,094 1,393 2,166,086 756,102

Source: CIA Factbook 4

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• On of the largest coast lines in

Europe

• Relatively flat - highest point

173 m. above sea level

• 60 % tax

• Free education and healthcare

• The happiest people in Europe

The geography of Denmark

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The Danish Innovation Case – radical and incremental innovation

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Why innovation in Denmark?

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Less people to

serve more

Citizen

expectations

Financial

crisis

Increasing

costs of care

Large and

expensive public

sector

Desire to create

a better society

Large generations retire, more on welfare support - we face

shortage of employees

Citizens pay high taxes and expect high level services

Life style deceases and advanced treatments drive costs of

health care and home care.

One of the world’s most expensive public sectors

(Denmark is 57% of GDP, and Chile is 24% of GDP)

Though Denmark is doing better than southern European

countries, we face budget constraints.

Strong community sense and wish for a better society.

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Innovation in Denmark – both radical and incremental

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• New reforms in employment,

education and social services

• New tools and technology to

improve efficiency

• New channels changes citizen

services and communication

• New knowledge provide new

understanding and new ideas

• New collaboration Private –

Public innovation and cooperation,

Public – NGO cooperation.

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A few examples

• Mobile-learning in home care for elderly promote

quality of care.

• Sensor regulated rooms and buildings promote self

sufficiency and life quality.

• Electronic distribution of medicine saves lives.

• I-enabled kindergartens promote individual

learning from an early age.

• Centralized case management provide

automated processes and online access.

• Case management systems save time and money.

• Technology reduce work related accidents.

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The innovation environment

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The Danish Innovation environment

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Regulation • Innovation law: Law on grants to promote innovation, research

• ”Free municipalities” – local iniativatives to by-pass regulation

Innovation Institutions • MindLab, Innovation Centre Denmark, Innovation academies

• Innovation agents to support small companies

Public funding • Fund for welfare technology, funds tailored to innovation, research

and initiatives

Incentives • Salary and reward structure to promote innovative behavior

• Innovation prizes

Involvement • Innovation conferences

• Involvement of citizens and employees in innovation initiatives

Association of Local governments

• Annual innovation conference

• innovation prize

• Radical innovation

– new public sector solutions

• Small steps

– innovative value with

small means

2012 focus on education

• 44 local governments participated

– 104 initiatives

• Prize for: The future primary school - active involvement of citizens

and private sector in development of the primary school of tomorrow

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MindLab Web: http://www.mind-lab.dk/

• MindLab is an innovative citizen-oriented cooperation between the Ministries of

Employment, Taxation, Business and Development.

• Cross ministerial initiatives involving citizens and companies in creating better

public solutions.

• Three areas:

• “Laboratory”: Help to create concrete changes through an experimental and

user participatory approaches involving partnerships, projects, and

workshops.

• “Think Tank”: Research and analysis for government, academia and the

wider public.

• “Inspirator”: Seminars, courses, presentations, training and development

activities.

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Fund for Welfare Technology Web: http://www.ffvt.dk/

Purpose: To renew the Danish public system through the distribution of

technology that ensures better service for fewer resources.

• 550 M$ for welfare technology initiative in 5 years

• Public as well as Private-Public initiatives

• Radical innovation

Welfare technology…

• Cost-effective processes and administration

• Citizen empowerment

Sensoring bed sheets

Learning danish by

3D computergame Home care opens doors

with mobile phone

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Innovation Centre Denmark Source: http://icdk.um.dk/

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Connected to the Ministry of Foreign Affairs of Denmark.

Assist researchers, small and large companies with:

• International partnerships

• International network

• Define the right collaboration partners

for entering a new marked

• Create design strategy

• Develop and commercialize products

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Lessons learned

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Barriers to innovation

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Structural barriers Personal barriers

Organizational

silos

Employees

seeking stability

and job security

‘Failure-is-not-

an-option-

culture’

Lack of knowledge on how to create innovations

Performance

measurements

focus on current

services – not new

Organizational barriers

Career paths

do not

recognize

innovation

Limited inclusion

of citizens in

designing new

solutions

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Lessons learned in Denmark

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The state must

provide infrastructure

to push for innovation

Raise general

knowledge of

innovation, e.g.

through academies

Create institutions

focused on innovation

such as MindLab

Set high goals

– it motivates!

Show your innovation

successes

Collaborate with the

private and non-

profit sectors

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Mette Lindgaard

partner

+45 2524 0037

mlindgaard@deloitte.dk