Conditions for developing and supporting public sector innovation in the face of economic turbulence in Europe

Abstract

Purpose: The aim of the article is to analyze and assess the impact of innovative processes in the public sector on socio-economic development in the face of economic instability in Europe, and to evaluate the government support for innovative activities in various conditions of the public finance sector in selected countries. Design/Methodology/Approach: The study used the desk research method in the field of statistical resources and the method of comparative analysis. The analysis included the assessment of selected innovation indicators and measures defining commitment in the field of financial support for innovation, which included the scope of government expenditure on R&D in 2010-2019. Findings: The research proves that the mechanisms of generating innovative solutions in the public sector have their own specificity. They are often the result of forced, planned and targeted activities, reflecting the necessity to create conditions for the development support of innovations by public entities. Mainly it takes place through financing R&D in various sectors of the economy. The results of the analysis indicate the significant differences in the scope and directions of government support for activities for the development of innovation in the EU countries. Practical Implications: The proper functioning of the public sector economy requires maintaining mechanisms of constant support for scientific research and development of innovative solutions. The results of the study provide information to be used for activities aimed at improving the implementation of innovative solutions in various public entities and strengthening the diffusion of innovation in the intersectoral dimension. Originality/value: The results contribute to the discussion on the determinants of the application of innovation in the public sector in the organizational, technical, financial and social dimensions. In this approach, innovations are subordinated not so much to the mechanisms of market competition but to the achievement of better results of public services.