Innovation in policy is more than a buzzword—it’s the engine that drives transformative change in the face of complex challenges. As societies grapple with economic disparities, environmental crises, and evolving community needs, traditional approaches to policymaking often fall short. Innovation offers a pathway to reimagine how policies are designed and implemented, making them more adaptive, inclusive, and impactful.
But what does it mean to innovate in policy?
At its core, it’s about stepping away from one-size-fits-all solutions and embracing creative, people-centred approaches that respond to the unique realities of our times. It’s about breaking down silos, fostering effective collaborations, and ensuring that communities, particularly marginalised groups, businesses, governments, and researchers, all have a seat at the table.
The urgency for innovation in policy has never been clearer. Recent initiatives like the UK Government’s long-term missions, Innovate UK’s Inclusive Innovation programmes, and local efforts such as the Innovation Accelerator Pilot highlight that innovation is not just a lofty ideal -it’s a practical necessity. However, innovation must also be inclusive, ensuring that solutions are co-designed with communities rather than imposed upon them.
This blog stems from thought-provoking conversations from the Local Policy Innovation Partnership (LPIP) event held at The Exchange in November 2024. There, City-REDI convened LPIP members, policymakers, academics, funders, and community activists to share experiences and debate strategies for fostering innovation that delivers tangible benefits for people and places.
Understanding Innovation in Policy
Innovation in policy goes beyond incremental adjustments to existing frameworks -it’s about fundamentally rethinking how policies are conceived, developed, and delivered. It prioritises collaboration between governments, businesses, academia, and communities, breaking down silos and ensuring diverse perspectives inform decision-making.
Traditional policymaking often relies on rigid hierarchies and limited engagement with those most affected. By contrast, policy innovation embraces experimentation, iterative learning, and evidence-based practices. It shifts from a static, top-down model to a dynamic, collaborative process that reflects the complexities of modern society.
Key Dimensions of Policy Innovation
Policy innovation takes many forms, ranging from disruptive, transformative shifts to incremental improvements that create a foundation for sustainable progress. Examples include:
- Disruption: Bold strategies like the UK Government’s mission-led approach to net-zero challenges reframe priorities and inspire systemic change.
- Incremental Change: Modernising council operations, as proposed in the English Devolution White Paper, exemplifies how small improvements can lead to meaningful, long-term benefits.
- People-Centred Approaches: Participatory frameworks, such as the Policy Lab’s lived experience projects, ensure policies reflect the realities of those they impact most. For instance, initiatives like the USE-IT project demonstrate how local skills and partnerships can address systemic inequalities and foster community resilience.
- System-Level Innovation: Collaborative frameworks like the Quadruple Helix model bring together academia, industry, government, and civil society to address complex challenges holistically.
Challenges in Innovating Policy
Despite its potential, policy innovation faces significant structural, cultural, and operational barriers that obstruct even the most promising initiatives. Recognising these challenges is essential to transforming bold ideas into impactful action.
Systemic Complexity and Fragmentation: Policymaking systems often span multiple levels of government and diverse stakeholders, leading to fragmented structures and overlapping responsibilities. Regions without established governance structures, as highlighted in advancing devolution, face the dual challenge of building foundational systems while pursuing ambitious innovation goals.
Capacity Constraints: Local authorities often lack the resources to adopt innovative practices. As emphasised in the English Devolution White Paper, rebuilding workforces and modernising operations are critical steps.
Risk Aversion: The inherent uncertainty of innovation can deter stakeholders from embracing bold approaches. Competitive funding mechanisms may also encourage safer, incremental projects rather than transformative initiatives.
Translating Evidence to Action: Policymakers need clear insights to make informed decisions, yet evidence can be inaccessible or difficult to interpret. SMEs, key drivers of local economies, are frequently overlooked in policy design, leaving them without the support needed to fully engage in innovation. Addressing this gap is crucial to fostering inclusive growth.
Successful Examples of Policy Innovation
While the challenges are significant, several initiatives demonstrate the transformative potential of innovative policymaking:
- Civic Mission Partnership Strategy: Demonstrates how universities, communities, and policymakers can co-create solutions to address regional inequalities.
- Inclusive Innovation: Innovate UK’s Inclusive Innovation Award funded businesses addressing underserved communities, showcasing how targeted support can align innovation with inclusivity while driving economic growth.
- Place-Based Innovation: The Partnerships for Regional Innovation Pilot and the USE-IT project highlight the potential of leveraging local strengths and untapped assets to foster inclusive growth. The Innovation Evidence Review of the Local Policy Innovation Partnership highlights how place-based approaches tailored to regional strengths and local ecosystems can drive meaningful innovation.
- System-Level Innovation: The Quadruple Helix model facilitates collaboration across academia, government, industry, and civil society, enabling interconnected solutions to complex challenges.
- Mission-Led Innovation: The UK Government’s net zero strategy, exemplified by projects such as Clean transport innovation, demonstrates how clear, measurable goals can mobilise diverse stakeholders to tackle complex challenges collaboratively.
Stimulating Innovation in Policy
To unlock the transformative potential of innovation in policymaking, we must take deliberate steps to foster collaboration, encourage experimentation, and secure sustained investment:
- Embrace People-Centred Approaches: Engage communities as co-creators to ensure policies reflect lived realities and foster trust.
- Move beyond consultation: Policymaking should be co-created, not dictated.
- Foster Collaboration Across Ecosystems: Interconnected partnerships, such as those enabled by the Quadruple Helix model, amplify impact by aligning local and national priorities.
- Encourage Experimentation and Manage Risk: Create safe spaces for trial and error, using small-scale pilots to demonstrate value and build confidence in bold approaches.
- Integrate Data and Narrative: Translate complex evidence into accessible insights, combining data with storytelling to inspire trust and engagement.
- Make policy accessible: Combine data with storytelling to engage diverse audiences.
- Secure Long-Term Investment: Sustained funding, as highlighted in the English Devolution White Paper, is critical to support the infrastructure, capacity, and skills needed for systemic change.
Conclusion: A Call to Action for Policy Innovation
Policy innovation is not just a strategy; it is a necessity for addressing today’s complex challenges. And inclusive innovation, as evidenced in powerful initiatives across the region, such as the Wales Future Generation Act, is not only possible but necessary.
The future of policy innovation must be participatory, collaborative, and deeply rooted in local realities. If we want policies that truly serve people, then people must have a hand in shaping them. The question is: Will we take the bold steps needed to create a future where everyone thrives? The opportunity to lead this change is in our hands. Let’s seize it.
This blog was written by Gerardo J. Arriaga-Garcia, David Legg, Nina Ruddle, Rebecca Riley, Abigail Taylor and Paul Manners.
Find out more about the Local Policy Innovation Partnership Hub.
Disclaimer:
The views expressed in this analysis post are those of the author and not necessarily those of City-REDI or the University of Birmingham.