Mission-oriented Innovation Systems for Regional Transformation
Mission-oriented innovation supports directed action towards addressing diverse and complex policy and governance issues. It can be an appropriate approach for overcoming siloed thinking and addressing specific areas or sub-areas of an issue (e.g., achieving carbon neutrality or circular economy by 2030) in a targeted manner, while maintaining clear strategic direction.
However, a suitable governance framework for mission-oriented innovation is still missing, particularly with regard to mission implementation, which involves the design and delivery of innovations to achieve a mission. Assuming a mission has already been formulated, what are the appropriate guidelines and actions that mission-oriented innovation actors need to drive the success of initiatives?
In order for mission-oriented transformation to occur, the proposed governance framework advocates for a systemic approach to mission-oriented innovation based on five iterative activities (diagnosis, alignment, enablement, coordination and learning).
The framework draws on our experiences gained in applied research projects in Switzerland and the recognition that today’s multitude of issues, including the drive for the attainment of the UN SDGs, and increasing demand for local solutions to global challenges are increasing the complexity of regional governance.
This necessitates a renewed and deeper look at how to navigate this landscape. For each activity, a set of methods and instruments are provided to support public managers and policy innovators to implement mission-oriented innovations for sustainable regional development.
Finding the middle way: Systemic and mission-oriented
As public managers or policymakers, we could deal with regional governance issues like economic promotion, environmental protection, spatial planning, mobility, or education in the traditional, reductionist way; we could maintain existing bureaucratic structures, assign each issue to an appropriate organisational unit, and treat them in isolation. However, this reductionist approach usually ends up in the silo trap.
Alternatively, we could adopt a fully holistic approach, addressing all the issues as one and working on them simultaneously. This may sound tempting, but it would almost certainly overwhelm us and end in the complexity catastrophe that occurs when too many interdependencies between individual problems hinder strategic action.
As so often in life, what remains is the sublime middle ground. By drawing on design studies, we seek a way to innovate across boundaries and alter the dominant designs of existing structures and institutions.
A systemic and mission-oriented approach, as shown in Figure 1, allows us to address specific areas or sub-areas of issues in a targeted and connected way while simultaneously pursuing a particular strategic direction.
As popularised by the work of economist Mariana Mazzucato, a “mission” can be defined as an important strategic goal that addresses a complex societal problem. Mission-oriented innovation policy (MOIP), in turn, can be described as a public investment and policy framework that changes the direction of innovation systems to fulfill a mission.
By the same token, mission-oriented innovation systems (MIS) denote the underlying structure and ecosystem of actors orchestrating this mission-oriented innovation:
- They are aligned with a strategic goal to address a societal challenge (mission).
- The relevant subsystems and agents within them are linked, and innovations are aligned with the mission (alignment).
- They are fostered and supported by enabling policies for systemic innovation (enablement).
- They ultimately bring about system transformation through recurring system innovation and contribute to mission accomplishment (transformation).
Figure 2 illustrates that mission-oriented innovation systems consists of different agents, typically enterprises, academia, residents, and public administrations. These are interconnected and form subsystems, which are further interlinked with one another to varying degrees.
Accordingly, we need to pay attention to different levels of organisation if we want to have a mission-oriented system that creates private and public value for the region. This calls for systems thinking and some form of meta-governance that can have an effect across different organisational levels, ultimately influencing the overall system.
From mission formulation to implementation: A design perspective
In our experience, it is worth distinguishing between mission formulation and mission implementation when developing a governance framework, not least because these two areas are based on different rationalities.
In design language, Figure 3 below distinguishes between a problem space (mission formulation) and a solution space (mission implementation), connected by feedback loops.
While a few studies focus on the mission formulation task, there is still a gap in the research regarding mission implementation. Thus, in our governance framework, we focus more on the second diamond (the mission solution space), which involves designing and delivering innovations on a local or regional scale.
A governance framework of regional mission-oriented innovation systems
Mission implementation presupposes the existence of a formulated mission (Figure 4). Factors such as the degree of mission complexity, uncertainty, and contestation are already identified.
A mission, however, does not — as is often mistakenly assumed — start in an empty space or on a blank sheet of paper. We are always positioned within preexisting systems and institutional designs when we want to initiate a mission-oriented systemic transformation. The quality of the prevailing system rules affects the freedom to operate within the system.
Therefore, analysing the prevailing socio-economic-ecological-technical system and its subsystems and agents at the beginning of each iteration is necessary. If, for example, the aim is to introduce a circular economy in a region, it is important to investigate the existing disposal and recycling systems. It is also worth determining which organisations produce the most waste in the region and whether there are already initiatives attempting to close material loops. We refer to these activities as system diagnosis.
Once we have a clear understanding of the current situation within the targeted system, we can proceed with our iterative meta-governance process and align the agents, subsystems, and their interactions with the mission. In short, our aim is to focus activities and efforts towards system alignment. Additionally, we support activities that facilitate system enablement. Lastly, the coordination of innovation activities, including co-design and co-production, promotes transformative solutions and fosters system learning.
However, we must remember that we are not doing these activities in a vacuum. Other system changes outside the mission-oriented innovation system will occur simultaneously, some presumably in different directions, which we must consider in our attempt to transform the system
Linking systemic instruments and design methods with governance activities
What instruments and methods can public managers and policymakers use to fulfill the proposed activities of the framework? Table 1 links each system activity with examples of systemic instruments and design methods.
However, we must remember that the proposed system activities are part of a meta-governance process. These are applied at different levels of the system (agents and interactions between agents, subsystems, and interactions between subsystems) to affect the overall system. Accordingly, governing a mission-oriented innovation system requires humility and patience.
Key takeaways for public managers and policymakers at the regional level
Our governance framework serves as a guide for practitioners navigating mission-oriented innovation efforts at the regional level. The following activities are crucial:
- Diagnose stakeholder dynamics in the system: Gain insights into stakeholders’ interests, values, behaviours, and relationships within the regional system as well as underlying power asymmetries. Recognize their roles, motivations, and interactions to identify systemic problems and alignment opportunities.
- Align the appropriate stakeholders within the system with your mission: Identify and engage relevant stakeholders who can contribute to and support the mission-oriented innovation efforts. Ensure that these stakeholders are aligned with the mission’s goals and objectives, fostering a shared sense of purpose and commitment.
- Enable stakeholder networks to effectively implement the mission: Empower the identified stakeholder networks by providing them with the necessary resources, capabilities, and support to actively participate in implementing the mission, as well as reducing power imbalances.
- Coordinate stakeholder networks to foster co-production of innovative solutions: Facilitate effective coordination and collaboration among the stakeholder networks to foster co-production of innovative solutions. Encourage cross-sector partnerships and joint problem-solving to leverage the diverse expertise and resources within the networks.
- Foster learning from the experiences gained during the system transformation: Encourage stakeholders to actively share their experiences, insights, and lessons learned to improve subsequent iteration cycles of the meta-governance process. This collective learning approach helps refine strategies, tactics, and interventions, enhancing the effectiveness of the regional mission-oriented innovation system. Furthermore, leverage these experiences to disseminate innovative practices to other regions and even at the national level, promoting wider adoption and replication of successful initiatives.
There might not be a one-size-fits-all solution. Credence needs to be given to the complex adaptive system with multiple interconnected levels and a high degree of context-dependency in which public managers and policymakers operate. Yet, by linking these governance activities with concrete methods and proven instruments, practitioners can take more decisive actions and leverage insights from the experiences of others.
Our framework serves as a tool for public managers and policymakers to effectively navigate and drive mission-oriented system transformation. Our approach aims to strike the right balance of working within complexity; sufficient to enable transformative solutions while minimizing collective confusion. This balance is crucial for gaining sustained political and societal support for mission implementation. It ensures that the mission is perceived as ambitious and transformative, yet attainable and comprehensible to stakeholders.
A big thank you goes to Aline Stoll (svolta) and Achim Lang (ZHAW-IVM), who supported me in developing this framework.
Would you like to learn more about our work on mission-oriented innovation policy at the local and regional level? Then don’t hesitate to contact me.
