We need more of this. Not clear how to get there, though...

Public sector, disrupted: How disruptive innovation can help government achieve 
more for less
http://CAMod.org/2012/01/public-sector-disrupted-how-disruptive-innovation-can-help-government-achieve-more-for-less/?utm_source=rss&utm_medium=rss&utm_campaign=public-sector-disrupted-how-disruptive-innovation-can-help-government-achieve-more-for-less

In the wake of the deep austerity facing most governments around the western 
world, we hear a steady refrain from politicians and pundits to “do more with 
less.” Unfortunately, budget cutting, typically an exercise in using the blunt 
instrument of across-the-board cuts, is more about “doing more of the same, but 
with less money.” The inevitable result however tends not to be more for less 
but less for less.

This paper proposes an alternative path: a way to use innovation to make public 
programs radically cheaper without slashing services; a way to break the 
seemingly unavoidable trade-off between paying more or getting less.

The key to doing this is through disruptive innovation. Disruptive innovations 
start out less good but cheaper than the market leaders, but then break the 
trade-off between price and performance by getting better, and typically even 
cheaper, over time. Disruptive innovation puts the lie to the traditional 
notion that you always have to pay more to get more.

In sectors of the economy where disruptive innovation is commonplace, consumers 
are accustomed to steady price reductions and performance improvements over 
time — think of computing, electronics, steel manufacturing, and 
telecommunications.

In sectors with little or no disruptive innovation, by contrast, costs and 
prices generally rise over time. Government, with double-digit cost increases 
from health care to education to defense, is particularly conspicuous in this 
respect.

By breaking seemingly immutable trade-offs, disruptive innovation offers a 
potentially powerful tool for radically reducing costs in the public sector 
while maintaining or improving services.


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