2018 (15), №2

The Evolution of Institutional Innovation in Public Sector



For citation: 

Katz, I. S. (2018). The Evolution of Institutional Innovation in Public Sector. Zhurnal Economicheskoj Teorii [Russian Journal of Economic Theory], 15(2), 291-308


The article considers the evolution mechanisms of public sector institutional innovation development. The article deals with the historical dynamics of the public sector institutional structure. The author determines the key stages of institutional changes and identifies the most significant institutional innovations. The author specifies the mechanisms of generation and development of institutional innovations, among which are the reasons, incentives, and obstacles for the implementation of institutional innovation. I consider the main stages of institutional innovations development and dissemination, as well as the life cycle of institutional innovation. In the article, I focus on the institutional innovation elaboration mechanisms such as transplantation, transformation and generation. The specifics of the institutional innovation elaboration mechanisms are defined and a comparative analysis is undertaken. The analysis allows specifying the advantages and disadvantages of each approach to specific political and economic conditions. The role of civil society in elaboration and application of institutional innovations in the public sector is outlined. The author identifies the main participants of innovative activities and systematic institutional forms of their interaction. I study the role of nonprofit organizations and their socially oriented activities that improve the efficiency of public sector. The key trends of modern public sector institutional dynamics such as crowdfunding and fundraising are considered.

Irina Semenovna Katz — PhD in Economics, Institute of Economics of the Ural Branch of the RAS (Ekaterinburg, Russian Federation; e-mail: Irina_katz@mail.ru).