Innovation with effectuation: An opportunity for the public sector

This chapter focuses on new innovation models in the public sector. It analyses the specificities of the public sector-institutionalism and professionalism- as the context of innovation. On the other hand, it argues that entrepreneurial innovation processes combined with the perspectives of learning and networking are very well applicable-not only in the private companies but in public organizations as well. Based on this view, the effectual approach, closely linked to service-dominant logic (SDL), is examined as a theoretical construct and tested in practice. An ‘effectual-type’ process, in which a city administration collaborates with citizens groups to foster the mutual expansion of resources, is described as a case and the characteristics showing analytical generalizability are identified.