SHAPING DYNAMIC DESIGN CAPABILITIES (DDC) IN THE PUBLIC SECTOR: INSIGHTS FROM INNOVATION PRACTICES

Paper in proceeding, 2025

The use of innovation in the public sector has increased in response to complex societal challenges, and design plays a significant role in driving innovation processes. Recent research identifies design as a dynamic capability that enables organizations to sense and seize opportunities; however, much of the existing research has concentrated on its application in the private sector. This study addresses this gap by examining the role and application of dynamic design capabilities (DDC) in the public sector. Through interviews with professionals (N=15) in the innovation and development departments of public organizations (e.g., municipalities, governing bodies, and ministries) in the Netherlands and Sweden, the study finds that while the implementation of DDC remains underdeveloped, there are emerging signs of adoption. These capabilities include (1) institutionalizing a design culture to overcome bureaucratic constraints, (2) integrating design expertise across organizational structures, (3) ensuring interdepartmental collaboration for innovation, (4) providing resources for continuous design dispersion to enhance organizational adaptability, (5) developing balanced innovation frameworks for systemic change, and (6) engaging stakeholders strategically for effective problem-solving. Our findings suggest that strengthening these capabilities can significantly enhance public sector innovation. Lastly, our study explores how organizational structures influence the effectiveness of building dynamic design capabilities and change through design in the public sector.