{"id":36867,"date":"2023-03-28T10:12:06","date_gmt":"2023-03-28T08:12:06","guid":{"rendered":"https:\/\/oecd-opsi.org\/?p=36867"},"modified":"2023-03-28T12:17:19","modified_gmt":"2023-03-28T10:17:19","slug":"innovation-portfolio-for-development-part1","status":"publish","type":"post","link":"https:\/\/oecd-opsi.org\/blog\/innovation-portfolio-for-development-part1\/","title":{"rendered":"Innovation Portfolio Management for International Development Organisations \u2013 Part 1\u00a0"},"content":{"rendered":"\n

Innovation portfolio management<\/a> enables not only commercial actors but also public sector organisations to systematically manage and prioritise innovation activities according to concurrent and diverse purposes and priorities. It is a core component of a comprehensive approach to innovation management and a condition to assess the social return of investment across an entire portfolio. The OECD Observatory of Public Sector Innovation (OPSI) has worked in this space for a number of years. By gathering the latest innovation portfolio management knowledge and practices, we developed the Innovation Facets model<\/a> as well as interactive workshops<\/a> and digital tools<\/a> to support public sector organisations and civil servants in OECD Member States to enhance innovation management. In 2022, OPSI teamed up with the relatively young \u2018OECD Innovation for Development Facility<\/a>\u2019 to adapt this work to the international development sector, with a particular focus on supporting development funders and members of the OECD Development Assistance Committee. <\/p>\n\n\n\n

Key considerations<\/p>\n\n\n\n

Investments in international development innovations have transformed the lives of poor and vulnerable people over the last decades. From cash transfers to vaccines and mobile banking \u2013 innovation has played and <\/a>continues to play an important role in international development. Despite the impact of many successful innovations in development co-operation, there are few examples of international development organisations that are consistently and systematically innovating<\/a> and scaling interventions over prolonged periods of time.<\/p>\n\n\n\n

Innovation portfolio management for international development organisations differs from its application to other public sector organisations and administrations. Development organisations work in complex and dynamic environments, and funders usually support local partners as well as international organisations to implement innovation activities on the ground.<\/p>\n\n\n\n

In addition, development organisations must balance the needs and expectations of their complex set of stakeholders. This includes expectations from taxpayers and the public in donor countries as well as supporting local change-makers without overburdening them with reporting and other administrative requirements. A portfolio approach to international development facilitates better balance of risks and rewards. It enables an organisation to take stock of the social return of investment across an entire portfolio, as opposed to limiting evaluations to single innovations and projects. For example, USAID<\/a>\u2019s assessed the entire portfolio of its Development Innovation Ventures portfolio assessment found an overall 17:1 social return on every US-dollar invested<\/a>. While 41 innovations were supported over a 2.5-year period, the success of this number was attributed to just five high-performing innovations. That is the value of a portfolio approach to innovation. Having one’s fingers in many pies as a way to maximise rewards.<\/p>\n\n\n\n

The OECD service<\/p>\n\n\n\n

Recognizing the need for a tailored innovation portfolio management service for development organisations, OECD OPSI worked with and the OECD Development Co-operation Directorate (DCD) Innovation for Development Facility to develop a service to help international development organisations unlock the potential of their innovation portfolios. The service was designed to increase the impact of development assistance as well as increase innovation within development organisations, including adopting new ways of working and scaling promising innovations.<\/p>\n\n\n\n

Through a series of \u201cservice moments\u201d, the OECD guides development organisations through key strategic discussions to establish and support a sustained innovation management practice. These service moments include:<\/a><\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

There is no one-size-fits-all portfolio model. Instead, recognising commonality and differences, we designed the structure of an international development organisation portfolio around \u201cbase criteria\u201d (common to all) and \u201ccustom criteria\u201d, based on the unique needs, purposes, institutional setups, and missions of individual development organisations. Together, they define and guide strategic discussions and lead to a tailored portfolio.  To start, each portfolio item is organised according to the (common) base criteria:<\/p>\n\n\n\n