The practices of challenge-driven innovation: Challenge design, implementation, evaluation, and funding

In the current world situation, more effective means, methods and solutions are needed to solve societal problems and challenges. Challenge-driven innovation is one of the most talked-about ways of achieving systemic change in recent years.

This working paper describes the tensions of challenge-driven innovation policy, as well as various trade-offs, which are negotiated in the planning, implementation, evaluation and financing of initiatives.

Drawing on interviews and theoretical knowledge, the working paper focuses on the practices observed in challenge-driven (or mission-oriented) innovation activities.

For the report, the organisers’ experiences of the practical implementation of challenge- oriented innovation have been studied, and the key tensions they face have been identified.

In addition, the publication discusses various compromises or negotiations that both those who run initiatives and those who decide on them face when promoting challenge-driven innovation.

A central conclusion of the report is that there is no one right way to promote challege-driven innovation. Instead, decision-makers should be encouraged to discuss and highlight the methods they use when devising challenge-driven policies. Innovation is a process in which numerous value-based choices are made, which have an impact on how and what kind of innovations are supported.

The transparency of decision-making is one way to promote responsibility towards citizens and other stakeholders. The publication highlights four critical questions for future research and practice of challenge-driven innovation.