Value co-creation and external consultancy knowledge for public innovation in Europe

This paper proposes a framework for explaining the collaboration between co-creation and LAB design methodologies with KIBS (Knowledge Intensive Business Services), which include ICT services, when public services were immerse in an innovative process at government units within six EU-20 countries in the Co-VAL H2020 survey (Spain, France, Hungary, the Netherlands, Norway, and the United Kingdom). The proposed channels of interaction of user's at the centre methodologies and KIBS is based upon the new public government paradigms and the public service dominant logic. The model examines the propositions of these paradigms, as to how co-creation processes are embedded in the interaction of KIBS and final customers, by deriving the channels through which those consultancies contribute to fostering innovation in various government units across the EU-20 (1875 public units of work surveyed), particularly in relation to improving public business-related services. The study first utilizes unilateral equations to estimate the overall effects of all the covariates and, in a second step, utilizes systems of equation models to derivate the interaction of users at the centre methodologies on KIBS and, consequently, the indirect effects that these processes have on the innovation processes of the public units of work that contracted those business services. Results conclude that value co-creation is embedded on KIBS with the decisive influence of inputs provided by final customers of the innovative processes as the public dominant service logic states. The analysis is based on the Co-VAL EU 2020 Survey, testing the causal effects that KIBS consultancies have on public innovation processes, especially those related to business services or business organizations, with a focus on the reinforcement of co-creation, LAB design, and co-production methodologies. To our knowledge this study is the first to estimate those indirect influences of user's at the centre methodologies on public innovation processes that contract KIBS to generate positive dynamics improvements of public services.