Innovation and Data Use in Cities

A Road to Increased Well-being

image of Innovation and Data Use in Cities

This report is a first-of-its-kind work to provide evidence on how cities’ investments in innovation and data use can pay off in powerful ways for residents. It offers analysis on the different ways local governments build capacity at the strategic and technical level, from organisational structure and strategy, to resource allocation and outcome evaluation. It shows that cities with higher public-sector innovation capacity and data use practices have higher levels of city and life satisfaction. Furthermore, when looking across key well-being dimensions from housing to environment, health and walkability, cities with higher innovation capacity and data use practices outperformed cities with lower capacity. The lessons in the report have been distilled into 10 recommendations to help local leaders boost their data use and innovation capacity to improve resident well-being.


Data use as a feature of policy making in cities

This chapter begins with a definition and taxonomy of data, then analyses the implications of data use at each stage of the government data value cycle. It demonstrates how local governments can leverage data to generate public value and improve residents’ well‑being, from anticipating future trends and risks, to improving public services and supporting evidence-based governance through evaluation and impact assessment. The chapter also presents a tailored OECD data governance framework for the local public sector. The framework aims to help local governments target data governance elements at the strategic and tactical layers to generate public value and transition to a data-driven organisation. The chapter concludes with patterns and findings on data use and well‑being outcomes in cities.


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