GovTech: influencing factors, common requirements and recommendations - Supporting the development of cross-border, interoperable GovTech practices in the European landscape

Digital transformation is essential for modern, effective and user’s centric public administrations. Within public sector operations, Public Procurement is the most common way for public administrations to acquire innovative digital solutions if not developed in-house. In this important area that account for 14% of the GDP in Europe, there is a need to identify and understand the influencing factors affecting the uptake of innovative digital solutions designed for and adopted by public administrations specifically through GovTech practices to support a successful digital transition and modernisation of the public sector in Europe. While building on previous research in the area, this work focuses on the uptake of innovative digital solutions for the provision of interoperable public services specifically in cross-border and multilevel governance systems, and their policy implications with particular attention to the Interoperability Act. With this in mind, the study analyses GovTech practices for the public sector acquisition of innovative digital technologies focusing specifically on the engagement of Start-ups and SMEs in the design, provision and management of procured interoperable innovative public services. In this context, what are the key Success Factors for cross-border GovTech success? This study attempts to identify key barriers and opportunities for the wider uptake and deployment of cross-border GovTech solutions in the European Union. The study is grounded on an extensive literature and policy review over the last 10 years, and on the insights stemming from qualitative interviews with 111 GovTech founders across 17 EU Member States, two workshops with domain experts, public sector practitioners and policy makers. The researchers analysed both national and European GovTech programs. The study identified 7 key dimensions that shape cross-border GovTech practices, where Policy is acting as a dominant influencing factor. These dimensions being policy and regulations, finance and markets, culture and language, framework support, human capital, and technology. The study also highlighted a tension within the GovTech environment, trying to balancing political goals with economic interests. Whether importing from cross-border or exporting GovTech solutions, understanding the balance between policy, finance, culture, support activities, human capital markets and technology is crucial for success in the evolving GovTech landscape, and in shaping policies that enhance modernisation in the public sector, EU’s digital sovereignty and technological independence. The results stemming from this work, their policy implications and the resulting recommendations articulated in a number of actions addressing different stakeholders in this area are particularly relevant for informing and shaping current and future policy measures aimed at creating a cohesive digital market and driving innovation within public services across Europe.