Empowering Governments to Innovate: Lessons from the GovTech Challenge Series in Trinidad and Tobago

Trust is fundamental for the functioning of public institutions. In today's digital age, the expectations for efficient and accessible public services are higher than ever. However, studies show that a mere 15% of e-government projects in developing economies (which refers to the use of technological communications devices to provide public services to citizens) are defined as successful, highlighting a significant gap between the potential of digital technology to improve governance and the reality of its implementation, especially in developing economies.

Within this context, the GovTech approach has become a prominent way to fast-track innovation in the public sector. It aims to bring governments and technology together to transform public services and improve the lives of citizens around the world. The initiative is a collaborative effort which embraces open innovation by utilizing digital solutions to ensure better delivery of public services, while also advocating for a shift from traditional procurement to facilitating experimentation and co-creation of solutions by the public and private sector actors.

As such, GovTech offers new ways to deliver higher-quality public services while opening new business opportunities for innovative companies. A practical framework for applying such approach is often called the "GovTech Challenge Series," implemented by a dedicated "GovTech Lab" team.

GovTech Challenge Series

The GovTech challenge series is a structured process where innovators from the private sector propose solutions for challenges identified by the government. As such, this approach targets public sector issues that are in need of innovative solutions, fostering experimentation and piloting before full-scale development.

In their quest to connect with their citizens, an increasing number of countries around the world are starting to experiment with these types of challenge series, including small countries with relatively limited resources.

One of the most recent cases of such an approach is the Developers' Hub (D'Hub) initiative launched by the Ministry of Digital Transformation (MDT) of Trinidad and Tobago. Within the framework of an IDB project focused on "Promoting Business Productivity and Economic Diversification for Recovery", the IDB procured NRD Companies, a global IT and consulting group of companies specializing in governance and economic digital infrastructure development to support the MDT in designing and launching the D'Hub challenge series, the first in the Caribbean. The Challenge series focuses on fostering collaboration between government institutions and the local developer community to co-create digital solutions to enhance the Government's efficiency, while also supporting local developers, economic diversification, and the innovation ecosystem.

Since its official launch in June 2023, the pilot project of this challenge series has demonstrated impressive results:

• 5 institutions joined the D'Hub challenge series as challenge owners.
• 50 developer teams applied to tackle the presented challenges.
• 15 developer teams developed Proof of Concepts (PoCs), to address the challenges, with 5 teams proceeding to the development of proposed solutions.
• D'Hub was recognized as the Champion project of World Information Society Awards within the category of "enabling environment."

While other countries in the region should design their processes according to their unique context, the D'Hub challenge series presents several relevant lessons that can be considered by other countries in the region striving to embrace the GovTech approach.

Key Take-Aways from GovTech in Trinidad and Tobago

1. Experimentation is never easy - ensure that you have strong, committed leadership and trust.

To foster public sector innovation, you need to introduce "unorthodox" methods of working in the public sector. Among these methods, collaboration with private sector actors is critical. This approach must be "sold" to public institutions who are referred to as the "challenge owners". It is highly likely that at least some of them will see this disruption in the "normal" order of things as an additional burden and a risk, instead of as beneficial. Thus, these types of initiatives will need a strong political support from the get-go.

The GovTech Lab needs experts in digital solutions who also grasp government regulations, inter-ministerial dynamics, startup engagement, and intellectual property rights. They should be prepared to experiment and manage diverse processes, with backing from the political/institutional owner of the initiative. Very likely dedicated trainings and workshops will be needed to build required competences as well as approaches to deal with challenges that will arise. Simultaneously, the Lab must be appropriately positioned within the country's digitalization ecosystem and provided with a mandate to start positively disrupting things "as they are."

1. Work with the broader innovation ecosystem to achieve meaningful change.

For the challenge series to facilitate change, the initiative will need buy-in and engagement from different public and private stakeholders from within the innovation ecosystem, especially:

1. Dedicated political promoter/institutional owner of the initiative: whether a dedicated ministry, national ICT agency, or similar stakeholder - they should have a very good understanding of the GovTech approach and open innovation, as well as what the newly established GovTech Lab can and cannot do. It is advisable to conduct discussions and workshops with key people within the institution to clarify and define short-term and long-term expectations and plans. This will ensure sustainable institutional support and define a step-by-step roadmap for introducing the GovTech open innovation approach in the country.
2. Invested public institutions, e.g. "potential challenge owners": the success of the GovTech challenge series hinges on public institutions' interest, involvement, and readiness to adopt new digital solutions. They need clear communication about the meaning of open innovation versus traditional procurement, expected benefits, and their own roles, functions, and responsibilities.
3. Committed developers/companies: the quality of GovTech co-creation hinges on their interest and capabilities, including defining problems, understanding user needs, and collaborating with challenge owners. The GovTech Lab team should engage and prepare participants from the initiative's outset, offering training on government operations, decision-making processes, and specific challenges and needs.

1. Manage expectations!

During the pilot phase, challenge series should avoid taking on too much, such as multiple challenges with different owners. The institutional owner may feel compelled to achieve a lot during the pilot phase to gain recognition, justify resources, and secure stakeholder support for future endeavors.

It's crucial however to recognize that the pilot phase of this initiative revolves around experimentation and piloting new ideas. While practices from other countries can serve as examples, they'll need testing and adaptation to fit each country's context. Initially, there won't be a clear roadmap, and processes will evolve over time. Some may fail, while others will succeed.

This is a pivotal moment: if a concept or idea proves inefficient, it's not a negative outcome. Rather, it's part of the learning journey toward creating a more innovative government. The mindset of "Failure is not an option!" will stifle the ability of the GovTech team and stakeholders to experiment, limiting innovation. This must be clearly communicated to manage the expectations across stakeholders.

Simultaneously, the pilot challenge series need to be launched and managed gradually and in a limited scope, having the opportunity to learn about the intricacies and different stakeholder needs, and to test various steps before expanding their scope. This will increase the chances of successful pilot series and sustainability of the whole initiative.

A regional opportunity

As economies evolve to become more knowledge intensive and to rely more heavily on digital technology, initiatives like the GovTech Challenge Series present an opportunity for fostering a culture of innovation in the public sector while also enabling institutions to be more resilient to global challenges. The approach helps governments to connect in a real and meaningful way with their citizens and to unlock new opportunities for the private sector to create innovative solutions that benefit the public.

About NRD: NRD Companies is a global, Norway based GovTech and Fintech focused group of companies providing out of the box solutions and bespoke development along with subject matter consultancy services for public and private organizations. With over 27 years of experience and a track record of successfully completing more than 350 projects spanning 55 countries, NRD Companies is at the forefront of the industry. As part of INVL Technology UTIB, our group's subsidiaries include Norway Registers Development AS, NRD Systems, ETRONIKA, Infobank Uganda, and NRD Bangladesh.

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