Innovation studies have gradually shifted their analytical focus from the individual entrepreneur to the network (often via an organisation). Public Service Innovation Networks for Social Innovation (PSINSI) are the latest contribution from research in the field (Scupola et al. 2021). An innovation network describes a system of relationships between different agents working for innovation. The agents in question do not all have to belong to the same organisation, and the relations that link them can take different forms (e.g., cooperation, coordination, collaboration, co-creation, co-production, co-innovation, co-design). Public administration needs to be involved to realise the new approaches to collaboration that often require bending the regular collaboration or procurement routines. 

This section will present the experiences of institutional support measures for realising new impact start-ups. The impact start-ups offer ways of solving tasks and creating inclusion in interactions with the welfare state. The social purpose is the dominant aspect of the companies, and social involvement includes welfare production, interest representation, and partial activism for certain social groups. 

The value of public procurement in Finland is EUR 47 billion per year, which accounts for 20% of GDP (KEINO 2022). Institutional decisions rely on strong public support as 80% of Finns hold the view that municipalities should be forerunners of sustainable procurement, and 74% think that socially responsible products should be favoured, even if the price is a bit higher. Most Finns also want to know how sustainability issues have been taken into consideration in municipal procurement (Nordregio 2022). Correspondingly, municipalities have know-how and motivation to solve health and well-being problems in novel ways, including networking capacities and knowledge (Kyösti and Airaksinen 2021). Sitra has freedom and range of action, and the organisation has acquired trust across sectors, which has enabled it to work efficiently when introducing innovative procurement options to the public sector (Hughes 2019).

Finland relies on the competence centre KEINO as its main tool in supporting innovative and sustainable procurement. This network-based centre gives advice, runs programmes and clinics, and forms influential purchaser groups. The network consists of the sustainable development company Motiva, the Finnish Association of Municipalities (Kuntaliitto), the Technical Research Centre of Finland (VTT), the innovation financing centre Business Finland, the Finnish Environment Institute (SYKE), Hansel Oy, the procuring entity KL-Kuntahankinnat, and Sitra, and the project is coordinated by the sustainable development company Motiva (Tonteri 2019). Sitra has been an especially active operator in the field, in addition to Business Finland (a government organisation of innovation funding among other activities) and municipalities. Funding from Business Finland focuses on research and development activities, with an aim to increase new knowledge and innovation in Finnish companies (Linnusmaa 2022). Finland has seen a selection of SIB projects, the results of which reflect the current issues and possibilities.

In some cases, public procurement allows testing new solutions. One example is from the City of Oulu which decided to implement a keyless door-opening service during 2013-2014. The City based the decision on highest quality scores granted by users instead of on price. This process involved both final users and usability experts in the product testing phase. Lack of time to conduct the testing phase properly posed problems during the project, but in 2018, the keyless service was launched throughout the city’s home care services. Launching the service took a year and was carried out seamlessly. Since then, more than 35 municipalities have adopted similar solutions (Mainela et al. 2016; Tunstall 2020).