Federal Incentives for Innovation: Strategies for Using Productivity Pull to Stimulate Technological Innovation. Performance Enhancement Plan, Public Productivity Bank

摘要

A Performance Enhancement Plan (PEP) is described which will help local governments not accustomed to using technology to employ innovation methods. The plan is an experiment linking planning with implementation by providing financial incentives for both phases. It is designed to identify those incentives needed for inducing local governments to generate and implement the plan. PEP operates as follows: (1) The Federal government shares with local government the cost of a plan for measurably enhancing the performance of services by the local government; (2) To encourage implementation, the Federal government will pay part of its share upon completion of the plan, and the rest upon implementation; and (3) The plan, which will be prepared with the assistance of outside or in-house operations analysts selected by the local government, must be achievable within two to three years and must utilize cost-effective technology. The appendices include a comparison of PEP with other Federal programs and a project proposal in which the Federal government would attempt to stimulate increased productivity in local governments.