Innovation in the Public Sector: Is Risk Aversion a Cause or a Symptom?

Eoin Mc Fadden of NESTA discusses Innovation within the public sector and the excuses  Innovation by its very nature brings some degree of risk and for many organisations the fear of failure can be an innovation inhibitor. Unsurprisingly, one of the most common complaints about public sector organisations and other large organisations who struggle with innovation is that they suffer from risk aversion. However, perhaps we need to consider risk aversion as a symptom of two difficult conditions, namely organisational debt and flaws in organisational physics?