Can VUCA events catalyze digital public sector innovations? Evidence from three digital innovation trends in Asia

Abstract

VUCA (volatile, uncertain, complex and ambiguous) events like COVID-19 can create unpredictable scenarios for public sector to tackle, forcing them to adopt digital applications to respond to challenges more quickly. COVID-19 saw governments pursuing digital public sector innovation more proactively, especially in Asia. We use the following three case studies to understand how COVID-19 accelerated digital public sector innovation across Asian countries: 1) digital contact tracing applications, 2) digital health certificates, and 3) AI chatbots. Using the OECD Framework on Facets of Innovation, we analyze the evolution of these innovations across Asian countries between 2020 and 2024. Some of the key findings from the analysis are 1) innovations developed and/or adopted during the crisis evolve from uncertainty to certainty in terms of the intended goals of the innovation, 2) innovations that begin as a top-down reform tend to evolve and take bottom-up approaches for greater citizen participation over time, 3) advanced technologies adopted during the crisis tend to continue its evolution even after the crisis has ended, giving rise to potential new applications. The findings suggest a clear shaping effect of crisis events on digital public sector innovations in Asia.