The World Bank's innovation market.

Area of Science:

• Organizational Innovation
• Development Economics
• Public Administration

Background:

• Traditional large organizations often face challenges in integrating radical, low-cost innovations.
• The World Bank, a large international funding agency, sought methods to capture novel ideas for poverty alleviation.
• Existing project-review processes were lengthy, hindering timely and smaller-scale project funding.

Purpose of the Study:

• To describe the development and implementation of an "Innovation Marketplace" at the World Bank.
• To demonstrate how this model can facilitate the identification and funding of low-risk, high-impact innovations.
• To provide a replicable model for other large organizations seeking to foster internal innovation.

Main Methods:

• Conceptualization and implementation of an "Innovation Marketplace" forum for idea presentation.
• Informal presentation of antipoverty and development project proposals to potential funders.
• Decentralized funding decisions with lower commitment thresholds compared to standard processes.

Main Results:

• The Innovation Marketplace successfully captured novel ideas for poverty alleviation and development.
• The forum significantly reduced project review times compared to standard procedures.
• Funders were able to make smaller, more agile financial commitments, enabling diverse projects.

Conclusions:

• Innovation Marketplaces offer a viable mechanism for large, tradition-bound organizations to embrace radical, low-cost innovations.
• This model can accelerate the identification and funding of impactful ideas, benefiting both the organization and target populations.
• The success at the World Bank suggests a promising approach for fostering innovation within bureaucratic structures.