This chapter demonstrates that housing associations have innovative capacity and identifies the types of innovation developed by the case-study associations, from stage one of the research. Having established that associations have innovative capacity we go on to examine innovation in the sector. This involves a methodological discussion about bibliographic sources and their use in public services management and public policy, and the role they can play in the development of ‘evidence-based policy and practice’. The value of these techniques is shown and we make some preliminary comments on the nature of innovation in the housing association sector. By providing examples of innovation in individual associations and in the sector we provide ‘benchmarks’. These can be updated on a continual basis to give associations a reliable standard of innovation within the sector. It can also be developed in other public services areas to enhance innovation knowledge and broaden benchmarks. Limitations to these techniques are noted, particularly the normative environment surrounding innovation and the capacity of associations for self-reporting innovation.

Innovation in housing associations: evidence from the stage-one case-studies

One of the main issues to emerge from the research was the internal focus of many innovations and the emphasis upon service innovations. Where total innovations were observed they related to some of the transformations seen at the sector level that were emerging during the late 1990s. This partly concurs with work on changing organisational direction by Mullins (1997a) though it identifies fewer examples of inter-organisational innovations than the work of Reid (1995). Six areas of innovative activity are discussed below.

Cultural change

This was a theme running through all the case-study associations. The pressures for cultural change were connected to the need to develop a ‘business focus’ – two of the associations commented they were seeking to achieve ‘reduced costs and better quality services’. This reflected the growing financial pressures on the sector as a whole. For the East Dorset Housing Association, its transfer from council ownership into the housing association sector had exposed it to a new, more competitive environment where business focus became more important. In all cases financial pressures flowed from the private finance environment which meant that it was necessary to ensure income was collected and the stock was of a good condition both to repay existing loans and attract new ones.