Innovation in Local Government and Fiscal Austerity

This article relates a rich and diverse existing body of literature concerning innovation to an area of research on which it has yet to be brought to bear – the response of local governments to fiscal austerity. After reviewing innovation research literature with respect to its applicability to local government innovation as a response to fiscal stress, it sets forth six research questions for exploring the relationship between innovation and local fiscal austerity. The innovation research literature is then examined with respect to each of these questions to determine what findings or hypotheses emerge from this existing body of research which are relevant to these newly formulated questions.