Published in: Forum Agenda, 31. January 2024

• GovTech – government technology – is set to be one of the biggest software markets in the world and will be worth over $1 trillion by 2028.
• GovTech can reinforce trust between citizens and the state provided solutions are effective, people-focused and tackling the digital divide.
• At Davos 2024, this year’s Annual Meeting in Davos, Switzerland, the World Economic Forum announced strategic partnerships with Germany and Ukraine to accelerate GovTech development.

Entrepreneurial civil servants, creative bureaucracies, agile stability, digital state.

These terms sound like oxymorons, yet they are foundational to tackling the world’s complex societal challenges. And these ideas are already becoming a reality in some parts of the world. Introducing what will become one of the biggest software markets in the world: government technology or GovTech.

GovTech is about applying digitization and emerging technologies, such as artificial intelligence (AI), advanced sensing, blockchain, advanced data processing etc., to improve the delivery of public services by increasing efficiency, lowering costs and creating entirely new public value.

The sector is estimated to be worth over $1 trillion by 2028 and is critical to making public services more efficient, effective and accessible for citizens. It will be the key to the government’s ability to deliver outcomes and build and sustain trust in a context of increasing contestation and rising expectations from digitally native citizens.

Accelerating public innovation

At Davos 2024, the World Economic Forum and the GovTech Campus Deutschland announced the establishment of the Global Government Technology Centre in Berlin (GGTC Berlin).

The GGTC will focus on public sector innovation, digital transformation and the application of emerging technologies in government and public sector organizations.

The new centre will act as a hub for the Forum’s GovTech Network, leveraging national expertise and global convening power. It will showcase and scale best practices and help accelerate the digital transformation of government, creating new public value.

“We are on the cusp of the age of Government Technology…” said Markus Richter, chairman of the board of GovTech Campus Deutschland and CIO of the German Federal Government.

“We are proud to partner with the World Economic Forum to build an international GovTech centre where new methods of cross-sectoral co-ideation, co-creation and co-learning can be tested, practiced and refined,” he added.

This was followed by signing a letter of intent with Ukraine’s Ministry of Digital Transformation to establish a centre in Kyiv.

“We are excited to embark on this partnership,” said Mykhailo Fedorov, Deputy Prime Minister and Minister of Digital Transformation, Ukraine.

For GovTech to be truly transformative, decision-makers must change how they approach digital transformation of public services and the state.

A toolbox

GovTech is not a single technology but a suite of tools for public challenges. It includes digital public infrastructure like payments, and services in health, welfare, and crisis response.

Doreen Bogdan-Martin, Secretary-General of the ITU, noted the pandemic was a wake-up call to the importance of GovTech.

Success stories include:

• Aadhaar, India’s digital ID system
• Ukraine’s Diia app, used by nearly 20 million citizens
• PIX, Brazil’s digital payments system

Success was driven by collaboration, political will and values-led innovation. Sharing lessons will be key to replicating success elsewhere.

People, not product

“It’s never about the technology. It’s about serving people and understanding their needs,” said Cina Lawson, Togo’s Minister of Digital Economy.

GovTech must be people-centred. Governments and providers need to listen and co-create solutions based on real needs, not just sell products.

Governments must ensure GovTech is understandable and usable. As Fedorov put it: “It’s one thing to provide the service and another to analyze user data to continue transforming the quality of services.”

Creative thinking

GovTech tackles complex societal challenges and must be guided by strong values and principles.

“If you truly want to build, the public sector is where you need to be,” said Bosun Tijani, Nigeria’s Minister of Communication and Digital Economy. “There’s no stealth mode in GovTech – accountability is key.”

Bringing tech talent into government is essential. This can happen through accelerators, partnerships, and platforms like Atrium.

Barriers persist

GovTech’s promise is blocked by a persistent digital divide. Though digitization has accelerated, 2.6 billion people are still offline.

This is especially severe in the Global South, where poor infrastructure limits access to tools like AI and IoT.

The EDISON Alliance is working to close this gap, improving the lives of 784 million people through 320 initiatives in 127 countries.

Its goal is to connect the next billion people by 2025.

Leading to success

GovTech innovation needs holistic leadership and breaking of government silos. Teams must be agile, adaptive, and outcome-oriented.

It also requires diversity – involving policymakers, developers, researchers, and citizens. Organizational innovation and partnerships help enable this.

As Davos 2024 showed, GovTech is a rising priority. With AI and blockchain in play, and security/privacy at the forefront, the opportunity is enormous.

The new centres in Berlin and Kyiv will be global platforms for best practices and innovation.

GovTech is no longer niche. It’s about making government more digital, inclusive and trusted. In a time of uncertainty, it should be a top priority for public leaders.

Image: Marc-Olivier Jodoin/Unsplash