Innovation: The Engine of Connected Places

Innovation at the heart

Innovation is too often misunderstood, seen as a ‘nice to have’, confused with incremental improvement, or assumed to emerge naturally over time. But for large, complex initiatives, it must be intentional, structured, and embedded from the start.

This requires dedicated funding, long-term partnerships, empowered leaders, and supportive environments where ideas can be tested safely. In high-cost, high-risk public sector projects, the instinct is often to minimise risk and stick with the familiar. Yet this approach prevents true transformation.

A positive example is GBRx, the Great British Railways Innovation Hub [3]. As the network reforms, GBRx will bring in private sector expertise, simplify operations, and encourage collaboration. Outgoing Network Rail CEO Andrew Haines has been clear: this is not about nationalisation, but about making the railway simpler, more efficient, and more responsive. GBRx signals a cultural shift, recognising innovation not as a risk, but as the route to smarter, better outcomes.

Embedding innovation doesn’t always require major programmes. It can start with small but deliberate steps: setting aside ‘innovation hours’, running design-thinking workshops using approaches such as the Double Diamond, or creating small-scale innovation hubs. The point is to treat innovation as a culture to be nurtured and sustained, not a one-off initiative.

Smart decisions through digital

Data is the foundation of Connected Places. When used effectively, it drives innovation, accelerates delivery, and improves decision-making from planning through to operation. The focus is not on gathering ever more data, but on ensuring quality, shareability, and strong governance. Clear policies and standards are essential for trust, consistency, and interoperability across sectors.

With reliable data and digital tools in place, teams can avoid relying on assumptions or wasting hours on manual processes. The pace of technological change, particularly in AI,makes it vital to maintain high-quality data to remain competitive and compliant.

Large-scale projects often demand shared digital infrastructure: common platforms for collaboration and real-time data exchange. Digital twins are one powerful example. These virtual models simulate assets, environments, or networks, enabling teams to test scenarios, predict maintenance needs, and optimise performance,cutting costs, risks, and downtime.

The Climate Resilience Demonstrator (CReDo) shows this in practice [4]. By connecting digital twins across Anglian Water, BT, and energy networks, CReDo models the impact of flooding on national infrastructure. This system-level view supports resilience planning that siloed approaches simply cannot deliver.

Procurement as a catalyst

Procurement is often seen as bureaucracy – but done well, it can be a lever for innovation. The UK public sector spends £400bn annually on procurement [5]. Redirecting even a fraction of this towards innovation could unlock huge value. For instance, reserving 5% of contracts for innovation-led procurement could inject £19bn into solutions that strengthen transport, energy, and digital infrastructure [5].

Policy is beginning to catch up. The Procurement Act 2023, which came into effect in April 2025, promotes early market engagement, flexible procedures, and space for SMEs to compete. Crucially, it shifts focus from “cheapest wins” to “most advantageous” bids, opening the door for innovation-led suppliers. The Act also enables flexible competitive procedures, supporting R&D, piloting, and innovation partnerships.

Beyond policy, organisations can embed innovation by making it a core expectation in every procurement. Clear category strategies, well-defined sourcing approaches, and robust SLAs all help reduce waste and drive better outcomes across the supply chain.