Measuring behavioural additionality in public contractors subject to performance incentives

An index of innovation capability

Bibliographic Data

ID17600337
AuthorsPeet van Biljon (0000-0001-5432-0788, University of South Africa, corresponding author)
Year2026
Publication date2026-03-03
Open AccessYes
TypeARTICLE
VenueScience and Public Policy (JOURNAL)
Journal identifiersISSN: 0302-3427 • E-ISSN: 1471-5430
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1093/scipol/scag022
OpenAlexW7155166048
LanguageEN
References cited47

This paper introduces a novel Innovation Capability Index (ICI) that captures a set of diverse innovation-related capabilities within a single empirical measure. The index is applied to health-insurance contractors participating in the U.S. Medicare Advantage program, which ties financial incentives to annual performance ratings. Using survey data from plan managers supplemented by qualitative interviews, the study finds that innovation capability is positively associated with higher performance ratings. Qualitative insights support the plausibility of multiple causal pathways, including innovation as both a response to performance incentives and a means to sustain high performance under shifting regulatory conditions. While based on a modest sample, the ICI provides a replicable and policy-relevant framework for measuring behavioural additionality, the internal innovation capability changes induced by public policy. The approach offers a generalizable program-evaluation tool for evaluating how performance-based procurement programs may indirectly stimulate contractor innovation

Additionality · Incentive · Performance measurement · Procurement · Qualitative comparative analysis · Qualitative property · Healthcare Policy and Management · Public Procurement and Policy · Public-Private Partnership Projects

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