4 public problems public-purpose tech is addressing

This post is written by Bluebell Drummond, researcher at StateUp, and Riley Kaminer, principal – ecosystem at StateUp.

The problem: From human security to net zero, poor administrative tech in government to the housing crisis, the public sector faces myriad challenges.
Why it matters: The transformation required to tackle the most pressing problems the world faces today relies on multiple levers - and technology has an important role to play.
The analysis: Data shows that public-purpose technology (PPT) is increasingly being applied to tackle major public problems where technology is a key part of the way forward. In this post, we examine four major problems PPT is helping to address.

Ensuring human security. Reaching net zero. Enabling connected and inclusive communities. These are just some of the key societal and planetary objectives facing civil servants today.

Public-purpose technology (PPT) will play an increasingly significant role in the transformation required to meet these objectives. PPT may be best defined by the intentions behind it and outcomes it can lead to – addressing pressing public needs – rather than a specific product or customer. Crucially, it requires a holistic approach. PPT helps to address major public problems where technology is a key part of the way forward alongside powerful policy, cultural, and location-based levers.

At StateUp, we are building the knowledge and ideas infrastructure for public-purpose technology. We have analysed thousands of technology startups and scaleups to build a unique picture of the gaps and opportunities in PPT. Let’s dive into four of the largest public problem areas that these startups are addressing.

1. Urban and local needs

Major public funds announced in 2021, such as the £8 billion Levelling Up Fund (UK) and the $973 billion Infrastructure Investment and Jobs Act (US), place emphasis on improving digital and physical connectivity in and between local places. PPT can empower local decision-makers in maximally applying these funds to address urban and local needs.

Analysis of data on our public-purpose technology intelligence platform shows that data-driven technologies are key to addressing urban and local needs: AI/machine learning and big data analytics are the top two technologies being applied by PPT startups developing urban and local tech.

Insights derived from big data analytics can inform policy and planning decisions aimed at improving connectivity. For example, UrbanFootprint (USA) combined data on health risk, economic stress, social vulnerability, and zip code postal costs to identify communities in rural regions of North Carolina that would benefit from drone delivery of essential medicines.

Furthermore, new methods of digital engagement are helping to embed data collected from citizens into local decision-making. Employing a wide range of technologies, public servants and citizens can work together to deliver beneficial change in urban and local places.

2. Decarbonisation and greening government

Despite global efforts, the planet remains on track for a century of rising seas, expanding deserts, and flooded cities. The public sector has a unique £7.8 trillion capacity to drive decarbonisation because of its purchasing power and dominant role in financing and managing polluting assets like infrastructure.

Greening government would not just speed up decarbonisation and set a good example for other sectors. It would also further catalyse entrepreneurs, inventors, and investors to help develop the innovations and technologies we need to deal with climate change, while creating healthier local places, planetary wellbeing, and wealth too.

Many startups and not-for-profit enterprises are engaging technologies for environmental monitoring and measurement. This effort is critical to enable us to understand the current state of planetary health. However, there is an urgent need for more technologies that will actually decarbonise the planet, and the active government support to enable this.

For example, Commonwealth Fusion Systems (US), founded in 2017, recently raised $1.8 billion to develop the world’s first net energy-producing fusion machine. The company aims to produce the first commercially viable fusion power plant. This is a clear example of the deployment of patient capital — an investment with long and uncertain timelines — but with potentially outsized benefits to people and planet if it can move beyond research to real-world benefits.

3. Reducing bureaucratic burden for citizens and public servants

Administrative tech is a critical, if little discussed, area of PPT because of the capacity of these technologies – if well implemented – to help reduce costs and corruption and enable greater efficiency. According to our data, this wide-ranging category includes firms that help public sector organisations manage human capital and track or create budgets more efficiently.

This area often addresses the ‘boring’ endemic problems that majorly impact the lives of citizens and public servants. In Canada, problems with the £500 million Phoenix payroll system, for example, left some government staffers unpaid for months, while others were overpaid. Ottawa reportedly spent $560 million Canadian dollars to fix the problem.

The availability of high quality and reliable administrative tech fundamentally impacts the capacity of the state to carry out its core functions. Our data shows that startups are leveraging a handful of technologies – most frequently cloud computing, artificial intelligence, and robotic process automation – to help reduce bureaucratic burden.

For example, Avela (US), has developed an AI-powered platform to help governments allocate talent and resources fairly and effectively. The startup’s founding team, which includes a Nobel Laureate and a Clark Medalist, reports that their tool helps school districts reduce parent dissatisfaction by 90% and place 50% more students in a preferred school.

"The public-purpose tech world is growing at a rapid pace, and it can be difficult to stay on top of trends. Generally, startups are more than willing to meet with public servants."

4. Improving infrastructure and the built environment for people and planet

Infrastructure innovation is critical to our social capital and to the environmental agenda. Analysis of data on our public-purpose technology intelligence platform shows that innovations in both software and hardware are key to developments aimed at improving infrastructure and the built environment. PPT startups are applying these diverse technological innovations to address wide-ranging public problems related to infrastructure and the built environment, from the affordable housing crisis to the climate crisis.

Builders Patch (USA) has developed a secure, cloud-based platform that increases efficiencies in housing development, ultimately bringing down the time and costs involved. In the material world, ECOncrete (Israel) has developed a new concrete technology that is reportedly 10% stronger than traditional concrete, protecting from extreme weather conditions, while also having a 70% lower carbon footprint. Resilience building is key to this year’s edition of StateUp 21, which places special emphasis on regeneration and long-termism.

Want to learn more about tech startups addressing public problems

The public-purpose tech world is growing at a rapid pace, and it can be difficult to stay on top of trends. Generally, startups are more than willing to meet with public servants and explain the impact of their work. Reaching out to founders directly is a great way to learn more.

At StateUp we’ve developed a platform called Nebula (which has a free community membership) to help keep policymakers up-to-date on everything PPT. We also launched a public-purpose tech forum to discuss big ideas. You’re more than welcome to contact us with any questions or ideas you might have.

Which public needs are public-purpose tech startups addressing? Top 10 by % of total.

Figure 1 - Which public needs are public-purpose tech startups addressing? Top 10 by - of total.