Public procurement of innovation is not a new form of procedure remain the same tender procedures. Understanding the innovation impact of public procurement econstor. While the notice occasionally paraphrases the provisions of eu legislation, it is not meant to add to or diminish the rights and obligations set out in that legislation. Research on public procurement of innovation is then easily justified by the attention the topic. But, technology is only there to empower innovators through their paradigm shift. Public procurement is a key driver for innovation in the local economy. Yet for procurement in 2020, as deloitte explains in their paper, charting the course, creativity and innovation. Charles new book, public procurement for innovation will be available in january 2015.
Pdf public procurement for innovation researchgate. Pdf public procurement for innovation ppi is a demand side innovation policy instrument. This includes a definition of procurement for innovation for the purposes of this report, an introduction to the methodology behind the findings, and an overview of the findings from the underlying oecd survey on strategic procurement for innovation 2015. Using public procurement to stimulate innovation and sme access to public contracts 3 foreword we should not underestimate the speed of change in the world economy, and the need to improve the innovation ecosystem.
Public procurement of innovation rolfstam, max lund university. The task force on procurement innovation and reform hereafter, 1 ztask force represents a true collaboration between government and industry stakeholders. Definitions, innovation types and interaction modes. Its not too often that two of the top words people associate with procurement are creativity and innovation. Summary of literature on innovations in public procurement. It also includes a framework to help countries in their use of public procurement for innovation. Procurement staff should be change agents in the organization, defining new ways of collaboration. Open or negotiated procedure, competitive dialogue, innovation partnership.
While an increasing number of studies is being published every year, an overview of the field is missing. However, policy design has been underpinned largely by anecdotal evidence and without a clear theoretical or empirical basis for understanding how supplying to the public sector actually influences a firms innovation capabilities and performance and in what ways desirable behaviour and outcomes. The resulting definition was published in the august 2005 edition of our magazine procurement professional. Productivity in public procurement a case study of finland. Clearly,the definition encapsulates a broad commercial role ranging from external resource. In this context, innovation is defined in the oslo manual of the oecd as. Exploring public procurement kozbeszerzesi hatosag. This text is one of five books produced under the auspices of the project that are designed to be used as. Public procurement for innovation ppi is a demand side innovation policy instrument. Doing innovation procurement requires specific knowledge and expertise. Public procurement is increasingly seen as an important potential instrument of innovation policy.
Select the best global offer, no the lowest price 6. Procurement technology enables the entire procurement and acquisition lifecycle, from planning to award through supplier and contract management. The innovation procurement platform is a onestop online hub for procurers, policy makers, researchers and other stakeholders interested in promoting greater uptake of innovation through public procurement. It is an increasingly important topic as figures suggest that in the european union public procurement represents around 17% of gdp.
The purchase might include research and development. Public procurement of innovation procurement 2 innovate. This is a working document of the european commission services that is intended to be submitted to a targeted consultation to stakeholders. In our definition, public procurement of innovation is a form of public procurement. Researchers, practitioners, and policy makers are often using ambiguous wording and have not yet reached consensus on the terminology and concepts involved.
Pdf the growing awareness of public procurement as an innovation policy tool has. Define what you need, no what you think you want 5. Later, a third area was added innovative public procurement i. But this offering was not intended to be definitive,only the starting point for a bigger debate. Given this focus, procurements natural involvement in innovation is limited to work on costrisk reduction by sourcing and. Innovation is important in all sectors of the economy. Innovation in public procurement is required to ensure that the public sector delivers improved public services while securing better value from its current spend science and technology committee, 2011. Public procurement refers to the process by which public bodies purchase works, goods or services from suppliers which they have selected for this purpose. The central topic of this study is public procurement of innovation, sometimes. Innovative public technology procurement problems 05 february 2014. Research in public procurement regulation 20092011, funded by the eu. Guidance on innovation and public procurement department. Used strategically, it can help governments boost innovation at both the national and local level and ultimately improve productivity and inclusiveness. Targeted consultation on the draft guidance on public.
Procurement science is an important field that affects firms profits in the private sector and is significant to growth, innovation, sustainability, and welfare in the public sector. Much of the current debate about harnessing procurement to promote innovation draws upon a. The guidance on public procurement of innovation is part of the commissions efforts to support the wider uptake of public procurement of innovation in the eu. Public procurement offers an enormous potential market for innovative products and services.
Innovation public procurement empirical evidences and impacts 2016 eu innovation procurement event. Public procurement as a driver of innovation in smes and public services legal notice neither the european commission nor any person acting on its behalf may be held responsible for the use to which information contained in this publication may be put, nor for any errors which may appear despite careful preparation and checking. Instead of being an instruction manual, it is a guiding framework with useful. Innovation public procurement and measuring the link between. The modernisation of public procurement rules in 2014 has resulted in a renewed interest in using this instrument to increase sustainable growth and support job creation and innovation. Innovation in public procurement generally refers to innovative solutions in the design and delivery of public services, the procurement of innovative products and services and innovative procurement processes and. However, public procurement is already expected to address a wide range of social goals. It manifests an attempt to summarise some thoughts regarding the utilisation of intelligent public demand that ultimately prompts private sector innovation. This project involved several universities in europe and asia and has sought to promote and support the teaching of public procurement in europe, asia and globally. Public procurement guidelines for goods and services definition 1. Based on good practices in oecd and partner countries, this report analyses the state of play of procurement for innovation and provides a flexible framework focusing on 9 areas to promote it. Rather, terms such as savings, negotiation, and compliance are more likely to come to mind.
The growing awareness of public procurement as an innovation policy tool has recently sparked the interest of both policy makers and researchers. While regular public procurement may be regarded as the outcome of anonymous market processes, public procurement of innovation must be understood as a special case of innovation, where social processes, and consequently the institutions governing these social processes, need to. This book focuses on the study of a specific demand side innovation policy. Measuring the efficiency and effectiveness of public procurement. It also enables the overall management and oversight of the procurement and acquisition process, from ensuring public policy goals such as transparency and fairness to enabling sound management practices. Public procurement as policy instrument for innovation. Public procurement of innovation, public procurement with contracted. However, policy design has been underpinned largely by anecdotal evidence and without a clear. We define public procurement of innovation as the purchase of innovative products, services or processes through public demand with the aim to improve the performance and functionality of public services or to solve important socioeconomic challenges. The ijis institute is grateful to the many volunteers from the public and private sectors that have contributed time. Effectiveness of public procurement in stimulating innovation in small and mediumsized enterprises smes abstract a recent resurgence of demandside innovation policy and, in particular, public procurement of innovation, has reignited the interest of policy makers as. This chapter provides the general background for, and overview of, public procurement for innovation.
Chief procurement officers stand at the precipice of change and taking the next steps towards procurement innovation is going to require strong leadership and expert guidance. Public procurement as a driver of innovation in smes and. Public procurement of innovation in galician health service. Public procurement is a major instrument by which government can. A more precise definition is provided by the european commission.
We combine and integrate these perspectives with the aforementioned approaches to the study of public procurement to develop a specification of. This is why public procurement of innovation can create huge opportunities. Innovation in public procurement the rationale for public procurement as well as for it being so heavily regulated, is that it covers areas that support the population but also, to ensure competition in such areas. Human capital is critical for innovation both in public and private sector procurement. We largely limit the scope in this book to the analysis of public procurement as an innovation policy tool, i. Innovation and public procurement public procurement has the potential to drive forward innovation in the local economy particularly in the manufacturing and construction industries and more generally in relation to sustainable development.
In addition, examples of good practice will be sought and publicised. Luckily, many resources exist, including guidance, criteria sets and case studies, which can help you on your journey to purchasing innovative goods and services. Jon mikel zabalaiturriagagoitia, lund university, sweden, and. Measuring the link between public procurement and innovation 6 oecd science, technology and industry working papers summary of main findings and recommendations background and context this report attempts to provide a practical perspective on the key concepts, definitions and.
Public procurement accounts for a significant proportion of overall demand for goods and services and is increasingly seen as an attractive and feasible instrument for furthering the goals of innovation policy. Policy instruments for public procurement of innovation. For procurement to play a role, it needs to redefine its activities. Also, by and large, public procurement is paid for by. Effectiveness of public procurement in stimulating. Public procurement of innovation the policy logic behind. Guidance on public procurement of innovation european. It occurs when a public organisation places an order for the fulfillment of certain functions or needs, which.
The use of public procurement as innovation policy tool must accommodate the raison detre of procurement, which is that a public organisation purchases goods or services that it needs to perform its function. This report presents insights from the oecd survey on strategic innovation procurement and takes stock of the strategic use of procurement for innovation in oecd member countries and nonmember economies. This paper concerns the role of public procurement as a means to stimulate innovation. Public procurement of innovation ppi the new approach. Examples, innovation and procurement supply chain brief. Traditional procurement departments focus on delivering savings, contract coverage and operational supply risk mitigation by regularly sourcing categories. Pdf public procurement as an innovation policy tool. Use electronical support to improve communication during the process. Public procurement for innovation good practices and strategies. The purpose of this notice is to offer practical guidance on innovation public procurement. Public procurement of innovation is not a new type of contract. Skills sets required include strong competences in internal and external relationship management, broad technical knowledge and a strategic mindset.