In the paper innovation-related public procurement as an innovation policy instrument is discussed. Five types of public procurement are defined and discussed:
- Regular public procurement (PP) – from the shelf
- Public Procurement for Innovation (PPI)
- a) Direct
- b) Catalytic
- Innovation-friendly (regular) PP
- Pre-Commercial R&D procurement (PCP) (although this is actually a research policy instrument)
It is important to distinguish between these types. The categories with the largest potential for enhancing innovation in the future are catalytic public procurement for innovation and – above all – innovation-friendly public procurement. All such procurement should be pursued as procurement of functions rather than products. (A procurer shall not buy a fence between the road and apartments or more quiet asphalt, but a decibel level in the apartment.) In this way public procurement can become the most important innovation policy instrument of all. It would lead to much higher creativity and innovativeness among the suppliers – and thereby in the public sector.
Edquist, C. (August 2015). Innovation-related Public Procurement as a Demand-oriented Innovation Policy Instrument. (CIRCLE Working Paper 2015/28). Lund University, Sweden: Centre for Innovation, Research and Competence in the Learning Economy.
You can download the paper here.