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This book aims to advance the understanding of pre-commercial procurement (PCP) as innovation policy instrument and as means to fulfil public needs. To this end, it places PCP within its political and legal context and elucidates its origins and its economic rationale. Based on this analysis, it suggests a clear conceptualization of PCP and a clear delineation from other innovation policy instruments. Subsequently, the book assesses the value and achievements of the more established type of PCP policy programmes, and draws lessons for improvement. In this context, it raises awareness of the remaining obstacles to its wide and effective implementation and suggests appropriate solutions ranging from policy guidance to law interpretation and legislative reform. The text makes use of illustrative practical examples of policy-making and project implementation in various public programmes of R&D procurement. This is a highly relevant book for academics and practitioners in the field of public procurement. Ramona Apostol is Senior Procurement Adviser at Corvers Procurement Services B.V. in the Netherlands. She holds a Ph.D. in Law from Leiden University, the Netherlands. She has been involved in a wide range of procurement projects related to the implementation of R&D and innovation procurement and regularly acts as independent expert for the European Commission on this topic.
In 2006, the European Commission introduced the concept of 'pre-commercial procurement' (PCP) as an instrument to promote innovation and to mitigate grand challenges. One of the main motives for the support of PCP schemes was to use public needs as a driver for innovation. This concept was also introduced as a response to the need to reinforce the innovation capabilities of the European Union while improving the quality and efficiency of public services. But what is meant by PCP? Is it a demand- or a supply-side instrument in relation to innovation? This is the research question addressed in this paper, the goal being motivated by the lack of academic discussion in this direction. The paper is based on three cases, one from the Netherlands, one from the United Kingdom and one from Australia. These cases provide evidence that PCP is a matter of research and development (R&D) funding of a targeted kind, geared toward very specific goals and in a focused way. This leads the authors to conclude that PCP is a supply-side policy instrument in relation to innovation. In this sense, they would like to raise a flag for going back to the origins of the PCP program and calling it a 'precompetitive R&D program', rather than labeling it as an innovation procurement instrument.
Abstract: We discuss public procurement instruments for acquiring innovation, focusing on the European Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships. We analyse in particular how firms' innovation incentives are affected by: (i) economies of scope and externalities between R&D and large-scale production; (ii) the degree of specificity of the innovation; (iii) the presence of Small and Medium Enterprises (SMEs) in the market and the level of market competition; (iv) the risk of market foreclosure and supplier lock-in. Our study contributes to the literature on incentives in demand-side innovation policy by tapping into the contractual design features and by offering relevant implications for academics and policy makers. (107 words).
This report focuses on the use of innovative procurement in the health sector in the Nordic countries. It presents six Nordic cases demonstrating best practice within innovative procurement. The report argues that despite challenges particularly relating to navigating the legal framework, there are benefits associated with the use of innovative procurement. The use of dialogue between procurers and suppliers is highlighted as a key benefit in innovative procurement as it leads to increased knowledge of possibilities available in the market and hence better solutions. As innovative procurement practice is still relatively new across the Nordic countries, there is a need to disseminate best practices and to develop procurement guides to assist the implementation. The report has been prepared by DAMVAD.
This book focuses on Public Procurement for Innovation. Public Procurement for Innovation is a specific demand-side innovation policy instrument. It occurs when a public organization places an order for a new or improved product to fulfill certain need
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.