Policy instruments for public procurement of innovation

Choice, design and assessment

Bibliographic Data

ID23324838
AuthorsLuke Georghiou (0000-0002-3324-4955, University of Manchester, corresponding author), Jakob Edler (0000-0003-0938-1244, University of Manchester), Elvira Uyarra (0000-0003-3144-1741, University of Manchester), Jillian Yeow (0000-0002-8634-4976, University of Manchester)
Year2014
Volume86
Pages1-12
Publication date2014-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueTechnological Forecasting and Social Change (JOURNAL)
Journal identifiersISSN: 0040-1625 • E-ISSN: 1873-5509
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.techfore.2013.09.018
OpenAlexW2102897933
LanguageEN
Citations received52
References cited9

Public procurement is increasingly seen as an important potential instrument of innovation policy. 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 firm's innovation capabilities and performance and in what ways desirable behaviour and outcomes can be promoted. This paper seeks to address the basis of innovation procurement policy. It establishes a broad taxonomy of procurement policies and instruments that have emerged in OECD countries in response to perceived deficiencies and then compares these with the perceptions of firms using an analysis of a dedicated survey of 800 public sector suppliers in the UK. It is observed that policy measures include the creation of framework conditions, establishing organisational frameworks and developing capabilities, identifying, specifying and signalling needs, and incentivising innovative solutions. The survey findings confirm that the barriers encountered by firms correspond to the deficiencies addressed by policies but do not address them sufficiently. This arises from lack of coverage, lack of ownership by purchasers, failure to address the whole cycle of acquisition and to address risk aversion. The scope of policy measures needs to be extended in time, breadth of reach and depth.

Business · Economic growth · Economics · Empirical evidence · Industrial organization · Procurement · Public economics · Public policy · Public sector · Scope (computer science) · Computer Science · Innovation Policy and RD · Marketing · Public Procurement and Policy · Sustainable Supply Chain Management

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