IDEAS home Printed from https://ideas.repec.org/a/oup/scippl/v45y2018i4p480-492..html
   My bibliography  Save this article

Public procurement of innovation: a review of rationales, designs, and contributions to grand challenges

Author

Listed:
  • Julien Chicot
  • Mireille Matt

Abstract

‘Grand challenges’ are gaining visibility in the policy agenda of most Member States of the Organisation for Economic Co-operation and Development (OECD). Diagnostic analysis, allowing identification of innovation systems problems and their causes, is needed in order to determine under what conditions public procurement of innovation (PPI) could contribute to the achievement of solutions for grand challenges. Based on a comprehensive review of the innovation policy literature, we propose an analytical framework in order to highlight how PPI can address three categories of failures: demand-side, supply-side, and user–supplier interaction failures. We use these categories as discriminating variables to define PPI ideal-types. Our PPI analytical framework allows us to define and link to each ideal-type elements of the PPI literature that focus on design (its characteristics and instruments). This provides a unified PPI framework which can contribute to better policymaking, evaluation, and analysis. In particular, the framework also allows to mobilise our PPI categories for a better conceptualisation of challenge-oriented policy more generally.

Suggested Citation

  • Julien Chicot & Mireille Matt, 2018. "Public procurement of innovation: a review of rationales, designs, and contributions to grand challenges," Science and Public Policy, Oxford University Press, vol. 45(4), pages 480-492.
    • Handle: RePEc:oup:scippl:v:45:y:2018:i:4:p:480-492.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/scipol/scy012
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    2. Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), 2016. "Handbook of Innovation Policy Impact," Books, Edward Elgar Publishing, number 16121.
    3. Jakob Edler & Max Rolfstam & Lena Tsipouri & Elvira Uyarra, 2015. "Risk management in public procurement of innovation: a conceptualization," Chapters, in: Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), Public Procurement for Innovation, chapter 4, pages 87-109, Edward Elgar Publishing.
    4. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    5. Wouter Boon & Jakob Edler, 2018. "Demand, challenges, and innovation. Making sense of new trends in innovation policy," Science and Public Policy, Oxford University Press, vol. 45(4), pages 435-447.
    6. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    7. Mangematin, V. & Callon, M., 1995. "Technological competition, strategies of the firms and the choice of the first users: the case of road guidance technologies," Research Policy, Elsevier, vol. 24(3), pages 441-458, May.
    8. Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), 2015. "Public Procurement for Innovation," Books, Edward Elgar Publishing, number 15642.
    9. Ben R. Martin, 2016. "R&D policy instruments -- a critical review of what we do and don’t know," Industry and Innovation, Taylor & Francis Journals, vol. 23(2), pages 157-176, February.
    10. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2012. "Public Procurement for Innovation as mission-oriented innovation policy," Research Policy, Elsevier, vol. 41(10), pages 1757-1769.
    11. Georghiou, Luke & Edler, Jakob & Uyarra, Elvira & Yeow, Jillian, 2014. "Policy instruments for public procurement of innovation: Choice, design and assessment," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 1-12.
    12. J. Edler & L. Georghiou & K. Blind & E. Uyarra, 2012. "Evaluating the demand side: New challenges for evaluation," Research Evaluation, Oxford University Press, vol. 21(1), pages 33-47, February.
    13. Bleda, Mercedes & del Río, Pablo, 2013. "The market failure and the systemic failure rationales in technological innovation systems," Research Policy, Elsevier, vol. 42(5), pages 1039-1052.
    14. Mark Boden & Ron Johnston & Fabiana Scapolo, 2012. "The role of FTA in responding to grand challenges: A new approach for STI policy?," Science and Public Policy, Oxford University Press, vol. 39(2), pages 135-139, March.
    15. Charles Edquist, 2011. "Design of innovation policy through diagnostic analysis: identification of systemic problems (or failures)," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1725-1753, December.
    16. Edquist, Charles, 2011. "Innovation Policy Design: Identification of Systemic Problems," Papers in Innovation Studies 2011/6, Lund University, CIRCLE - Centre for Innovation Research.
    17. Foray, D. & Mowery, D.C. & Nelson, R.R., 2012. "Public R&D and social challenges: What lessons from mission R&D programs?," Research Policy, Elsevier, vol. 41(10), pages 1697-1702.
    18. Richard R Nelson, 2011. "The Moon and the Ghetto revisited," Science and Public Policy, Oxford University Press, vol. 38(9), pages 681-690, November.
    19. Dimitri,Nicola & Piga,Gustavo & Spagnolo,Giancarlo (ed.), 2006. "Handbook of Procurement," Cambridge Books, Cambridge University Press, number 9780521870733.
    20. Laranja, Manuel & Uyarra, Elvira & Flanagan, Kieron, 2008. "Policies for science, technology and innovation: Translating rationales into regional policies in a multi-level setting," Research Policy, Elsevier, vol. 37(5), pages 823-835, June.
    21. Dalpe, Robert & DeBresson, Chris & Xiaoping, Hu, 1992. "The public sector as first user of innovations," Research Policy, Elsevier, vol. 21(3), pages 251-263, June.
    22. Veiko Lember & Tarmo Kalvet & Rainer Kattel, 2011. "Urban Competitiveness and Public Procurement for Innovation," Urban Studies, Urban Studies Journal Limited, vol. 48(7), pages 1373-1395, May.
    23. Kieron Flanagan & Elvira Uyarra, 2016. "Four dangers in innovation policy studies -- and how to avoid them," Industry and Innovation, Taylor & Francis Journals, vol. 23(2), pages 177-188, February.
    24. Abernathy, William J. & Clark, Kim B., 1985. "Innovation: Mapping the winds of creative destruction," Research Policy, Elsevier, vol. 14(1), pages 3-22, February.
    25. Flanagan, Kieron & Uyarra, Elvira & Laranja, Manuel, 2011. "Reconceptualising the 'policy mix' for innovation," Research Policy, Elsevier, vol. 40(5), pages 702-713, June.
    26. Cristiano Cagnin & Effie Amanatidou & Michael Keenan, 2012. "Orienting European innovation systems towards grand challenges and the roles that FTA can play," Science and Public Policy, Oxford University Press, vol. 39(2), pages 140-152, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mwesiumo, Deodat & Glavee-Geo, Richard & Olsen, Kjetil Magnus & Svenning, Geir Arne, 2021. "Improving public purchaser attitudes towards public procurement of innovations," Technovation, Elsevier, vol. 101(C).
    2. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).
    3. Bleda, Mercedes & Chicot, Julien, 2020. "The role of public procurement in the formation of markets for innovation," Journal of Business Research, Elsevier, vol. 107(C), pages 186-196.
    4. Sofia Patsali, 2019. "Opening the black box of university-suppliers' co-invention: some field study evidence," Working Papers of BETA 2019-46, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    5. Zhang, Zhaowen & Jiang, Yaohui, 2022. "Can green public procurement change energy efficiency? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 113(C).
    6. Dai, Xiaoyong & Li, Yanchao & Chen, Kaihua, 2021. "Direct demand-pull and indirect certification effects of public procurement for innovation," Technovation, Elsevier, vol. 101(C).
    7. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2020. "Functional procurement for innovation, welfare and the environment," Papers in Innovation Studies 2020/1, Lund University, CIRCLE - Centre for Innovation Research, revised 19 Jul 2020.
    8. Reale, Filippo, 2021. "Mission-oriented innovation policy and the challenge of urgency: Lessons from Covid-19 and beyond," Technovation, Elsevier, vol. 107(C).
    9. Mehmet Akif Demircioglu & Roberto Vivona, 2021. "Positioning public procurement as a procedural tool for innovation: an empirical study [Creating the Conditions for Radical Public Service Innovation]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 40(3), pages 379-396.
    10. Martin Januska & Alena Palacka, 2023. "Critical success factors for public procurement of innovative solutions in Central Europe: Empirical study," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(2), pages 24-41, June.
    11. Andrei Mirel FLOREA & Riana Iren RADU & Silvius STANCIU, 2019. "Addressing Offers with Apparently Unusual Low Prices," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 28-36.
    12. Carlos Contreras & Julio Angulo, 2022. "Innovation and Tariff-adjustment Options in Public-private Partnerships," Hacienda Pública Española / Review of Public Economics, IEF, vol. 243(4), pages 51-81, December.
    13. Miller, Fiona A. & Lehoux, Pascale, 2020. "The innovation impacts of public procurement offices: The case of healthcare procurement," Research Policy, Elsevier, vol. 49(7).
    14. Sefa Awaworyi Churchill & Hoang M. Luong & Mehmet Ugur, 2022. "Does intellectual property protection deliver economic benefits? A multi‐outcome meta‐regression analysis of the evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1477-1509, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chicot, J. & Matt, M., 2015. "Public procurement of innovation: a review of rationales, instruments and design," Working Papers 2015-05, Grenoble Applied Economics Laboratory (GAEL).
    2. Kiyoon Shin & Yeongjun Yeo & Jeong-Dong Lee, 2020. "Revitalizing the Concept of Public Procurement for Innovation (PPI) from a Systemic Perspective: Objectives, Policy Types, and Impact Mechanisms," Systemic Practice and Action Research, Springer, vol. 33(2), pages 187-211, April.
    3. Ghisetti, Claudia, 2017. "Demand-pull and environmental innovations: Estimating the effects of innovative public procurement," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 178-187.
    4. Jakob Edler & Jan Fagerberg, 2017. "Innovation policy: what, why, and how," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(1), pages 2-23.
    5. Grashof, Nils, 2020. "Putting the watering can away Towards a targeted (problem-oriented) cluster policy framework," Papers in Innovation Studies 2020/4, Lund University, CIRCLE - Centre for Innovation Research.
    6. Uyarra, Elvira & Zabala-Iturriagagoitia, Jon Mikel & Flanagan, Kieron & Magro, Edurne, 2020. "Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation," Research Policy, Elsevier, vol. 49(1).
    7. Czarnitzki, Dirk & Hünermund, Paul & Moshgbar, Nima, 2020. "Public Procurement of Innovation: Evidence from a German Legislative Reform," International Journal of Industrial Organization, Elsevier, vol. 71(C).
    8. Fagerberg, Jan, 2018. "Mobilizing innovation for sustainability transitions: A comment on transformative innovation policy," Research Policy, Elsevier, vol. 47(9), pages 1568-1576.
    9. Carlos Contreras & Julio Angulo, 2022. "Innovation and Tariff-adjustment Options in Public-private Partnerships," Hacienda Pública Española / Review of Public Economics, IEF, vol. 243(4), pages 51-81, December.
    10. Massimo Florio & Francesco Giffoni & Anna Giunta & Emanuela Sirtori, 2018. "Big science, learning, and innovation: evidence from CERN procurement," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 915-936.
    11. Bleda, Mercedes & Chicot, Julien, 2020. "The role of public procurement in the formation of markets for innovation," Journal of Business Research, Elsevier, vol. 107(C), pages 186-196.
    12. Ben R. Martin, 2015. "R&D Policy Instruments: A Critical Review of What We Do & Don't Know," Working Papers wp476, Centre for Business Research, University of Cambridge.
    13. Grillitsch, Markus & Hansen, Teis & Coenen, Lars & Miörner, Johan & Moodysson, Jerker, 2019. "Innovation policy for system-wide transformation: The case of strategic innovation programmes (SIPs) in Sweden," Research Policy, Elsevier, vol. 48(4), pages 1048-1061.
    14. Coenen, Lars & Grillitsch, Markus & Hansen, Teis & Moodysson, Jerker, 2017. "An innovation system framework for system innovation policy: the case of Strategic Innovation Programs (SIPs) in Sweden," Papers in Innovation Studies 2017/8, Lund University, CIRCLE - Centre for Innovation Research.
    15. Jon Mikel Zabala-Iturriagagoitia, 2022. "Fostering regional innovation, entrepreneurship and growth through public procurement," Small Business Economics, Springer, vol. 58(2), pages 1205-1222, February.
    16. Charles Edquist & Nicholas S. Vonortas & Jon Mikel Zabala-Iturriagagoitia, 2015. "Introduction," Chapters, in: Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), Public Procurement for Innovation, chapter 1, pages 1-32, Edward Elgar Publishing.
    17. Grashof, Nils, 2021. "Putting the watering can away –Towards a targeted (problem-oriented) cluster policy framework," Research Policy, Elsevier, vol. 50(9).
    18. Elvira Uyarra & Kieron Flanagan & Edurne Magro & Jon Mikel Zabala-Iturriagagoitia, 2017. "Anchoring the innovation impacts of public procurement to place: The role of conversations," Environment and Planning C, , vol. 35(5), pages 828-848, August.
    19. Askfors, Ylva & Fornstedt, Helena, 2018. "The clash of managerial and professional logics in public procurement: Implications for innovation in the health-care sector," Scandinavian Journal of Management, Elsevier, vol. 34(1), pages 78-90.
    20. Jakob Edler & Luke Georghiou & Elvira Uyarra & Jillian Yeow, 2015. "The meaning and limitations of public procurement for innovation: a supplier’s experience," Chapters, in: Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), Public Procurement for Innovation, chapter 2, pages 35-64, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:scippl:v:45:y:2018:i:4:p:480-492.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/spp .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.