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Why Pre-Commercial Procurement is notInnovation Procurement

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Author Info

  • Edquist , Charles

    ()
    (CIRCLE, Lund University)

  • Zabala-Iturriagagoitia , Jon Mikel

    ()
    (CIRCLE, Lund University)

Abstract

In 2006 the European Commission introduced the concept of "Pre-Commercial Procurement" as an instrument to promote innovation and to mitigate grand challenges. One of the main motivations for the support of Pre-Commercial Procurement 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 EU, while improving the quality and efficiency of public services. However, there is still a certain degree of confusion as to what is meant by Pre-Commercial Procurement and what rationales are behind it. This paper addresses the differences between two public policy instruments, PreCommercial Procurement (PCP) and Public Procurement for Innovation (PPI), and clarifies what is meant by each of them. The analysis is based on three cases, one from the Netherlands, one from the UK and one from Australia. While PPI is a demand-side policy instrument, these cases provide evidence of the supply-side nature of Pre-Commercial Procurement in relation to innovation. The paper claims that PCP is a matter of R&D funding of a specific kind, geared towards very specific goals and in a focused way. Thus, we 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 talking about procurement.

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Bibliographic Info

Paper provided by Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy in its series CIRCLE Electronic Working Papers with number 2012/11.

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Length: 29 pages
Date of creation: 15 Nov 2012
Date of revision:
Handle: RePEc:hhs:lucirc:2012_011

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Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Phone: +46 (0) 46 222 74 68
Web page: http://www.circle.lu.se/
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Keywords: Pre-Commercial procurement; Public Procurement for Innovation; R&D; Innovation; Innovation policy;

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  1. 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.
  2. 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.
  3. Kander, Astrid & Enflo, Kerstin & Schön, Lennart, 2007. "In Defense of Electricity as a General Purpose Technology," CIRCLE Electronic Working Papers 2007/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  4. Pierre-Henri Morand, 2003. "SMEs and public procurement policy," Review of Economic Design, Springer, vol. 8(3), pages 301-318, October.
  5. Olof Ejermo & Astrid Kander, 2011. "Swedish business research productivity," Industrial and Corporate Change, Oxford University Press, vol. 20(4), pages 1081-1118, August.
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  7. Mowery, David C. & Simcoe, Timothy, 2002. "Is the Internet a US invention?--an economic and technological history of computer networking," Research Policy, Elsevier, vol. 31(8-9), pages 1369-1387, December.
  8. Borrás, Susana & Edquist, Charles, 2013. "The Choice of Innovation Policy Instruments," CIRCLE Electronic Working Papers 2013/4, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  9. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
  10. Smith, R. P., 1990. "Defence procurement and industrial structure in the U.K," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 185-205, June.
  11. Elvira Uyarra & Kieron Flanagan, 2009. "Understanding the Innovation Impacts of Public Procurement," European Planning Studies, Taylor & Francis Journals, vol. 18(1), pages 123-143, June.
  12. Flanagan, Kieron & Uyarra, Elvira & Laranja, Manuel, 2011. "Reconceptualising the 'policy mix' for innovation," Research Policy, Elsevier, vol. 40(5), pages 702-713, June.
  13. McGarrah, Robert E., 1987. "The decline of U.S. manufacturers: Causes and remedies," Business Horizons, Elsevier, vol. 30(6), pages 59-67.
  14. Ejermo, Olof & Kander, Astrid, 2007. "Swedish business research productivity – improvements against international trends," CIRCLE Electronic Working Papers 2007/7, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  15. Fuchs, Erica R.H., 2010. "Rethinking the role of the state in technology development: DARPA and the case for embedded network governance," Research Policy, Elsevier, vol. 39(9), pages 1133-1147, November.
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