Why Pre-Commercial Procurement is notInnovation Procurement
AbstractIn 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 InfoPaper 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.
Length: 29 pages
Date of creation: 15 Nov 2012
Date of revision:
Pre-Commercial procurement; Public Procurement for Innovation; R&D; Innovation; Innovation policy;
Find related papers by JEL classification:
- H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
- L38 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Policy
- M38 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Government Policy and Regulation
- O25 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-05-05 (All new papers)
- NEP-INO-2013-05-05 (Innovation)
- NEP-PPM-2013-05-05 (Project, Program & Portfolio Management)
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