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The Effect of Public Procurement and its Spillovers on Innovativeness of Enterprises in European Countries

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  • Arkadiusz Kijek

Abstract

Public procurement is an important policy instrument which supports innovation activity of enterprises. International links between economies and an increasing access to public procurement markets in European countries justify studying spatial effects of public procurement contracts on innovation activity of companies. The aim of this paper is to assess these relationships using the spatial model. The results show that public procurement contract is a very important innovation policy instrument, since it has the positive impact on innovations in a domestic economy and the negative effect in neighbouring countries. Moreover, the need to meet requirements of public procurement contracts motivates enterprises, both in the own country and in the neighbouring countries, to undertake innovation activities.

Suggested Citation

  • Arkadiusz Kijek, 2019. "The Effect of Public Procurement and its Spillovers on Innovativeness of Enterprises in European Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 103-111.
    • Handle: RePEc:ers:journl:v:xxii:y:2019:i:1:p:103-111
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    References listed on IDEAS

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    1. Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), 2015. "Public Procurement for Innovation," Books, Edward Elgar Publishing, number 15642.
    2. Aschhoff, Birgit & Sofka, Wolfgang, 2009. "Innovation on demand--Can public procurement drive market success of innovations?," Research Policy, Elsevier, vol. 38(8), pages 1235-1247, October.
    3. Saastamoinen, Jani & Reijonen, Helen & Tammi, Timo, 2018. "Should SMEs pursue public procurement to improve innovative performance?," Technovation, Elsevier, vol. 69(C), pages 2-14.
    4. 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.
    5. Guerzoni, Marco & Raiteri, Emilio, 2012. "Innovative public procurement and R&D Subsidies: hidden treatment and new empirical evidence on the technology policy mix in a quasi-experimental setting," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201218, University of Turin.
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    Cited by:

    1. Agnieszka Kurdys-Kujawska & Agnieszka Sompolska-Rzechula, 2020. "Subsidization of Entrepreneurship in Rural Areas in Poland: Scale, Effects and Regional Diversity," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 246-263.
    2. Małgorzata Wosiek & Adam Czudec, 2019. "The Relationship between the Entrepreneurship and the Local Environment: Evidence from Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 262-289.
    3. Prof. dr. hab. M. Proniewski & dr J. B. Zielinska, 2019. "Innovative Potential of the European Union’s Member States in 2017," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 49-59.

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    More about this item

    Keywords

    Public procurement; innovation; spatial spillovers.;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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