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Urban Competitiveness and Public Procurement for Innovation

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  • Veiko Lember
  • Tarmo Kalvet
  • Rainer Kattel

Abstract

Public procurement for innovation represents one of the least studied demand-side innovation policy tools that can be used to increase urban competitiveness. Evidence suggests that local and regional governments are becoming more involved in procuring innovative solutions, but overall knowledge remains limited regarding how they get involved and what effects this involvement has had. Based on a study of Nordic–Baltic Sea cities, the current study reveals that public procurement for innovative solutions has a positive impact on the providers and that urban authorities can act as market creators. The study also demonstrates that public procurement is not seen as an inherent part of innovation policy. A lack of awareness exists among city officials about the connection between procurement and innovation, and local authorities tend not to be willing to take risks when promoting innovation through public procurement. Due to the positive effects, however, further development of related policies is recommended.

Suggested Citation

  • 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.
  • Handle: RePEc:sae:urbstu:v:48:y:2011:i:7:p:1373-1395
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    1. repec:kap:iecepo:v:14:y:2017:i:2:d:10.1007_s10368-016-0371-1 is not listed on IDEAS
    2. repec:gam:jsusta:v:10:y:2017:i:1:p:67-:d:124678 is not listed on IDEAS
    3. Edler, Jakob & Yeow, Jillian, 2016. "Connecting demand and supply: The role of intermediation in public procurement of innovation," Research Policy, Elsevier, vol. 45(2), pages 414-426.
    4. Jakob Edler & Luke Georghiou & Elvira Uyarra & Jillian Yeow, 2015. "The meaning and limitations of public procurement for innovation: a supplier’s experience," Chapters,in: Public Procurement for Innovation, chapter 2, pages 35-64 Edward Elgar Publishing.
    5. William F. Lever, 2013. "Evaluating the urban milieu of an individual city," Chapters,in: Handbook of Research Methods and Applications in Urban Economies, chapter 15, pages 372-395 Edward Elgar Publishing.

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