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Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships in the EU: Rationale and Strategy

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  • Elisabetta Iossa, Federico Biagi and Paola Valbonesi

Abstract

We consider alternative European public procurement mechanisms for acquiring R&D services and innovative solutions, focusing on Pre-commercial Procurement, Public Procurement of Innovative Solutions and Innovation Partnerships. For each of these mechanisms, we identify conceptually strengths and weaknesses. We highlight the role played by (i) economies of scope and externalities between R&D and large-scale production; (ii) degree of specificity of the innovation; (iii) role of SMEs in the market and level of market competition; (iv) risk of market foreclosure and supplier lock-in. This article contributes to the literature on incentives in demand-side innovation policy by tapping into the contractual design features and by offering relevant implications for academics and policy makers.

Suggested Citation

  • Elisabetta Iossa, Federico Biagi and Paola Valbonesi, 2016. "Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships in the EU: Rationale and Strategy," IEFE Working Papers 89, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    • Handle: RePEc:bcu:iefewp:iefewp89
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    Cited by:

    1. Dmitri Vinogradov & Elena Shadrina & Marina Doroshenko, 2018. "KIBS for public needs," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(4), pages 443-473, December.
    2. Thomas Johnsen & Marie-Anne Le Dain & Nadine Kiratli & Holger Schiele, 2022. "Editorial: Purchasing and innovation: Past, present and future of the field of research," Post-Print hal-03761525, HAL.
    3. Castelnovo, Paolo & Clò, Stefano & Florio, Massimo, 2023. "A quasi-experimental design to assess the innovative impact of public procurement: An application to the Italian space industry," Technovation, Elsevier, vol. 121(C).
    4. Peter Adjei‐Bamfo & Hadrian Geri Djajadikerta & Ferry Jie & Kerry Brown & Reza Kiani Mavi, 2023. "Public procurement for innovation through supplier firms' sustainability lens: A systematic review and research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 387-407, January.

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    More about this item

    Keywords

    Innovation; Demand-side policies; Incentives; Pre-commercial Procurement; Public Procurement of Innovative Solutions; Innovation Partnership.;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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