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Public procurement of innovation: a review of rationales, designs, and contributions to grand challenges

Author

Listed:
  • Julien Chicot

    (UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019], GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

  • Mireille Matt

    (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019])

Abstract

‘Grand challenges' are gaining visibility in the policy agenda of most Member States of the Organisation for Economic Co-operation and Development (OECD). Diagnostic analysis, allowing identification of innovation systems problems and their causes, is needed in order to determine under what conditions public procurement of innovation (PPI) could contribute to the achievement of solutions for grand challenges. Based on a comprehensive review of the innovation policy literature, we propose an analytical framework in order to highlight how PPI can address three categories of failures: demand-side, supply-side, and user–supplier interaction failures. We use these categories as discriminating variables to define PPI ideal-types. Our PPI analytical framework allows us to define and link to each ideal-type elements of the PPI literature that focus on design (its characteristics and instruments). This provides a unified PPI framework which can contribute to better policymaking, evaluation, and analysis. In particular, the framework also allows to mobilise our PPI categories for a better conceptualisation of challenge-oriented policy more generally.

Suggested Citation

  • Julien Chicot & Mireille Matt, 2018. "Public procurement of innovation: a review of rationales, designs, and contributions to grand challenges," Post-Print hal-01804917, HAL.
    • Handle: RePEc:hal:journl:hal-01804917
    DOI: 10.1093/scipol/scy012
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    Cited by:

    1. Zhang, Zhaowen & Jiang, Yaohui, 2022. "Can green public procurement change energy efficiency? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 113(C).
    2. Mehmet Akif Demircioglu & Roberto Vivona, 2021. "Positioning public procurement as a procedural tool for innovation: an empirical study [Creating the Conditions for Radical Public Service Innovation]," Policy and Society, Darryl S. Jarvis and M. Ramesh, vol. 40(3), pages 379-396.
    3. Dai, Xiaoyong & Li, Yanchao & Chen, Kaihua, 2021. "Direct demand-pull and indirect certification effects of public procurement for innovation," Technovation, Elsevier, vol. 101(C).
    4. Martin Januska & Alena Palacka, 2023. "Critical success factors for public procurement of innovative solutions in Central Europe: Empirical study," E&M Economics and Management, Technical University of Liberec, Faculty of Economics, vol. 26(2), pages 24-41, June.
    5. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2020. "Functional procurement for innovation, welfare and the environment," Papers in Innovation Studies 2020/1, Lund University, CIRCLE - Centre for Innovation Research, revised 19 Jul 2020.
    6. Miller, Fiona A. & Lehoux, Pascale, 2020. "The innovation impacts of public procurement offices: The case of healthcare procurement," Research Policy, Elsevier, vol. 49(7).
    7. Mwesiumo, Deodat & Glavee-Geo, Richard & Olsen, Kjetil Magnus & Svenning, Geir Arne, 2021. "Improving public purchaser attitudes towards public procurement of innovations," Technovation, Elsevier, vol. 101(C).
    8. Nannan Wang & Naixiao Cui & Junlin Hao & Yilin Chai, 2025. "The Role of Government Procurement in Sustainable Industry Development—The Trends and Research Agenda," Sustainability, MDPI, vol. 17(3), pages 1-23, February.
    9. Andrei Mirel FLOREA & Riana Iren RADU & Silvius STANCIU, 2019. "Addressing Offers with Apparently Unusual Low Prices," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 3, pages 28-36.
    10. Reale, Filippo, 2021. "Mission-oriented innovation policy and the challenge of urgency: Lessons from Covid-19 and beyond," Technovation, Elsevier, vol. 107(C).
    11. Cao, Fuguo & Yang, Yusen & Guo, Shaobo & Appolloni, Andrea, 2025. "Towards an optimal effect of government technology innovation policy mix: the case of government procurement and research and development subsidies with evidence from China," Socio-Economic Planning Sciences, Elsevier, vol. 100(C).
    12. Švarc, Jadranka & Dabić, Marina, 2021. "Transformative innovation policy or how to escape peripheral policy paradox in European research peripheral countries," Technology in Society, Elsevier, vol. 67(C).
    13. Bleda, Mercedes & Chicot, Julien, 2020. "The role of public procurement in the formation of markets for innovation," Journal of Business Research, Elsevier, vol. 107(C), pages 186-196.
    14. Sefa Awaworyi Churchill & Hoang M. Luong & Mehmet Ugur, 2022. "Does intellectual property protection deliver economic benefits? A multi‐outcome meta‐regression analysis of the evidence," Journal of Economic Surveys, Wiley Blackwell, vol. 36(5), pages 1477-1509, December.
    15. Sofia Patsali, 2019. "Opening the black box of university-suppliers' co-invention: some field study evidence," Working Papers of BETA 2019-46, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    16. Carlos Contreras & Julio Angulo, 2022. "Innovation and Tariff-adjustment Options in Public-private Partnerships," Hacienda Pública Española / Review of Public Economics, IEF, vol. 243(4), pages 51-81, December.
    17. Chen, Kaihua & Xue, Zehua & Guo, Rui & Ning, Lutao, 2025. "The holistic role of multi-level government in transformative innovation process: Theoretical framework and evidence from China," Technovation, Elsevier, vol. 139(C).

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