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Why Pre-Commercial Procurement is notInnovation Procurement

Author

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  • Edquist , Charles

    () (CIRCLE, Lund University)

  • Zabala-Iturriagagoitia , Jon Mikel

    () (CIRCLE, Lund University)

Abstract

In 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.

Suggested Citation

  • Edquist , Charles & Zabala-Iturriagagoitia , Jon Mikel, 2012. "Why Pre-Commercial Procurement is notInnovation Procurement," Papers in Innovation Studies 2012/11, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
  • Handle: RePEc:hhs:lucirc:2012_011
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    References listed on IDEAS

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    5. Schön, Lennart & Kander, Astrid, 2007. "Industrial dynamics and innovative pressure on energy - Sweden with European and Global outlooks," Papers in Innovation Studies 2007/5, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
    6. Smith, R. P., 1990. "Defence procurement and industrial structure in the U.K," International Journal of Industrial Organization, Elsevier, vol. 8(2), pages 185-205, June.
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    9. Kander, Astrid & Enflo, Kerstin & Schön, Lennart, 2007. "In Defense of Electricity as a General Purpose Technology," Papers in Innovation Studies 2007/6, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.
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    11. Mowery, David C. & Simcoe, Timothy, 2002. "Is the Internet a US invention?--an economic and technological history of computer networking," Research Policy, Elsevier, vol. 31(8-9), pages 1369-1387, December.
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    Citations

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    Cited by:

    1. Valeria De Bonis, 2016. "Innovation, competition and public procurement in the pre-commercial phase," Public Finance Research Papers 23, Istituto di Economia e Finanza, DIGEF, Sapienza University of Rome.
    2. 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.

    More about this item

    Keywords

    Pre-Commercial procurement; Public Procurement for Innovation; R&D; Innovation; Innovation policy;

    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; Personnel Economics - - Marketing and Advertising - - - Government Policy and Regulation
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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