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Innovation-related Public Procurement as a Demand-oriented Innovation Policy Instrument

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  • Edquist , Charles

    (CIRCLE, Lund University)

Abstract

The purpose in this paper is to show how public procurement can be a driver of innovation. The purpose and point of departure when using public procurement as an instrument of innovation policy is always to solve societal and environmental problems, to satisfy human needs or to meet global challenges. The paper is aimed at everyone who is involved or interested in public procurement, and especially in how this can promote innovation processes. Historically innovation policy has been strongly dominated by supply-push oriented instruments (measures). This linear view is actually still dominating in practical innovation policy pursued, but no longer so much in policy analysis – and certainly not among innovation researchers. In other words, the linear view is completely rejected in innovation research, but still dominates innovation policy. Innovation policy is all actions by public organizations that influence innovation processes. The choice of innovation policy instruments is a very important part of the formulation of an innovation policy. There are potentially scores, or perhaps hundreds, of innovation policy instruments to choose from. A combination of two or more instruments must often be used to solve each specific problem. They are thus combined into an “instrument mix”. Demand-based innovation policy instruments are those that influence innovation processes from the demand side. In this paper, we will very much concentrate on one kind of demand-side innovation policy instrument: innovation-related public procurement. The reason for choosing innovation-related public procurement in particular, is that it is potentially by far the most powerful kind of demand-side innovation policy instrument available. It might even potentially be the most powerful instrument among all innovation policy instruments. Public procurement of different types may affect both the speed and path of innovation development.

Suggested Citation

  • Edquist , Charles, 2015. "Innovation-related Public Procurement as a Demand-oriented Innovation Policy Instrument," Papers in Innovation Studies 2015/28, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2015_028
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    References listed on IDEAS

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    1. Edquist, Charles, 2014. "Efficiency of Research and Innovation Systems for Economic Growth and Employment," Papers in Innovation Studies 2014/8, Lund University, CIRCLE - Centre for Innovation Research.
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    9. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2012. "Public Procurement for Innovation as mission-oriented innovation policy," Research Policy, Elsevier, vol. 41(10), pages 1757-1769.
    10. Bergek, Anna & Jacobsson, Staffan & Carlsson, Bo & Lindmark, Sven & Rickne, Annika, 2008. "Analyzing the functional dynamics of technological innovation systems: A scheme of analysis," Research Policy, Elsevier, vol. 37(3), pages 407-429, April.
    11. Cooke, Philip, 2001. "Regional Innovation Systems, Clusters, and the Knowledge Economy," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 945-974, December.
    12. Charles Edquist, 2011. "Design of innovation policy through diagnostic analysis: identification of systemic problems (or failures)," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 20(6), pages 1725-1753, December.
    13. Edquist, Charles, 2011. "Innovation Policy Design: Identification of Systemic Problems," Papers in Innovation Studies 2011/6, Lund University, CIRCLE - Centre for Innovation Research.
    14. Elvira Uyarra & Kieron Flanagan, 2009. "Understanding the Innovation Impacts of Public Procurement," European Planning Studies, Taylor & Francis Journals, vol. 18(1), pages 123-143, June.
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    Citations

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    Cited by:

    1. Jessica Catalano & Francesco Giffoni & Paolo Castelnovo, 2021. "The impact of space procurement on suppliers: Evidence from Italy," Working Papers 202102, CSIL Centre for Industrial Studies.
    2. Edquist, Charles, 2018. "Towards a Holistic Innovation Policy: Can the Swedish National Innovation Council Serve as a Role Model?," Papers in Innovation Studies 2018/2, Lund University, CIRCLE - Centre for Innovation Research.
    3. Iossa, Elisabetta & Decarolis, Francesco & de Rassenfosse, Gaétan & Giuffrida, Leonardo Maria & Mollisi, Vincenzo & Raiteri, Emilio & Spagnolo, Giancarlo, 2019. "Buyers' Role in Innovation Procurement," CEPR Discussion Papers 13777, C.E.P.R. Discussion Papers.
    4. 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.
    5. Francesco Crespi & Dario Guarascio, 2019. "The demand-pull effect of public procurement on innovation and industrial renewal," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(4), pages 793-815.
    6. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    7. Caravella, Serenella & Crespi, Francesco & Guarascio, Dario & Tubiana, Matteo, 2020. "Competitive strategies, heterogeneous demand sources and firms’ growth trajectories," GLO Discussion Paper Series 442, Global Labor Organization (GLO).
    8. Chiappinelli, Olga & Giuffrida, Leonardo M. & Spagnolo, Giancarlo, 2023. "Public procurement as an innovation policy: Where do we stand?," ZEW Discussion Papers 23-002, ZEW - Leibniz Centre for European Economic Research.
    9. HaeOk Choi & KwangHo Lee, 2020. "Toward Sustainable and Inclusive Regulatory Policies to Meet Public Demands," Sustainability, MDPI, vol. 12(19), pages 1-18, October.
    10. Giuffrida, Leonardo M. & Raiteri, Emilio, 2021. "Buyers' workload and R&D procurement outcomes: Evidence from the US Air Force Research Lab," ZEW Discussion Papers 21-059, ZEW - Leibniz Centre for European Economic Research.
    11. Eliana Fernández Fortunato & Fernando Jiménez-Sáez & Eloy Hontoria, 2023. "Can Industry Counteract the Ecological Crisis? An Approach for the Development of a New Circular Bioeconomic Model Based on Biocomposite Materials," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    12. Edquist, Charles, 2016. "The Swedish National Innovation Council: Innovation policy governance to replace linearity with holism," Papers in Innovation Studies 2016/24, Lund University, CIRCLE - Centre for Innovation Research.

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    More about this item

    Keywords

    Innovation policy; innovation system; demand-side innovation policy; innovation policy instruments;
    All these keywords.

    JEL classification:

    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • 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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other

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