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Innovation induced by public procurement: A firm-level analysis for Italy and Norway

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  • Divella, Marialuisa
  • Sterlacchini, Alessandro

Abstract

In this paper, we focus on public procurement for innovation. We provide a broad characterization of the firms involved in “innovative public procurement” as opposed to firms participating in “regular” (i.e. non innovative) public procurement, including those firms that perform innovation in an autonomous way (i.e. not related to public procurement). Moreover, we identify the main determinants of the firms’ propensity to innovate, when innovative activities are related to a public procurement contract. We carry out this study by using micro-data from two Community Innovation Surveys for Italian and Norwegian firms, which have released information on firms having public procurement contracts. Our main findings highlight important differences between firms engaged in regular or innovative public procurement, in particular regarding the role of firm size and sectors, the presence of in-house R&D activities and the educational level of employees.

Suggested Citation

  • Divella, Marialuisa & Sterlacchini, Alessandro, 2018. "Innovation induced by public procurement: A firm-level analysis for Italy and Norway," MPRA Paper 89592, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:89592
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    References listed on IDEAS

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    1. Marco Guerzoni, 2010. "The impact of market size and users' sophistication on innovation: the patterns of demand," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(1), pages 113-126.
    2. Ghisetti, Claudia, 2017. "Demand-pull and environmental innovations: Estimating the effects of innovative public procurement," Technological Forecasting and Social Change, Elsevier, vol. 125(C), pages 178-187.
    3. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    4. Massimo Florio & Francesco Giffoni & Anna Giunta & Emanuela Sirtori, 2018. "Big science, learning, and innovation: evidence from CERN procurement," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 915-936.
    5. Aschhoff, Birgit & Sofka, Wolfgang, 2009. "Innovation on demand--Can public procurement drive market success of innovations?," Research Policy, Elsevier, vol. 38(8), pages 1235-1247, October.
    6. 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.
    7. Silvia Appelt & Fernando Galindo-Rueda, 2016. "Measuring the Link between Public Procurement and Innovation," OECD Science, Technology and Industry Working Papers 2016/3, OECD Publishing.
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    Cited by:

    1. 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).
    2. Serenella Caravella & Francesco Crespi, 2021. "The role of public procurement as innovation lever: evidence from Italian manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(7), pages 663-684, October.

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    More about this item

    Keywords

    public procurement; firms’ innovation; Italy; Norway;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • 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

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