IDEAS home Printed from https://ideas.repec.org/p/zbw/fisidp/79.html
   My bibliography  Save this paper

Demand, public procurement and transformation

Author

Listed:
  • Edler, Jakob

Abstract

In this article we want to explore the role of the state to influence and support the demand for innovation in the context of transformation with a triple focus. First, we discuss the importance of demand for innovation and transformation. Second, we elaborate the conceptual underpinning of state intervention on the demand side. This In doing so, we link the demand side interventions with both the transformation debate and the innovation based competitiveness of systems debate. We then zoom into the main focus of this discussion paper, public demand and public procurement practice for innovation and transformation as this is - or can be - a powerful lever to spur both transformation and innovation which is largely underexplored and underused. Here we differentiate different forms of public procurement as well as different functions it can play in different transformation contexts. Rather than elaborating individual instruments and measures to support procurement, which is done in many ways elsewhere, we conclude with a number of high level recommendation for policy and analysis in order to further a debate the value of which has been recognised, but yet which has not materialised in any serious policy strategies for procurement.

Suggested Citation

  • Edler, Jakob, 2023. "Demand, public procurement and transformation," Discussion Papers "Innovation Systems and Policy Analysis" 79, Fraunhofer Institute for Systems and Innovation Research (ISI).
    • Handle: RePEc:zbw:fisidp:79
    DOI: 10.24406/publica-1322
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/271108/1/1845436563.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.24406/publica-1322?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Czarnitzki, Dirk & Hünermund, Paul & Moshgbar, Nima, 2020. "Public Procurement of Innovation: Evidence from a German Legislative Reform," International Journal of Industrial Organization, Elsevier, vol. 71(C).
    2. Jon Mikel Zabala-Iturriagagoitia, 2022. "Fostering regional innovation, entrepreneurship and growth through public procurement," Small Business Economics, Springer, vol. 58(2), pages 1205-1222, February.
    3. Mariana Mazzucato, 2018. "Mission-oriented innovation policies: challenges and opportunities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 803-815.
    4. K. Matthias Weber & Bernhard Truffer, 2017. "Moving innovation systems research to the next level: towards an integrative agenda," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(1), pages 101-121.
    5. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    6. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    7. John Rigby, 2016. "The impact of pre-commercial procurement on innovation," Chapters, in: Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), Handbook of Innovation Policy Impact, chapter 12, pages 382-402, Edward Elgar Publishing.
    8. Elvira Uyarra, 2016. "The impact of public procurement of innovation," Chapters, in: Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), Handbook of Innovation Policy Impact, chapter 11, pages 355-381, Edward Elgar Publishing.
    9. Joeri H Wesseling & Charles Edquist, 2018. "Public procurement for innovation to help meet societal challenges: a review and case study," Science and Public Policy, Oxford University Press, vol. 45(4), pages 493-502.
    10. Mariana Mazzucato & Caetano C.R. Penna, 2016. "Beyond market failures: the market creating and shaping roles of state investment banks," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 19(4), pages 305-326, October.
    11. 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.
    12. 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.
    13. 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.
    14. Amnon Frenkel & Shlomo Maital & Eran Leck & Emil Israel, 2015. "Demand-Driven Innovation: An Integrative Systems-Based Review of the Literature," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 12(02), pages 1-31.
    15. Kivimaa, Paula, 2014. "Government-affiliated intermediary organisations as actors in system-level transitions," Research Policy, Elsevier, vol. 43(8), pages 1370-1380.
    16. Obwegeser, Nikolaus & Müller, Sune Dueholm, 2018. "Innovation and public procurement: Terminology, concepts, and applications," Technovation, Elsevier, vol. 74, pages 1-17.
    17. Steven R. McGreevy & Christoph D. D. Rupprecht & Daniel Niles & Arnim Wiek & Michael Carolan & Giorgos Kallis & Kanang Kantamaturapoj & Astrid Mangnus & Petr Jehlička & Oliver Taherzadeh & Marlyne Sah, 2022. "Sustainable agrifood systems for a post-growth world," Nature Sustainability, Nature, vol. 5(12), pages 1011-1017, December.
    18. Kiyoon Shin & Yeongjun Yeo & Jeong-Dong Lee, 2020. "Revitalizing the Concept of Public Procurement for Innovation (PPI) from a Systemic Perspective: Objectives, Policy Types, and Impact Mechanisms," Systemic Practice and Action Research, Springer, vol. 33(2), pages 187-211, April.
    19. Grau, Thilo & Huo, Molin & Neuhoff, Karsten, 2012. "Survey of photovoltaic industry and policy in Germany and China," Energy Policy, Elsevier, vol. 51(C), pages 20-37.
    20. Edler, Jakob & Yeow, Jillian, 2016. "Connecting demand and supply: The role of intermediation in public procurement of innovation," Research Policy, Elsevier, vol. 45(2), pages 414-426.
    21. Geller, Howard & Harrington, Philip & Rosenfeld, Arthur H. & Tanishima, Satoshi & Unander, Fridtjof, 2006. "Polices for increasing energy efficiency: Thirty years of experience in OECD countries," Energy Policy, Elsevier, vol. 34(5), pages 556-573, March.
    22. Suurs, Roald A.A. & Hekkert, Marko P. & Kieboom, Sander & Smits, Ruud E.H.M., 2010. "Understanding the formative stage of technological innovation system development: The case of natural gas as an automotive fuel," Energy Policy, Elsevier, vol. 38(1), pages 419-431, January.
    23. Leif Hommen & Max Rolfstam, 2008. "Public procurement and innovation: towards a taxonomy," Journal of Public Procurement, Emerald Group Publishing Limited, vol. 8(3), pages 17-56, March.
    24. Mowery, David C. & Nelson, Richard R. & Martin, Ben R., 2010. "Technology policy and global warming: Why new policy models are needed (or why putting new wine in old bottles won't work)," Research Policy, Elsevier, vol. 39(8), pages 1011-1023, October.
    25. Neij, Lena, 2001. "Methods of evaluating market transformation programmes: experience in Sweden," Energy Policy, Elsevier, vol. 29(1), pages 67-79, January.
    26. Rogge, Karoline S. & Reichardt, Kristin, 2016. "Policy mixes for sustainability transitions: An extended concept and framework for analysis," Research Policy, Elsevier, vol. 45(8), pages 1620-1635.
    27. Kivimaa, Paula & Kern, Florian, 2016. "Creative destruction or mere niche support? Innovation policy mixes for sustainability transitions," Research Policy, Elsevier, vol. 45(1), pages 205-217.
    28. Christian Bauer & Simon Burkhardt & Neil P. Dasgupta & Linda Ager-Wick Ellingsen & Linda L. Gaines & Han Hao & Roland Hischier & Liangbing Hu & Yunhui Huang & Jürgen Janek & Chengdu Liang & Hong Li & , 2022. "Charging sustainable batteries," Nature Sustainability, Nature, vol. 5(3), pages 176-178, March.
    29. Jakob Edler & Luke Georghiou & Elvira Uyarra & Jillian Yeow, 2015. "The meaning and limitations of public procurement for innovation: a supplier’s experience," Chapters, in: Charles Edquist & Nicholas S Vonortas & Jon M Zabala-Iturriagagoitia & Jakob Edler (ed.), Public Procurement for Innovation, chapter 2, pages 35-64, Edward Elgar Publishing.
    30. Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), 2016. "Handbook of Innovation Policy Impact," Books, Edward Elgar Publishing, number 16121.
    31. Gillingham, Kenneth & Newell, Richard G. & Palmer, Karen L., 2004. "Retrospective Examination of Demand-Side Energy Efficiency Policies," Discussion Papers 10477, Resources for the Future.
    32. Beise, Marian, 2004. "Lead markets: country-specific drivers of the global diffusion of innovations," Research Policy, Elsevier, vol. 33(6-7), pages 997-1018, September.
    33. Katriina Alhola & Sven‐ Olof Ryding & Hanna Salmenperä & Niels Juul Busch, 2019. "Exploiting the Potential of Public Procurement: Opportunities for Circular Economy," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 96-109, February.
    34. Johan Schot & Laur Kanger & Geert Verbong, 2016. "The roles of users in shaping transitions to new energy systems," Nature Energy, Nature, vol. 1(5), pages 1-7, May.
    35. Mariana Mazzucato & Caetano C.R. Penna, 2016. "Beyond market failures: the market creating and shaping roles of state investment banks," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 19(4), pages 305-326, October.
    36. Mowery, David & Rosenberg, Nathan, 1993. "The influence of market demand upon innovation: A critical review of some recent empirical studies," Research Policy, Elsevier, vol. 22(2), pages 107-108, April.
    37. ., 2022. "What next? Policies to keep Asia's debt sustainable," Chapters, in: Benno Ferrarini & Marcelo M. Giugale & Juan J. Pradelli (ed.), The Sustainability of Asia’s Debt, chapter 0, pages 366-366, Edward Elgar Publishing.
    38. Guerzoni, Marco & Raiteri, Emilio, 2015. "Demand-side vs. supply-side technology policies: Hidden treatment and new empirical evidence on the policy mix," Research Policy, Elsevier, vol. 44(3), pages 726-747.
    39. Jakob Edler, 2016. "The impact of policy measures to stimulate private demand for innovation," Chapters, in: Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), Handbook of Innovation Policy Impact, chapter 10, pages 318-354, Edward Elgar Publishing.
    40. Georghiou, Luke & Edler, Jakob & Uyarra, Elvira & Yeow, Jillian, 2014. "Policy instruments for public procurement of innovation: Choice, design and assessment," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 1-12.
    41. Talal Yusaf & Louis Fernandes & Abd Rahim Abu Talib & Yazan S. M. Altarazi & Waleed Alrefae & Kumaran Kadirgama & Devarajan Ramasamy & Aruna Jayasuriya & Gordon Brown & Rizalman Mamat & Hayder Al Dhah, 2022. "Sustainable Aviation—Hydrogen Is the Future," Sustainability, MDPI, vol. 14(1), pages 1-17, January.
    42. 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.
    43. Philippe Larrue, 2021. "The design and implementation of mission-oriented innovation policies: A new systemic policy approach to address societal challenges," OECD Science, Technology and Industry Policy Papers 100, OECD Publishing.
    44. Diercks, Gijs & Larsen, Henrik & Steward, Fred, 2019. "Transformative innovation policy: Addressing variety in an emerging policy paradigm," Research Policy, Elsevier, vol. 48(4), pages 880-894.
    45. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    46. Rothwell, Roy, 1984. "Technology-Based Small Firms and Regional Innovation Potential: The Role of Public Procurement," Journal of Public Policy, Cambridge University Press, vol. 4(4), pages 307-332, November.
    47. Polt, Wolfgang & Ploder, Michael & Breitfuss, Marija & Daimer, Stephanie & Jackwerth, Thomas & Zielinski, Andrea, 2021. "Politikstile und Politikinstrumente in der F&I-Politik," Studien zum deutschen Innovationssystem 7-2021, Expertenkommission Forschung und Innovation (EFI) - Commission of Experts for Research and Innovation, Berlin.
    48. Grillitsch, Markus & Hansen, Teis & Coenen, Lars & Miörner, Johan & Moodysson, Jerker, 2019. "Innovation policy for system-wide transformation: The case of strategic innovation programmes (SIPs) in Sweden," Research Policy, Elsevier, vol. 48(4), pages 1048-1061.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jakob Edler, 2023. "Demand, public procurement and transformation," MIOIR Working Paper Series 2023-03, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.
    2. Uyarra, Elvira & Zabala-Iturriagagoitia, Jon Mikel & Flanagan, Kieron & Magro, Edurne, 2020. "Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation," Research Policy, Elsevier, vol. 49(1).
    3. Matthijs Jansen, 2022. "Legitimation and Effects of Mission-Oriented Innovation Policies: A Spillover Perspective," Hacienda Pública Española / Review of Public Economics, IEF, vol. 243(4), pages 7-28, December.
    4. Yunjuan Liang & Xin Liang & Hua Wei, 2023. "Sustainable Quality-Incentive Contract Design of Public Technology Innovation Procurement under Asymmetry Information," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    5. 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.
    6. Jan Fagerberg & Håkon Endresen Normann, 2022. "Innovation policy, regulation and the transition to net zero," Working Papers on Innovation Studies 20220531, Centre for Technology, Innovation and Culture, University of Oslo.
    7. Krieger, Bastian & Zipperer, Vera, 2022. "Does green public procurement trigger environmental innovations?," Research Policy, Elsevier, vol. 51(6).
    8. Knut Blind & Jakob Pohlisch & Anne Rainville, 2020. "Innovation and standardization as drivers of companies’ success in public procurement: an empirical analysis," The Journal of Technology Transfer, Springer, vol. 45(3), pages 664-693, June.
    9. Selviaridis, Kostas & Hughes, Alan & Spring, Martin, 2023. "Facilitating public procurement of innovation in the UK defence and health sectors: Innovation intermediaries as institutional entrepreneurs," Research Policy, Elsevier, vol. 52(2).
    10. Dai, Xiaoyong & Li, Yanchao & Chen, Kaihua, 2021. "Direct demand-pull and indirect certification effects of public procurement for innovation," Technovation, Elsevier, vol. 101(C).
    11. 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.
    12. Joanna Stryjek, 2021. "Counteracting the COVID-19 Crisis with Innovation Policy Tools: A Case Study of the EU’s Supranational Innovation Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 450-468.
    13. 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).
    14. Kivimaa, Paula & Rogge, Karoline S., 2022. "Interplay of policy experimentation and institutional change in sustainability transitions: The case of mobility as a service in Finland," Research Policy, Elsevier, vol. 51(1).
    15. Grillitsch, Markus & Hansen, Teis & Coenen, Lars & Miörner, Johan & Moodysson, Jerker, 2019. "Innovation policy for system-wide transformation: The case of strategic innovation programmes (SIPs) in Sweden," Research Policy, Elsevier, vol. 48(4), pages 1048-1061.
    16. Czarnitzki, Dirk & Hünermund, Paul & Moshgbar, Nima, 2020. "Public Procurement of Innovation: Evidence from a German Legislative Reform," International Journal of Industrial Organization, Elsevier, vol. 71(C).
    17. Daria Crisan, 2020. "Buying With Intent: Public Procurement for Innovation by Provincial and Municipal Governments," SPP Briefing Papers, The School of Public Policy, University of Calgary, vol. 13(18), July.
    18. Wiarda, Martijn & Sobota, Vladimir C.M. & Janssen, Matthijs J. & van de Kaa, Geerten & Yaghmaei, Emad & Doorn, Neelke, 2023. "Public participation in mission-oriented innovation projects," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    19. Edler, Jakob & Köhler, Jonathan Hugh & Wydra, Sven & Salas-Gironés, Edgar & Schiller, Katharina & Braun, Annette, 2021. "Dimensions of systems and transformations: Towards an integrated framework for system transformations," Working Papers "Sustainability and Innovation" S03/2021, Fraunhofer Institute for Systems and Innovation Research (ISI).
    20. Liotard, Isabelle & Revest, Valérie, 2018. "Contests as innovation policy instruments: Lessons from the US federal agencies' experience," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 57-69.

    More about this item

    Keywords

    public procurement; public demand; transformation; innovation; policy strategies;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:fisidp:79. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/isfhgde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.