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Public procurement as an innovation policy: Where do we stand?

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  • Chiappinelli, Olga
  • Giuffrida, Leonardo M.
  • Spagnolo, Giancarlo

Abstract

Economics and innovation scholars have long recognized the potential of public procurement to trigger innovation. To what extent has this potential been realized so far? What can be done to improve the performance of PPI in this regard? This paper addresses these issues by providing a literature survey of research on public procurement of innovation (PPI). After categorizing PPI instruments, the paper discusses existing interdisciplinary knowledge to answer four broad questions: i) Does PPI spur innovation? ii) How should PPI be designed to best spur innovation? iii) What are the main barriers to implement PPI? iv) What is the role of PPI in the innovation policy mix? The paper concludes with a discussion of future research needs and policy insights in light of current global challenges.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:zewdip:23002
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    Cited by:

    1. Dirk Czarnitzki & Malte Prüfer, 2024. "The Interplay between Public Procurement of Innovation and R&D Grants: Empirical Evidence from Belgium," Working Papers of Department of Management, Strategy and Innovation, Leuven 746875, KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven.
    2. Bastian Krieger & Malte Prüfer & Linus Strecke, 2024. "Public procurement can hinder innovation," Working Papers of ECOOM - Centre for Research and Development Monitoring 739379, KU Leuven, Faculty of Economics and Business (FEB), ECOOM - Centre for Research and Development Monitoring.
    3. Leonardo M. Giuffrida & Emilio Raiteri, 2023. "Bureaucratic Frictions and Innovation Procurement," CESifo Working Paper Series 10775, CESifo.

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    More about this item

    Keywords

    innovation; public procurement; public policy; R&D; green purchases;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • 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
    • O35 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Social Innovation
    • O36 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Open Innovation
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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