Discover Public Procurement of Innovation in 5 key questions with the PPI4MED project
What is Public Procurement Innovation (PPI)?
Public Procurement Innovation (PPI) is an administrative action to promote innovation through public procurement. It involves the procurement by public authorities of innovative goods and services that are being introduced into the market for the first time.
According to the Guidance on Innovation Procurement by European Commission:
“Innovation procurement” refers to any procurement that has one or both of the following aspects:
- buying the process of innovation – research and development services – with (partial) outcomes;
- buying the outcomes of innovation created of others.
The development of PPI is approached from the demand side, the public manager who tenders public procurement of innovation contracts, and from the supply side, the companies competing in tenders by supporting them to develop innovative solution in the bidding process.
Who are the players involve in public procurement?
- Strategic decision-makers and policy makers who can align policy to enable the use of Innovation Procurement.
- Other public administration bodies who demands innovative products and services (not existing in the market)
- Public procurement officers who purchase of products and services.
- Final users of the procured solutions,
- Companies who offer their innovative products and services to public sector in competition.
Why to use the Innovation Procurement
Innovation in public procurement is essential for sustainable and inclusive economic that brings fundamental benefits:
- For the society: Improving and modernizing public services by incorporating innovative and efficient goods or services with better value for money solutions.
- For industry: provides growth opportunities for companies and foster enterprise innovation and their internationalisation.
- For the Administration: It promotes a cultural change and brings in more innovative practices.
What role can National Research Centers play?
Innovation procurement is not a new tool. This kind of procurement is promoted by the European Commission from 2014, but nowadays the world face a new challenges such as COVID-19, climate change or digitalizaction.
So PPI is a new way of procuring and engaging with the market in open dialogue to meet the needs with no current solution in the market that can be benefited from the national public results from national research centres as the main reference actor.
How shall we start it?
PPI begins with an open definition of the challenges and needs to be addressed and offers the market an opportunity to meet the technology needs and how can be solve.
Join in our Innovation Procurement Living lab initiative, virtual platform to discuss needs and challenges from the public demand between public procurers and sellers.
PPI4MED works to promote a new model of PPI in Egypt, Spain, Italy, Jordan and Tunisia.