Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Why Pre-Commercial Procurement is notInnovation Procurement
() and Jon Mikel Zabala-Iturriagagoitia
Abstract: In 2006 the European Commission introduced the concept of
"Pre-Commercial Procurement" as an instrument to promote innovation and to
mitigate grand challenges. One of the main motivations for the support of
Pre-Commercial Procurement schemes was to use public needs as a driver for
innovation. This concept was also introduced as a response to the need to
reinforce the innovation capabilities of the EU, while improving the
quality and efficiency of public services. However, there is still a
certain degree of confusion as to what is meant by Pre-Commercial
Procurement and what rationales are behind it. This paper addresses the
differences between two public policy instruments, PreCommercial
Procurement (PCP) and Public Procurement for Innovation (PPI), and
clarifies what is meant by each of them. The analysis is based on three
cases, one from the Netherlands, one from the UK and one from Australia.
While PPI is a demand-side policy instrument, these cases provide evidence
of the supply-side nature of Pre-Commercial Procurement in relation to
innovation. The paper claims that PCP is a matter of R&D funding of a
specific kind, geared towards very specific goals and in a focused way.
Thus, we would like to raise a flag for going back to the origins of the
PCP program, and calling it a precompetitive R&D program rather than
talking about procurement.
Keywords: Pre-Commercial procurement; Public Procurement for Innovation; R&D; Innovation; Innovation policy; (follow links to similar papers)
JEL-Codes: H57; L38; M38; O25; O32; (follow links to similar papers)
29 pages, November 15, 2012
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