Scandinavian Working Papers in Economics

Papers in Innovation Studies,
Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy

No 2009/13: Public Procurement for Innovation (PPI) – a Pilot Study

Charles Edquist ()
Additional contact information
Charles Edquist: CIRCLE, Lund University, Postal: PO Box 117, Sölvegatan 16, SE-22100 Lund, Sweden

Abstract: Public organizations may place an order for something (normally a product or a system) that does not exist. This “something” has to be developed by the supplier before it can be delivered. In other words, R&D and/or innovation are needed before delivery can take place. Until about 10 years ago this phenomenon was called “public technology procurement” Edquist et al 2000). This vocabulary of the 1990s and earlier has changed; the concept of “technology” has been replaced by the concept of “innovation”, reflecting a widening of the content of the notion. The phenomenon is a matter of using public demand (or similar) to trigger innovation. We will use the term “public procurement for innovation (PPI)” to denote this phenomenon. Further definitions are presented in section 2.4.

Keywords: Innovation Systems; innovation policy

JEL-codes: O30; O38

26 pages, December 1, 2009

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