Understanding Public Procurement of Innovation: Definitions, Innovation Types and Interaction Modes
16 Pages Posted: 27 Feb 2012
Date Written: February 26, 2012
This paper concerns the role of public procurement as a means to stimulate innovation. It manifests an attempt to summarise some thoughts regarding the utilisation of “intelligent” public demand that ultimately prompts private sector innovation. A part from some classical work in the past, current literature explicitly dealing with public procurement of innovation is relatively scarce. This paper reflects an ambition to help filling this void by addressing one basic question: What types of innovation can public procurement render? To pursue this question the paper commences with a discussion on definitions and understandings of different versions of public procurement of innovation. It also brings in some basic concepts from innovation theory. This paves the way to an elaboration of a matrix that summarises different innovation types that public procurement can render as well as interaction modes in which it can occur. The paper concludes with discussing some implications.
Keywords: public procurement of innovation, innovation, policy
JEL Classification: A1, A12
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