Management of public procurement for innovation and development: Experiences of developed countries

Abstract

Public procurement management is a process in which national governments, local authorities, and their agencies order and pay for products or services needed to carry out their operations. The amount of public procurement in today's countries includes a portion of government spending and constitutes a significant share of GDP. The type of public procurement also includes the emergence of goods that did not exist before. This type of public procurement is most interesting for analysis and research because it focuses on the potential of the public procurement system to stimulate innovative activities and the emergence of innovative products and services, leading to economic development and competitive advantages in the global market. In this paper, we will focus on examples learned from developed countries that utilize the public procurement system to encourage innovation and development.