Abstract
This article is an analysis of the use of public procurement as a tool to drive innovation. It explores the meaning of innovative procurement or public procurement of innovation, as well as the rationale for using public procurement to drive innovation. It then focuses on South Africa and evaluates whether there is scope within the existing public procurement regulatory regime for the promotion of innovation. Barriers in the regime are identified and suggestions are made for possible reform.
 
Highlights
In recent years the use of public procurement as a tool to drive innovation1 has received growing attention internationally.2. This use of procurement is referred to inter alia as public procurement of innovation (PPI), public procurement for innovation (PPfI), innovation-friendly procurement, innovative procurement and public technology procurement
The aim of this paper is to explore the use of public procurement to drive innovation in South Africa and to determine whether there is scope within the existing legal framework for such use
An alternative to using the two-stage bidding process expressly provided for at local government level may be to introduce a completely new procurement procedure. Such a procedure could take the form of the "innovation partnership" procedure that is provided for in the new 2014 EU Public Procurement Directive or the "request for proposals with dialogue" procedure introduced by the 2011 UNCITRAL Model Law on Public Procurement
Summary
In recent years the use of public procurement as a tool to drive innovation has received growing attention internationally. This use of procurement is referred to inter alia as public procurement of innovation (PPI), public procurement for innovation (PPfI), innovation-friendly procurement, innovative procurement and (in earlier years) public technology procurement. In recent years the use of public procurement as a tool to drive innovation has received growing attention internationally.. In recent years the use of public procurement as a tool to drive innovation has received growing attention internationally.2 This use of procurement is referred to inter alia as public procurement of innovation (PPI), public procurement for innovation (PPfI), innovation-friendly procurement, innovative procurement and (in earlier years) public technology procurement. The idea is that EU suppliers will tender to enter into a partnership with a procuring entity with the aim of developing a new product or service (including works, a system or a process). The 2011 UNCITRAL Model Law on Public Procurement provides for new procurement procedures that are aimed at facilitating dialogue between procuring entities and suppliers with a view to procuring innovative. TEXT.PDF; Kattel and Lember 2010 http://hum.ttu.ee/wp/paper31.pdf; Hommen and Rolfstam 2009 JOPP 17-56; OECD Demand-side Innovation Policies; Edquist and Zabala-Iturriagagoitia 2012 Research Policy 1757-1769
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