Quo vadis public procurement of innovation?

Abstract

Governments are actively looking for ways to use public procurement so that it would become more effective in facilitating innovation across public and private sectors. However, a shift towards public procurement of innovation (PPI) has proven to be difficult. Whereas the contemporary debate has mostly focused on how to reduce the barriers of PPI through re-conceptualizing the procurement process, there is a need to take into account also wider strategic factors through which governments create capacity to undertake PPI. By revisiting historic and contemporary policy initiatives, four strategies for the future can be envisioned: PPI as experimental innovation policy, from fiscal policy under austerity to PPI, mission-oriented PPI and shifts in administrative culture towards PPI. Each of the strategies demands different capacities from the entrepreneurial sector, as well as state, policy and administrative capacities from the public sector. These issues should be an inherent part of future policy-making and offer new avenues for PPI-related policy analysis and academic research.