Understanding the public procurement of innovationPublic Procurement and Innovation: The Role of Institutionsby Max Rolfstam

Abstract

Policy makers and scholars espouse innovation’s role in economic development and competitiveness. As governments look to support innovation they frequently overlook procurement as a policy instrument. After all, public agencies must purchase goods and services to achieve their mission. This rather mundane and necessary function provides an avenue for governments to contribute directly to innovation as an important lead user by setting standards and exacting superior performance. However, multi-level government institutions debate over appropriate practices. The procurement process at all levels of government certainly merits further analysis. Max Rolfstam investigates public procurement of innovation by EU nations, defining this procurement as ‘purchasing activities carried out by public agencies that lead to innovation’ (p. 12). Public Procurement and Innovation contributes an understanding of how multiple institutions impact procurement, and supplies evidence for the ongoing debate over policies’ role in guiding innovation. Particularly, ex post case analysis of eight procurement projects reveals that institutional factors, more than European Commission (EC) public procurement directives, strongly influence whether projects succeed or fail in realizing their innovative potential.