Innovative Procurement Research Articles

Construction of Cross-Border E-Commerce Supply Chain of agricultural food products Based on Blockchain Technology

The European Union has for several years been a critical export market and a significant source of imports for us, and the US has, in general, kept closed domestic players vis-à-vis the EU. However, given the variety of alternative market conditions and EU forms, the attractiveness of cross-border electronic commerce (CBEC) between China and the EU has fallen far short, and there is an urgency to create a harmonious and uniform environmental environment for the exchange of information to facilitate the convenience of cross border electronic commerce. This study examines the CBEC of agricultural goods and its cooperative management technique inside the logistical supply chain. It details the complete transaction model and fundamental components and presents a theoretical framework for the CBEC distribution network. The Block Chain can effectively bridge the obstacles to CBEC in Chinese and European countries by providing a valuable source of benefits from decentralization, trust, anti-counterfeiting, consensus, innovative procurement, and extraordinary techniques, which will provide the basis for building an Embedded Provider Platform for Electronic Commerce, Risk Management System for Deposit Risk Management, Supply Chain (SC) Management System, Cross Border Logistic System, Customs Supervisory Computer, etc. The paper examines how blockchain science can assemble CBEC SC computing devices for agricultural goods between global places in Central Europe. Firstly, it expounds on the theory and characteristics of the blockchain. Then, the paper introduces the troubles that arise in the CBEC supply chain. Then, the thesis proposes a blockchain-based CBEC SC structure, analyzes the aspects and relations among each other, and provides a framework for developing a China-European blockchain cross-border electronic Commerce. The test findings indicate that the system satisfies the criteria for tracking agricultural items and enhances fresh farm commodities' quality and security.

Advanced supply chain optimization for emerging market healthcare systems

The complexities of pharmaceutical supply chains in emerging markets present significant challenges that directly impact healthcare outcomes, particularly in underserved regions. This research focuses on the optimization of supply chain systems for the healthcare sector, with an emphasis on enhancing pharmaceutical delivery. By leveraging data analytics and innovative procurement strategies, the study seeks to improve efficiency, reduce operational costs, and ensure the timely distribution of essential medications. Drawing on practical experiences at eMedic Technologies Africa, the research highlights the need for advanced models that integrate real-time data to optimize inventory management, forecast demand, and address bottlenecks in last-mile delivery. The study proposes a multi-faceted approach to addressing common challenges in emerging market supply chains, including unreliable infrastructure, fluctuating demand, and limited access to technology. By utilizing predictive analytics, the proposed models aim to improve accuracy in demand planning, reducing stockouts and overstock situations. Additionally, innovative procurement strategies, such as centralized procurement and strategic partnerships with local suppliers, are explored as key methods for enhancing cost-effectiveness and streamlining supply chain operations. A critical component of the research is the focus on last-mile delivery, which remains a significant hurdle in rural and underserved areas. The study advocates for the use of digital platforms and mobile technologies to enhance delivery tracking and coordination, ensuring that essential medications reach their destination efficiently. Furthermore, it emphasizes the importance of fostering collaboration between governments, non-governmental organizations, and private sector stakeholders to build resilient supply chain systems capable of adapting to local conditions. By providing actionable insights and scalable models for supply chain optimization, this research aims to contribute to improved healthcare delivery in emerging markets. The proposed strategies not only reduce costs and improve efficiency but also ensure a reliable and consistent supply of medications, ultimately leading to better health outcomes in regions most in need. Keywords: Supply Chain Optimization, Data-Driven Procurement, Last-Mile Delivery, Healthcare Efficiency, Emerging Markets

Managing risks in public procurement of defense innovation: lessons from the development of an anti-armor mine in Estonia

ABSTRACT This article explores how risks can be managed in the public procurement of innovation of defense products. The case study focuses on the development and procurement of an anti-armor mine for the Estonian Defence Forces. The article aims to assess the procurement process of an innovative defense product from the risk management perspective and to develop recommendations for future innovative procurements. The case study draws on semi-structured interviews and analyses them through qualitative text analysis. As to the findings, the M14 case demonstrates the importance of establishing vital preconditions by the user, such as a well-pre-meditated need and projected funds. Equally important is the sustainment of a dialogical process between users and developers, as well as the professional management of the process. For risk mitigation, the preparatory phase that preceded the announcement of procurement proved of special importance.

Identification of Critical Success Factors (CSFS) for PPP Scheme Toll Road Projects in Indonesia

Public-Private Partnership (PPP) models represent an innovative procurement approach and offer promising prospects for the future of the construction industry worldwide. However, in practice, not all PPP projects, particularly toll road projects, succeed in achieving their goals. This poses a unique challenge in determining the Critical Success Factors (CSFs) as the basis for evaluating project success. Therefore, the aim of this research is to identify and explore the concept of CSFs for toll road projects under the PPP scheme based on reputable academic journals in the last 10 years. This study employs a sequential exploratory mixed methods methodology to identify and explore CSF indicators for PPP scheme projects and to verify and validate the findings. The re-sults of this study reveal 13 indicators crucial for project success, categorized into 8 factors. The findings of this research contribute significantly to the management of PPP toll road projects in Indonesia, serving as a reference for stakeholders in decision-making to enhance the effective-ness and efficiency of toll road project management.

Green innovative procurement in the municipality sector: A dual case study from Norway

ABSTRACT With its substantial spending power, the public sector can contribute to green societal transitions through the adaptation of green public procurement (GPP). Albeit described as having extensive potential, GPP is also associated with several organizational challenges and somewhat elusive effects. This article discusses the potential and challenges relating to GPP and how ‘successful projects’ can provide a better understanding of how the elements of the GPP process comes together, especially in relation to innovation. This is done by introducing a schematic model for GPP with innovation, through which two successful Norwegian municipality GPP projects are unpacked. Using data from the National Programme for Innovative Procurement (LUP) and in-depth document analysis, the authors demonstrate the complexity and interaction of GPP with innovation with regards to both processes and outcome, and how this is conditioned by geographical context and dynamics. They conclude that both cases, albeit having different green foci (i.e. building with wood and safer production of drinking water), combine different multi-actor organizational structures, built around dialogue and the fostering of trust between actors. In addition, both cases showcase radical innovation obtained through GPP, with the potential of scaling up these innovations, pending the continued capacity of the involved market actors.

Implementing public procurement of green innovations: Does structural alignment matter?

This study contributes to the theory and practice of public procurement by examining the role of structural alignment in the implementation of public procurement of green innovations. Structural alignment is defined as the coherence and harmonization between strategic aspects of an organization. The organizational aspects examined in this study are strategic goals, structural and control mechanism, and adequacy of resources. The study draws on secondary survey data collected from 379 public-sector organizations in Norway. The analysis was conducted using a novel approach that combines partial least squares structural equation modeling and necessary condition analysis. There is a positive and significant relationship between strategic goals and structural and control mechanism; between structural and control mechanism and adequacy of resources; and between the adequacy of resources and the attainment of public procurement of green innovations. The findings support the structural alignment hypothesis in that the presence of strategic goals results in the implementation of the public procurement of green innovations if structure, control, and adequate resources are in place. Finally, the results show that strategic goals are a necessary condition for enacting a corresponding structural and control design and that structural and control design are a necessary condition for allocating resources, which are themselves a necessary condition for the increased implementation of the public procurement of green innovations.

Strategic E-Procurement and AI Integration: Pioneering Solutions for Global Service Sector Challenges

This research article investigates challenges and innovative procurement approaches within the Service Sector. Specifically, through the lens of ten diverse global companies within the service sector, where traditional processes are being transformed through procurement software, yet complexity in implementing procurement software is ever on the rise with the need for customization, integration, user adoption and compliance with regulation and security. Add to this, the cost implications and constant improvements in technology and a picture of the challenges faced is painted. This study examines the multifaceted challenges faced by companies operating in the service sector and how they implement innovative strategies to overcome challenges. The study looks at the challenges, solutions that have been designed and implemented and how successful they have been. A detailed analysis of ten individual cases, utilities transformers to entertainment, and impact of collaborative strategies and organizational culture on how successful these have been presented. The results provide for a richer understanding of procurement challenges and innovative approaches that can be applied and provide insight into success and failure and reasons why, with technology integration, strategy collaboration and organizational cultures providing keys to success. Additionally, gaps in the literature that lead to areas of further study are presented.

The Impact of Globalization on Innovative Public Procurement: Challenges and Opportunities

Incorporating circular economy principles into forward-thinking public procurement strategies enhances sustainability through the promotion of resource efficiency, sustainable sourcing, and extended producer responsibility. This approach not only encourages innovation and collaboration among suppliers but also drives the development of solutions aligned with circular economy goals. The ultimate result is a more cost-effective and environmentally friendly outcome in procurement. This article seeks to investigate the intersection of circular economy principles within the framework of an innovative public procurement system. The study explores the influence of globalization on this innovative public procurement paradigm, addressing both the challenges and opportunities inherent in the process. The study conceptualizes Innovative Public Procurement (IPP) as a strategic approach where public entities acquire goods, services, works, and utilities, emphasizing an optimal balance between price and quality. The central goal is to generate innovative benefits for both entities and society, all while minimizing adverse environmental effects. Employing traditional research methods, including the monographic method, document analysis, and comparison, the study illustrates how public procurement practices can be opened to innovators, including start-ups and innovative SMEs. The findings shed light on the challenges faced by these entities in navigating the procurement landscape, while emphasizing the potential opportunities arising from the synergy between innovative procurement practices and the circular economy. By adopting a holistic perspective that considers the full lifecycle costs and environmental impacts of goods and services, procurement decisions can prioritize options offering superior long-term value. This contributes to the broader transition towards a circular economy, effectively minimizing adverse effects on the environment...

The Influence of Demand-Based Policy Instruments on Urban Innovation Quality—Evidence from 269 Cities in China

Enhancing the quality of urban innovation is a powerful strategy for advancing urban sustainability. A strong public innovation policy is a crucial building block for advancing urban innovation quality. This study identifies innovative procurement instances from over 640,000 public procurement contract data through textual analysis to investigate how urban innovation quality could benefit from demand-based policy instruments. The study’s findings indicate the following: (1) It provides evidence that the adoption of public innovation procurement has a significant impact on urban innovation quality, suggesting an inverse U-shaped relationship between the two. (2) Heterogeneity analysis reveals public innovation procurement stimulates urban innovation quality more remarkably in cities with provincial status and provincial capitals, as well as in eastern cities. (3) We discovered that it is not possible to increase the quality of urban innovation in the city when human capital in the city is performing poorly and when there is also a lack of external technology and entrepreneurial activity. Finally, this paper argues that our findings also provide important insights for the development of proactive innovation policy instruments, the construction of innovative cities, and the realization of sustainable development in countries around the world, especially in developing countries.

Public procurement in the system of creating conditions for the development of deep tech innovations in Ukraine

Problem setting. The European Union has long been paying special attention to stimulating innovative activity through the use of public procurement. This is emphasized both in EU directives in the field of public procurement and in specific program documents regarding the development of innovations in the European Union, in particular the new wave of deep technological innovations. At the same time, in Ukraine, the public procurement institute is currently used only as a tool for saving public funds and preventing corruption. Thus, there is a need to study the issue of public procurement as a means of state regulation of innovations in general, as well as a possible tool for stimulating deep technological innovations in Ukraine, including, considering the experience of the EU, in particular, and for the post-war reconstruction of our state. Analysis of recent researches and publications. Some separate aspects of the issue of innovation stimulation through the mechanism of public procurement were given attention in the works – V.K. Malolitneva, L.O. Berezovska, A.V. Kyrychenko, S.R. Karpenko and others. At the same time, the issue of stimulating a new wave of deep tech innovations, using the instrument of state procurement, requires a more detailed study as a separate phenomenon, including in the aspect of harmonizing Ukrainian legislation with EU directives in the field of public procurement. Purpose of the research is to determination of the place of the institution of public procurement as a tool for stimulating the development of deep tech innovations in Ukraine, as well as an analysis of the legal support for the use of public procurement as a regulation of innovative activity in the European Union and in Ukraine, including in the aspect of the need to harmonize Ukrainian legislation with EU rights. Article’s main body. The article is devoted to the study of the issue of legal regulation of public procurement as a means of state regulation aimed at stimulating innovative activity in the European Union. The value of state purchases of ready-made innovative solutions, as well as research and development works, the result of which can be innovative products, is analyzed. The main types of procurement of innovations provided for by European regulatory acts are given. It has been established that the riskiness and capital intensity of deep tech innovations indicate that the main driver, catalyst, and initiator of their development can be the state, using the mechanism of the state order. The issue of legal regulation of the use of the public procurement tool to stimulate the development of deep technological innovations in Ukrainian legislative acts has been investigated. The main legal problems of using such a tool in our country are presented, including in the aspect of harmonization of legislation in the field of public procurement with relevant EU directives. Conclusions and prospects for the development. In Ukrainian legislation, despite its harmonization and adaptation to EU law, there are no special provisions regarding procurement of innovations. At the same time, in the European Union there is a thorough and consistent approach, according to which public procurement an important and effective tool for the development of innovations, in particular, deep tech innovations. Ukraine needs more careful consideration of this practice, since post-war reconstruction requires special innovative solutions that can be found, including, with the use of public procurement.

Transformative public procurement for innovation: ordinary, dynamic and functional capabilities

ABSTRACT Public Procurement for Innovation (PPI) requires multiple roles from the public administration according to the problem-solution space, delineated by the level of consensus around the definition of the needs of the contracting authority and the potential solutions to address them. Each role involves a distinct mix of capabilities, which we categorize as ordinary (i.e. doing things right), dynamic (i.e. doing the right things) and functional (i.e. addressing functional challenges). Following a Mutual Learning Exercise with procurement officials of 15 European countries, we identify 45 capabilities for contracting authorities to embrace the different facets of PPI as a transformative policy instrument.

Dynamic capabilities view on value creation in public procurement

PurposeThis study aims to build on the dynamic capability view by examining dynamic capabilities associated with public value in public procurement.Design/methodology/approachA qualitative case study approach is used in this study. The interview and secondary data consist of eight cases of value-creating procurement from four public organizations.FindingsThe findings connect dynamic capabilities and public value in terms of innovation generation and promotion, well-functioning supplier markets, public procurement process effectiveness, environmental and social sustainability and quality and availability of products or services.Social implicationsDynamic capabilities in public procurement are necessary to improve public procurement.Originality/valueThis study extends understanding of how sensing, seizing and transforming capabilities contribute to public value creation in both innovative and less innovative (i.e. ordinary) procurement scenarios.

Closing the loop without reinventing the wheel: public procurement for innovation promoting a circular economy

Abstract This theoretical paper adopts a procedural perspective to identify the challenges associated with the implementation of the full scope of approaches to circular public procurement (CPP). We contend that beyond considering CPP from a substantive standpoint (i.e. the procurement affects outside of the organization), adopting a procedural perspective (i.e. the procurement affects inside an organization) to public procurement can pave the way for reflecting transversally on how CPP can borrow from public procurement for innovation (PPI). Building on the challenges identified in the literature on CPP, we identify that PPI can contribute to consolidating CPP through such mechanisms as market engagement and intermediation, functional specifications, and coordinated unbundling. We provide illustrations for each of the identified procedural contributions of PPI to CPP derived from five cases. We discuss how procurement capabilities and evaluation can act as critical drivers for moving from a substantive to a procedural approach to CPP.

ГОСУДАРСТВЕННЫЕ ЗАКУПКИ ИННОВАЦИЙ В РОССИИ

The research focuses on the analysis of open data on public procurement of innovative products and on procurement of research and development services (R&D). The principle of stimulating innovations is enshrined in the legislation governing public procurement. However, the complexity of testing products for innovation criteria, the differences in classifying products as innovative and the specifics of conceptual and categorical framework in this sphere indicate the peculiarities of the implementation of the principle of stimulating innovation by contracting authorities regulated by 44-FL and by 223-FL. This research empirically answers the following questions: What procured products in the market are considered innovative by contracting authorities? What characteristics and peculiarities are specific to innovative public procurement in Russia? What types and categories of contracting authorities perform such procurement? We reveal that the procurement of innovations is related to the law under which the organization conducts purchases, as well as to the organizational and legal form of the contracting authority. The procurement of innovations is also influenced by the method of determining the supplier, the price of the product and the subject of the purchase. The results of the study show heterogeneity in the procurement of innovations by Russian contracting authorities and link this heterogeneity with the differences in the procurement legislation.

АНАЛІЗ ДЕРЖАВНИХ СТИМУЛІВ ДЛЯ ЗАЛУЧЕННЯ ІНВЕСТИЦІЙ У ЦИФРОВУ ЕКОНОМІКУ

The article is devoted to the substantiation of the theoretical foundations and the development of practical recommendations regarding the study of the influence of state incentives on the attraction of investments in the digital economy. It was revealed that digital transformation requires a combination of infrastructure and investments. Given the definition of the concept of “incentive” as a reason or inducement that encourages parties to certain behavior or certain actions, currently in the legal context incentives are created through laws, regulations, financial subsidies or tax levers. It is noted that state incentives are used as tools to encourage desired behavior and achieve state policy goals. Systematized state incentives for attracting investments in the digital economy: state digitalization programs; withdrawal of digitalization investments from the tax base of companies; preferential tax rates and “tax holidays” (VAT, PnPP, personal income tax, EUV); preferential loans and grants; accelerated depreciation of fixed assets; exemption from payment of fees for infrastructure, real estate and land rent; innovative export insurance; public procurement of digital innovations. The analysis of state incentives for attracting investments in the digital economy of countries such as the USA, Great Britain, Luxembourg and Germany was carried out. For example, in the US – federal grant funding to support digital inclusion programs in states and territories. The UK encourages venture capital investment through schemes such as enterprise investment (EIS), investment in start-up enterprises (SEIS). Tax incentives for investments are widespread in Luxembourg. In Germany, the most common incentive is State programs aimed at influencing the investment behavior of businesses for the purpose of economic development. It has been determined that national digital competitiveness is the result of investment in education and the provision of the skills required by the labor market. According to the annual Aggregate Digital Economy and Society Index (DESI) for EU member states, Finland, Denmark, the Netherlands and Sweden are the most digitized, and the Top 10 in the IMD World Digital Competitiveness Ranking are occupied by such countries as: the USA, the Netherlands, Singapore, Denmark, Switzerland, Republic of Korea, Sweden, Finland, Taiwan (Chinese Taipei), Hong Kong SAR. Tools for stimulating investment activity and measures for the implementation of appropriate incentives for the digitalization of the economy in Ukraine are disclosed.

A Theoretical Analysis of Public Procurement for Innovation

A Theoretical Analysis of Public Procurement for Innovation

New solutions in transplantology and graft acquisition.

In view of rapid advancements in the field of transplantology, emerging solutions in tissue procurement for transplantation became a crucial area of research. Tissue transplantation plays a notable role in improving the quality of life for patients afflicted with various ailments, and the increasing number of transplants necessitates the exploration of innovative procurement methods. This study examines a new direction in transplantology, placing focus on innovative approaches to tissue procurement and discussing the commonly used method of "ex mortuo," i.e., retrieving organs from deceased donors. Given the growing demand for organs, the paper discusses the innovative approach slowly emerging as 3D bioprinting. The paper discusses the key challenges associated with the use of this method in transplantology, including issues of biocompatibility, vascularization, and integration with the immune system. The paper also discusses the latest scientific achievements in the field, such as the first transplants of bioprinted organs, demonstrating the practical application of this technology in medicine. It is also the analysis of the ethical, social, and legal aspects related to these new solutions. The article provides a comprehensive overview of the latest trends in transplantology and presents a holistic view of the current state of knowledge and prospects for development in this pivotal area of medicine.

Editorial Presentation - Perspectives on innovation governance: challenges and dilemmas

Editorial Presentation - Perspectives on innovation governance: challenges and dilemmas

Markets for Promoting Innovation in Health Care? A Market Practice Study of Public Procurement of Innovation (PPI)

This article critically analyzes public procurement of innovation (PPI) as an instance of using markets or market-like aspects as a means to resolve public concerns. It reports findings from a case of procuring radiation therapy equipment for a university hospital in Stockholm, Sweden. By extending a line of literature built on economic sociology as well as science and technology studies (STS), the study elaborates on public actors’ efforts in framing markets to promote innovation. The case illustrates how the participating actors constructed the notion of innovativeness to be introduced into health care as means of addressing various public concerns. It also reveals the intended—and unintended—consequences of PPI as manifested in various actors’ claims on the value of PPI realized in practice. The study suggests that it is extremely difficult to frame a market for the realization of innovation via procurement as a policy instrument because we cannot predict the ultimate impacts of devices and practices employed in such initiatives. By formulating a practice-based critique of PPI, our study invites important questions about the potentiality of such instruments for governing innovation without delimiting their consequences to the success-or-failure dichotomy as prescribed in predefined tools and strategies.

The dynamics of innovation in CoPS industries: evidence from the Brazilian aerospace industry

ABSTRACT This article frames the central role played by mission-oriented public procurement in the Brazilian aerospace industry. The difficulties in mastering and promoting the evolution of several disciplines at the firm level, with a relative scarcity of funds for an R&D-intensive industry and an incomplete national innovation system represent merely a fraction of the threat faced by those dealing with Complex Products and Systems. The culture of financing flagship projects using public procurement narrows the potential solutions for complex problems, imposes time constraints to mature critical technologies and exposes these endeavours to high levels of risk. By taking the Dynamic Capabilities as a theoretical framework and Technological Readiness Level as a yardstick to the decision-making process, we have developed a construct to explore two in-depth cases. A cultural shift is required, aiming at providing the means to the progressive maturation of critical technologies using public procurement for innovation.