Public governance

Public Procurement for Innovation

Good Practices and Strategies

In series:OECD Public Governance Reviewsview more titles

Published on June 02, 2017

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Public procurement offers an enormous potential market for innovative products and services. Used strategically, it can help governments boost innovation at both the national and local level and ultimately improve productivity and inclusiveness. Based on good practices in OECD and partner countries, this report analyses the state of play of procurement for innovation and provides a flexible framework focusing on 9 areas to promote it.

TABLE OF CONTENTS

Foreword and acknowledgments
Executive summary
Public procurement for innovation: An overview
The state of play in strategic procurement for innovation
OECD Framework to Promote the Strategic Use of Public Procurement for Innovation
A template for drafting a strategic action plan for capacity building in public procurement
OECD Survey on Strategic Procurement for innovation 2015
Factsheets from the country responses to the OECD Survey on Strategic Procurement for innovation 201534 chapters available
Austria
Belgium
Canada
Chile
Colombia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Ireland
Italy
Korea
Lithuania
Malta
Mexico
Netherlands
New Zealand
Norway
Poland
Portugal
Russian Federation
Serbia
Slovak Republic
Spain
Sweden
Switzerland
Turkey
United Kingdom
United States
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The report presents insights from the OECD Survey on Strategic Innovation Procurement, covering 35 countries, and takes stock of the strategic use of procurement for innovation in OECD Member countries and non-Member economies. 

It was first presented at the OECD Forum on Procurement for Innovation by the OECD Secretary-General (Read his speech).

Key Findings

  • Almost 80% of responding countries take measures to support innovation procurement, and 50% have developed an action plan for innovation procurement,
  • Nearly half of the countries (49%) reported improved effectiveness or efficiency, or increased user satisfaction following the use of procurement for innovation
  • Private sector is the first contributor (33%) to the success of innovative procurement practices, followed by public institutions or bodies (27%), and research institutions (24%)
  • The most common challenges countries face are related to risk aversion, management, personnel and skills capacity and political support.

 

Key areas for action

OECD has developed a framework to support countries in their use of public procurement for innovation:

 

  • Embed policy strategies with defined targets within any national, sub-national and regional innovation policy. 
  • Set up a legal framework, including understandable definitions, guidelines and templates to facilitate its implementation. 
  • Dedicate sufficient budgets, funds and other financial incentives
  • Promote professionalisation by providing specific training to build staff capabilities and skills, setting up multidisciplinary teams and competence centres focused on public procurement for innovation.
  • Raise awareness by publishing good practice cases, creating a dedicated knowledge-sharing platform and/or hosting workshops and seminars to share and build success. 
  • Undertake risk management and measure impact to reduce possible loss and damage, and increase trust.
  • Define test standards, methods and quality certificates, using standardisation as a catalyst for innovation.
  • Use appropriate e-procurement and information technology (IT) tools to carry out a proper risk assessment to measure impact.

OECD WORK ON PROCUREMENT AND INNOVATION