New procurement guide to help public authorities unlock innovation

The EU-funded Public Procurement of Innovation Platform project has launched a comprehensive guide to help public authorities, including cities, to harness private sector innovation to solve public sector problems.

The guide–available online and in print–is ideal for all stakeholders involved in public procurement of innovation (PPI), both those starting out and those looking to improve their current procurement activities. It offers explanations of procedures, definitions and answers to common questions, a selection of case studies, and useful resources for further reading. Particular emphasis is placed on ways in which procurement procedures can facilitate greater innovation. The guide is based on the latest EU procurement directives.

“In a time of decreasing public budgets, innovation can facilitate the delivery of vital infrastructure and services,” said Antonio Tajani, Vice-President of the European Commission. “It is of the utmost importance, therefore, that public procurers can effectively engage in PPI. This guide will empower procurers to create a more efficient, sustainable and modern Europe.”

PPI is a powerful procurement approach that can help public authorities achieve more efficient and effective public services by finding social beneficial solutions that reduce environmental impacts. Through PPI, the market is made aware of specific needs in the public sector, and businesses are encouraged to develop and test innovative products. Such activities are vital to stimulate the local and wider economy. As public authorities can provide a guaranteed contract, the outcome is mutually beneficial–public organisations gain an innovative solution, while businesses secure a new customer.

The total value of public procurement in the EU is estimated at €2 trillion per year–or about 19 percent of European GDP. However, many public authorities and businesses in Europe require support to tackle the less well-known elements within the process that can be used to facilitate innovation.  This easy-to-use document will be of interest to procurers, policy makers, consultants, private companies and others who have a stake in successful PPI.

“Europe has an enormous and as yet overlooked opportunity to spur innovation using procurement. Moreover, public procurement of innovative products and services are vital for improving the quality and efficiency of public services at a time of budget constraints. Through this guide, public procurers will be equipped with the necessary knowledge to effectively engage in PPI,” said Mark Hidson, Deputy Regional Director, ICLEI Europe, and coordinator of the PPI Platform project in partnership with PIANOo–the Dutch Public Procurement Expertise Centre, REC–the Regional Environmental Center for Central and Eastern Europe and IWT–the Flemish Agency for Innovation by Science and Technology.