Driving Innovation with Public Procurement Partnerships
Keystone Procurement Limited
Procurement advisory business working with governmental and not for profit organisations.
Public procurement of innovation (PPI) serves as a strategic avenue for public authorities to address specific needs when market solutions are insufficient. By adopting PPI, public buyers can foster the development of novel or significantly enhanced products, services, or operational methods, thereby acting as 'launch customers' in collaboration with innovative enterprises.
A pivotal procedure within PPI is the innovation partnership, which seamlessly integrates research, development, and procurement processes. This approach enables public buyers to establish long-term collaborations with partners to develop and subsequently purchase innovative solutions tailored to their requirements.
The innovation partnership process comprises three key phases:
Tendering Phase: Public authorities identify the need for an innovative product, service, or work not currently available in the market and publish a contract notice. Interested companies are then invited to submit proposals, and suitable partners are selected based on their capacity and the quality of their tenders.
Development Phase: The selected partner(s) collaborate with the contracting authority to develop the new solution. This phase may be divided into stages, allowing for the gradual reduction of partners based on predetermined targets.
Commercial Phase: Upon successful development and piloting, the partner(s) provide the final product, service, or work for deployment in public services.
The application of innovation partnerships has demonstrated transformative impacts across various sectors. For instance, the German police in Saxony sought speech recognition software to meet new legal requirements. Finding no existing solutions that fully addressed their needs, they initiated an innovation partnership. Through a competitive procedure involving comprehensive criteria and demonstrations, they collaborated with selected companies to develop and deploy effective speech recognition software tailored to their specific requirements.
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To support such initiatives, platforms like the Public Buyers Community Platform facilitate connections among public authorities and stakeholders across the European Economic Area. These platforms aim to enhance public procurement by hosting various communities dedicated to specific procurement areas. Establishing a community focused on innovation partnerships could further encourage economic growth by fostering innovation, supporting start-ups, and improving SMEs' access to public procurement opportunities.
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In conclusion, innovation partnerships within public procurement offer a structured and effective means for public authorities to procure bespoke solutions that are not readily available in the market. By engaging in such partnerships, public buyers can drive innovation, address unmet needs, and ultimately enhance public services.
Sources:
Innovation procurement, European Commission https://single-market-economy.ec.europa.eu/single-market/public-procurement/strategic-procurement/innovation-procurement_en?