Interesting facts on Public procurement of innovation

Let´s have a look at various points that can convince you about the benefits of public procurement of innovation (PPI). Find out more on why it is important to have projects such as BUILD.

  • PPI has been increasing in recent years. Mainly thanks to governments which recognize the potential benefits of using procurement as a tool to drive innovation.
  • PPI can help to address societal challenges, such as climate change, energy efficiency, and healthcare, by encouraging suppliers to develop innovative solutions to these issues.
  • According to a study by the Organisation for Economic Co-operation and Development (OECD), PPI can lead to cost savings of up to 30 % compared to
    traditional procurement methods.
  • PPI can also promote small and medium-sized enterprises and startups, as these companies often have the flexibility and agility to develop innovative solutions.
  • PPI can be implemented in different forms, such as open innovation contests, challenge-based procurement, and innovation partnerships, each one with its own set of advantages and disadvantages.
  • PPI can face some challenges as well, such as legal and regulatory barriers, lack of understanding of the concept among procurers and suppliers, and difficulties in measuring the outcomes of the procurement process.
  • Some countries like the Netherlands, Finland, and the United Kingdom have implemented PPI initiatives and have seen significant results, showing the potential benefits of using procurement as a tool to drive innovation.

More information on how the BUILD project can help with the public procurement ofinnovation:

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Funded by the European Union. Views and opinions expressed are however those of the author(s) only and do not necessarily reflect those of the European Union or the European Innovation Council and SMEs Executive Agency. Neither the European Union nor the granting authority can be held responsible for them.