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.
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).
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.