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Functional Public Procurement and Innovation – The Concepts

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  • Edquist, Charles

    (CIRCLE, Lund University)

Abstract

The literature on the relations between public procurement and innovation has been growing rapidly during the latest couple of decades. However, there are still conceptual problems and unclarities with regard to key concepts. The purpose of this conceptual paper is to sort out and specify the notions of “innovation”, “public procurement”, “product procurement”, “functional procurement” and “innovation partnerships” – as well as the relations between them. Some findings in this paper are: • The distinction between product specifications and functional specifications is a useful dichotomy when discussions of the relations between public procurement and innovation are pursued and when public procurement is carried out in practice. It can be instrumental in transforming procurement that prevents innovations into procurement that enhances innovations. The development of this dichotomy means that we have changed the conceptual framework needed to understand and explain the relationships between (different kinds of) public procurement on one hand and innovation on the other hand. • Functional procurement is not only allowed by the EU procurement directives. It is strongly encouraged “and should be used as widely as possible”, according to the EU directives. • “Innovation partnership” is a new procedure in the EU procurement directives. It is intended to also address R&D results and innovations as outcomes of public procurement processes. However, this procedure has not been used very much. One reason is that the directive needs a much higher specificity to become operatively useful. This procedure should also be related to functional public procurement.

Suggested Citation

  • Edquist, Charles, 2023. "Functional Public Procurement and Innovation – The Concepts," Papers in Innovation Studies 2023/4, Lund University, CIRCLE - Centre for Innovation Research.
  • Handle: RePEc:hhs:lucirc:2023_004
    as

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    References listed on IDEAS

    as
    1. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    2. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2012. "Public Procurement for Innovation as mission-oriented innovation policy," Research Policy, Elsevier, vol. 41(10), pages 1757-1769.
    3. Georghiou, Luke & Edler, Jakob & Uyarra, Elvira & Yeow, Jillian, 2014. "Policy instruments for public procurement of innovation: Choice, design and assessment," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 1-12.
    4. Edquist, Charles & Zabala-Iturriagagoitia, Jon Mikel, 2020. "Functional procurement for innovation, welfare and the environment," Papers in Innovation Studies 2020/1, Lund University, CIRCLE - Centre for Innovation Research, revised 19 Jul 2020.
    5. Edquist, Charles & Laatsit, Mart, 2022. "From the Systems of Innovation Approach to a General Theory of Innovation: Do Activities and Functions Reflect what Happens in Innovation Systems?," Papers in Innovation Studies 2022/7, Lund University, CIRCLE - Centre for Innovation Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Innovation; System of innovation; Innovation policy; Holistic innovation policy; Linear view; Research Policy;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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