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The role of public procurement in the formation of markets for innovation

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  • Bleda, Mercedes
  • Chicot, Julien

Abstract

In this work we analyse the ways in which public procurement can encourage business innovation by supporting the formation of markets for new products, technologies and services. We use an evolutionary analytical framework in which markets for innovation are defined as dynamic complex systems whose function is the creation and coordination of knowledge as they develop over time. We show that public procurement has a key role in supporting this function throughout all the stages in the process of market development, and identify specific tools and actions that can be implemented at different phases of the procurement cycle to do so. We illustrate the main conceptual arguments of our analysis with examples from existing case studies on the public procurement of innovations.

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  • Bleda, Mercedes & Chicot, Julien, 2020. "The role of public procurement in the formation of markets for innovation," Journal of Business Research, Elsevier, vol. 107(C), pages 186-196.
    • Handle: RePEc:eee:jbrese:v:107:y:2020:i:c:p:186-196
    DOI: 10.1016/j.jbusres.2018.11.032
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    Cited by:

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    3. Edler, Jakob, 2023. "Demand, public procurement and transformation," Discussion Papers "Innovation Systems and Policy Analysis" 79, Fraunhofer Institute for Systems and Innovation Research (ISI).
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    5. Md. Raquibuzzaman Khan & Nazia Tabassum & Niaz Ahmed Khan & Mohammad Jahangir Alam, 2022. "Procurement challenges in public-sector agricultural development projects in Bangladesh," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-13, December.
    6. Allal-Chérif, Oihab & Simón-Moya, Virginia & Ballester, Antonio Carlos Cuenca, 2021. "Intelligent purchasing: How artificial intelligence can redefine the purchasing function," Journal of Business Research, Elsevier, vol. 124(C), pages 69-76.
    7. Zhengjun Hu & Shanshan Li, 2023. "Innovation-Driven Policy and Low-Carbon Technology Innovation: Research Driven by the Impetus of National Innovative City Pilot Policy in China," Sustainability, MDPI, vol. 15(11), pages 1-18, May.
    8. Uyarra, Elvira & Zabala-Iturriagagoitia, Jon Mikel & Flanagan, Kieron & Magro, Edurne, 2020. "Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation," Research Policy, Elsevier, vol. 49(1).
    9. Castelnovo, Paolo & Clò, Stefano & Florio, Massimo, 2023. "A quasi-experimental design to assess the innovative impact of public procurement: An application to the Italian space industry," Technovation, Elsevier, vol. 121(C).
    10. Qin, Shufeng & Xiong, Yongqing, 2024. "Differences in the innovation effectiveness of China's new energy vehicle industry policies: A comparison of subsidized and non-subsidized policies," Energy, Elsevier, vol. 304(C).
    11. Elvira Uyarra & Kieron Flanagan & Edurne Magro & Jon Mikel Zabala-Iturriagagoitia, 2017. "Anchoring the innovation impacts of public procurement to place: The role of conversations," Environment and Planning C, , vol. 35(5), pages 828-848, August.
    12. Paolo Castelnovo & Gelsomina Catalano & Francesco Giffoni & Matteo Landoni, 2024. "The outcomes of public procurements: an empirical analysis of the Italian space industry," The Journal of Technology Transfer, Springer, vol. 49(1), pages 367-399, February.
    13. Cristina Mele & Jaqueline Pels & Maria Spano & Irene Bernardo, 2023. "Emergent understandings of the market," Italian Journal of Marketing, Springer, vol. 2023(1), pages 1-25, March.
    14. Brea, Edgar, 2023. "A framework for mapping actor roles and their innovation potential in digital ecosystems," Technovation, Elsevier, vol. 125(C).
    15. Zhang, Zhaowen & Jiang, Yaohui, 2022. "Can green public procurement change energy efficiency? Evidence from a quasi-natural experiment in China," Energy Economics, Elsevier, vol. 113(C).
    16. Rocsana Bucea-Manea-Țoniș & Oliva Maria Dourado Martins & Dragan Ilic & Mădălina Belous & Radu Bucea-Manea-Țoniș & Cezar Braicu & Violeta-Elena Simion, 2020. "Green and Sustainable Public Procurement—An Instrument for Nudging Consumer Behavior. A Case Study on Romanian Green Public Agriculture across Different Sectors of Activity," Sustainability, MDPI, vol. 13(1), pages 1-25, December.
    17. Yunjuan Liang & Xin Liang & Hua Wei, 2023. "Sustainable Quality-Incentive Contract Design of Public Technology Innovation Procurement under Asymmetry Information," Sustainability, MDPI, vol. 15(11), pages 1-22, May.
    18. Dai, Xiaoyong & Li, Yanchao & Chen, Kaihua, 2021. "Direct demand-pull and indirect certification effects of public procurement for innovation," Technovation, Elsevier, vol. 101(C).
    19. Miller, Fiona A. & Lehoux, Pascale, 2020. "The innovation impacts of public procurement offices: The case of healthcare procurement," Research Policy, Elsevier, vol. 49(7).
    20. Pan, An & Zhang, Wenna & Shi, Xunpeng & Dai, Ling, 2022. "Climate policy and low-carbon innovation: Evidence from low-carbon city pilots in China," Energy Economics, Elsevier, vol. 112(C).
    21. Leckel, Anja & Veilleux, Sophie & Dana, Leo Paul, 2020. "Local Open Innovation: A means for public policy to increase collaboration for innovation in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 153(C).
    22. Yanlin Ma & Yuting Liu & Andrea Appolloni & Junqi Liu, 2021. "Does green public procurement encourage firm's environmental certification practice? The mediation role of top management support," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(3), pages 1002-1017, May.
    23. Jakob Edler, 2023. "Demand, public procurement and transformation," MIOIR Working Paper Series 2023-03, The Manchester Institute of Innovation Research (MIoIR), The University of Manchester.
    24. Congli Su & Mingxi Wang, 2022. "Quality incentive contract design in government procurement for innovation," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3665-3684, December.
    25. Tudor Ciumara & Iulia Lupu, 2020. "Green Procurement Practices in Romania: Evidence from a Survey at the Level of Local Authorities," Sustainability, MDPI, vol. 12(23), pages 1-12, December.

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