IDEAS home Printed from https://ideas.repec.org/a/eee/respol/v49y2020i1s0048733319301635.html
   My bibliography  Save this article

Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation

Author

Listed:
  • Uyarra, Elvira
  • Zabala-Iturriagagoitia, Jon Mikel
  • Flanagan, Kieron
  • Magro, Edurne

Abstract

Recent thinking about innovation and industrial policy emphasises purposeful related diversification strategies or more transformative—but potentially riskier—challenge-orientated policies. Meanwhile public procurement is increasingly seen as a key means of fostering innovation. We conceptualize the multiple roles of public procurement in an innovation policy landscape shaped by these emerging rationales, and explore the complexities and institutional work associated with its implementation. We identify some possible roles for government in fostering diversification and transformation through public procurement and explore the implementation challenges of institutionalising public procurement as part of innovation policy. Both the multiple potential roles of public procurement and the institutional work associated with its implementation are illustrated with the case of Galicia, Spain.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:respol:v:49:y:2020:i:1:s0048733319301635
    DOI: 10.1016/j.respol.2019.103844
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0048733319301635
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.respol.2019.103844?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mariana Mazzucato, 2018. "Mission-oriented innovation policies: challenges and opportunities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 803-815.
    2. Jan Lambooy, 2005. "Innovation and knowledge: Theory and regional policy," European Planning Studies, Taylor & Francis Journals, vol. 13(8), pages 1137-1152, April.
    3. Lea Fuenfschilling & Niki Frantzeskaki & Lars Coenen, 2019. "Urban experimentation & sustainability transitions," European Planning Studies, Taylor & Francis Journals, vol. 27(2), pages 219-228, February.
    4. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    5. Wouter Boon & Jakob Edler, 2018. "Demand, challenges, and innovation. Making sense of new trends in innovation policy," Science and Public Policy, Oxford University Press, vol. 45(4), pages 435-447.
    6. Danny MacKinnon & Stuart Dawley & Andy Pike & Andrew Cumbers, 2019. "Rethinking Path Creation: A Geographical Political Economy Approach," Economic Geography, Taylor & Francis Journals, vol. 95(2), pages 113-135, March.
    7. 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.
    8. Iris Wanzenböck & Joeri H Wesseling & Koen Frenken & Marko P Hekkert & K Matthias Weber, 0. "A framework for mission-oriented innovation policy: Alternative pathways through the problem–solution space," Science and Public Policy, Oxford University Press, vol. 47(4), pages 474-489.
    9. Edler, Jakob & Georghiou, Luke, 2007. "Public procurement and innovation--Resurrecting the demand side," Research Policy, Elsevier, vol. 36(7), pages 949-963, September.
    10. Hanna Martin & Lars Coenen, 2015. "Institutional Context and Cluster Emergence: The Biogas Industry in Southern Sweden," European Planning Studies, Taylor & Francis Journals, vol. 23(10), pages 2009-2027, October.
    11. Bram Timmermans & Jon Mikel Zabala-Iturriagagoitia, 2013. "Coordinated unbundling: A way to stimulate entrepreneurship through public procurement for innovation," Science and Public Policy, Oxford University Press, vol. 40(5), pages 674-685, February.
    12. Rodrik, Dani, 2004. "Industrial Policy for the Twenty-First Century," CEPR Discussion Papers 4767, C.E.P.R. Discussion Papers.
    13. Carolina Castaldi & Koen Frenken & Bart Los, 2015. "Related Variety, Unrelated Variety and Technological Breakthroughs: An analysis of US State-Level Patenting," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 767-781, May.
    14. 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.
    15. Ron Boschma, 2017. "Relatedness as driver of regional diversification: a research agenda," Regional Studies, Taylor & Francis Journals, vol. 51(3), pages 351-364, March.
    16. Markus Grillitsch & Bjørn Asheim & Michaela Trippl, 2018. "Unrelated knowledge combinations: the unexplored potential for regional industrial path development," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(2), pages 257-274.
    17. Hans Knutsson & Anna Thomasson, 2014. "Innovation in the Public Procurement Process: A study of the creation of innovation-friendly public procurement," Public Management Review, Taylor & Francis Journals, vol. 16(2), pages 242-255, February.
    18. David Pickernell & Adrian Kay & Gary Packham & Christopher Miller, 2011. "Competing Agendas in Public Procurement: An Empirical Analysis of Opportunities and Limits in the UK for SMEs," Environment and Planning C, , vol. 29(4), pages 641-658, August.
    19. Guerzoni, Marco & Raiteri, Emilio, 2015. "Demand-side vs. supply-side technology policies: Hidden treatment and new empirical evidence on the policy mix," Research Policy, Elsevier, vol. 44(3), pages 726-747.
    20. Aschhoff, Birgit & Sofka, Wolfgang, 2009. "Innovation on demand--Can public procurement drive market success of innovations?," Research Policy, Elsevier, vol. 38(8), pages 1235-1247, October.
    21. Elvira Uyarra & Barbara Ribeiro & Lisa Dale-Clough, 2019. "Exploring the normative turn in regional innovation policy: responsibility and the quest for public value," European Planning Studies, Taylor & Francis Journals, vol. 27(12), pages 2359-2375, December.
    22. 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.
    23. Jerker Moodysson & Michaela Trippl & Elena Zukauskaite, 2017. "Policy learning and smart specialization: balancing policy change and continuity for new regional industrial paths," Science and Public Policy, Oxford University Press, vol. 44(3), pages 382-391.
    24. 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.
    25. Obwegeser, Nikolaus & Müller, Sune Dueholm, 2018. "Innovation and public procurement: Terminology, concepts, and applications," Technovation, Elsevier, vol. 74, pages 1-17.
    26. Garud, Raghu & Karnoe, Peter, 2003. "Bricolage versus breakthrough: distributed and embedded agency in technology entrepreneurship," Research Policy, Elsevier, vol. 32(2), pages 277-300, February.
    27. Timo von Wirth & Lea Fuenfschilling & Niki Frantzeskaki & Lars Coenen, 2019. "Impacts of urban living labs on sustainability transitions: mechanisms and strategies for systemic change through experimentation," European Planning Studies, Taylor & Francis Journals, vol. 27(2), pages 229-257, February.
    28. Philip McCann & Raquel Ortega-Argilés, 2013. "Modern regional innovation policy," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 187-216.
    29. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    30. Franz Tödtling & Michaela Trippl, 2018. "Regional innovation policies for new path development – beyond neo-liberal and traditional systemic views," European Planning Studies, Taylor & Francis Journals, vol. 26(9), pages 1779-1795, September.
    31. David Bailey & Christos Pitelis & Philip R Tomlinson, 2018. "A place-based developmental regional industrial strategy for sustainable capture of co-created value," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 42(6), pages 1521-1542.
    32. Pasinetti,Luigi L., 1983. "Structural Change and Economic Growth," Cambridge Books, Cambridge University Press, number 9780521274104, November.
    33. Stuart Dawley, 2014. "Creating New Paths? Offshore Wind, Policy Activism, and Peripheral Region Development," Economic Geography, Taylor & Francis Journals, vol. 90(1), pages 91-112, January.
    34. Aleksandrs Cepilovs, 2013. "Public Procurement for Innovation in Small States. The Case of Latvia," Rivista di Politica Economica, SIPI Spa, issue 2, pages 99-136, April-Jun.
    35. Janssen, Matthijs J., 2019. "What bangs for your buck? Assessing the design and impact of Dutch transformative policy," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 78-94.
    36. Stuart Dawley, 2014. "Creating New Paths? Offshore Wind, Policy Activism, and Peripheral Region Development," Economic Geography, Clark University, vol. 90(1), pages 91-112, January.
    37. Edler, Jakob & Yeow, Jillian, 2016. "Connecting demand and supply: The role of intermediation in public procurement of innovation," Research Policy, Elsevier, vol. 45(2), pages 414-426.
    38. Pierson, Paul, 2000. "Increasing Returns, Path Dependence, and the Study of Politics," American Political Science Review, Cambridge University Press, vol. 94(2), pages 251-267, June.
    39. Coenen , Lars & Hansen , Teis & Rekers , Josephine V., 2015. "Innovation Policy for Grand Challenges. An Economic Geography Perspective," Papers in Innovation Studies 2015/13, Lund University, CIRCLE - Centre for Innovation Research.
    40. Raiteri, Emilio, 2018. "A time to nourish? Evaluating the impact of public procurement on technological generality through patent data," Research Policy, Elsevier, vol. 47(5), pages 936-952.
    41. Beise, Marian & Cleff, Thomas, 2004. "Assessing the lead market potential of countries for innovation projects," Journal of International Management, Elsevier, vol. 10(4), pages 453-477.
    42. Schot, Johan & Steinmueller, W. Edward, 2018. "Three frames for innovation policy: R&D, systems of innovation and transformative change," Research Policy, Elsevier, vol. 47(9), pages 1554-1567.
    43. Dominique Foray, 2018. "Smart specialization strategies as a case of mission-oriented policy—a case study on the emergence of new policy practices," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 817-832.
    44. Iris Wanzenböck & Koen Frenken, 2018. "The subsidiarity principle: Turning challenge-oriented innovation policy on its head," Papers in Evolutionary Economic Geography (PEEG) 1806, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.
    45. Stefan Kuhlmann & Arie Rip, 2018. "Next-Generation Innovation Policy and Grand Challenges," Science and Public Policy, Oxford University Press, vol. 45(4), pages 448-454.
    46. van Winden, Willem & Carvalho, Luís, 2019. "Intermediation in public procurement of innovation: How Amsterdam’s startup-in-residence programme connects startups to urban challenges," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    47. Neij, Lena, 2001. "Methods of evaluating market transformation programmes: experience in Sweden," Energy Policy, Elsevier, vol. 29(1), pages 67-79, January.
    48. Pierre-Alexandre Balland & Ron Boschma & Joan Crespo & David L. Rigby, 2019. "Smart specialization policy in the European Union: relatedness, knowledge complexity and regional diversification," Regional Studies, Taylor & Francis Journals, vol. 53(9), pages 1252-1268, September.
    49. Kieron Flanagan & Elvira Uyarra, 2016. "Four dangers in innovation policy studies -- and how to avoid them," Industry and Innovation, Taylor & Francis Journals, vol. 23(2), pages 177-188, February.
    50. Flanagan, Kieron & Uyarra, Elvira & Laranja, Manuel, 2011. "Reconceptualising the 'policy mix' for innovation," Research Policy, Elsevier, vol. 40(5), pages 702-713, June.
    51. Markus Steen, 2016. "Reconsidering path creation in economic geography: aspects of agency, temporality and methods," European Planning Studies, Taylor & Francis Journals, vol. 24(9), pages 1605-1622, September.
    52. Julie Battilana & Bernard Leca & Eva Boxenbaum, 2009. "How actors change institutions : Towards a theory of institutional entrepreneurship," Post-Print hal-00576509, HAL.
    53. Grillitsch, Markus & Hansen, Teis & Coenen, Lars & Miörner, Johan & Moodysson, Jerker, 2019. "Innovation policy for system-wide transformation: The case of strategic innovation programmes (SIPs) in Sweden," Research Policy, Elsevier, vol. 48(4), pages 1048-1061.
    54. Andreoni, Antonio & Chang, Ha-Joon, 2019. "The political economy of industrial policy: Structural interdependencies, policy alignment and conflict management," Structural Change and Economic Dynamics, Elsevier, vol. 48(C), pages 136-150.
    55. Veiko Lember & Rainer Kattel & Tarmo Kalvet (ed.), 2014. "Public Procurement, Innovation and Policy," Springer Books, Springer, edition 127, number 978-3-642-40258-6, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Edler, Jakob, 2023. "Demand, public procurement and transformation," Discussion Papers "Innovation Systems and Policy Analysis" 79, Fraunhofer Institute for Systems and Innovation Research (ISI).
    2. Kieron Flanagan & Elvira Uyarra & Iris Wanzenböck, 2021. "Towards a problem-oriented regional industrial policy: possibilities for public intervention in framing, valuation and market creation," Working Papers 52, Birkbeck Centre for Innovation Management Research, revised Apr 2021.
    3. Janssen, Matthijs J. & Abbasiharofteh, Milad, 2022. "Boundary spanning R&D collaboration: Key enabling technologies and missions as alleviators of proximity effects?," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    4. Janssen, Matthijs J. & Abbasiharofteh, Milad, 2022. "Boundary spanning R&D collaboration: Key enabling technologies and missions as alleviators of proximity effects?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 180.
    5. Jon Mikel Zabala-Iturriagagoitia, 2022. "Fostering regional innovation, entrepreneurship and growth through public procurement," Small Business Economics, Springer, vol. 58(2), pages 1205-1222, February.
    6. Jessica Catalano & Francesco Giffoni & Paolo Castelnovo, 2021. "The impact of space procurement on suppliers: Evidence from Italy," Working Papers 202102, CSIL Centre for Industrial Studies.
    7. Ron Boschma, 2022. "Evolutionary Economic Geography and Policy," Papers in Evolutionary Economic Geography (PEEG) 2220, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2022.
    8. Selviaridis, Kostas & Hughes, Alan & Spring, Martin, 2023. "Facilitating public procurement of innovation in the UK defence and health sectors: Innovation intermediaries as institutional entrepreneurs," Research Policy, Elsevier, vol. 52(2).
    9. Miller, Fiona A. & Lehoux, Pascale, 2020. "The innovation impacts of public procurement offices: The case of healthcare procurement," Research Policy, Elsevier, vol. 49(7).
    10. Grillitsch, Markus & Hansen, Teis & Coenen, Lars & Miörner, Johan & Moodysson, Jerker, 2019. "Innovation policy for system-wide transformation: The case of strategic innovation programmes (SIPs) in Sweden," Research Policy, Elsevier, vol. 48(4), pages 1048-1061.
    11. van Winden, Willem & Carvalho, Luís, 2019. "Intermediation in public procurement of innovation: How Amsterdam’s startup-in-residence programme connects startups to urban challenges," Research Policy, Elsevier, vol. 48(9), pages 1-1.
    12. 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.
    13. 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.
    14. Dieter F Kogler & Emil Evenhuis & Elisa Giuliani & Ron Martin & Elvira Uyarra & Ron Boschma, 2023. "Re-imagining evolutionary economic geography," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 373-390.
    15. Coenen, Lars & Grillitsch, Markus & Hansen, Teis & Moodysson, Jerker, 2017. "An innovation system framework for system innovation policy: the case of Strategic Innovation Programs (SIPs) in Sweden," Papers in Innovation Studies 2017/8, Lund University, CIRCLE - Centre for Innovation Research.
    16. Dai, Xiaoyong & Li, Yanchao & Chen, Kaihua, 2021. "Direct demand-pull and indirect certification effects of public procurement for innovation," Technovation, Elsevier, vol. 101(C).
    17. Johan Miörner, 2019. "Contextualizing system agency in new path development: What factors shape regional reconfiguration capacity?," PEGIS geo-disc-2019_13, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    18. 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.
    19. Grillitsch, Markus & Asheim, Bjørn & Nielsen, Hjalti, 2019. "Does long-term proactive agency matter for regional development?," Papers in Innovation Studies 2019/16, Lund University, CIRCLE - Centre for Innovation Research.
    20. Grashof, Nils, 2020. "Putting the watering can away Towards a targeted (problem-oriented) cluster policy framework," Papers in Innovation Studies 2020/4, Lund University, CIRCLE - Centre for Innovation Research.

    More about this item

    Keywords

    Innovation-orientated public procurement; Institutional work; Institutional entrepreneurship; Industrial policy; Smart specialisation; Implementation;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:respol:v:49:y:2020:i:1:s0048733319301635. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/respol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.