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Innovation and standardization as drivers of companies’ success in public procurement: an empirical analysis

Author

Listed:
  • Knut Blind

    (Technische Universität Berlin
    Fraunhofer Institute for Open Communication Systems)

  • Jakob Pohlisch

    (Technische Universität Berlin)

  • Anne Rainville

    (Technische Universität Berlin
    The Maastricht School of Management
    Vtrek B.V.)

Abstract

There is a significant potential to improve the benefits from public procurement through a better understanding of drivers in company success at the micro-level, an area that has received little study to date. To increase these impacts on innovation and markets, policy makers have opened procurement to innovation, including the strategic incorporation of formal standards in calls for tenders. Consequently, companies offering innovative solutions should have higher chances to be successful in public tenders. In addition, companies who engage in standardization activities at standards development organizations may have a competitive advantage in submitting tenders. Examining the case of Germany, this paper empirically investigates the effects of German manufacturing companies’ innovation activities and their engagement in national standardization on the receipt of contracts within domestic procurement competitions. The results of our empirical analyses based on German companies surveyed within the framework of the Community Innovation Survey show that being successful in product innovation and being engaged in standardization are significant positive predictors of companies’ success in public procurement. With implications for policy-makers and practitioners, this shows that public procurement is indeed open for solutions from companies active in innovation and standardization.

Suggested Citation

  • Knut Blind & Jakob Pohlisch & Anne Rainville, 2020. "Innovation and standardization as drivers of companies’ success in public procurement: an empirical analysis," The Journal of Technology Transfer, Springer, vol. 45(3), pages 664-693, June.
    • Handle: RePEc:kap:jtecht:v:45:y:2020:i:3:d:10.1007_s10961-019-09716-1
    DOI: 10.1007/s10961-019-09716-1
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    Cited by:

    1. Bastian Krieger & Malte Prüfer & Linus Strecke, 2024. "Public procurement can hinder innovation," Working Papers of ECOOM - Centre for Research and Development Monitoring 739379, KU Leuven, Faculty of Economics and Business (FEB), ECOOM - Centre for Research and Development Monitoring.
    2. Anne Rainville, 2022. "Green Public Procurement in Mission-Orientated Innovation Systems: Leveraging Voluntary Standards to Improve Sustainability Performance of Municipalities," Sustainability, MDPI, vol. 14(14), pages 1-22, July.
    3. 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.
    4. Bernard Hoekman & Bedri Kamil Onur Taş, 2022. "Procurement policy and SME participation in public purchasing," Small Business Economics, Springer, vol. 58(1), pages 383-402, January.
    5. Münch, Florian Anselm & Marian, Adela, 2022. "The design of technical requirements in public solar auctions: Evidence from India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 154(C).

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    More about this item

    Keywords

    Public procurement; Innovation; Standardization; Company strategy; Competitiveness;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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