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Revitalizing the Concept of Public Procurement for Innovation (PPI) from a Systemic Perspective: Objectives, Policy Types, and Impact Mechanisms

Author

Listed:
  • Kiyoon Shin

    (Seoul National University)

  • Yeongjun Yeo

    (Seoul National University)

  • Jeong-Dong Lee

    (Seoul National University)

Abstract

Recently, demand-side innovation policies for securing new driving-force for economic growth centered on developed countries, especially on the importance of public procurement for innovation, (PPI) are emphasized. Although the previous studies on PPI have presented various innovations and economic effects of PPI, they are still focused on specific case-based analysis, failing to provide implications for policy decision-making. Therefore, this study aims to investigate the economy-wide effects of PPI within the innovation system in generalized terms including technology, market, institution-related elements. To be specific, this study reveals direct and indirect impact channels within the innovation system incorporating demand-pull and technology-push effects. In addition, we propose four different types of PPI in terms of the policy impact channels and analyze electric vehicle (EV) PPI case in Korea using this proposed taxonomy. This study has contributions both on academic research and policy decision-making dimensions, by stressing out the systemic perspective to understand the potential impact mechanisms across the innovation system induced by the implementation of PPI.

Suggested Citation

  • Kiyoon Shin & Yeongjun Yeo & Jeong-Dong Lee, 2020. "Revitalizing the Concept of Public Procurement for Innovation (PPI) from a Systemic Perspective: Objectives, Policy Types, and Impact Mechanisms," Systemic Practice and Action Research, Springer, vol. 33(2), pages 187-211, April.
    • Handle: RePEc:spr:syspar:v:33:y:2020:i:2:d:10.1007_s11213-019-09488-7
    DOI: 10.1007/s11213-019-09488-7
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    2. Edler, Jakob, 2023. "Demand, public procurement and transformation," Discussion Papers "Innovation Systems and Policy Analysis" 79, Fraunhofer Institute for Systems and Innovation Research (ISI).
    3. Ruguo Fan & Rongkai Chen, 2022. "Promotion Policies for Electric Vehicle Diffusion in China Considering Dynamic Consumer Preferences: A Network-Based Evolutionary Analysis," IJERPH, MDPI, vol. 19(9), pages 1-21, April.
    4. Raymond Stokke & Xinlu Qiu & Magnus Sparrevik & Shannon Truloff & Iselin Borge & Luitzen Boer, 2023. "Procurement for zero-emission construction sites: a comparative study of four European cities," Environment Systems and Decisions, Springer, vol. 43(1), pages 72-86, March.
    5. 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.

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