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Public Procurement of Innovation: Selection of the Sustainable Alternative

Author

Listed:
  • Babica Viktorija

    (Riga Technical University, Riga, Latvia)

  • Sceulovs Deniss

    (Riga Technical University, Riga, Latvia)

Abstract

The European Union has been highly emphasising the role of public procurement for innovation as a policy instrument that can be used to stimulate sustainable development. This development reflects and responds to improvements in social welfare, growth of entrepreneurship and of national competitive advantage. In the process of selection, the awarding tender public procurement institutions lack an overall approach for choosing the most advantageous and sustainable innovation alternative. To contribute purchasing of innovative solutions, the present paper elaborates a framework of innovation measurement and quality evaluation. Thus, it makes possible to assess proposals from different aspects and to choose the most valuable offer notwithstanding the lowest price criteria.The paper studies the concept of public procurement, its pitfalls and prospects, dimensions of innovation definition and innovation added value assessment. The authors conducted expert interviews, which were analysed using an AHP method in order to set the most appropriate evaluation criteria indicator. The authors also designed the framework for assessing the quantitative and qualitative value of innovation proposals. The proposed approach is based on the analysis of innovation quality, added value, its potential impact and the sustainability of changes it produces.

Suggested Citation

  • Babica Viktorija & Sceulovs Deniss, 2019. "Public Procurement of Innovation: Selection of the Sustainable Alternative," Economics and Business, Sciendo, vol. 33(1), pages 233-246, January.
    • Handle: RePEc:vrs:ecobus:v:33:y:2019:i:1:p:233-246:n:17
    DOI: 10.2478/eb-2019-0017
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    References listed on IDEAS

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    Cited by:

    1. 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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    More about this item

    Keywords

    Best tender; innovation; innovation evaluation; public procurement; public procurement of innovation; sustainable innovation; quality;
    All these keywords.

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • Q39 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Other

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