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The impact of pre-commercial procurement on innovation

In: Handbook of Innovation Policy Impact

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  • John Rigby

Abstract

Pre-commercial procurement is procurement by public sector organisations of research and development services with the aims of developing the prototype of a product or service for which the public sector may be a customer, or where there is a public policy need for that good or service to be produced, and with the additional effect of supporting industry in its attempts to innovate. Pre-commercial procurement is typically conducted through an R&D competition, usually in two stages. In Europe, the European Commission has defined a specific pre-commercial procurement procedure, and the Community supports such procurements in a limited number of cases. Member states have also developed their own approaches, and in the UK and the Netherlands the naming of these approaches (the SBRI in the UK, the SBIR in the Netherlands) indicates that such schemes are based on the US SBRI programme. Pre-commercial procurement normally results in a contract being placed for an R&D service, although the US scheme includes both contract- and grant-based financial support. Both contract and grant approaches are discussed in the chapter. Pre-commercial procurement is a demand-side measure when, as in the case of contract-based procurements, a specification is used to identify a need; but it may also exhibit supply-side aspects when grants are issued and specifications are informed by industry or technology priorities. Recently, within the European context, pre-commercial procurement has been formally linked to procurement of actual goods and services within a complex legal process which is part of the new procurement directives. This development, known as the Innovation Partnerships Procedure, is new and as yet untried and untested.

Suggested Citation

  • John Rigby, 2016. "The impact of pre-commercial procurement on innovation," Chapters, in: Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), Handbook of Innovation Policy Impact, chapter 12, pages 382-402, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:16121_12
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    Citations

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    Cited by:

    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. Bento, Nuno & Sousa, Cristina & Trindade, Paula & Mamede, Ricardo Paes & Fontes, Margarida & Alves, Tiago, 2022. "Robust relation between public procurement for innovation and economic development," Economics Letters, Elsevier, vol. 211(C).
    3. Elisabetta Iossa & Federico Biagi & Paola Valbonesi, 2018. "Pre-commercial procurement, procurement of innovative solutions and innovation partnerships in the EU: rationale and strategy," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(8), pages 730-749, November.
    4. 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.
    5. Ana Fernandez-Zubieta & Irene Ramos-Vielba, 2018. "Research & Innovation in Spain 2016," INGENIO (CSIC-UPV) Working Paper Series 201702, INGENIO (CSIC-UPV), revised 08 Jan 2020.
    6. 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).

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