Public Procurement of Innovative solutions (PPI) can be used when challenges can be addressed by innovative solutions that are nearly or already in small quantity on the market and don't need new R&D.
Pre-Commercial Procurement (PCP) can be used when there are no near-to-the-market solutions yet and new R&D is needed. PCP can then compare the pros and cons of alternative competing solutions approaches and de-risk the most promising innovations step-by-step via solution design, prototyping, development and first product testing.
By developing a forward-looking innovation procurement strategy that uses PCP and PPI in a complementary way, public procurers can drive innovation from the demand side. This enables the public sector to modernize public services faster while creating opportunities for companies in Europe to gain leadership in new markets. Today however, compared to other parts of the world, PCP and PPI are underutilized in Europe. For more info about how to square this circle, see the FAQ list on PCP & PPI. To balance better supply and demand side innovation policies, the EC is taking several actions:
1. Improving the policy framework for innovation procurement.
Read more about EU policy initiatives on PCP and PPI in the context of the Innovation Union and Digital Agenda for Europe targets to increase the use of PCP and PPI by 2020.
Overview of on-going national and regional PCP and PPI initiatives across Europe
2. EU co-financing for innovation procurements.
Horizon 2020 reinforces the co-financing for public procurers around Europe that collaboratively address common challenges by undertaking PCPs or PPIs jointly. New synergies between Horizon 2020 and the Structural Funds (ESIF) are also possible from 2014 onwards for co-financing PCP and PPI projects.
Overview of the funding opportunities in support of PCP and PPI in Horizon 2020
Examples of on-going EU funded joint PCP and PPI projects in the ICT domain
3. Promoting the use of PCP and PPI across Europe.
Upcoming events on innovation procurement