PPI refers to procurements where contracting authorities act as launch customer for innovative goods or services which are not yet available on large scale commercial basis and may include conformance testing. PPI shall result in the first application/commercialisation of innovative solutions, meaning that the solutions have to be new to the market. Innovative solutions are innovative goods or services with better performance than existing products on the market,. The suppliers are called to meet through production innovation.
Why support PPI?
A big, stable demand through government procurement can create demand long before a commercial market is possible. This has numerous advantages:
- Increasing economic growth. By acting as the first buyer or lead customer a contracting authority can spur a particular market to stimulate the economy and increase competitiveness of firms in new markets. In turn, it will help to create new businesses and increase employment.
- Producing better products and services. The public will benefits directly by being offered new and innovative public services, cheaper and provided more efficiently and effectively.
- Solving the challenges facing society. PPI and PCP can lead to scientific and technological breakthroughs, whose outcome can help tackle key societal challenges in several fields: health and well-being, food security, sustainable agriculture, clean and efficient energy, etc.
What are we doing to support PPI?
The European Commission provides support for PPI, extended under Horizon 2020. The Commission will co-fund groups of procurers to undertake joint PPI procurements, in order to have a single joint PPI call for tender and a single joint evaluation of offers. The aim is to speed up the development of innovative solutions by encouraging cooperation between procurers from across Europe, either by supporting networks of procurers (to prepare joint PPIs) or by co-funding the initial call for tender, the related coordination, and the networking activities.
PPI in Horizon 2020
Several EU funded projects will adopt PPI under Horizon 2020. For instance, the LCB healthcare project aims to stimulate demand for innovative low-carbon solutions for the healthcare sector. It provides procurement decision makers with the knowledge and tools to reduce the carbon footprint of healthcare buildings.
Procurement of Innovation Platform
The Procurement of Innovation Platform, supported by the European Commission, works as a hub for information regarding innovation procurement. It contains information on upcoming calls, events, and a forum where international stakeholders can share and discuss ideas.