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Public Procurement of Innovative Products and Services

Public Procurement of Innovative Products and Services

Public procurement in the EU accounts for more than 14% of GDP. Even though it could create a huge market for innovative products and services, the potential of public procurement remains vastly untapped. The European Commission aims to improve public procurement practices, promote the demand of innovative goods and services in Europe, and foster the uptake of innovation in the EU. 

Why is public procurement of innovation important?

Public procurement of innovation will:

  • help foster market uptake of innovative products and services
  • increase the quality of public services in markets where the public sector is a significant purchaser
  • support access to markets for businesses, especially small and medium-sized enterprises (SMEs)
  • help address major societal challenges.

Public procurement for innovation is about innovative goods and services. It differs from pre-commercial procurement which supports research and development activities, i.e. before innovative goods or services are ready to be procured.

How can public procurement of innovation be promoted across all Member States?

The importance of the public procurement of innovation (PPI) is underlined in the Europe 2020 flagship initiative Innovation Union.  The wider use of PPI means that:

  • public authorities will act as first/launch customers and promote the use of innovation-friendly procurement practices
  • the Commission supports the development of groups of procurers, provides guidance (1 MB), and sets up a support platform to help contracting authorities implement innovation procurement
  • EU countries are encouraged to take measures to stimulate innovation through public procurement practices.

Public Procurement of Innovation Platform

The Procurement of Innovation Platform is an online hub that helps public authorities, procurers, policy makers, researchers, and other stakeholders utilise the power of public procurement of innovation. The Platform consists of three parts:

To recognise successful public procurement practices that have been used to purchase innovative, more effective, and efficient products or services, the Public Procurement of Innovation Award was launched.  

Stay in touch, follow the PPI Platform on social media: Linked-in & Twitter.

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