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Public Procurement for Innovation Publicprocurement Innovation For SPINE EDQUIST ET AL Cyan Magenta Yellow Black 22 mm Public Procurement for Innovation for Innovation Procurement Public ‘This is a very timely book! Public procurement for innovation has become a prominent tool of demand side innovation policy in recent years. A better understanding of the underlying Eu-SPRI Forum assumptions and intentions, as well as the opportunities of this bundle of instruments and their on Science, limitations, is highly relevant for both innovation policy analysts, students and practitioners. Technology and The book presents the latest knowledge and insights of world-leading experts in the Innovation field of public procurement for innovation.’ Policy – Stefan Kuhlmann, University of Twente, the Netherlands, President of the European Forum for Studies of Policies for Research and Innovation Public procurement for innovation (PPI) is a demand side innovation policy instrument. It occurs when a public organisation places an order for the fulfillment of certain functions or needs, which cannot be met at that moment or within a reasonable period of time through a new or Public Procurement improved product. Providing evidence of the benefits to public and private actors from selective use of this policy for Innovation instrument, this book illustrates the requirements and constraints for its operationalization. It significantly improves our knowledge of the key determinants of effective public procurement Edited by aiming to promote innovative capabilities in the supplying sectors and beyond. It also provides case studies and conceptual contributions that help extend the frontier of our understanding CHARLES EDQUIST, NICHOLAS S. VONORTAS, in areas where there are still significant knowledge gaps. JON MIKEL ZABALAITURRIAGAGOITIA Scholars interested in the study of innovation policies and practitioners involved in the design, and JAKOB EDLER implementation and evaluation of PPI will benefit from this state-of-the-art exploration. and EDLER JAKOB JON MIKEL ZABALAITURRIAGAGOITIA MIKEL JON VONORTAS, S. NICHOLAS EDQUIST, CHARLES Charles Edquist is Professor at CIRCLE, Lund University, Sweden, Nicholas S. Vonortas is Professor at the Center for International Science and Technology Policy & Department of Economics, The George Washington University, USA, Jon Mikel Zabala-Iturriagagoitia is Researcher at Deusto Business School, University of Deusto, Spain and Jakob Edler is Professor at Manchester Institute of Innovation Research, University of Manchester, UK. EDWARD ELGAR A FAMILY BUSINESS IN INTERNATIONAL PUBLISHING The Lypiatts, 15 Lansdown Road, Cheltenham, Glos GL50 2JA, UK Tel: + 44 (0) 1242 226934 Fax: + 44 (0) 1242 262111 Email: [email protected] William Pratt House, 9 Dewey Court, Northampton, MA 01060, USA Tel: +1 413 584 5551 Fax: +1 413 584 9933 Email: [email protected] www.e-elgar.com www.elgaronline.com Public Procurement for Innovation EDQUIST 9781783471881 PRINT (M3571) (G).indd 1 01/11/2014 07:41 EU-SPRI FORUM ON SCIENCE, TECHNOLOGY AND INNOVATION POLICY SERIES EDQUIST 9781783471881 PRINT (M3571) (G).indd 2 01/11/2014 07:41 Public Procurement for Innovation Edited by Charles Edquist Professor, CIRCLE, Lund University, Sweden Nicholas S. Vonortas Professor, Center for International Science and Technology Policy and Department of Economics, The George Washington University, USA Jon Mikel Zabala-Iturriagagoitia Researcher, Deusto Business School, University of Deusto, Spain Jakob Edler Professor, Manchester Institute of Innovation Research, University of Manchester, UK EU-SPRI FORUM ON SCIENCE, TECHNOLOGY AND INNOVATION POLICY Cheltenham, UK • Northampton, MA, USA EDQUIST 9781783471881 PRINT (M3571) (G).indd 3 01/11/2014 07:41 © Charles Edquist, Nicholas S. Vonortas, Jon Mikel Zabala-Iturriagagoitia and Jakob Edler 2015 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical or photocopying, recording, or otherwise without the prior permission of the publisher. Published by Edward Elgar Publishing Limited The Lypiatts 15 Lansdown Road Cheltenham Glos GL50 2JA UK Edward Elgar Publishing, Inc. William Pratt House 9 Dewey Court Northampton Massachusetts 01060 USA A catalogue record for this book is available from the British Library Library of Congress Control Number: 2014950840 This book is available electronically in the Economics subject collection DOI 10.4337/9781783471898 ISBN 978 1 78347 188 1 (cased) ISBN 978 1 78347 189 8 (eBook) Typeset by Servis Filmsetting Ltd, Stockport, Cheshire Printed and bound in Great Britain by T.J. International Ltd, Padstow EDQUIST 9781783471881 PRINT (M3571) (G).indd 4 01/11/2014 07:41 Contents List of contributors vii Preface xv 1. Introduction 1 Charles Edquist, Nicholas S. Vonortas and Jon Mikel Zabala- Iturriagagoitia PART I CONCEPTUAL FRAMEWORK 2. The meaning and limitations of public procurement for innovation: a supplier’s experience 35 Jakob Edler, Luke Georghiou, Elvira Uyarra and Jillian Yeow 3. Building capability for public procurement of innovation 65 Ville Valovirta 4. Risk management in public procurement of innovation: a conceptualization 187 Jakob Edler, Max Rolfstam, Lena Tsipouri and Elvira Uyarra 5. Forward commitment procurement and its effect on perceived risks in PPI projects 110 Hendrik van Meerveld, Joram Nauta and Gaynor Whyles PART II CASE STUDIES 6. Innovation and public procurement in the United States 147 Nicholas S. Vonortas 7. Public procurement for innovation elements in the Chinese new energy vehicles program 179 Yanchao Li, Luke Georghiou and John Rigby v EDQUIST 9781783471881 PRINT (M3571) (G).indd 5 01/11/2014 07:41 vi Public procurement for innovation 8. Public procurement for e- government services: challenges and problems related to the implementation of a new innovative scheme in Greek local authorities 209 Yannis Caloghirou, Aimilia Protogerou and Panagiotis Panaghiotopoulos 9. Closing the loop: examining the case of the procurement of a sustainable innovation 235 Jillian Yeow, Elvira Uyarra and Sally Gee 10. Public procurement for innovation in developing countries: the case of Petrobras 263 Cássio Garcia Ribeiro and André Tosi Furtado 11. Conclusions: lessons, limitations and way forward 299 Jakob Edler, Charles Edquist, Nicholas S. Vonortas, Jon Mikel Zabala- Iturriagagoitia Index 307 EDQUIST 9781783471881 PRINT (M3571) (G).indd 6 01/11/2014 07:41 Contributors Yannis D. Caloghirou is Professor of Economics of Technology and Industrial Strategy and Head of the Innovation and Entrepreneurship Unit at the National Technical University of Athens (NTUA), Greece. He has acted as a scientific coordina- tor in a number of European research projects in the broader area of socioeconomic research. He has served in top policy- making positions in Greece, among them as Secretary General for Industry and as Secretary for the Information Society. He has sat in a number of European Union (EU) high- level expert and policy groups, among them in the expert group on Public Procurement for Research and Innovation. He was also co- Rapporteur of the EU High- Level Policy Group on the Socio- Economic Benefits of the European Research Area. Moreover, he has extensive work experience in industry as well as in policy advisory and policy design and evaluation positions. Professor Caloghirou has written extensively on topics related to his research in scholarly journals, edited books and the popular and business press. Jakob Edler is Executive Director of MIoIR (Manchester Institute of Innovation Research) at the Manchester Business School, University of Manchester, UK, and Professor of Innovation Policy and Strategy. His field of activity and publication comprise: eval- uation and conceptual development of research, development and innovation policies, demand- based innovation policy and public procurement, European innovation policy and modes of governance; comparative research on internationalization strat- egies in science and technology policy; internationalization of industrial research and development (R&D) and public research, knowledge supply and technology transfer; industrial knowl- edge management and patent strategies. Professor Edler has advised the European Union (EU), the Organisation for Economic Co- operation and Development (OECD) and a range of govern- ments, and published intensively on these issues. As for evalua- tion, he has conducted many projects for various European and vii EDQUIST 9781783471881 PRINT (M3571) (G).indd 7 01/11/2014 07:41 viii Public procurement for innovation regional governments and the European Commission. He has been a member of various evaluation expert groups at EU level, analysing the impact of the Framework Programme as well as individual instruments. He has also advised DG Regio on evalu- ation practices and lessons to be learned for innovation policy. Recently, he has led the InnoAppraisal project funded by the EU which analysed evaluation practice in national innovation policy schemes across Europe, and participated in a project on evalua- tion of innovation policy schemes at regional level across Europe. Charles Edquist is Holder of the Ruben Rausing Chair in Innovation Research at CIRCLE, Lund University, Sweden, since February 2003. He is one of the founders and the first director (2004–2011) of CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy) at Lund University, which by 2011 had developed into one of the largest innova- tion research centres in
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