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Procurement

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What is innovation procurement?

Innovation procurement refers to any procurement that aims to

  • Buy research and development services to develop innovative solutions
  • Buy innovative solutions that are not yet available or do not exist on the market
  • Buy innovative solutions that do exist, but are not yet widely available on the market

Innovation Procurement helps public buyers meet societal needs while modernising the public sector. It helps innovation suppliers develop technology to market-readiness and create a market.

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Pre-Commercial Procurement

Acquiring research & development services

A Pre-Commercial Procurement (PCP) is an approach for contracting authorities to acquire research and development services (and under certain conditions related to R&D results) with the purpose of steering the development of new innovations towards public sector needs, without committing to engage in follow-up Public Procurement of Innovative solutions (PPI) emerging from the PCP.

A PCP is a demand-driven procurement process, in which, in subsequent phases, suppliers are selected to develop solutions, prototypes and a first batch of test products.

A PCP accelerates the development of market-ready innovative products and services that meet the needs of the public sector.

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Public Procurement of Innovative Solutions

Commercial volumes of end products

Public Procurement of Innovative Solutions (PPI) is a public procurement process where the public sector buys innovative solutions as an early adopter. Pre-commercial procurement may or may not precede a PPI.

Innovative solutions are new or significantly improved products, services or processes that have already been (partially) demonstrated on a small scale and may be nearly or already available in small quantities on the market, but which have not been widely adopted yet.

In PPI, the public sector acts as a facilitator with a critical mass that triggers industry to scale up its production chain to bring products on the market with desired quality/price ratio within a specfic time.

After potentially a test / certification / labeling, the buyers group buys a significant volume of solutions.