We discuss public procurement instruments for acquiring innovation, focusing on the European Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships. We analyse, in particular, how firms’ innovation incentives are affected by: (i) economies of scope and externalities between R&D and large-scale production; (ii) the degree of specificity of the innovation; (iii) the presence of Small and Medium Enterprises in the market and the level of market competition; (iv) the risk of market foreclosure and supplier lock-in. Our study contributes to the literature on incentives in demand-side innovation policy by tapping into the contractual design features and by offering relevant implications for academics and policy-makers.
IOSSA Elisabetta;
BIAGI Federico;
VALBONESI Paola;
2018-10-16
ROUTLEDGE
JRC100472
1043-8599 (online),
https://www.tandfonline.com/doi/full/10.1080/10438599.2017.1402431,
https://publications.jrc.ec.europa.eu/repository/handle/JRC100472,
10.1080/10438599.2017.1402431 (online),
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