Pre-commercial procurement, procurement of innovative solutions and innovation partnerships in the EU: rationale and strategy

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),