Public procurement for research and innovation

This report explores good practice and policy recommendations aimed at promoting the public procurement of new and improved goods and services which require research and innovation to meet the specified user needs - referred to as 'procurement for innovation' for simplicity. By acting as launching customers for innovative technologies and solutions, public authorities foster investment in research and innovation. This can have a dynamic 'knock-on effect' on the economy as innovations spill over into other markets. However, this potential is currently not being sufficiently exploited in the EU. This report sets out for policy-makers the potential benefits and score of procurement for innovation, as well as what needs to be done to help public procurement professionals change their practices to achieve those benefits. Staying clearly within the confines of the new European directives for public procurement, it makes several detailed recommendations, such as calling for: . the full exploitation of technical dialogues in the preparation phase before calls for tenders are launched; . exploitation of the emphasis given to technical specifications made in terms of functional or performance-based requirements rather than specific solutions; and/or . contractual conditions which allow for the transfer of intellectual property to the supplier. The report also acknowledges that emerging good practice in some Member States in procurement for innovation demonstrates the benefits of this approach. Key to its success is the development of a cohort of trained professionals to fulfil the role of 'intelligent customers'. Such public procurement officials should be familiar with relevant technology trends, markets and supplier capabilities, be able to specify functional and quality requirements, and subsequently assess tenders in terms of whole-life costs. A substantial effort in training and networking of experience is needed. This report comes shortly after the European Commission's communication 'More research and innovation' (COM(2005) 488), which has already set out some actions in this area.