Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships in the EU: Rationale and Strategy

Elisabetta Iossa, Federico Biagi and Paola Valbonesi
Authors registered in the RePEc Author Service: Elisabetta Iossa and Paola Valbonesi

No 89, IEFE Working Papers from IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy

Abstract: We consider alternative European public procurement mechanisms for acquiring R&D services and innovative solutions, focusing on Pre-commercial Procurement, Public Procurement of Innovative Solutions and Innovation Partnerships. For each of these mechanisms, we identify conceptually strengths and weaknesses. We highlight the role played by (i) economies of scope and externalities between R&D and large-scale production; (ii) degree of specificity of the innovation; (iii) role of SMEs in the market and level of market competition; (iv) risk of market foreclosure and supplier lock-in. This article 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.

Keywords: Innovation; Demand-side policies; Incentives; Pre-commercial Procurement; Public Procurement of Innovative Solutions; Innovation Partnership. (search for similar items in EconPapers)
JEL-codes: H57 O31 O32 O38 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2016
New Economics Papers: this item is included in nep-cse, nep-cta, nep-eur, nep-ino, nep-sbm and nep-tid
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Journal Article: Pre-commercial procurement, procurement of innovative solutions and innovation partnerships in the EU: rationale and strategy (2018)
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