EconPapers    
Economics at your fingertips  
 

Public Procurement of Innovation: Evidence from a German Legislative Reform

Dirk Czarnitzki, Paul Hünermund () and Nima Moshgbar

International Journal of Industrial Organization, 2020, vol. 71, issue C

Abstract: Using public procurement to promote private innovation activities has attracted increasing attention recently. Germany implemented a legal change in its procurement framework in 2009, which allowed government agencies to specify innovative aspects of procured products as selection criteria in calls for tender. We analyze a sample of 3410 German firms to investigate whether this reform stimulated innovation in the business sector. Across a wide range of specifications – OLS, nearest-neighbor matching, IV regressions and difference-in-differences – we find a robust and significant effect of innovation-directed public procurement on turnover with new products and services. At the same time, our results demonstrate that public procurement mainly stimulates innovations of more incremental nature rather than true market novelties.

Keywords: Public Procurement of Innovation; Public Procurement with Contracted Innovation; Innovation; Research and Development; Econometric Policy Evaluation (search for similar items in EconPapers)
JEL-codes: H57 O38 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167718720300436
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:indorg:v:71:y:2020:i:c:s0167718720300436

DOI: 10.1016/j.ijindorg.2020.102620

Access Statistics for this article

International Journal of Industrial Organization is currently edited by P. Bajari, B. Caillaud and N. Gandal

More articles in International Journal of Industrial Organization from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

 
Page updated 2021-10-07
Handle: RePEc:eee:indorg:v:71:y:2020:i:c:s0167718720300436