 Public procurement as a vehicle of innovation – What does the inverted-U relationship between competition and innovativeness tell us?Timo Tammi, Jani Saastamoinen and Helen Reijonen Technological Forecasting and Social Change, 2020, vol. 153, issue C Abstract: This paper contributes to the literature on the role of public procurement in encouraging innovations in the economy by empirically examining how the inverted-U relationship between competition and innovation is related to SME behavior in public procurement. First, we establish the inverted-U relationship in our data. We find that ‘intra-provincial suppliers’ (SMEs supplying mainly to public sector customers in their own municipality and province) are less innovation-oriented than ‘supra-provincial suppliers’ (supplying mainly to public sector customers residing outside their own province). In addition, a descriptive analysis suggests that the innovativeness of intra-provincial suppliers exhibits a weakly positive relationship with competition. However, the innovativeness of supra-provincial suppliers appears to be negatively related to competition at high levels of competition, but not at low levels of competition. Keywords: Innovation; Competition; inverted-U; Porter's Five Forces; Public procurement of innovation; SMEs (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:tefoso:v:153:y:2020:i:c:s004016251831028x DOI: 10.1016/j.techfore.2020.119922 Access Statistics for this article Technological Forecasting and Social Change is currently edited by Fred Phillips More articles in Technological Forecasting and Social Change from Elsevier |
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