Public procurement as an innovation policy: Where do we stand?

Olga Chiappinelli, Leonardo Maria Giuffrida and Giancarlo Spagnolo

No 17873, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Economics and innovation scholars have long recognized the potential of public procurement to trigger innovation. To what extent has this potential been realized so far? What can be done to improve the performance of public procurement of innovation (PPI) in this regard? This paper addresses these issues by providing a literature survey of research on PPI. After categorizing PPI instruments, the paper discusses existing interdisciplinary knowledge to answer four broad questions: i) Does PPI spur innovation? ii) How should PPI be designed to best spur innovation? iii) What are the main barriers to implement PPI? iv) What is the role of PPI in the innovation policy mix? The paper concludes with a discussion of future research needs and policy insights in light of current global challenges.

Keywords: Innovation; R&d; Public procurement; Public policy; Green purchases (search for similar items in EconPapers)
JEL-codes: H23 H57 O30 O31 O32 O35 O36 O38 (search for similar items in EconPapers)
Date: 2023-02
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