Leveraging Public Procurement to Drive Local Innovation
As we navigate an increasingly complex world, the strategic use of public procurement presents a unique opportunity to address pressing societal needs whilst simultaneously fostering innovation and economic growth. This research offers in-depth analysis and recommendations for harnessing public procurement as a catalyst for innovation.
Public procurement represents a powerful yet underutilised lever for governments to drive innovation and address complex societal challenges. With public expenditure on goods and services accounting for 10-15% of GDP in OECD countries (OECD, 2023), strategic use of this purchasing power could catalyse the development and adoption of cutting-edge solutions by the private sector.
The research examines several key aspects of innovation-driven procurement, including:
- Theoretical foundations and real-world evidence supporting procurement as an innovation policy instrument
- Factors influencing procurement’s impact on innovation, including scale, technical capacity, and political considerations
- International case studies showcasing successful implementation across sectors like healthcare, energy, and transport
- The role of emerging technologies in enabling more transparent, efficient, and innovative procurement practices
- An analysis of the UK’s new Procurement Act as an opportunity to embed innovation in public purchasing
The work also highlights the challenges faced in realising procurement’s full potential as an innovation driver. From risk aversion to fragmented budgets, the study offers insights into overcoming these barriers and provides recommendations for policymakers and public sector leaders.