Working Paper: CEPR ID: DP17873
Authors: Olga Chiappinelli; Leonardo Maria Giuffrida; Giancarlo Spagnolo
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; public procurement; public policy; R&D; green purchases
JEL Codes: H23; H57; O30; O31; O32; O35; O36; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| public procurement of innovation (PPI) (O36) | firm-level innovation performance (L25) |
| winning PPI contracts (D44) | subsequent innovation outcomes (O36) |
| public procurement of innovation (PPI) (O36) | incremental innovations (O35) |
| public procurement of innovation (PPI) (O36) | effectiveness in economically depressed areas (I32) |
| buyer capabilities (D10) | PPI outcomes (D18) |