We discuss public procurement instruments for acquiring innovation, focusing on the European Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships. We analyse, in particular, how firms’ innovation incentives are affected by: (i) economies of scope and externalities between R&D and large-scale production; (ii) the degree of specificity of the innovation; (iii) the presence of Small and Medium Enterprises in the market and the level of market competition; (iv) the risk of market foreclosure and supplier lock-in. Our study contributes to the literature on incentives in demand-side innovation policy by tapping into the contractual design features and by offering relevant implications for academics and policy-makers.
Iossa, E., Biagi, F., Valbonesi, P. (2018). Pre-commercial procurement, procurement of innovative solutions and innovation partnerships in the EU: rationale and strategy. ECONOMICS OF INNOVATION AND NEW TECHNOLOGY, 27(8), 730-749 [10.1080/10438599.2017.1402431].
Pre-commercial procurement, procurement of innovative solutions and innovation partnerships in the EU: rationale and strategy
Iossa, Elisabetta
;
2018-01-01
Abstract
We discuss public procurement instruments for acquiring innovation, focusing on the European Pre-commercial Procurement, Procurement of Innovative Solutions and Innovation Partnerships. We analyse, in particular, how firms’ innovation incentives are affected by: (i) economies of scope and externalities between R&D and large-scale production; (ii) the degree of specificity of the innovation; (iii) the presence of Small and Medium Enterprises in the market and the level of market competition; (iv) the risk of market foreclosure and supplier lock-in. Our study contributes to the literature on incentives in demand-side innovation policy by tapping into the contractual design features and by offering relevant implications for academics and policy-makers.File | Dimensione | Formato | |
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