New study: Why does the public sector not procure more innovations?

New study: Why does the public sector not procure more innovations?

April 13, 2015

Copenhagen Economics has conducted a study on public procurement innovation (PPI) for Uppdrag Välfärd.

 

Every year, the public sector in Sweden procures goods and services for up to SEK 600 billion, equivalent to one sixth of GDP. This purchasing power could be used to stimulate demand for new goods and services through PPI. However, the public sector in Sweden only does so to a limited extent. Why is this?

 

The main conclusions are 

  • Procuring agencies have limited knowledge and resources to procure innovative goods and services.
  • This leads to barriers in the form of failure to handle risks, a lack of knowledge of which goods and services are amenable to PPI, and which innovations best meet public needs.
  • Increased resources to procuring agencies and specialised PPI programmes inspired by those in place in e.g. the UK and Netherlands could help overcome these barriers and increase the use of PPI.

Download the full report (in Swedish) from Uppdrag Välfärd’s website

For further information please contact Partner Claus Kastberg Nielsen