INNOVATION PROCUREMENT
The Irish Competence Centre in Procure 2 Innovate is represented by the Procurement Transformation Institute which was established late 2017. PTI’s Vision is to be the Gateway for all procurement professionals in Ireland, by developing Ireland’s current and future talent pool achieving best value for money decisions for People, Profit, Planet.
In order to promote innovative solutions and increase knowledge and skills in innovation procurement, the PTI provides the following support:
- Support materials – website, guidance documents, weekly newsletters
- Dissemination of EU PCP and PPI calls for proposals
- Support to and co-operation with PCP and PPI projects with our EU colleagues
- Support to and co-operation with buyers’ and sellers networks
- Online procurement community which facilitates peer-to-peer learning, innovation, social inclusion and sustainable solutions
The PTI has a particular focus on innovation procurement and we promote and collaborate with our partners in the Health Business Services to promote innovation through best practices procurement.
1 – INNOVATION PROCUREMENT IS A PUBLIC PROCUREMENT IN WHICH A PUBLIC PROCURER BUYS ‘INNOVATION’
As defined by the 2014 EU public procurement directives, ‘INNOVATION’ means the implementation of a new or significantly improved product, service or process, including but not limited to production, building or construction processes, a new marketing method, or a new organisational method in business practices, workplace organisation or external relations.
INNOVATION covers thus both the research and development and the commercialisation / deployment of innovative solutions (products, services or works). Innovation procurement covers thus both R&D procurements, public procurements of innovative solutions and public procurements that purchase a combination of both R&D and the resulting innovative solutions. Indeed, according to the C(2018)3051 Commission guidance “Innovation procurement” refers to any procurement that has one or both of the following aspects: 1. buying the process of innovation – research and development services – with (partial) outcomes; 2. buying the outcomes of innovation created by others.
In the first instance, the public buyer buys the research and development services of products, services or processes, which do not exist yet. The public buyer describes its need, (only after) prompting businesses and researchers to develop (in a competitive way) innovative products, services or processes to meet the need.
In the second instance, the public buyer, instead of buying off-the-shelf, acts as an early adopter and buys a product, service or process that is new to the market and contains substantially novel characteristics. Early adopters refer to the first 20% customers on the market that are buying a new or significantly improved product, service or process. This includes procurements of products, services or processes that have already been demonstrated on a small scale, and may be nearly or already in small quantity on the market, but that have not been widely adopted by the market yet. This also includes existing solutions that are to be utilised in a new and innovative way.
2 – EU DEFINITION OF PPI
Public procurement of innovative solutions happens when existing public procurement procedures
(e.g. open, negotiated, competitive dialogue) are used to buy innovative solutions which are not yet
available on large scale commercial basis (new to the market). In public procurements of innovative
solutions, the public procurer is an early adopter of innovative solutions.
Early adopters are typically referred to as the first 20% of customers on the market that buy an innovative solution (i.e. a new or significantly improved product, service or process). This includes procurements of products, services or processes that have already been demonstrated on a small scale, and may be nearly or already in small quantity on the market, but that have not been widely adopted by the market yet.
This also includes existing solutions that are to be utilised in a new and innovative way. Early adopters can trigger wider deployment of innovative solutions, because their purchase signals to mass markets that there is a sufficient level of customer acceptance for the solutions
3 – EU DEFINITION OF PCP
Pre-Commercial Procurement (PCP) is a specific approach to implement a public procurement of R&D services that follows three principles defined in the European Commission’s PCP communication (COM/799/2007) and the associated staff working document (SEC/2007/1668). The three principles are: competitive development in phases, sharing of IPR risks and benefits (IPR ownership is allocated to the contractors and the procurer obtains usage and licensing rights) at market conditions and separating the PCP from the subsequent purchase of commercial volumes of solutions. PCPs are exempted from the EU public procurement directives and WTO GPA.
The 2014 R&D&I State aid framework defines PCP as the public procurement of research and development services where the contracting authority or contracting entity does not reserve all the results and benefits of the contract exclusively for itself for use in the conduct of its own affairs, but shares them with the providers under market conditions.
The contract, the object of which falls within one or several categories of research and development defined in this framework (i.e. fundamental research, industrial research and experimental development), must be of limited duration and may include the development of prototypes or limited volumes of first products or services in the form of a test series. The purchase of commercial volumes of products or services must not be an object of the same contract.
The PTI is excited to be part of the European Initiative to promote and disseminate Innovation Procurement Best Practices. The aim is to improve support for public procurers in implementing innovation procurement by establishing and expanding competence centres for innovation procurement in 10 EU member States.
To date, competence centres have largely worked autonomously and with little cross-border cooperation. This has led to a situation where competence centres have had to find solutions through trial and error with little guidance. Through peer-to-peer learning & mentoring the network of competence centres, though facing similar challenges, will be able to effectively exchange information and experience, gather knowledge and form cross-border bonds. The project will harness the potential generated from the European cooperation between competence centres. It will create a network that increases the impact of innovation procurement and facilitates cross-border cooperation in procurement.
The objectives of the P2I are:
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- Build a network of competence centres to facilitate knowledge sharing, best practice exchange on innovation procurement.
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- Support 5 existing competence centres: Competence Centre for Innovation Procurement (KOINNO) in Germany, PPPI Service Point (IÖB Servicestelle) in Austria, Expertise Centre for Public Procurement (PIANOo) in Netherlands, the Spanish competence centre for innovative procurement in Spain and Upphandlingsmyndigheten in Sweden.
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- Create 5 new competence centres in Ireland, Greece, Estonia, Portugal and Italy
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- Facilitate cross-border cooperation.
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- Sharing the tools, approaches and results by peer-to-peer learning
EUROPE
PART OF THE PROCURE 2 INNOVATE H2020 INITIATIVE
Link to Procure2Innovate.eu
The PTI is excited to be part of the European Initiative to promote and disseminate Innovation Procurement Best Practices. The aim is to improve support for public procurers in implementing innovation procurement by establishing and expanding competence centres for innovation procurement in 10 EU member States.
To date, competence centres have largely worked autonomously and with little cross-border cooperation. This has led to a situation where competence centres have had to find solutions through trial and error with little guidance. Through peer-to-peer learning & mentoring the network of competence centres, though facing similar challenges, will be able to effectively exchange information and experience, gather knowledge and form cross-border bonds. The project will harness the potential generated from the European cooperation between competence centres. It will create a network that increases the impact of innovation procurement and facilitates cross-border cooperation in procurement.
The objectives of the P2I are:
-
- Build a network of competence centres to facilitate knowledge sharing, best practice exchange on innovation procurement.
-
- Support 5 existing competence centres: Competence Centre for Innovation Procurement (KOINNO) in Germany, PPPI Service Point (IÖB Servicestelle) in Austria, Expertise Centre for Public Procurement (PIANOo) in Netherlands, the Spanish competence centre for innovative procurement in Spain and Upphandlingsmyndigheten in Sweden.
-
- Create 5 new competence centres in Ireland, Greece, Estonia, Portugal and Italy
-
- Facilitate cross-border cooperation.
-
- Sharing the tools, approaches and results by peer-to-peer learning