
When a solution to meet a specific need is not readily available on the market, public procurement of innovation (PPI) provides a pathway for public buyers to find or develop new solutions. These innovations can take the form of newly created or significantly improved products, services or methods of operation. By engaging in PPI, public buyers become 'launching customers', collaborating with innovative entrepreneurs through awarded contracts to address unmet demands. The innovation partnership is a public procurement procedure specifically designed to purchase a prototype and to deploy it in public services in one go after a successful piloting phase.
A key area where applying the innovation partnership can have transformative impact is in the AI sector. Between 2016 and 2023, 14 AI-related projects, worth a combined €20.2 million, were implemented across six countries in areas such as public services and urban planning.
One notable example showing the potential benefits of applying an innovation partnership as a public procurement procedure comes from Saxony, Germany. The German police was in search of speech recognition software to meet new legal requirements. After a thorough evaluation of the market, they found that no existing solutions could fully address their needs. Therefore, they decided to purchase the technology via an innovation partnership.
To ensure an efficient selection, a competitive procedure was employed. First, a comprehensive list of criteria was drawn up, outlining the essential requirements for the solution. This phase was followed by demonstrations by the companies, allowing the police to gain valuable insights into each proposed solution’s capabilities. Then, a shortlist of the most promising candidates was drawn up.
This innovation partnership led to the successful development and deployment of speech recognition software, building on a foundation of trust, transparency and open communication applied in the collaborative process. The police ultimately received a service that worked for them.
The Public Buyers Community Platform supports procurement of innovation efforts across the European Economic Area, aiming to enhance public procurement in the EU by connecting public authorities and other stakeholders. The platform hosts various communities, each dedicated to a specific area of procurement.
Although there is currently no community for innovation partnerships, creating one would be highly beneficial. It could foster economic growth by encouraging innovation, supporting start-ups, and improving SMEs' access to public procurement opportunities. By establishing this community, public buyers would also gain valuable skills and technical expertise in innovation procurement.
Want to learn more about Innovation Partnerships, see our fact sheet for further insights.
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