Public sector procurement is increasingly seen as an important instrument for inducing innovation in the private sector. Yet, a broad range of different concepts, each with their own associated rationales, and approaches, are used in literature and practice to describe the stimulation of innovation through public procurement. Due to a lack of an overview on the use of concepts, rationales and approaches to stimulate innovation through public procurement in literature and practice, it remains difficult for public organisations to decide why, how, and to what extent they will stimulate innovation in the private sector through public procurement. The contributions of this article to mitigate this problem are threefold. First, it provides a review of the different streams of literature, dichotomies and typologies on public procurement with respect to inducing innovation. Second, it discusses various approaches to stimulate innovation through public procurement individually and compares them in a structured overview. Finally, it provides guidance on the suitability of the use of these approaches in different situations.

No abstract

Purpose Stimulating innovation in projects can contribute to achieving policy goals, addressing societal challenges and meeting objectives within programs and projects. Despite their potential, innovations are rarely included in tender assignments and evaluated in the award of civil engineering projects. One explanation for this is the perceived difficulty in triggering and objectively assessing innovations in the awarding of projects. The aim of this paper is to develop, implement and evaluated a method to encourage and assess innovations in the awarding of bridge construction projects to address this problem. Design/methodology/approach A design science research (DSR) approach is used to develop, implement and evaluate a method to trigger and assess innovations in tenders for bridge projects. DSR approaches are used to develop “well-tested, well-understood and well documented innovative generic designs, dealing with authentic field problems or opportunities” (van Aken et al., 2016). Findings The findings show that the application of the developed method in a bridge project led to the inclusion of a broad range of innovations in the tender offers. Despite the broad support for the defined criteria, there were some differences in the way the criteria were interpreted by the public procurement team and by the tenderers. Despite these differences, no legal claims were filed in court. Practical implications Further development and wider adoption of the method is likely to have a positive impact on the application of innovations in bridge projects. With some adjustments, the method would also be appropriate for other civil engineering and construction projects. Originality/value This paper contributes to the discussion on how the terms innovation and innovativeness can be operationalized and used in the literature and practice. The developed method provides definitions for assessing the degree as well as the level of innovations in tenders for bridge projects. Further, it provides a way to rank innovations and determine the additional value of the offered innovations in terms of a notional reduction in tender price. Finally, it provides insights into how to encourage innovations through public procurement in civil engineering projects.

The inclusion of innovation as a policy objective in public procurement has increased significantly at public organizations over the last years. However, public organizations often struggle with how they should stimulate innovation through public procurement as there are many different ways possible and knowledge on the efficiency and effectiveness of different methods is relatively scarce and mostly based on case studies. In this study a combined approach of design science and engaged scholarship will be followed to (1) identify the factors that influence the impact of public procurement of innovation;(2) develop recommendations for including innovation in the public procurement strategy of municipalities and (3) develop tools that can be used in individual procurement projects.

No abstract