Forward Commitment Procurement: a practical methodology that helps to manage risk in procuring innovative goods and services

Whyles, Gaynor; Meerveld, H. van; Nauta, Noks

doi:10.1080/13511610.2015.1024638

Cited by 11 publications

(14 citation statements)

References 16 publications

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“…Early engagement in such conversations (via market consultation, market testing, engagement meetings and events involving not just procurers but also end users, or through more formalised means such as competitive dialogue) signal a willingness to purchase a novel solution, thus reducing the market risks perceived by suppliers (Pelkonen and Valovirta, 2015;Whyles et al, 2015), while at the same time allowing procurers to benefit from specialist knowledge when shaping specifications (i.e. functional and technical).…”

Section: Anchoring Conversationsmentioning

confidence: 99%

Anchoring the innovation impacts of public procurement to place: The role of conversations

Uyarra¹,

Flanagan²,

Zabala‐Iturriagagoitia

2017

Environment and Planning C: Politics and Space

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Public procurement is frequently touted as a means of promoting innovation at the sub-national level, but the underlying mechanisms through which this is supposed to work are seldom articulated. In particular, while the relevance of social interaction for innovation is offered as a key rationale for the use of public procurement for innovation (PPI), there is little discussion of its corresponding spatial dimensions. This paper contributes to this debate by advancing our understanding of the spatial aspects of PPI and thus of the scope for using public procurement to achieve regional innovation policy goals. We connect the PPI literature with the literatures on innovation-driven regional development around the notion of 'conversations' to capture the spatial and social aspects of interactions relevant for PPI. Different forms of spatial anchoring of procurement, presenting different challenges and opportunities for regions, are explored. We provide illustrative examples for each type, from which implications are derived for promoting place-based 'innovationfriendly' procurement.

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Section: Anchoring Conversationsmentioning

confidence: 99%

Anchoring the innovation impacts of public procurement to place: The role of conversations

Uyarra¹,

Flanagan²,

Zabala‐Iturriagagoitia

2017

Environment and Planning C: Politics and Space

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“…In two of the cases analyzed, the process led to the development of new products, and in the third case, to the early adoption of new-to-market products and technologies (Whyles, van Meerveld, and Nauta, 2015). In the cases analyzed, the contracting authority had no prior experience in procuring innovations, and they conclude that it is unlikely that the projects would have been initiated without this intervention.…”

Section: Box 61: Procurement Of 'Zero-waste' Mattresses For Hm Prisomentioning

confidence: 94%

“…It also takes longer because, to allow time for innovation, the FCP process needs to start a long time before the formal procurement. This notwithstanding, Whyles, van Meerveld, and Nauta (2015) argue that FCP has proved to be an effective methodology to manage risks in PPI projects and is widely applicable to other sectors and countries. However, it involves a change in the culture of procurement, in terms of early planning and assessment of needs and engagement with suppliers for the definition of specifications.…”

Section: Box 61: Procurement Of 'Zero-waste' Mattresses For Hm Prisomentioning

confidence: 99%

“…For instance, van Meerveld et al (2015) and Whyles, van Meerveld, and Nauta (2015) examined two cases in the UK NHS and an academic hospital in the Netherlands where FCP has been applied. In two of the cases analyzed, the process led to the development of new products, and in the third case, to the early adoption of new-to-market products and technologies (Whyles, van Meerveld, and Nauta, 2015).…”

Section: Box 61: Procurement Of 'Zero-waste' Mattresses For Hm Prisomentioning

confidence: 99%

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Spurring Innovation-led Growth in Latin America and the Caribbean through Public Procurement

Uyarra¹,

Moñux²,

Li³

et al. 2016

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work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/ licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any noncommercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.Note that link provided above includes additional terms and conditions of the license.The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.http://www.iadb.org 2016 ABSTRACT * Public procurement accounts for a significant proportion of overall demand for goods and services. Thus, it could be a useful tool for fostering innovation and economic growth. While interest in the use of public procurement as industrial policy is not new, its potential to spur demand for innovative products and services, create incentives for business innovation, and accelerate the diffusion of new technologies has received much policy attention in recent years. The aim of this study is to advance knowledge on the role of public procurement as a demand-side policy instrument in stimulating firm innovation in Latin American and Caribbean (LAC) countries. In LAC countries, public procurement systems account for 20 percent of GDP, which suggests a considerable untapped potential to use public procurement for innovation (PPI) to strengthen their economic position and improve public service provision. The report first reviews the evidence on the implementation and impact of instruments and structures introduced to support PPI in selected developed countries (the United States, the European Union, Estonia, Netherlands, Spain, the United Kingdom, China, and the supranational case of EU procurement policy), identifying useful policy lessons for LAC countries. It then focuses on emerging innovation friendly procurement practices introduced in three selected LAC countries: Brazil, Chile, and Colombia. These countries offer a diverse picture in terms of the institutional path they have followed for the development of public policy for innovation/pre-commercial procurement (PPI-PCP) policies as well as important differences in the level of development of their innovation systems.JEL codes: O25, O38 Keywords: demand side innovation policy, innovation, Latin America and Caribbean countries, public policy, public procurement * The authors wish to thank the experts interviewed in the countries studied, who provided valuable insights on the issues discussed in this report. Without their assistance, this report could not have b...

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“…The third approach in strategic procurement, Forward Commitment Procurement (FCP), addresses the perceived risks for potential suppliers due to the uncertainty over future public demand for an innovative product or service (DBIS 2011;. Mitigating this risks is especially important in the scaling up phase of innovations, before commercial sales of products and/or services start, because the required investments by private parties are high and the possibilities for governmental support are low Whyles, Van Meerveld, and Nauta 2015).…”

Section: Forward Commitment Procurementmentioning

confidence: 99%

Innovation and public procurement: from fragmentation to synthesis on concepts, rationales and approaches

Lenderink

Halman

Voordijk

2019

Innovation: The European Journal of Social Science Research

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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.

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Forward Commitment Procurement: a practical methodology that helps to manage risk in procuring innovative goods and services

Cited by 11 publications

References 16 publications

Anchoring the innovation impacts of public procurement to place: The role of conversations

Anchoring the innovation impacts of public procurement to place: The role of conversations

Spurring Innovation-led Growth in Latin America and the Caribbean through Public Procurement

Innovation and public procurement: from fragmentation to synthesis on concepts, rationales and approaches

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