Revitalizing the Concept of Public Procurement for Innovation (PPI) from a Systemic Perspective: Objectives, Policy Types, and Impact Mechanisms

Shin, Kiyoon; Yeo, Yeongjun; Lee, Jeong‐Dong

doi:10.1007/s11213-019-09488-7

Cited by 14 publications

(8 citation statements)

References 45 publications

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“…Traditionally, the innovation policies carried out by the government usually focus on the supply‐side instruments, since they believe that supply‐side innovation policies, like R&D subsidy, tax grants, research funding, can directly motivate innovation activities while making up for market failures aroused in the process of innovation (Edquist & Hommen, 1999). However, the supply‐side instruments cannot ensure the adoption and diffusion of innovative new products encountered in the process of marketization, which makes more scholars turn their attention to demand‐side innovation policies (Shin et al, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Meanwhile, various studies have concluded that government procurement has several advantages in overcoming problems like market failures in the process of generation and diffusion of the high‐tech products (Brammer & Walker, 2011; Edquist et al, 2015). Shin et al (2020) and Edquist and Zabala‐Iturriagagoitia (2012) also pointed out that the guarantee of procurement before commercialization helped the enterprise to invest in research and development (R&D), which might lead to higher quantity and quality of new products.…”

Section: Literature Reviewmentioning

confidence: 99%

“…However, the supply-side instruments cannot ensure the adoption and diffusion of innovative new products encountered in the process of marketization, which makes more scholars turn their attention to demand-side innovation policies (Shin et al, 2020).…”

Section: Government Procurement For Innovation: a Demand-side Innovat...mentioning

confidence: 99%

“…As for the incentive for the quality of innovation, however, the policies often produce limited effects. Thus, the government and scholars turn attention to the demand‐side instruments, such as government procurement (Shin et al, 2020; Timmermans & Zabala‐Iturriagagoitia, 2013). Government procurement has long been aware of its potential to drive innovation in the U.S. and European countries (Edquist & Hommen, 2000).…”

Section: Introductionmentioning

confidence: 99%

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Quality incentive contract design in government procurement for innovation

Wang

2022

Manage Decis Econ

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Recently, as supply‐side innovation incentive policies do not work well in China, demand‐side instruments, like the government procurement for innovation, are emphasized. However, as the enterprise may be better informed than the government about its initial technology level and effort, the government faces the dual information asymmetry of adverse selection and moral hazard in the process of procurement. Thus, in this paper, series of quality incentive contract models are proposed to illustrate how the government can identify the initial technology type of the enterprise and motivate it to exert effort to improve the innovation quality.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Government Procurement For Innovation: a Demand-side Innovat...mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Quality incentive contract design in government procurement for innovation

Wang

2022

Manage Decis Econ

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“…Public innovative procurement refers to procurement practices developed when the solutions or products procured do not yet exist but can be developed within a certain period of time by requiring contractors to innovate to meet public needs. Conventional public procurement focuses on general existing products, technologies, or services [11]. When a public institution purchases off-the-shelf products without involving technological research and development, it is generally referred to as public procurement.…”

Section: Introductionmentioning

confidence: 99%

Sustainable Quality-Incentive Contract Design of Public Technology Innovation Procurement under Asymmetry Information

2023

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Public technology innovation procurement plays an essential role in alleviating current major social challenges. In the process of government procurement, the hidden adverse selection and moral hazard caused by the unobservable technology types and efforts of enterprises are not conducive to the sustainable improvement of technology innovation quality. To sustainably encourage enterprises to improve the quality of public technology innovation procurement, based on principal-agent and incentive regulation theories, this paper designs quality-incentive contracts under single- and dual-asymmetric information conditions. We discuss the impact of various relevant factors on contract design and the level of effort by solving and analyzing the model. Furthermore, we validate the effects of the proportion of enterprise technological type, the uncertainty of technological innovation, and the quality-benefit coefficient on the contract parameters and the expected profits of both parties through numerical simulation. The results show that under dual-asymmetry information, the government can motivate enterprises to realize self-selection and improve the quality of technological innovation by designing information screening contracts. The government’s revenue is closely related to the proportion of enterprises’ technology types in the market, and information rents can swamp the government’s expected revenues when the market proportion of high-type enterprises is small. The uncertainty of technological innovation will reduce the effort of enterprises and the incentive effect of the contract. The quality-benefit coefficients of the government and enterprises have different impacts on the intensity of contract incentives with higher quality-benefit coefficients of the government, therefore having better incentive effects for enterprises. The research conclusion provides a reference for the government to design a sustainable incentive contract to improve the quality of public technology innovation.

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Exploring the Relationship Between Open Innovation, Procurement Sustainability and Organisational Performance: The Mediating Role of Procurement Agility

Awadhi

Alshurideh

2023

Studies in Computational Intelligence

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Revitalizing the Concept of Public Procurement for Innovation (PPI) from a Systemic Perspective: Objectives, Policy Types, and Impact Mechanisms

Cited by 14 publications

References 45 publications

Quality incentive contract design in government procurement for innovation

Quality incentive contract design in government procurement for innovation

Sustainable Quality-Incentive Contract Design of Public Technology Innovation Procurement under Asymmetry Information

Exploring the Relationship Between Open Innovation, Procurement Sustainability and Organisational Performance: The Mediating Role of Procurement Agility

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