Public Procurement for Innovation

Good Practices and Strategies

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Public procurement offers an enormous potential market for innovative products and services. Used strategically, it can help governments boost innovation at both the national and local level and ultimately improve productivity and inclusiveness. Based on good practices in OECD and partner countries, this report analyses the state of play of procurement for innovation and provides a flexible framework focusing on 9 areas to promote it.




Estonia has not (yet) developed and agreed upon a strategic framework for procurement for innovation. Elements of demand-side innovation policy are included in some initiatives and programmes, but this is not the outcome of systemic policy implementation. Innovation policy as such is governed by two ministries: the Ministry of Economic Affairs and Communications (MEAC) and the Ministry of Education and Research. Both ministries have developed strategies where the concept of and the need for further elaboration of procurement for innovation is presented: “Knowledge based Estonia 2014-2020” and “Estonian Entrepreneurship Growth Strategy 2014-2020.” The Estonian National Reform Programme “Estonia 2020” also indicates a need to transform public procurement regulations into an engine of development in fields important to the state (e.g. innovation).


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