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What is Public Procurement of Innovation?
Public Procurement of Innovation (PPI) is an administrative action to promote innovation aimed at fostering the development of new innovative markets from the demand side, through the instrument of public procurement.
Which objectives does it pursue?
1. Improvement of public services through the incorporation of innovative goods or services.
2. Encourage business innovation, as the Administration constitutes a first commercial demand.
3. Boost the internationalisation of innovation by using the local public market.
4. Replicability of solutions in other public administrations, by serving as a driver of innovation for other public services, which generates a larger market for innovative solutions for the companies involved.
Which modalities of action does it envisage?
Pre-commercial Procurement (PCP)
Purpose: Public procurement and public funding of R&D services, in which the public purchaser shares the risks and benefits of R&D with private companies in order to seek the functional development of innovative solutions applicable to public services.
Type of procurement: Public Procurement of R&D Results. It is characterised by the application of risk and benefit sharing between the public purchaser and the companies.
Procurement method: R&D Services Procurement Contract. Not subject to the general regime of the Public Sector Procurement Act.
Public Procurement of Innovative Solutions (PPI)
Purpose: This is based on the public procurement of a good or service that does not yet exist, but has the potential to be implemented within a logical timeframe. This procurement involves the development of new or improved technology that solves the requirements of the purchaser/demanding party.
Type of Procurement: Public Procurement of commercial Goods or Services, ready to provide public service. The purchaser acquires goods and services to provide the public service that do not exist in the market and require a prior R&D phase.
Procurement method: Public-Private Partnership Contract. It enables dialogue between public administrations and companies to define the requirements of the tender subjected to the R&D&I phase, beyond the price and delivery period.
Innovation Partnership (IPA)
Purpose: It seeks the development of innovative products, services or projects that do not yet exist on the market, allowing the subsequent acquisition of these by the Administration without the necessity of initiating a new procedure, which is not possible with Pre-commercial Public Procurement.
Type of procurement: Public Procurement of R&D Results + Public Procurement of commercial Goods or Services, ready to provide a public service.
Procurement method: Innovation partnership procedure. Law 9/2017, of 8 November, of Public Sector Contracts.