pcp and ppi in ec policies (synergies between h2020 and structural funds for pcp and ppi projects)...
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PCP and PPI in EC policies (synergies between H2020 and structural
funds for PCP and PPI projects)
Vassilis Tsanidis Dr. Jur.Innovation Unit (F2)
DG CNECTEuropean Commission
Pre-Commercial Procurement(PCP) to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors
Public Procurement of Innovative Solutions(PPI) to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market
Innovation Procurement = PCP + PPI / Complementarity
Investing in innovation procurement = Investing in growth and jobs
• Public procurement accounts for some 2400 €Bn/year (19% of GDP) in Europe
• Almost half of the ESIF budget is spent through public procurement (only the above the threshold procurements is measured)
• Majority of procurement budget in EU is spent at regional level
• Innovation Procurement: win-win situation
• Modern and efficient public services
• More competitive European companies
Innovation procurement is under-used in the EU
R&D public procurement/year
50 $ Bn 7,5 €Bn
eGov solutions procured are 'innovative' 15% 5%
Study published here: https://ec.europa.eu/digital-agenda/en/news/quantifying-amount-public-procurement-ict-and-rd-across-europe
Progress PCP implementation Progress PCP implementation Learn from first moversLearn from first movers
PCPs projects on-goingor finished
Framework identified and/or pilots
in preparation
Hungary
Belgium
Netherlands
Awareness RaisingExploring possibilities
Denmark
Austria
Finland Sweden
Poland
Working onframework
GermanyFrance
Luxembourg
Ireland
Cyprus
Romania
SloveniaSlovakia
Bulgaria
Czech Republic
Estonia
Greece
LatviaLithuaniaMalta
Portugal
SpainNorway
Switzerland
Italy
UK
Iceland
Pilots started
Framework identified and/or pilots
in preparation
Hungary
Belgium
Netherlands
Awareness RaisingExploring possibilities
Finland
Sweden
Poland
Working onframework
GermanyFrance
Luxembourg
Ireland
CyprusRomania Slovenia
Slovakia
Bulgaria
Czech Republic
Estonia
Greece
LatviaLithuaniaMalta
Portugal
SpainNorway
Switzerland
Italy UK
Iceland
2007
2015
Austria
Denmark
-Speed up public sector modernisation – improve quality and efficiency of public services with breakthrough solutions
-Get better value for money through cooperation - enable public sector around Europe to share cost + experience to buy new solutions that can respond to concrete public needs
-Create growth and jobs in Europe – help innovators bring European R&D to the market (the majority of R&D in H2020 funded PCPs should take place in Europe, ltd set of first test products can be bought in the PPI from companies in the PCP)
Why Innovation Procurement?
Evidence from Successful Examples
Shortening of time-to-market
Attracting venture capital
Creating lead markets
Retaining lead market position
cheaper products and higher product quality
Removal of supplier lock-in
Benefits on local economy
Overview EU funded projects doing Overview EU funded projects doing PCPsPCPs (FP7) (FP7)More info on: http://ec.europa.eu/digital-agenda/en/eu-funded-
projects
SILVER (PCP) Robotics ageing well
DECIPHER (PCP)
Services mobile health data
CHARM (PCP)Traffic Management
V-CON (PCP)Virtual road infrastructure modelling
PRACE 3IP (PCP)
Smart Textiles ICT for fire fighters
SMART@FIRE (PCP)High Performance Computing
THALEA (PCP)
Cloud for Europe (PCP)Cloud computing
PREFORMA (PCP)Long term digital preservation
IMAILE (PCP)Personalised learning needsENIGMA (PCP)
City Lighting
UNWIRED-HEALTH (PCP)
NYMPHA-MD (PCP)
Mobile care for vaccination & heart failure
Mental care for bipolar disordersTele-detection/care of ICU patients
HEALTHAGEING
TRANSPORT
SUSTAINABILITY
E-GOV
EDUCATION
SAFETY
Human Brain projectPCP on supercomputing/brain modelling
Overview EU funded projects doing Overview EU funded projects doing PPIsPPIs (CIP) (CIP)More info on: http://ec.europa.eu/digital-agenda/en/eu-funded-
projects
ECOQUIP & LCB-HEALTHCARE (PPI) Low carbon healthcare
SPEA (PPI)
HAPPI (PPI)
PRO-LITE (PPI)Cities/Metro Lighting
Healthy Ageing
STOP AND GO (PPI)Telecare for elderly with multiple conditions
HEALTHAGEING
SUSTAINABILITY
INNOBUILD (PPI)INNOBOOSTER (PPI)
Office Furniture & Lighting
Sustainable buildings
INNOCAT (PPI)Sustainable catering
Sustainable buildings
TRANSPORTSYNCRO (PPI)
Smart roads communicationVehicles Fire Fighters
FIRED-UP (PPI)
PAPIRUS (PPI)Sustainable construction
PROBIS (PPI)Sustainable construction
EU funded CSAs/Networks of procurers EU funded CSAs/Networks of procurers (FP7/CIP/H2020)(FP7/CIP/H2020)
More info on: http://ec.europa.eu/digital-agenda/en/eu-funded-projects
HEALTHAGEING
TRANSPORT
ICT
INSPIRE (Training PCP, link with VC)E-health procurers
C4BI (networking)
Cities on healthcare
P4ITS (Preparing PPI)Intelligent Transport Systems
TRANSFORM (Networking)City/Regional transport
GREENS (prep PPI)Energy agencies – CO2
SAEPP (preparing PCP)
Ambulance ICT
PRO4VIP (preparing PCP)
ICT for Visually impaired
EPP-eHealth (preparing PCP/PPI)
Cities on e-health
Cloud computing research cloud
PICSE (Preparing PCP/PPI)Photonics broadband
COMPLETE (Preparing PPI)
SUSTAINABILITY
WATER PIPPWater procurers
EURECA (prep PPI)Green data centers
CEPPI 2 (prep PPI)Cities – energy consumption
SPP regions (capacity building)PPI – sustainability
InnProBio Forum (capacity building)PPI – bio based products
BRODISECities brown fielddecontamination
PPI4WASTEAuthorities
Waste management
Data collected from EU funded projectsData collected from EU funded projects
•Opening route-to-market for new players/SMEs- 75,5% of contracts won by SMEs (SME lead bidder, bidding alone or with partners)
- Compared to 29% in public procurements across EuropeMostly small young SMEs: 34,5% below 10 people, 81% below 50 people, 56% less than 10 years old
•Stimulating cross-border company growth - 33% of contracts won by bidders that are not from a country of any of the
procurers in the buyers group (e.g. DE company working for UK+NL procurers)
- Compared to 1,26% in public procurements across Europe
•Relevance of PCPs also to universities- 33% of winning contracts have university/R&D center partner in consortium- Winning SMEs are also often university start-ups
•Encouraging wider market commercialisation– Bidders offered on average 50% cheaper R&D price for keeping their IPRs (they see
IPR value/real market beyond the first potential buyers, the PCP procurers)
•Creating growth and jobs in Europe– All bidders do 100% of R&D in Europe (except 1 doing 85% of R&D in Europe)
Support of Innovation Procurement
in the ESIF context
Why Innovation Procurement at Regional Level ? ……it is a win-win situation for
Regions/ Public Authorities
Realise concrete quality and efficiency improvements to public services in the region
Obtain better value for money solutions(economies of scale) and reinforce regional cooperation through joint procurements
Improve the local innovation ecosystem as stronger local public sector demand for innovative solutions attracts additional financial investments into the region and combats relocation of innovative companies to other parts of the world
Enhance the technical know-how of the Region
Innovators
•Can get first client for new product (lead customer)
•Shorten time to the market (because of earlier customer feedback)
•Wider commercialization opportunities (companies keep IPR ownership in PCP)
Why PCP/PPI at regional level
Political encouragement
-Modernising public sector 'a priority' Quality-efficiency improvement targets
e.g. Lombardia/IT, UK, Flanders/BE
-Target % proc budgets to innovation Monitoring framework
e.g. UK, NL, ES, Nordics, FR
Implementation
- Innov Proc Competence centerTraining / assisting procurers
(e.g. SE, FI, ES, Flanders/BE, DE)
- Innov Proc financial support program (e.g. SE, FI, ES, Flanders/BE, DE)
Leverage EU funding
-Horizon 2020 Increased
-(syn) ESIF support for
-EIB loans innov proc
Encourage demand side to meet supply side
-Early notification innov proc needs
-Open market consultations Meet the buyers events
What can countries/regions do?What can countries/regions do?
Foster innovation through public procurement • TO 1 (IP1B) Strengthening research, technological development and innovation • Target group: public sector
Foster better meeting of public needs TO 1 (IP1A) enhancing research and innovation (R&I) infrastructure TO 2 (IP2C) strengthening ICT applications for e-government, e-learning, e-inclusion, e-culture and e-health TO 4 (all IPs) supporting the shift toward a low–carbon economy in all sectors TO 5 (all IPs) promoting climate change adaption, risk prevention and management TO 6 (all IPs) preserving and protecting the environment and promoting resource efficiency TO 7 (all IPs) promoting sustainable transport and removing bottlenecks in key network infrastructures Target group: town planners, transport, environment, health etc. ministries – ERDF, Cohesion
Fund and ESF)
Foster more innovative public procurement procedures and administrative capacities
TO 11 (IP11) Enhancing institutional capacity and an efficient public administration TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-health
Target group: procurement officers
Cohesion policy may support measures in the Operational Programs (OPs) to
ESIF may also support:
Major projects / Joint Action Plans in cooperation with other Regions and key players in the Cohesion Policy
Coordination, Networking and Preparation activities for the implementation of a PCP and/or PPI
through European Territorial Cooperation Programs (ETC)
Possible Synergies between
the ESIF and H2020 on Innovation Procurement
18
GENERAL RULE
IT IS NOT ALLOWED !!!!!!
-To use ESIF and H2020 funding accumulatively to finance the same cost/expenditure item
-To finance the own contribution of the participant from H2020 or ESIF
19
Coming soon
• PCP impact study - Compared the impacts of national PCPs across EU compared to other procurements- Concludes PCP is more effective in creating route-to-market for SMEs + stimulating
new open standardised solutions + avoiding vendor lock-in- Findings consistent with results from first EU funded PCPs:
• Increased EU promotion & assistance on PCP & PPI for 2016-17Consortium of experts appointed that will do promotion and provide training and local assistance to public procurers across the EU Member States:-Next 3 years, 12 info and training events on PCP & PPI in different EU countries: 3 major policy events + 9 smaller events with public procurers in different sectors. -Training based on a toolkit for policy makers, public procurers and legal staff. Procurers can also send questions to a helpdesk that posts replies to FAQs online.-Local assistance for public procurers that intend to start concrete PCP and PPIs for ICT based solutions (includes legal assistance in the start-up and implementation phase of a PCP or PPI). Target is to kick-start 6 new PCPs and 6 new PPIs.
More info: http://www.eafip.eu/
For more info on Innovation Procurement please visit the following site:
http://ec.europa.eu/digital-agenda/en/innovation-procurement
For the synergies between the H2020 and the ESIF please visit:
http://ec.europa.eu/regional_policy/sources/docgener/guides/synergy/synergies_en.pdf
Thank you for your attention
Vassilis Tsanidis Dr.Jur.Innovation Unit (F2)
DG CNECTEuropean Commission
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