evidence from the innobarometer studies on the intensity of innovation procurement across eu...

Evidence from the Innobarometer studies

on the intensity of innovation procurement

across EU countries

Hugo Hollanders

MERIT (Maastricht University)

OECD WORKSHOP ON MEASURING THE LINK

BETWEEN PUBLIC PROCUREMENT, R&D AND INNOVATION

5-6 December, Paris

Measuring the link between public procurement, R&D and innovation 2


What is the Innobarometer?

• The Innobarometer is an annual opinion poll of businesses or general public on attitudes and activities related to innovation policy.

• The Innobarometer is conducted as part of the Eurobarometer series. It provides policy relevant information direct from business or the general public which is not available from other sources.



Evidence of the role of public procurement (PP)

• Empirical evidence from various Innobarometer surveys on the link between PP and innovation:

– 2009 IB surveying companies

– 2010 IB surveying public administration

– 2011 IB surveying companies

– (forthcoming 2014 IB surveying companies)

• IB covers EU Member States and other European countries



PP & innovation: a company perspective

IB 2009: Flash EB 267 “Strategic trends on innovation”

• Telephone survey by Gallup on behalf of DG Enterprise

• Objective: study European enterprises’ innovation strategies in response to changing constraints and opportunities

• Interviews conducted between April 1–9 2009

• Total sample size 5,234

IB2011: Flash EB 343 “Impact and perception of public sector innovation among companies”

• Questionnaire designed by MERIT & Technopolis

• Telephone survey by TNS on behalf of DG Enterprise

• Objective: gain insight into the way in which on-going public sector innovations are perceived by private firms

• Interviews conducted between Feb 16 – March 7 2012




PP & innovation: a government perspective

IB2010: Flash Eurobarometer 305:“Innobarometer among public administration organisations”

• Questionnaire designed by MERIT

• Telephone survey by Gallup on behalf of DG Enterprise

• Objective: study the innovation strategies of the European public administration sector in response to changing constraints and opportunities

• Interviews conducted between 9-17 October 2010

• Target: public administration organisations (NACE 84.11 and 84.12) employing 10 or more persons




The term 'public procurement' describes the purchases of

goods, services and public works by governments and

public bodies. Has your company...

54

4

7

35

57

8

10

25

0 20 40 60

None of the above

Investigated opportunities to sell to

governments

Submitted at least one tender for a

public procurement without success

Won at least one public procurement

contract

IB 2009 IB 2011

Companies less successful in winning tenders



Similar decline for innovators and non-innovators

IB 2011

29

10 9

52

22

117

61

0

10

20

30

40

50

60

70

Won at least

one public

procurement

contract

Submitted at

least one

tender for a

public

procurement

without

success

Investigated

opportunities

to sell to

governments

None of the

above

Innovator Non-innovator

IB 2009

36

7 4

53

30

72

60

0

10

20

30

40

50

60

70

Won at least

one public

procurement

contract

Submitted at

least one

tender for a

public

procurement

without

success

Investigated

opportunities

to sell to

governments

None of the

above

Innovator Non-innovator



Companies’ interest in public procurement

28 29 30 33 33 34 35 36 36 37 37 38 39 40 40 40 43 45 45 45 46 47 47 49 49 51 52 52 54 54 56 57 59

0

10

20

30

40

50

60

70

PL IE CY MK HU EE PT LT ES LU LV CZ DK UK FR BE MT IT DE FI SK AT NO NL IS RO SE HR TR SI CH EL BG

IB2011

-22 -21-19

-15 -14 -13 -12-10 -10 -10

-1 0

1 2 2

7 7 7 8 8 8 913

16 1719

21

-25

-20

-15

-10

-5

0

5

10

15

20

25

LT LU IE LV CY PL EE CZ DK FI SI MT PT FR RO UK BE ES DE SK HU AT SE EL NL IT BG

Change IB2011 (2009-2011) vs IB 2009 (2006-2008)



Did the public procurement activities

of your company include the

possibility to sell one of your

innovations to the government?

29

24

67

73

0% 20% 40% 60% 80% 100%

IB 2009

IB 2011

Yes No DK/NA

Declining possibilities to sell innovations

Won at least one public

procurement contract

27

30

67

67

0% 20% 40% 60% 80% 100%

IB 2009

IB 2011

Submitted at least one tender

for a public procurement, but

none was successful

20

18

77

80

0% 20% 40% 60% 80% 100%

IB 2009

IB 2011

Investigated opportunities to

sell to governments, but not

submitted any tender

31

14

64

84

0% 20% 40% 60% 80% 100%

IB 2009

IB 2011



Did the public procurement activities of your company include the possibility to sell one of your innovations to the government?

Significant differences between countries

Source: IB 2011

6 11 11 11 14 16 17 17 18 19 20 20 21 23 23 24 25 25 25 26 27 27 29 29 31 31 32 36 36 40 40 45 48

0

10

20

30

40

50

60

70

80

90

100

HU BG RO HR LV SK SI PL LT BE LU NO CZ FR FI IE MK DE EL IS UK EE PT NL TR AT ES IT SE CH MT CY DK

Yes No DK/NA



Low prices are more important than innovation to win a tender, but preferences have become stronger

In your experience, what is more important to win a public

tender?

25

36

9

30

18

11

22

50

0.0 20.0 40.0 60.0

DK/NA

Price and innovation have equal importance

Innovation is more important than price

Price is more important than innovation

IB 2009 IB 2011



In all but one country price is seen to be more than innovation to win a public tender

Source: IB 2011

34

52

25

5341 44

51

69

40

5358

61

39

60 57 5061

4652 53

4456

3942 43 40

62

4551

5647

4641

4 7 8 8 10 10 10 12 14 14 14 17 18 19 20 22 22 23 23 24 24 24 25 29 29 29 29 30 31 32 3240

47

0

10

20

30

40

50

60

70

80

90

100

EE NOMK IS SE HU DK PL MT SI SK CZ IT LT LV DE IE BE UK EL AT ES NL CY BG CH FI PT HR FR RO LU TR

Innovation is more important than price Price is more important than innovation

Price and innovation have equal importance DK/NA



IB 2010: Procurement activities

Since January 2008, did your organisation put out tenders to

private businesses to provide any of the following goods

and services?

19

32

36

41

42

51

76

63

58

53

53

44

0% 20% 40% 60% 80% 100%

R&D for new technologies and services

Consulting to recommend, design or pilot test

new or improved services

Other types of technology

Technologies or services to improve

environmental or energy performance

Provide one or more services to your users

ICT equipment or systems

Yes No DK/NA



Differences in procurement activities by country

38

5559 60 60 61

64 65 67 69 69 70 71 72 73 74 75 75 75 78 80 81 82 8488 88 88

0

10

20

30

40

50

60

70

80

90

100

BGPT LT SKHUFRDK SI CY AT DEBE IT ROCZ EL LUMTPL LV UK FI EE IE SEESNL

Since January 2008, did your organisation put out tenders to private businesses to provide goods or services?



IB 2010: Procurement consultation

Prior to publishing tenders does your

organisation usually consult with?

47

53

53

57

42

35

35

31

0% 20% 40% 60% 80% 100%

The users of your services

Potential suppliers/ contractors

Other organisations providing

specialist advice

Other organisations conducting

similar procurements

Yes No DK/NA



IB 2010: Low prices are more important than innovation to win a tender

For an applicant to be successful in a tender

from your organisation do you consider that ...

6

11

20

63

0.0 20.0 40.0 60.0 80.0

DK/NA

innovation is more important than

low cost for winning a tender

low cost is more important than

innovation for winning a tender

cost and innovation have equal

importance for winning a tender



IB 2010: Innovations in the public sector result from procurement activities

Did any of your tenders since January 2008 obtain the

following results?

38

44

55

42

37

25

0% 20% 40% 60% 80% 100%

Significantly reduce the environmental

impacts of your services

Significantly reduce the costs of providing

existing services

Introduce a new or significantly improved

service provided by or for your organisation

Yes No DK/NA



Differences in perceptions about importance of innovation for winning a tender between the public and private sector

BE

BG

CZ

DK

DE

EE

GRES

FR

IE

IT

CY

LVLT

LU

HUMT

NLAT

PL

PTRO

SI

SK

FI

SE

UK

NO

CH

-80

-70

-60

-50

-40

-30

-20

-10

0

-50 -40 -30 -20 -10 0 10 20 30 40

Private firms (Innobarometer

2011)

Public administration (Innobarometer 2010)

Importance of innovation vs. low costs for winning a public tnder



New results to be expected from the next Innobarometer on The role of public government support in the commercialization of innovations

• Questionnaire designed by MERIT

• Telephone survey by TNS on behalf of DG Enterprise

• Interviews to be conducted Jan – Feb 2014

• Total sample size > 10,000



Innobarometer 2013

• Since January 2011 has your company…

– … won at least one public procurement contract

– … submitted at least one tender for a public procurement without success

– … investigated opportunities to bid on a public procurement contract, but did not submit a tender

– None of the above (SPONTANEOUS)

– DK/NA (SPONTANEOUS)

• Was your company able to sell an innovative good or service as part of the public procurement contract that you won?

– Yes / No / DK/NA (SPONTANEOUS)



Innobarometer 2013 - Public Procurement of Innovative Solutions

• Has your company been involved in a public tender that included one of the practices listed below since January 2011?

– Innovation requirements in tenders

– Early interaction with procuring organisations

– Outcome based specifications

– Emphasis on sustainability criteria

– Full life cycle costing considerations

– Competitive dialogue

– Incentives such as profit sharing arrangements

– Negotiated tender

– DK/NA (SPONTANEOUS)



For questions or comments, please contact:

Hugo Hollanders

MERIT, Maastricht University

[email protected]

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