Public Procurement of Innovation as an Instrument for Smart City needs

1. Public Procurement of Innovation as
an Instrument for Smart City needs
Sigrid Rajalo
Economic Development
Department, Innovation
Policy Division
29.06.2015

2. The power of
public purse

3. Public purchasing power:
12 % GDP (2012)
Demand-side innovation
policy
Government (and local
authorities) as smart
procurers → market for
innovative solutions
The power of
public purse

4. Innovation
Public procurement
Procurer
Pre-commercial procurement (PCP)
Public procurement of innovation (PPI)
Terms

5. The process in brief
Project management
need → market analysis (market dialogue) → procurement
strategy (including functionality) → procuring R&D → procuring
innovative solution

6. The process in brief
Project management
need → market analysis (market dialogue) → procurement
strategy (including functionality) → procuring R&D → procuring
innovative solution

7. The process in brief
Project management
need → market analysis (market dialogue) → procurement
strategy (including functionality) → procuring R&D → procuring
innovative solution

8. The process in brief
Project management
need → market analysis (market dialogue) → procurement
strategy (including functionality) → procuring R&D → procuring
innovative solution

9. The process in brief
Project management
need → market analysis (market dialogue) → procurement
strategy (including functionality) → procuring R&D → procuring
innovative solution

10. The process in brief
Project management
need → market analysis (market dialogue) → procurement
strategy (including functionality) → procuring R&D → procuring
innovative solution

12. Public procurement
of innovation in
Estonia
Support-
mechanism

13. • Budget: EUR 20 mln
• Period: 2015–2023
• Implementer: Enterprise Estonia
• Target group: public procurers, tenderers
• Aim: enhance governments` role as procurer of
innovative solutions, thus enabling the development
of market for innovative products and services
• Estonian smart specialization areas
Support mechanism

14. Supported activities
• Enhancing knowledge, skills, competence – need-based courses for target
group (general and specialised; informative and practical; focusing on
procurement law, project management, sector specific etc) and enabling
access to according consulting services
• Raising awareness – communication activities to raise general and target
group awareness and interest.
• Organizing market dialogues – organizing sector specific seminars and
workshops, using foresight methods where necessary among procurers
and tenderers with the aim of stimulating market dialogues between
representatives of public and private sector representatives. The aim is to
describe the procurers strategic needs and the capability of market to
offer solutions.

15. Supported activities
• Procurers` competences:
– sector-, technology-, market-, intellectual property-, procurement legislation
specific – to enable better preparation and organization of innovation
procurement. Including experts;
– additional market analysis or dialogues;
– project management.
• R&D activities carried out by tenderers :
– different R&D activities necessary to offer solution required by the tender:
idea generation, solution design, feasibility studies, product development,
testing, exploration, validation, prototyping etc.
Max sum per application: EUR 500 000
Applicant: public procurer
Evaluation of applications: expert-panel

16. EXAMPLES

17. Denmark

18. Netherlands

19. Finland

20. EU funded projects doing PCPs (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
HEALTH
AGEING
TRANSPORT
SUSTAINABILITY
E-GOV
EDUCATION
SAFETY
Human Brain project
PCP on supercomputing/brain modelling

21. Thank you
Sigrid Rajalo
e-mail: sigrid.rajalo@mkm.ee
phone: 625 6356