Innovation through
Research and Precompetitive Procurement

                              Trond Knudsen
                  ...
Motivations for Engaging in
Pre-competitive Procurement

1. Strategic planning for larger and long lasting
   procurement ...
Pre-commercial Procurement (EU-model)
                                                                       Innovative Pr...
EU: The Legal Framework                        No Hurdle
• Public Procurement directives 2004/18&17/EC:
  – Procurement of...
Norway: The Legal Framework                      No Hurdle
FOR 2006-04-07 nr 402: Forskrift om offentlige
  anskaffelser
 ...
The Research Council’s Innovation Projects (BIPs)
as Pre-commercial Procurement
                                          ...
Evaluation of user managed RCN R&D projects
       shows profitability
Billion
NOK
6
                                     ...
Public Research and Developemnt Contracts (OFU) of
Innovation Norway as Pre-commercial Procurement
                       ...
Recommended Strategy for Exploiting R&I-
projects as Pre-commercial Procurement

1.   Establish a longterm strategy for in...
An example: Semicolon                                       www.semicolon.no

Semantic and Organisational Interoperability...
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Pre-Commercial Procurement Norway Short

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A short introduction to the use of pre-commercial procurement (PCP) as means of innovation for both government at all levels in partnership with private and civil (third) sectors. The framework for PCP demonstrated her in the case of Norway is a framework promoted and accepted in EU and / European Economic Area.

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Pre-Commercial Procurement Norway Short

  1. 1. Innovation through Research and Precompetitive Procurement Trond Knudsen 21st Nov. 2008
  2. 2. Motivations for Engaging in Pre-competitive Procurement 1. Strategic planning for larger and long lasting procurement (get it cheaper) 2. Procurement of advanced products and services (get better products/services) 3. Build procurement knowledge 4. Initiate new products and services 5. Let byer be in full charge of own processes at every stage
  3. 3. Pre-commercial Procurement (EU-model) Innovative Procurement Pre-commercial Procurement PHASE 0 PHASE 1 PHASE 2 Exploratory PHASE 3 PHASE 4 Solution design Research Prototype Precommercial Commersialisation products / services Diffusion of development Product/services Supplier A Estab- ‘OFU’ Lisment Supplier B Of new ‘BIP’ C Supplier Knowledge Supplier C Supplier C Supplier New Ideas Supplier D A,B,C,D,E Supplier D Supplier E Or X Inventions Supplier E Supplier E No tender Tender for Pre-commercial Rules Commercial Pre-commercial Pre-commercial Tender apply Deployment Tender Tender
  4. 4. EU: The Legal Framework No Hurdle • Public Procurement directives 2004/18&17/EC: – Procurement of R&D services – If benefits only for the procurers, then the directives apply – If benefits shared by procurers with e.g. suppliers, then directives do not apply, internal market rules only (articles 16f & 24e) • Treaty Principles / State aid rules – If competitive, transparent, non-discriminatory procurement, done at market price, then procurement of R&D services is not considered State aid • WTO Government Procurement Agreement – Procurement of R&D services outside WTO GPA
  5. 5. Norway: The Legal Framework No Hurdle FOR 2006-04-07 nr 402: Forskrift om offentlige anskaffelser § 1-3. Hvilke kontrakter som er omfattet av forskriften (2) Forskriften får ikke anvendelse på: ….. g. forsknings- og utviklingstjenester, når oppdragsgiver ikke fullt ut betaler for tjenesten eller den ikke fullt ut tilfaller oppdragsgiver til bruk i hans virksomhet,
  6. 6. The Research Council’s Innovation Projects (BIPs) as Pre-commercial Procurement Innovative Procurement Pre-commercial Procurement PHASE 1 PHASE 2 PHASE 0 PHASE 3 PHASE 4 Solution design Exploratory Prototype Precommercial Commersialisation Research products / services Diffusion of development Product/services Company / Public Institution A (Proposer) Company /Pubilc Institution B Company / Public Institution C Supplier Partners of other types (Orgs A,B,C,D,E or X Research Partner No tender Tender for Pre-commercial Rules Commercial Pre-commercial Pre-commercial Tender apply Deployment Tender Tender
  7. 7. Evaluation of user managed RCN R&D projects shows profitability Billion NOK 6 5,0 5 4 3 1,62 2,36 2 0,74 1 0 Invest. Invest. Total Total By RCN b/comp invest. Value 0,7 billlion invested in programme 1996-2001 creates net value of 5,0 billion i participating businesses (1) Netto nåverdi er beregnet verdi av prosjektet i dag etter at alle investeringer er trukket fra. Kilde: Møreforskning
  8. 8. Public Research and Developemnt Contracts (OFU) of Innovation Norway as Pre-commercial Procurement Pre-commercial Procurement Innovative procurement PHASE 0 PHASE 1 PHASE 2 PHASE 3 PHASE 4 Exploratory Solution design Prototype Precommercial Commersialisation Research products / services Diffusion of development Product/services Supplier Public Institution (Byer) Supplier A,B,C,D,E R&D Partner or X No tender Tender for Pre-commercial Rules Commercial Pre-commercial Pre-commercial Tender apply Deployment Tender Tender
  9. 9. Recommended Strategy for Exploiting R&I- projects as Pre-commercial Procurement 1. Establish a longterm strategy for innovation and procurement within a specified area 2. Analyze status of knowledge and experience at hand for relevant future innovation and procurement 3. If necessary, suggest a project to aquire necessary procurement competence and for developing an initial procurement basis 4. Asses the use of R&D contributions into the project 5. Invite R&D partner(s), sected knowledgeable suppliers and user partners (NGOs etc) to a Pre-commercial Procurement Project 6. Make the result of this project public and start a regular procurement process
  10. 10. An example: Semicolon www.semicolon.no Semantic and Organisational Interoperability in Communicating and Collaborating Organisations. Financing (m €) RCN contribution 2.0 Collaboration Partner cash 1.8 between public Partner work 2.2 sector orgs Interoperability 6.0 Collaboration inside public sector orgs Fragmented public sector: isolated information models Public sector organisations

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