OECD expert workshop on the measurement of public procurement of innovation. "OECD Analysis of Administrative Data", presentation by Silvia Appelt

1. OECD ANALYSIS OF
ADMINISTRATIVE DATA
OECD EXPERT WORKSHOP ON THE MEASUREMENT
OF PUBLIC PROCUREMENT OF INNOVATION
Silvia Appelt and Fernando Galindo-Rueda (OECD)

2. • Objective: Identify scope for using
administrative data to…
– produce new statistical indicators on public
procurement of innovation;
– obtain empirical evidence on the impact of public
procurement on innovation.
• Approach: Exploratory analysis of available
data sources.
– Start with US Federal and EU procurement data.
– Potentially extend to other countries.
OECD exploratory analysis of
administrative procurement data
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3. 1. General approaches:
– Product code (PSC and CPV classification).
– Supplier attributes (industry sector, info from
matched data).
2. Action-specific approach:
– Identification of innovation-related keywords
in contract requirement descriptions.
3. Rely on explicit tagging by procurers:
– “Not available off-the-shelf” certification?
(e.g. Korea, China)
How to identify innovation in
administrative procurement data?
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4. General product description approach:
US FPDS
Source: OECD, based on FPDS-NG. Data extracted in September 2012
0
100
200
300
400
500
600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Supplies and Equipment
Service
Research and Development
U.S. federal government procurement estimates, 2000-11
All contract actions by 1-digit PSC classification, USD billions
4
≈10%
Other
innovation
intensive
products?

5. 0
10
20
30
40
50
60
All Sectors BE Sector
Contract value $ bn.
Commercialization
Management and Support
Operational Systems
Development
Engineering Development
Advanced Development
Applied Research and
Exploratory Development
Basic Research
US FPDS: R&D procurement by broad
sector – business vs. total
Source: OECD, based on FPDS-NG. Data extracted in September 2012
U.S. federal government procurement estimates, 2011
R&D contract value by 4-digit PSC classification, USD billions
5
83%
78%
67%

6. 0 10 20 30 40
Construction work
Medical equipments, pharmaceuticals and personal care …
Petroleum products, fuel, electricity and other sources of …
Transport services (excl Waste transport)
Sewage, refuse, cleaning and environmental services
Architectural, construction, engineering and inspection …
Financial and insurance services
Transport equipment and auxiliary products to …
Repair and maintenance services
Business services: law, marketing, consulting, recruitment, …
Construction structures and materials; auxiliary products …
IT services: consulting, software development, Internet and …
Health and social work services
Electrical machinery, apparatus, equipment and …
Hotel, restaurant and retail trade services
Office and computing machinery, equipment and supplies …
Software package and information systems
Postal and telecommunications services
Supporting and auxiliary transport services; travel agencies …
Administration, defence and social security services
2011
2006
111
70
The allocation of European procurement expenditures, by product code
Top twenty 2-digit CPV product codes, by contract value (EUR Billion)
Source: OECD analysis of TED data. No imputation applied to missing award values. 6
General product description approach:
EU TED – very different rules, esp. R&D
R&D Codes, 2011:
€387 m. (1.2%)

7. 7
Content-based approach: US FPDS
Innovation-related terms in new U.S. federal government contract awards and orders, 2000-2011
Number of token occurrences in original contract requirement description, by product and service code
All Sectors BE Sector
Keyword R&D Service Supply & Equipment R&D Service Supply & Equipment
RESEARCH 40,387 35,995 17,693 29,186 28,139 16,658
DEVELOP 41,691 66,254 19,565 33,854 60,466 19,129
R&D 9,135 2,270 730 7,038 1,845 675
SCIEN 30,904 19,136 8,106 22,379 16,192 7,626
TECHNOLOG 19,756 40,651 15,191 16,867 38,467 14,792
NOVEL 1,282 315 540 1,140 268 532
NEW 8,202 147,244 108,713 7,064 136,899 102,845
MODERN 425 9,075 5,413 336 8,940 5,399
INNOVAT 2,574 2,121 508 2,447 1,909 476
CHANG 10,028 100,154 67,112 8,738 95,808 65,742
BREAKTHROUGH 21 16 62 19 15 61
IMPROVE 2,791 19,484 2,366 2,334 18,191 2,253
ADVANCE 7,299 10,774 9,194 5,704 9,537 8,911
BETTER 119 457 742 109 415 729
NONCOM 30 87 39 30 81 35
PRECOM 1 1,126 2 1 1,126 2
PROTOTYP 1,329 1,431 1,268 1,175 1,321 1,235
Experimental PPI TAG (=1) 114,780 427,788 244,503 87,805 393,900 234,677
Total number of contract actions
with a description 565,620 7,890,691 15,364,167 471,311 7,281,876 14,477,398
Proportion of “innovation”-
tagged actions 20.3% 5.4% 1.6% 18.6% 5.4% 1.6%
Total number of actions 795,450 10,710,193 18,692,690 669,162 10,008,772 17,772,210
Proportion of contract
actions with descriptions 71.1% 73.7% 82.2% 70.4% 72.8% 81.5%
Source: OECD analysis of FPDS data. Data include modifications.

8. Proportion of U.S. federal contract actions including
innovation-related tokens, 2000-2011
Percentage, by top-ranking 4-digit PSC codes
Source: OECD analysis of FPDS data. Data include modifications.
8
0% 5% 10% 15% 20% 25% 30%
Applied Research and Exploratory Development
Basic Research
Commercialization
Engineering Development
Advanced Development
Live Animals
Management and Support
Operational Systems Development
Books, Maps, and Other Publications
Special Studies and Analyses - Not R&D
Automatic Data Processing and Telecommunication …
Construction of Structures and Facilities
Space Vehicles
Architect and Engineering Services - Construction
Guided Missiles
Automatic Data Processing Equipment (Including Firm …
Professional, Administrative and Management Support …
Education and Training Services
Maintenance, Repair or Alteration of Real Property
Nuclear Ordnance
Photographic, Mapping, Printing, and Publication Services
Installation Equipment
Lease or Rental of Equipment
Ships, Small Craft, Pontoons, and Floating Docks
Special Industry Machinery
All Sectors
BE Sector

9. 9
Content-based approach: EU TED
The “innovation” content of European procurement actions, 2006-2010
Percentage of actions, by 2-digit CPV product code (top 20)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Research and development services and related consultancy …
IT services: consulting, software development, Internet and …
Real estate services
Postal and telecommunications services
Printed matter and related products
Software package and information systems
Recreational, cultural and sporting services
Radio, television, communication, telecommunication and …
Laboratory, optical and precision equipments (excl glasses)
Administration, defence and social security services
Business services: law, marketing, consulting, recruitment, …
Education and training services
Architectural, construction, engineering and inspection services
Office and computing machinery, equipment and supplies …
Construction work
Installation services (except software)
Industrial machinery
Security, fire-fighting, police and defence equipment
Repair and maintenance services
Sewage, refuse, cleaning and environmental services
Innovation-related
Innovation-related, value weighted
Source: OECD analysis of TED data. Sample with descriptions available excludes Ireland, Italy and the United Kingdom.

10. • Rich set of data with clear limitations
– Currently no scope for international comparisons.
– Scope limited – interpretability.
– Potential for analytical uses within relevant
population
• Possible next steps
– Textual analysis of TED, CPV- NAICS linking
– Link supplier names to publicly available business
data (employment, turnover, R&D expenses, IPRs)
– Link to Innovation Survey / R&D micro-data
Concluding remarks
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11. Thanks
Questions.
For further information on the project:
silvia.appelt@oecd.org
fernando.galindo-rueda@oecd.org
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