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Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques d’innovation » Dr. Bertrand Wert Magdeburg , 15 June 2010 RAPIDE final – Conference Bringing innovation to the market

Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

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Page 1: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

Public procurement of

innovation:

new developments

DG Entreprise et Industrie

Direction D « développement des politiques d’innovation »

Dr. Bertrand Wert

Magdeburg , 15 June 2010

RAPIDE final – Conference

Bringing innovation to the market

Page 2: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

Overview of presentation:

1. Current situation & current innovation policies in the EU

2. New orientations of Europe 2020 & the European Research and Innovation plan: mobilizing the demand…

3. How to cross fertilizes initiatives/ dynamics?

Page 3: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

Innovation leaders: Switzerland, Sweden, Finland, Germany, Denmark, UK

Innovation followers: Austria, Ireland, Luxembourg, Belgium, France, NetherlandsModerate innovators: Cyprus, Iceland, Estonia, Slovenia,

Czech Republic, Norway, Spain, Portugal, Greece, ItalyCatching up countries: Malta, Hungary, Slovakia, Poland,

Lithuania, Croatia, Romania, Latvia, Bulgaria, Turkey

Summary innovation performance EU Member States (2008 SII)

Overall national innovation performances are diverse

Source: European Innovation Scoreboard 2009: http://ec.europa.eu/enterprise/policies/innovation/facts-figures-analysis/innovation-scoreboard/index_en.htm

1. Current situation…

Page 4: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

Overall regional innovation performances are diverse

Source: European Regional Innovation Scoreboard 2009: http://www.proinno-europe.eu/sites/default/files/newsroom/2010/02/I981-DG%20ENTR-Report%20RIS%20(Web).pdf

2. Current situation…

Scoreboard is able to replicate the methodology used at national level in the European Innovation Scoreboard, using 16 of the 29 indicators used in the EIS for 201 Regions across the EU27 + Norway. There is considerable diversity in regional innovation performances The most innovative regions are typically in the most innovative countries. Regions have different strengths and weaknesses Regional performance appears relatively stable since 2004

Page 5: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

From research & development policies, to innovation policies

Lisbon strategy (2000) and its revision: the Broad-Based strategy (2006)

Aho’s report (2006) and the demand side policy approach

i.e. the Lead Market Initiative (2008-2011) Market and societaly driven more than technology push…

1. Innovation policies in the EUExample of the Lead Market Initiative

Page 6: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

Supply-side measures

Demand-side measures

- regulation- procurement

- R&D fu

nding

- Equity

support

- Fis

cal m

easu

res

- standardisation- clusters…

Package = LMI

Complementing supply-side innovation policy

1. Innovation policies in the EUExample of the Lead Market Initiative

Page 7: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

StandardisationLabelling

CertificationLegislation

Public Procurement

Complementary Actions

Sector-specific

networks of Contracting Authorities

to foster demand for innovation

EU Recommendation

for interoperability

Financial support (CIP) for market

replication projects

Guide on funding available for RE demonstration

and pilot projects

Product performance

standards

e-Health

Sustainable constructio

n

Protective textiles

Bio-based products

Recycling

Renewable energies

2nd generation of Eurocodes

Revision of the PPE Directive

SMEs guide on collaborative

working schemes in construction

Adopting minimal energy

performance requirements

Waste Framework Directive

Lead

Mark

et

Are

as

Policy tools

Screening of national building

regulations

CEN Packaging Standards

Introduce the Electronic Health Insurance Card

Training platform for buyers and

users

FP7 call on bio-refinery pilot

plants

Mandatory national

targets for 2020

Running activities in 2010

EU Patient Smart Open Services

large scale pilot funded

Inventory of legislation

affecting bio-based products

Inventory of all relevant

standards

1. Innovation policies in the EUExample of the Lead Market Initiative

Page 8: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

Public procurement: Public Procurement Networks (LMI)

Situation: Too much focus on initial costs:

many key decisions are taken on the basis of the lowest costs instead of quality, safety and environmental criteria and life-cycle costs.

Action: Establish a network between public authorities in charge of procuring sustainable construction

1. Innovation policies in the EUExample of the Lead Market Initiative

Page 9: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

From September 2009 to September 2012: 3 networks

1/ “ENPROTEX”: Firebuy (Lead), the National Procurement Agency for the fire and rescue service in England (UK), Belgian Ministry of the Interior IBZ (BE), Dutch national Disaster Response Agency LFR (NL)

http://www.enprotex.eu/index contact: [email protected]

Potential results: establishing and sustaining a specialised platform of European Public Procurement, cooperation among public procurers; providing an interface with both end-users and manufacturers, forward commitments for the procurement.

1. Innovation policies in the EUExample of the Lead Market Initiative

Page 10: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

From September 2009 to September 2012: 3 networks

2/ “SCI-NETWORK”: ICLEI (lead) Local Governments for Sustainability (Europe), Transport for London TFL (UK), City of Torino (IT), Department for Environment, Food and Rural Affairs (UK), Dutch National Procurers Association PIANOo (NL), Culminatum, Helsinki Region Centre of Expertise (FI), University of Klagenfurt (AT), Motiva, National Agency for Energy Efficiency and Renewable Energy (FI) http://www.iclei.org/procurement contact: [email protected]

Potential results: developing work Streams and Discussion Groups on https://eulab.viadesk.com in 1. Sustainable renovation - innovative approaches, 2. New technical solutions - innovative solutions for energy efficient buildings, 3. Procuring innovation - procedures and methods, 4. Developing a business case for sustainable construction – life-cycle/whole-life costing (LCC/WLC), 5. Financing & contracting sustainable buildings – innovative solutions, 6. Environnemental standards - applications in construction procurement.

Public authorities who are interested in participating in the online working groups should send an e-mail to [email protected] stating their areas of interest.

1. Innovation policies in the EUExample of the Lead Market Initiative

Page 11: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

From September 2009 to September 2012: 3 networks3/ “LCB-HEALTHCARE”: Department for Business Innovation and Skills BIS (UK) (lead), Netherlands Organisation for Applied Scientific Research TNO (NL), Norwegian Directorate for Health Affaires(NO), Cracow Rydygier Hospital (PL), Department of Health DH (UK), European Health Property Network EuHPN (NL) http://lowcarbon-healthcare.eu/ contact: [email protected]

Potential results: Develop a sustainable, self-funding, trans-national network of public sector and related organisations, Undertake a series of activities that will stimulate demand for, and support procurement of, innovative solutions, Undertake at least one lead market demonstrator pilot in each of the four participating countries , Create a Low Carbon Buildings Hub for health care procurement professionals and the European supply chain, Disseminate the lessons to both the European health care sector and beyond to other public sector procurers

1. Innovation policies in the EUExample of the Lead Market Initiative

Page 12: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

2. New orientations of Europe 2020 http://ec.europa.eu/growthandjobs/pdf/complet_en.pdf

3 thematic priorities Smart growth: developing an economy based on knowledge and

innovation

Sustainable growth: promoting a more efficient, greener and more competitive economy

Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion

5 EU headline targets – translated into national onesincluding 3% investment in R&D (% of EU’s GDP)

7 initiatives majeures incluant l’“Union pour l’innovation”: Innovation Union, Youth on the move, A Digital Agenda for Europe, Resource efficient Europe, An industrial policy for the globalisation era, An Agenda for new skills and jobs, European Platform against Poverty

Page 13: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

2. New orientations of Europe 2020

Smart GrowthSmart Growth Sustainable Sustainable GrowthGrowth

Inclusive Inclusive GrowthGrowth

Innovation« Innovation Union »

Climate, energy and mobility

« Resource efficient Europe »

Employment and skills

« An agenda for new skills and jobs »

Education« Youth on the move »

Competitiveness« An industrial policy for the globalisation 

era »

Fighting poverty« European platform against poverty »

Digital society« A digital agenda for 

Europe »

Page 14: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

2. New orientations of Europe 2020 Orientations of the European Research & Innovation Plan

• Focusing R&D and innovation on societal challenges Climate, resource efficiency, health, demographic change

• Broadening policy scope of innovation Support for non-technological, design, services, user innovation and

innovation in public sector/services

• Ensuring partnership and coordination Between policies, demand and supply side actions Between EU, national, regional policies, instruments

• Strengthening innovation chain - from ideas to market Accelerate the path from innovative ideas to new products Stronger demand side - Public procurement, standards, regulations

Page 15: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

2. New orientations of Europe 2020

• Problems Lack of harmonised regulations for innovations (e.g. type

approvals of green vehicles) EU standard setting too slow Public procurers lack incentives, knowledge or scale to benefit

from innovation

• Actions14. Screen regulatory frameworks linked to Partnerships (2011) 15. Independent review of EU standardisation system (2012)+

anticipate standards in R&D projects 16. Member States to set aside budgets for SBIR type

procurements, with EC technical/ financial support (2012)

“A Single Innovation Market”

Page 16: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

Guides, recommandations, networking, legal clarification, development of innovation policies, financing…

2006: .STandards in European Public Procurement lead to INnovation http://standards.eu-innova.org/Pages/Steppin/default.aspx

2007: .Guide on dealing with innovative solutions in public procurement – 10 elements of good practice http://www.proinno-europe.eu/admin/uploaded_documents/procurement_manuscript.pdf

2008: .3 Public Procurement Networks/ 3 réseaux d’acheteurs publics http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/files/ppn_factsheet_en.pdf

October 2009: .Workshop “Linking Innovation and Public Procurement” http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/pp_workshop_en.htm

3. How to cross fertilizes initiatives/ dynamics?

Page 17: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

March 2010: .“Promoting Innovation through Public Procurement: Best Practice & Networking” http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/pp_conference_en.htm

May 2010: .Starting of the EEN working group http://www.enterprise-europe-network.ec.europa.eu/index_en.htm .The INNO-Partnering Forum: a consortium of 6 european innovation agencies: Enterprise Ireland (IE), FFG (AT), SenterNovem (NL), Tekes (FI), Technology Strategy Board (UK) and VINNOVA (SE) Unleashing the innovation potential of European SMEs http://ec.europa.eu/enterprise/policies/innovation/future-policy/consultation/files/138_inno_forum_en.pdf

July 2010: .“Feasibility study on future EU support to public procurement of innovative solutions”.Starting of the Enterprise Europe Network specific actions on public procurement + a Working Group dedicated to “Innovation – public procurement – SMES” in order to deliver guidance on SMEs access to Public Procurement and guidance to procurers to foster SMEs involvement in their calls: contact: Toni Saraiva [email protected]

September 2010: Belgian EU Presidency organises a seminar on: “From knowledge to competitiveness” where public procurement of innovation will be on the agenda. For more information contact: [email protected]

2011: .Pilot project PPN de 2nd generation + financing system of innovative procurements. PCP networks/PCP networks 2nd generation - DG INFSO

3. How to cross fertilizes initiatives/ dynamics?

Page 18: Public procurement of innovation: new developments DG Entreprise et Industrie Direction D « développement des politiques dinnovation » Dr. Bertrand Wert

References:

Thanks for your attention!

Homepage Lead Market Initiative & procurement:

http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/public-proc_en.htm

“Innovation unlimited” blog: http://blogs.ec.europa.eu/innovationunlimited

[email protected]