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Public Procurement and Innovation – Ressurecting the Demand Side
Abstract
Demand is a major potential source of innovation, yet the critical role of demand as a key driver of innovation has still to be recognised in government policy. This article discusses public procurement as one of the key elements of a demand-oriented innovation policy. The paper starts by signaling the new significance of public procurement for innovation policy strategies at the EU level and in a range of European countries. It then defines the concept of public procurement and embeds this concept within a taxonomy of innovation policies. The rationales and justifications of public procurement policies to spur innovation are discussed, followed by a consideration of the challenges and potential pitfalls as well as appropriate institutional arrangements and strategies, including some recent empirical examples of good practice. It concludes by confronting the public procurement approach with two of the most common objections to it and by considering future prospects.
... While previous literature on e-procurement has emphasized digitalization and efficiency gains (Gunasekaran and Ngai, 2008;Vaidya et al., 2006), this technocratic lens often neglects the institutional and strategic complexity of public procurement. In the European context, it is deeply embedded in regulatory frameworks and political objectives, including innovation promotion, SME inclusion, and digital sovereignty (Edler and Georghiou, 2007;Edquist and Zabala-Iturriagagoitia, 2012;Uyarra et al., 2014). This paper adopts the latter perspective, situating public procurement as a policy instrument with transformative potential for the European digital ecosystem. ...
... It is important to distinguish between e-procurement and public procurement as two conceptually and practically distinct research strands. While e-procurement focuses on the digitization of procurement processes and the resulting administrative efficiencies (Gunasekaran and Ngai, 2008;Neupane et al., 2012), public procurement research is mainly concerned with the strategic governance of purchasing decisions to achieve broader societal goals (Edler and Georghiou, 2007;Edquist and Zabala-Iturriagagoitia, 2012). These include fostering innovation, addressing market failures, and enhancing digital sovereignty. ...
... Despite these early insights, (Edquist and Hommen, 2000) argue that the promotion of innovation through public procurement has even declined in Europe during the 1990s due to the emergence of more stringent competition regulations. These regulations, while aimed at ensuring fairness and efficiency, have inadvertently limited the capacity of public procurement to serve as a catalyst for innovation (Edler and Georghiou, 2007). More recently, however, the publication of numerous articles on public procurement promoting innovation (PPPI) reflects a renewed and heightened interest in the topic , Amann and Essig, 2015,Chicot and Matt, 2018, Wesseling and Edquist, 2018. ...
The growing dominance of large technology companies in Europe’s digital markets raises concerns about innovation concentration, limited competition, and reduced technological sovereignty. Public procurement represents a powerful yet underutilized instrument to address these dynamics by enabling smaller firms to compete, innovate, and scale within critical sectors. This study examines how public procurement can strengthen innovation capacity and economic diversity in the European information and communication technology sector. Focusing on the participation of startups and small businesses, we provide large-scale empirical evidence on structural barriers and market concentration in cross-border procurement practices. Our studyreveals that public procurement systems often reproduce existing power asymmetries, despite policy ambitions to foster inclusivity and competition. Our findings highlight the significance of procedural complexity, limited outreach, and insufficient institutional capacity as key obstacles to startup participation. Moreover, we show that small and medium sized companies are far from homogeneous, necessitating targeted policy responses rather than uniform support measures. By framing startup inclusion as a systemic condition for innovation and digital sovereignty, the study contributes to ongoing theoretical debates on demand-side innovation policy and strategic governance. It also offers actionable insights for policymakers and procuring agencies aiming to design inclusive, innovation-oriented procurement ecosystems. In doing so, the study advances the academic discourse on public procurement and provides practical insights to support a more competitive and resilient European ecosystem by leveraging public procurement volume.
... Within this context, public procurement (PP) is among the primary operational tools for demand-side policies (Dalpé et al., 1992;Edler & Georghiou, 2007;Edquist & Zabala-Iturriagagoitia, 2020). The Organisation for Economic Co-operation and Development (OECD) defines PP as "the purchase by governments and state-owned enterprises of goods, services and works" 3 : within the OECD area, PP accounts for nearly 30% of national government expenditures and represents over 13% of GDP; over 60% of OECD countries' procurement spending remains at the sub-national level. ...
... The idea that PP is a powerful tool for innovation is grounded on innovation models that emphasize the role of demand in driving innovation and spurring technological change (Dalpé, 1994;Edquist and Hommen, 1999). Although the interest in the role of demand-side tools is not new, it has witnessed a renovated attention from 2008 onward: on the one hand, such growing interest reflects policymakers' dissatifaction with supply-side innovation policies (Edler & Georghiou, 2007); on the other hand, it arises from the consideration that PP represents an opportunity for increasing public spending efficiency, notably after the 2008 financial crisis and consequent spending cuts (Kundu et al., 2020). ...
... Finally, public procurement is used in our analysis as a proxy for demand-side eco-innovation policies, but it must be underlined that there are other demand-side tools that are not accounted for in our model. Yet, as noted in the earlier sections of the article, public procurement is one of the primary operational instruments for demand-side policies across developed countries (Dalpé et al., 1992;Edler & Georghiou, 2007;Edquist & Zabala-Iturriagagoitia, 2020). ...
Achieving net-zero emissions alongside sustained economic growth necessitates unprecedented innovation efforts. Demand is a pivotal driver. This paper presents novel evidence concerning the relationship between public procurement for green products and services (GPP) and firm innovation. GPP widens market niches for new green goods and accelerates the adaptation of conventional goods to meet more rigorous environmental standards. This, in turn, fosters the creative response of the firm, stimulating innovation in both new green products and new green processes. The empirical analysis focuses on US publicly listed innovative companies from 2004 to 2016. The results demonstrate that increases in GPP stimulate green innovation overall, particularly process-related. Moreover, we observe that this is more pronounced in larger and older firms, as well as in those endowed with substantial knowledge and organizational capital. These results provide valuable insights for designing effective policy frameworks to expedite the green transition while ensuring economic growth.
... Palabras clave: Sirius; Difusión tecnológica; Fapesp; Políticas de innovación; Desarrollo tecnológico INTRODUÇÃO R ecentemente, a literatura sobre políticas de inovação passou a investigar o papel do Estado na promoção de um tipo de instrumento de estímulo ao processo inovativo para o setor privado que não é muito frequentemente destacado e que vai bastante além daquelas que já vinham sendo consideradas tradicionalmente como boas práticas no fomento da ciência e tecnologia (C&T), tais como a subvenção econômica, os incentivos fiscais à P&D e o fortalecimento das instituições de C&. O foco passou a se concentrar em como certas ações rotineiras do setor público, tais como as compras governamentais, somadas à regulação de diferentes setores, poderiam ser usadas para fomentar as atividades de pesquisa e desenvolvimento (P&D) nas empresas, estimulando assim o aparecimento de novos produtos, processos e mercados (RAUEN, 2017b;EDLER, 2009;(EDLER & GEORGHIOU, 2007;KOK, 2004). ...
... Denominadas políticas de inovação pelo lado da demanda, essa série de instrumentos tem justamente como função usar o poder de compra do Estado e suas ações para criar condições para estimular a demanda por inovações. Além disso, outra importante função consiste em estimular a melhoria e a adoção de novas tecnologias pelo próprio Estado, abandonando produtos e processo obsoletos e promovendo mais qualidade nos serviços oferecidos para a sociedade (EDLER, 2009;EDLER & GEORGHIOU, 2007). ...
... Nesse sentido, pode-se afirmar que na economia brasileira, o Estado é o maior comprador de bens e serviços (RAUEN, 2017b). Com esse poder em mãos, o Estado pode usar as compras governamentais como instrumento de estímulo para o desenvolvimento científico, tecnológico e de inovação no país (SQUEFF, 2014;MOREIRA & VARGAS, 2009;FOSS & BONACELLI, 2016;EDLER & GEORGHIOU, 2007). ...
O Sirius é considerado a mais complexa infraestrutura científica brasileira. Este aspecto possibilitou ao projeto estimular a pesquisa, o desenvolvimento e a capacitação tecnológica nas empresas que produziram alguns dos insumos, serviços e produtos inovadores utilizados na sua construção. Este artigo analisa um dos instrumentos aplicados para promover a difusão tecnológica dessa cadeia de fornecedores, a chamada induzida da Fundação de Amparo à Pesquisa do Estado de São Paulo (Fapesp), uma das principais agências de fomento do Brasil. A partir de entrevistas com os stakeholders desse processo, o estudo revelou a importância da troca de conhecimento entre quem demanda a nova tecnologia e quem a produzirá para o sucesso das Políticas de Inovação pelo Lado da Demanda. Em complemento, foi possível observar que o estímulo ao desenvolvimento tecnológico pode ser ainda mais acelerado e eficaz quando esse relacionamento acontece com uma demandante capacitada tecnologicamente e aberta ao diálogo.
... Public Procurement of Innovation (PPI) is a strategic approach where public agencies procure goods or services that do not yet exist but are essential for fulfilling specific functions (Rolfstam, 2013;Edquist, 2015). As a policy measure 8 , PPI fosters innovation at the intersection of the public sector and industry, signaling demand for innovative solutions and motivating suppliers to invest in R&D (Edler and Yeow, 2016;Edler and Georghiou, 2007;Bleda and Chicot, 2020). Through the establishment of viable markets for innovation, governments facilitate investment and promote market growth (Crespi and Guarascio, 2019;Selviaridis et al., 2023). ...
... Governments employ various policy measures to stimulate innovation, broadly categorized into supply-side and demand-side approaches (Edler and Georghiou, 2007 PPI involves public agencies procuring products, services, or systems that do not yet exist but are necessary to fulfill specific functions (Uyarra et al., 2020). As a substantive policy measure, PPI incorporates various policy instruments-such as technological foresight, market consultations, R&D grants, and intellectual property rights (IPR) mechanisms-to facilitate innovation outcomes throughout the procurement process (Grimbert and Zabala-Iturriagagoitia, 2024). ...
... PPI projects can yield significant performance outcomes for both public organizations and suppliers (Edler and Georghiou, 2007). The public sector can act as an early adopter, fostering innovation internally and externally, thus enhancing public service effectiveness and organizational efficiency (Georghiou et al., 2014). ...
This study examines the relationship between strategic management (SM) practices and performance in public sector innovation, focusing on Public Procurement of Innovation (PPI) as a policy mechanism to address societal challenges. Analyzing data from 185 PPI projects in Italy using Structural Equation Modelling, the findings show that strategic goal setting enhances performance outcomes, including local economic growth, community benefits, innovation promotion, and intellectual capital creation. Intra-agency collaboration facilitates the use of innovation policy instruments but does not directly improve performance. In contrast, instrument utilization positively affects strategic outcomes and mediates the link between goal setting and performance. This study contributes to procurement, innovation policy, and SM literature by demonstrating how procurement can drive innovation and societal impact. It provides actionable insights for managers and policymakers to strengthen PPI effectiveness through clear goal setting, internal collaboration, and targeted policy instruments.
... There are several theoretical rationales for linking public procurement and innovation (PPI), such as (1) innovation risks and market failure necessitating government investment, (2) the systemic nature of innovation and technology development, or (3) the role of public procurement in convening and catalysing innovation in public and private organizations by focusing on grand challenges or 'missions' (Edler and Georghiou 2007;Marens 2008;Martin 2016; Sánchez-Carreira, Peñate-Valentín, and Varela-Vázquez 2019; Caravella and Crespi 2020). In addition, public procurement is being re-envisioned as a tool to build domestic industrial capabilities. ...
... For example, Dalpé, DeBresson, and Xiaoping (1992) demonstrated that the government is often the 'first user' of new products and technologies, which has been further developed into the idea that the government can act as a 'lead user' to support the diffusion of innovation (Edler and Georghiou 2007;Alic 2008). Innovation, by its nature, is fraught with risk and uncertainty, which can lead to underinvestment or suboptimal allocation of resources. ...
... At the same time, innovation policy discourse itself has shifted towards a more structuralist or systems-based approach (Fagerberg 2017;Schot and Steinmueller 2018), highlighting that the development and diffusion of innovation rely on the feedback or needs of users. The systems of innovation approach suggests the use of procurement as a demandside innovation policy instrument (Edquist and Hommen 1999;Edler and Georghiou 2007). Innovation management and policy scholars have made several contributions in recent years to the field by studying procurement and innovation policy in specific spatial and sectoral contexts (Caravella and Crespi 2020;Divella and Sterlacchini 2020), particularly regarding the impact of public procurement on innovation and industrial change (Crespi and Guarascio 2019). ...
In this paper, we review recent research on the impact of public procurement with a focus on methods and data. The growing interest in mobilizing procurement for strategic purposes, such as innovation, economic growth, social value, and sustainable development, has brought to light significant knowledge gaps on the impact of public procurement on products, solutions, actors, and markets. Using a comprehensive approach to analyse scholarly understandings of procurement, we find several notions of policy-driven public procurement and identify challenges in distinguishing between strategic and ‘regular’ public procurement. We then provide a critical discussion on data, examining the currently available data sources and highlighting the need for greater data integration and linkage at the firm level to enable the causal identification of innovation and other impacts from participation in procurement. To address these gaps, we propose a set of actions for research and practice.
... Public procurement's potential as a driver for innovation has been widely recognized in recent studies, emphasizing the role of government demand in shaping markets and fostering new technologies. According to Edler and Georghiou [14], public procurement can act as a "lead market" that encourages suppliers to develop innovative solutions that might otherwise remain uncommercialized due to high risk or cost. This perspective is reinforced by Uyarra et al. [13], who highlight the importance of policy coherence and strategic alignment between procurement practices and innovation goals to maximize the impact on national innovation systems. ...
... Furthermore, digitalization emerges as a transformative force in modern public procurement, enhancing transparency, efficiency, and stakeholder engagement [17]. Integrating sustainability criteria alongside innovation in procurement decisions has also been shown to generate positive externalities that align with global agendas such as the UN Sustainable Development Goals [4,14,15,16]. ...
This paper examines the complex role of innovative public procurement (IPP) as both a strategic mechanism and a systemic instrument within the European Union, emphasizing its voluntary adoption by Member States while being closely monitored by public authorities. More than a mere procedural tool, IPP acts as a catalyst for sustainable economic transformation, enabling public entities to stimulate innovation while addressing social, financial, and environmental challenges. By directing demand toward innovative goods, services, and technologies that would otherwise struggle to enter the market, innovative procurement helps build a dynamic ecosystem for progress, innovation stimulation, and increased competitiveness. The study outlines the structural and functional dimensions of IPP, highlighting its ability to balance economic efficiency with positive and innovative impacts on national economies. Furthermore, the paper underscores IPP's contribution to developing institutional competencies and fostering an innovation-driven organizational culture in the public sector, aligned with good governance principles. The conclusions position innovative public procurement not only as a procurement strategy but as a public policy instrument with real potential to generate inclusive growth and systemic change in line with the evolving needs of a rapidly changing society.
... Cohen, Nelson, and Walsh (2002) show that firms engaged with academic institutions are more innovative, including in eco-innovation. Additionally, government procurement policies focused on high-tech products significantly influence eco-innovation through demand-side pressures (Weber and Rohracher 2012;Kirchherr, Hartley, and Tukker 2023), with governments driving eco-innovation by adopting environmentally sound technologies and setting sustainability standards (Edler and Georghiou 2007;Rogge and Reichardt 2016). ...
... Government procurement policies are a form of coercive pressure when they mandate or strongly favor ecoinnovative solutions. Such policies compel firms to align their innovation strategies with high-tech, environmentally friendly products (Edler and Georghiou 2007;Flanagan, Uyarra, and Laranja 2011;Weber and Rohracher 2012), thereby coercing them to adopt eco-innovation as standard practice to maintain competitiveness and eligibility for government contracts (Rogge and Reichardt 2016;Demircioglu and Audretsch 2017;Fagerberg 2018). ...
Numerous studies have examined whether financial and governance characteristics within firms promote eco-innovation. However, the influence of institutional contexts on eco-innovation, which is crucial for shaping effective policy and establishing key conditions, has not been adequately explored. Drawing on institutional, stakeholder, and upper-echelon theories, our study investigates the mechanisms through which a national innovation system (NIS) influences firms' commitment to eco-innovation. We specifically focus on the manufacturing sector worldwide, over the period from 2007 to 2018. Our findings reveal that the NIS is negatively associated with eco-innovation, contrary to expectations. This prompted us to delve deeper into three key components of the NIS. The analysis showed that although the quality of research institutions and government procurement of high-tech products negatively correlate with eco-innovation, university-industry collaboration positively affects it. Further exploration identified that environmental management teams and nonexecutive directors are critical moderators through which the NIS can enhance a firm's capacity for eco-innovation. Our evidence suggests several practical implications for theory, management practices, and policy formulation.
... In 2021, these procurement activities represented a substantial portion of Gross Domestic Product (GDP) in member states of the Organisation for Economic Co-operation and Development (OECD), approximately 13% [5]. Traditionally, the focus of research on public procurement has been its role as a policy instrument, with studies often exploring specific contexts such as sustainability [6,7], innovation [8][9][10][11], and market competitiveness [12]. Additionally, recent years have seen a growing interest in the development of indicators and frameworks for auditing, aimed at curbing fraud, corruption, and other irregularities in procurement processes [13][14][15][16][17][18]. ...
... Public procurement markets are commonly classified into developmental stages, starting with the public sector creating new markets and followed by market expansion and consolidation through the state's purchasing power [11,35]. Hommen categorizes these public procurement markets based on their role in fostering innovation [2]. ...
... Several SDGs are supported by this alignment, such as SDG 12 (Responsible Consumption and Production) and SDG 8 (Decent Work and Economic Growth) (Murray, 2004). By designing products for lifespan, reuse, and recycling, businesses that embrace the circular economy concepts contribute to SDGs 12 and 13 by conserving resources and decreasing waste (Edler & Georghiou, 2007). ...
... Policies in public procurement that include innovation in contracting can also create demand for green goods and services. Thus, governments can act as lead customers in specific markets to support demand for novel solutions that alleviate environmental and social issues (Edler & Georghiou, 2007). ...
Innovation has long been a topic of interest in the fields of economics and
management. As outlined by Schumpeter in his Theory of Economic Development, its
pervasive role comprehends qualitative changes in the way firms organize their productive and
managerial processes. In turn, innovation alters the way people and societies perform their
activities. This can mean slight incremental changes about how (and what) individuals
consume, but it also encompasses structural shifts that alter the very dynamics of social
fabrics, how people interact with each other, and the extent to which the productive systems
create (or mitigate) stress on nature. Although this debate can lead us back to the origins of
modern societies, the speed and rate of innovation has accelerated enormously since the era
of the first industrial revolutions. This has sparked intense discussions about the upsides and
downsides of innovation as a source of welfare.
Far from settled, these matters have gained prominence in face of the widespread
systemic crises that are currently affecting societies worldwide. Issues related to climate
change, social inequalities, pandemics, and geopolitical turbulences illustrate the main
“wicked problems” of our time. Innovation is instrumental in this respect. It can either enable
or constrain these trends. Abundant examples are out there about how innovation has made
our lives easier and societies wealthier. But this is one side of the coin. An increasing amount
of literature has illustrated how innovation can have deleterious effects in terms of the natural
environment, access to necessary goods and services, and even in the dynamics of political
systems. To that we might add the fact that economic growth cannot be deemed as a limitless
target. Instead, more rational thinking about it is needed, and we need to better accommodate
the notion of development in this domain (which might even mean degrowth strategies in
some cases).
In this collection, we aim at gathering complementary perspectives that allow a
thorough look into the essence of innovation economics and management, thus critically
exploring the possibilities of innovation in building a more sustainable future. It deals with
reflections and prospects about the concept of innovation and its meaning for those involved
in this exciting topic.
As part of our endeavor to integrate diverse and complementary perspectives, we
reached out to and collected the insights of authors from both the National Research
University - Higher School of Economics (Russia) as well as the School of Applied Sciences -
University of Campinas (Brazil) as part of our effort to integrate diverse perspectives. This
collaborative effort has resulted in a comprehensive collection of twenty-nine meticulously
curated articles. As a result, the four articles have been grouped into four distinct chapters,
each delving deeply into the structural pillars underlying innovation.
We aim to provide a multifaceted examination of innovation by incorporating scholars'
viewpoints from these two renowned institutions and encompassing various contexts and
approaches. As a result, the resulting chapters offer rich analysis and commentary that
explores the foundational elements that propel innovation in the modern era. This structure
5
allows us to demonstrate the intricate dynamics and the varying theoretical frameworks that
researchers from different academic and cultural backgrounds employ.
This compilation aims to give the reader a holistic and nuanced understanding of
innovation. We illuminate its complexities and the factors influencing its development and
implementation globally across different regions and sectors.
Chapter 1 contains seven essays on the Innovation Journey and Evolution. As a reader,
you can navigate the evolutionary nature and trajectories of innovation in human societies
through each contribution. As a result of these views, innovation is viewed not simply from
the perspective of what technologies can do but from the perspective of how societies
function, how individuals interact, and how value creation has changed over time concerning
these factors. There is a nuanced understanding of such processes and their interplay with old
and new challenges that humanity faces through both empirical and theoretical viewpoints
that are integrated to offer a nuanced understanding of these processes.
Chapter 2 consists of nine chapters focusing on innovation from economic and societal
perspectives. As a result, it provides a complementary view of the inherent relationship
between modes of production, social elements, and the changing notion of progress inherent
in all of these elements. With the recent rise of the ecosystem concept as a means to
integrating knowledge and capabilities to promote development, we can also see a change in
the focus from innovation as an agent-based event to a network-oriented process, with a
recent shift in innovation as an agent-based event to a network-oriented process. This has
resulted in a renewed interest in entrepreneurship to achieve breakthroughs in science and
technology.
Chapter 3 focuses on the Driving Forces of Innovation. The seven essays offer an insight
into the elements that stimulate and steer innovation, i.e., the contextual elements that
channel technological efforts in one direction or another. We believe that these phenomena
are critical to understanding how we got to where we are today and how we can shape a better
future by creating and combining the necessary ingredients to achieve it.
We will finally have the opportunity to take a closer look at the complexities involved
with Innovation Policy and Sustainable Development in Chapter 4. Throughout the four essays
in this book, the authors devote considerable attention to how policy can be used to guide
innovation in order to achieve the grand challenges that we are facing now - and that we will
likely be facing in the future as well.
To sum up, we anticipate that the contributions within this collection will substantially
enhance critical awareness regarding both the potential and the limitations of innovation in
terms of tackling the "wicked problems" that have far-reaching effects over a wide variety of
countries around the world. Rather than simply providing answers to students, scholars,
policymakers, and managers alike, this book aims to provoke new questions and avenues of
interest for those interested in public policy, administration, and academia.
There are times when it is imperative to step back and examine the current zeitgeist
we are living in in order to determine which aspects of the current zeitgeist remain relevant,
as well as which parts have lost their relevance as foundational elements of society. As we see
it, these contributions are precisely what is needed to create a sense of necessary unease
among the readers. When assessing innovation outcomes, it is important to recognize that it
is a non-neutral event (or series of occurrences). Inevitably, innovation will happen, but its
effects are not inherently positive or negative, they are just inevitable. In the end, the impact
of global warming will depend on the way in which it is managed by governments, businesses,
and individuals. In order to come to terms with this reality, we must come to terms with it as
soon as possible.
... On the demand side, the government supports enterprise innovation mainly through public procurement and trade control. Public procurement effectively allows the government to participate in market operations from the demand side (Edler and Georghiou 2007;Guerzoni and Raiteri 2015;Edquist and Zabala-Iturriagagoitia 2020). In developed countries, policymakers are paying increasing attention to demand-side innovation support policies, with sustainable procurement as the core (Miller and Lehoux 2020;Krieger and Zipperer 2022;Zhang and Jiang 2022). ...
... On the one hand, GPP provides a minimum market size for green innovative products and services (Bleda and Chicot 2020), reducing market risks faced by businesses in green innovation. On the other hand, GPP expands the market demand for innovative green products and services, potentially enabling firms to achieve economies of scale and scope in a short period (Edler and Georghiou 2007). By alleviating financing constraints through government resources, it promotes businesses to engage in green innovation activities. ...
Based on a database of over 650,000 green public procurement (GPP) contracts, we apply machine learning and text analysis methods to identify GPP. Our study examines the impact of GPP on green innovation using Chinese companies listed on the A-share market. The study has the following findings. (1) GPP significantly promotes green innovation by alleviating financing constraints and incentivizing green practices. (2) Enterprises in the maturity or growth stage, non-heavily polluting firms, and companies in regions with stringent environmental regulations are more likely to benefit from GPP. Additionally, GPP initiatives from local governments, centralized procurement, and university-based programs provide stronger incentives for green innovation. (3) Demand-side GPP and supply-side subsidies for green innovation have coordination effects. Corporate green innovation is positively influenced by the “Demand-side procurement First, Supply-side subsidies Later (DFSL)” and the “Demand-side procurement and Supply-side subsidies Simultaneously (DSS)” policies.
... St. 7 2008-2009). Edler and Georghiou (2007) describe public procurement as an innovation policy tool that may drive innovation when oriented towards innovative products and solutions, but also as an underused one beginning to receive more attention at a European level. The emphasis on procurement is again linked to the descriptions of the market for welfare technology as immature, the lack of public and private demand for it, and the insufficient procurement competence of municipalities (The Norwegian Directorate of Health 2012). ...
... Public procurement can address social problems in several ways. It promotes efficient use of public funds, strengthening the financial basis for social services (Martin, 2002), and can incentivize innovation, improving technologies and services (Edler and Georghiou, 2007). Social procurement allows public organizations to generate social value directlyby buying from non-profitsor indirectly by requiring suppliers to employ individuals in vulnerable labour market positions (Barraket, 2020). ...
Purpose - This study aims to examine the preparation of a complex Social Impact Bond (SIB) project in Finland, exploring how challenges and solutions reflect the interplay between new public management (NPM) and new public governance (NPG) logics. It contributes to debates on the institutional adaptability of SIBs beyond Anglo-American contexts.
Design/methodology/approach - The authors conduct a longitudinal case study of the Children's SIB II in Finland, analysing data from 21 stakeholder interviews. Five preparation phases are identified and examined for governance dynamics and challenge-response logics. Findings-The findings show how SIB preparation involved hybrid governance, combining NPM tools, such as performance-based incentives, with NPG principles like trust-building and cross-sector collaboration. While many challenges were initially framed through NPM logics, their resolution often leaned towards NPG-style responses, highlighting the adaptive use of relational governance practices. A key insight is the critical role of a publicly funded intermediary in framing the SIB, mobilizing networks and embedding the instrument within national welfare discourses.
Social implications - Hybrid governance tools like SIBs can reinforce trust-based public-private cooperation and support developing responses to complex social issues, but they also require significant institutional capacity.
Originality/value - This study extends the literature on SIBs by examining their preparation in a Nordic welfare state context, distinct from the Anglo-American settings where SIBs have been most studied. It contributes novel insights into how hybrid governance unfolds in such contexts, particularly how NPG-style solutions emerge even when problems are framed through NPM logics. It also highlights the overlooked role of public institutional intermediaries in shaping SIB development beyond technical and financial coordination.
... Supply-side measures support the development of innovations by reducing the costs of innovative efforts and providing complementary resources that facilitate innovation processes. In contrast, demand-side measures aim to accelerate the introduction and diffusion of innovations by promoting the formation of markets and demand for novel solutions (Edler and Georghiou 2007). While supply-side instruments, such as research and development (R&D) subsidies, have received the most attention in research and practice, it is broadly considered that combining both kinds of measures is the most effective (Guerzoni and Raiteri 2015;Edler 2010). ...
In recent years, food packaging in Finland has been targeted by various EU-level and national policy measures and regulations aimed at driving the sector towards more sustainable practices, products, and services. To address the environmental concerns raised by the increasing production of packaging and packaging waste, for example, littering and terrestrial and aquatic pollution and the climate impacts of packaging use, the industry needs to actively develop and adopt innovative, more sustainable solutions. This article investigates how the current innovation policy in Finland has addressed and supported sustainable innovation in the field. It highlights the shortcomings of traditional innovation policy that focus on the short-term growth potential of individual companies rather than supporting systemic innovations towards more structural transformation. To achieve sustainability goals, innovations must increase recyclability and reuse of packaging materials, which necessitates systemic changes in the food packaging value chain. Thus, more comprehensive, transformative innovation policies are needed to encourage collaboration among all parties in the value chain, from material producers to retail, the food industry, brand owners, the food service sector, and regulators. Finally, the article concludes by discussing the potential, possibilities, and obstacles of adopting such transformative approaches in innovation policy.
... The innovation procurement literature (Edquist et al., 2015;Foss and Bonacelli, 2023;Aschhoff and Sofka, 2009;Edler and Georghiou, 2007) repositions public procurement as an innovation policy instrument to demand new or improved technologies and products (including services hereafter) from suppliers. It is increasingly recognised as a powerful demand-side innovation policy tool, where governments influence innovation not by directly funding research and development (R&D) but by acting as sophisticated buyers of innovative goods and services through demand articulation (Edquist and Zabala-Iturriagagoitia, 2012). ...
Purpose
Much of the supply chain innovation (SCI) literature has focused on innovation as driven by supply-side factors that often lead to incremental product changes. Such marginal innovation outcomes make suppliers less responsive to government buyers’ innovation needs for addressing societal challenges. Building on this observation, this article conceptualises how a demand-side innovation driver, namely public procurement, influences SCI radically and incrementally from downstream.
Design/methodology/approach
Employing the conceptual research approach and following established guidelines for building theory and conceptual development in management and supply chain research, we re-examine the SCI literature for existing assumptions about government innovation procurement and explain how public procurement may spur radical and incremental innovation across a supply chain. The article draws on network theory lenses to propose a framework that enhances government’s innovation-oriented procurement role in SCI.
Findings
Our supply chain innovation-oriented procurement (SCIP) framework explains that government buyers, through demand articulation (i.e. precise, or outcome-based), may stimulate focal suppliers’ responsiveness to generate their desired innovation – incremental or radical. While precise demand articulation often leads to incremental innovation, clear outcome-based demands favour radical innovation more as they allow for creative and alternative solutions. Radical and incremental innovation are not mutually exclusive and automatic. Their relationship with demand articulation is mediated by suppliers’ responsiveness (i.e. supply size and absorptive capacity), whose effect on innovation outcome is further moderated by network complexities.
Practical implications
Purchasing managers may use the proposed SCIP framework to determine the relevant demand articulation for their innovation procurements based on the nature and degree of innovation desired. Buyers will understand the crucial role of high absorptive capacity for supplier responsiveness and radical innovation even in complex supply networks. Also, buyers may better manage suppliers’ tendency to avoid innovation risks and costs associated with innovation-oriented contracts by facilitating their access to complementary innovation resources.
Originality/value
The article addresses a gap in the SCI literature with new insight into how innovation procurement as a demand-side innovation driver influences SCI in the context of the downstream supply chain in addressing societal problems. We also propose a SCIP framework that helps manage SCI efforts in innovation procurement.
... • Buscan estimular los mercados líderes en la actividad innovadora del país Nota: Edler & Georghiou (2007) La política de innovación para ser efectiva no solo debe impulsar el desarrollo económico, sino que también debe abordar desafíos sociales y ambientales urgentes. Al invertir en investigación, fomentar la colaboración y promover la educación, los gobiernos pueden sentar las bases para un futuro más próspero y sostenible. ...
This proposal seeks to explore new methods for improving English language proficiency through the use of Generative Artificial Intelligence (GAI). The results are codified into technical recommendations. These recommendations are structured in terms of prompt engineering applied to structuring the GAI's role as an English tutor, in terms of language proficiency components as handled by various theoretical conceptions of the process and components that make up second language acquisition and mastery. These prompts are structured so that their application can be integrated into instructional designs and contribute to the development of second language proficiency skills in a more organic manner and integrated with higher education curriculum.
Keywords: Conversational English, second language, prompts, GAI.
Esta propuesta busca explorar nuevos métodos para mejorar el dominio del idioma inglés a través del uso de la Inteligencia Artificial Generativa (IAG). Los resultados se codifican en recomendaciones técnicas. Se estructuran estas recomendaciones en
términos de la ingeniería de indicaciones (prompts) aplicada a estructurar el rol de la IAG como tutor en inglés, en términos de componentes del dominio del lenguaje como los manejan diversas concepciones teóricas del proceso y los componentes que conforman la adquisición y el dominio de un segundo idioma. Se estructuran estas indicaciones de manera que su aplicación pueda integrarse a los diseños instruccionales, y contribuya al desarrollo de habilidades en el dominio de esta segunda lengua, de una manera más orgánica e integrada con los contenidos disciplinares en Educación Superior.
Palabras clave: Inglés conversacional, segunda lengua, indicaciones, IAG.
... Thirdly, the demand-generating policies like procurement rules are also tilted towards large firms and MNCs because of the focus on firm size, and experience, hence supporting specialized knowledge of exisiting gold-standard technologies. It is an important observation as public procurement has been identified as crucial to the intermediation of demand and supply of innovation (Edler and Georghiou 2007;Uyarra and Flanagan 2009;Kattel and Lember 2010;Boon et al. 2011;Edler and Yeow 2016). Public procurement can enhance markets for new and existing technologies by shaping the demand environment (Chataway et al. 2016). ...
Cancer detection poses significant challenges in low-resource healthcare settings, particularly as conventional methods like mammography and Pap smear tests are tailored to the needs of industrialized nations. In recent years, the Indian MedTech sector has witnessed a new trajectory of artificial intelligence– and machine learning–driven innovations that aim to address unmet needs and challenges associated with early cancer detection in such settings. This paper examines the institutional bundles that shape innovation capacity and production capabilities within the MedTech ecosystem and foster the problem-framing and problem-solving of unmet needs of early cancer detection in India. Employing a novel Inclusive Health Innovation framework and 75 years of policy evolution, along with online stakeholder interviews in India, this paper identifies and analyses actors, networks, and knowledge and technology driving these inclusive innovation efforts. The findings of this paper provide lessons for low-resource healthcare settings utilizing emerging technologies for enhanced healthcare access.
... In the policy dimension, broader meta-narratives, shared visions and workable missionoriented programmes become resources for policy implementation. The infrastructure of policy implementation encompasses policy capacity, which manifests as an array of strategic instruments spanning demand and supply dimensions (Edler and Georghiou, 2007). On the supply side, these instruments include financial mechanisms and service provision, while demand-side tools incorporate procurement strategies, regulatory frameworks and initiatives to stimulate private sector engagement. ...
This paper develops and applies a novel systemic framework for analysing the capacities and capabilities required for successful mission-oriented innovation policies. The framework identifies six critical dimensions where both structural capacities and dynamic capabilities must align: state, technical-administrative, policy, scientific-technological, industrial and demand dimensions. We demonstrate how specific capacities and capabilities contribute to policy outcomes through an explanatory case study of Brazil’s Inova programme, particularly comparing the PAISS Industrial (bioethanol) and Inova Petro (oil and gas) subprogrammes. While PAISS Industrial’s success stemmed from strong alignment across all dimensions and effective mobilisation of existing capabilities, Inova Petro struggled, despite substantial
resources, due to misalignment between technical requirements and industry capabilities,
coupled with limited market-shaping mechanisms. The analysis reveals that successful mission�oriented policies require not just individual capacities and capabilities, but their systematic
alignment and effective mobilisation across all dimensions. Furthermore, sophisticated design
and implementation capabilities are central in translating capacity into impact, particularly when
building upon previous experiences. The findings have significant implications for policy design,
suggesting that mission-oriented policies should consider existing capacities and capabilities,
while simultaneously serving as vehicles for developing new ones through implementation.
... A implementação da contratação pública de inovação, conforme definido por (Edquist et al. ,2012), implica uma verdadeira revolução na forma como os órgãos públicos adquirem produtos e serviços. A necessidade dessa mudança de paradigma torna-se evidente à luz das várias formas que a inovação pode assumir, que nem sempre envolvem a criação de algo completamente novo (Edler et al., 2006). Além disso, o impacto potencial dessa inovação no setor público e em suas interações com o setor privado deve ser devidamente considerado . ...
The article presents a new methodological approach as an innovative tool, highlighting the importance of public procurement for innovation (CPI) as an essential strategy to promote innovation in the public sector (ISP) and face complex challenges. The research is practical and applied, supported by a literature review. The mixed approach combines qualitative and quantitative methods to evaluate the effectiveness of the methodology in training public servants to participate in innovative procurement calls. The research is based on benchmarking of global practices, technological prospecting, and trend mapping, demonstrating the application of the methodology in the case of intrapreneurship. The results show that the proposed methodology not only improves CPI practices but also promotes a culture of innovation and collaboration between public agencies and partners. In addition, it identifies barriers and suggests directions for future studies, highlighting the strategic role of CPI in strengthening public management.
... In fact, all of the top five cited articles from 1997 to 2022 are specifically related to innovation. Among them, Edler's [67] study in Research Policy had the most citations during this period. ...
Government procurement (GP) has evolved beyond a mere administrative activity and has emerged as a powerful policy instrument to guide industry development directions. The existing literature often falls short in providing an exhaustive interpretation of such a role of GP in the critical industry sectors. This study employs a two-stage approach, comprising database construction, filtering, coding, and statistical analysis, aimed at conducting a systematic bibliometric review of the studies related to GP to identify its functionalities, including promoting sustainable development, initiating new industry policies, and stimulating innovation. The most addressed industry sectors by researchers are manufacturing, food, agriculture, and construction. Environmental science is the most explored research field, and the circular economy appears as the most recent bursting keyword. The insights from this review identify research gaps and challenges, based on which the proposing directions for future research are suggested, including promoting a circular economy, the sustainable development of the healthcare sector, protecting sustainable supply chains, efficiency evaluation, the application of artificial intelligence technologies in procurement, and exploring inter-functional relationships in GP.
... This dynamic illustrates how public procurement can function as a tool for economic development when managed and implemented effectively. Furthermore, the strategic use of procurement can stimulate innovation, as public contracts often encourage suppliers to develop new technologies and solutions to meet the specific needs of public entities [12]. This aspect highlights the potential of public procurement not only to fulfil immediate needs but also to drive long-term economic growth and technological advancement. ...
This article provides an in-depth analysis of recent legislative changes in the Czech Republic’s public procurement framework, focusing on the transition to the new Act on Public Procurement, which harmonizes national law with European Union directives. The new legislation introduces several key reforms aimed at modernizing and improving the procurement process. Among these, mandatory electronic communication stands out as a significant advancement, designed to streamline procedures and enhance accessibility for a wide range of stakeholders, including suppliers and contracting authorities. The Act further requires the disclosure of beneficial ownership information, representing a critical step toward fostering transparency and accountability in procurement transactions. Moreover, the integration of socially responsible procurement principles encourages public authorities to evaluate the social, environmental, and ethical impacts of their procurement decisions, thereby promoting sustainability and broader societal benefits. These reforms collectively aim to strengthen transparency, efficiency, and ethical standards in public procurement, ensuring more responsible use of public resources. This study offers valuable insights into the implications of these developments for various stakeholders in the public procurement ecosystem.
... A monopoly in the economic sense would be more dominating, but this is not the same thing. [12] When drafting and implementing the Indian Competition Act, the "rule of reason" method used by the US Supreme Court may be of considerable assistance.114 An agreement is illegal under Section 4 of the Indian Competition Act if it has or is likely to have a "appreciable adverse effect on competition" in India. ...
This transnational study focuses on the US, Europe, and India to provide a critical evaluation of the global nexus between intellectual property and competition policy. The study's purpose is to look at how these two areas of law interact in order to get a better understanding of how they affect innovation, market competitiveness, and consumer welfare. Intellectual property rights are highlighted for their role in fostering innovation and creativity by providing holders with exclusive rights and monetary incentives. It does, however, recognize that exercising intellectual property rights may result in anti-competitive behaviour, limiting market access and hampering competition. Competition law, on the other hand, is handled as a means of preventing anti-competitive behaviour and guaranteeing fair competition. The goal of competition law is to provide a level playing field for new businesses. However, since IP law and competition law sometimes intersect, the issue of how far IP rights may be exploited without unnecessarily restricting competition arises.
... direct financial support or indirect fiscal measures, services that foster knowledge transfer, research, networking, etc.) and demand-side instruments to support the adoption and diffusion of innovations (e.g. systemic policies, regulation, public procurement, initiatives supporting private demand, etc.) (Edler and Georghiou, 2007). The challenge is to establish a synergistic policy or instrument mix to support the mission portfolio effectively. ...
... Policy documents have a vital role in generating demand for scientific innovation [4]. Haunschild and Bornmann [5] study the relation between Web of Science fields and the researches' use in public policy and found that less than 2% of every category is cited in public policy. ...
In this study we performed an initial investigation and evaluation of altmetrics and their relationship with public policy citation of research papers. We examined methods for using altmetrics and other data to predict whether a research paper is cited in public policy and applied receiver operating characteristic curve on various feature groups in order to evaluate their potential usefulness. From the methods we tested, classifying based on tweet count provided the best results, achieving an area under the ROC curve of 0.91.
... The COVID-19 crisis affirmed the value of cross-sectoral collaborations as they enable tackling grand societal challenges and reaching a wide range of stakeholders beyond the R&D consortium. Edler and Georghiou (2007) highlight the need to involve the demand side and in particular, the interactions between supply and demand, in R&D endeavours as it is a major potential source for innovation. Innovation diffusion policies increasingly encompass both the supply and demand side (Caiazza, 2015). ...
While research on inter-organizational collaborations has received significant attention from management scholars, the innovation ecosystem concept presents a relatively new phenomenon. Both concepts are characterized by value creation and value capturing dynamics, yet few attempts have been made to integrate them theoretically. We draw upon the knowledge-based view to theorize on what constitutes an innovation ecosystem and on the role of multi-lateral inter-organizational collaborations within innovation ecosystems. To this end, we present an integrated framework and five key propositions. We explore how the knowledge-based view lends itself towards multi-level theorization at the organizational, inter-organizational, and ecosystem level, and contributes to a more profound understanding of how value creation and value capture through collaborations take place in the wider context of an innovation ecosystem. Our work provides insights to innovation policymakers and managers on the establishment of R&D consortia as a measure to stimulate innovation and to promote the establishment and growth of (regional) innovation ecosystems.
... Therefore, in these times of profound transformation, a renewed focus on the national level would not be misplaced. The renewed importance of the state in coordinating national innovative activity towards grand challenges has matched with the rise of mission-oriented policy (Mazzucato 2016) and even the role of large innovative governmental procurement (Edler and Georghiou 2007;Guerzoni and Raiteri 2015). ...
The paper investigates whether the penetration of advanced manufacturing technologies can be better explained at the regional or national level. If regional effects prevail, policy actions would focus on local investments, while if country effects make regional covariates redundant, they should be redirected to more structural reform of the national systems of innovation. In this respect, the contribution is 2-fold. First, data on acquisitions of industrial robots in the five largest European economies are rescaled at regional levels to draw a clear picture of winners and losers in the robotics race after the 2008 financial crisis. Second, we explain differential of growth rates in robot adoption with (1) traditional measures of industrial variety, (2) an unsupervised machine learning approach classifying a region’s industry profile (3) usual determinants of innovation and, thereafter test the robustness of the results when country effects are added. As the main result, we highlight a process of regional convergence in which country-fixed effects hold greater explanatory power, although related variety and the number of skilled people are statistically significant regional explanatory factors. We do not discover a specific industry mix associated with the rise of adoption, but we highlight the one associated with its decline.
... (3) Policy for recycling plastics must move away from landfilling and incineration for energy and embrace the circular economy. (4) Help to grow an offtake market: Public procurement is the largest consumer in any country; therefore, policymakers should include in their procurement processes (Edler & Georghiou 2007;Tsipouri et al. 2015) a priority to purchase products made from 100% recycled plastic that are substitutes for wood or concrete. By doing this, they show confidence in such products which helps to grow the market (Rainville 2021); this should spill over to the consumer sector, thus growing this IEM production. ...
The waste system requires a circular economy business solution to upcycle millions of tonnes of contaminated post-consumer single-use multi-material, multilayer, plastic packaging films/foils. This waste is rarely collected for recycling, firstly because the market for such waste is new and very small, and secondly due to technical issues and cross-contamination at waste recycling facilities. Conventionally, two linear disposal routs exist, energy recovery through incineration or landfill, both having an economic cost. Being very lightweight, plastics are blown around and end up contaminating terrestrial and marine environments. This paper evaluates intrusion extrusion moulding technology with agglomeration to make products. With a 50-year first lifespan and nine more life cycles, they can be used multiple times as a substitute for wood and concrete. Public bodies can catalyse the intrusion extrusion moulding manufacturing industry by including such products during their procurement processes. The technology works and the business can be profitable.
This article addresses the contribution of academic research to European Union (EU) research and innovation policy. The focus is on the progress of the innovation research from the perspective of the evolving innovation policy at the EU level, while considering that academic innovation research is conducted at country levels. European research has progressed in quantifying the contributions of research and development (R&D) investment and of other intangibles to European productivity. The Europe-specific cross-border R&D cooperation enhances competitiveness, and R&D integration has attracted considerable research efforts but its informative value suffers from heterogeneous data and methods. Research has addressed specific instruments in the EU’s demand-oriented and systemic innovation policy such as EU-wide patent or cross-border public procurement. Greening the EU and national research and innovation policies as part of the European Green Deal (EGD) has stimulated new research on green innovation and its conditions and on the design of transformative innovation policy. The evolving innovation policy as expressed in the Competitiveness Compass 2024 provides an interesting agenda for future research. Research should simultaneously progress on adequate data and methodical work but also on the EU perspective, which includes all or at least many member states, preferably addresses cross-border externalities and fragmentation, and seeks economic and sociopolitical solutions within the specific institutional framework of the EU.
This chapter explores the intersection of demographic decline and digital innovation within public organizations. The first section outlines the principal demographic theories and perspectives throughout modern history, focusing particularly on the first and second demographic transition theories to explain falling fertility rates, depopulation, and aging in advanced countries despite attaining increasingly higher levels of economic well-being compared to the past. The second section reviews relevant literature to define the concepts of innovation and digital innovation in the context of public organizations. Finally, we examine research, theories, and perspectives on the interaction between demographic shifts and innovation to formulate a hypothesis that will be scrutinized throughout the book.
The article analyzes the provisions of South Korean legislation concerning the participation of small and medium-sized enterprises in public procurement. The author places special emphasis on the issue of supporting small and medium-sized businesses offering innovative technologies. The Korean procurement system is considered by the author as the most important tool for the development of small and medium-sized enterprises.
Purpose
This study investigates the resource role of multiple large customers (MLCs, firms have at least two customers who account for at least 10% sales proportion) in firms’ innovation.
Design/methodology/approach
Using a sample of Chinese A-share listed firms from 2007 to 2023 and drawing on the resource-based and resource-dependence theories, we compare the innovation outputs of firms having MLCs with those of firms having no or a single large customer.
Findings
Firms with MLCs have lower innovation outputs. This negative effect is more pronounced for firms without political connection, with lower managerial ability, and in the technology-intensive and competitive industries. MLCs play the internal resource appropriation role in impeding firms’ innovation outputs by requiring more trade credit with longer payment periods, curtailing R&D investment volumes and growth, and distracting management attention on innovation. We also reveal that the sales balance between MLCs hinder firms’ innovation outputs. MLCs hamper firms’ substantial and strategic innovation outputs, reduces innovation efficiency, and lowers innovation quality.
Practical implications
Overall, our study implies that MLCs are the internal resource appropriators manifested in the reduction of firms’ innovation output, efficiency and quality.
Originality/value
We delve into the customer structure of MLCs and uncover the conflicts of interest among MLCs by competitively appropriating firms’ internal resources to advance their own interests, which introduces a novel research avenue on large customers and customer structure from the perspective of MLCs. We are the first to explore the effect of MLCs on firms’ innovation, thereby contributing to the literature on the drivers of firms’ innovation from the perspective of MLCs and large customer structure. Our study reveals that the effect of large customers depends on the structure of large customers, which contributes to providing novel implications for the debate on large customers.
A kutatás célja a tudományos és technológiai parkok osztályozási szempontjainak vizsgálata. Ennek érdekében négy szempont mentén, a tulajdonosi kör, a parki tevékenységek orientációja, a betelepült szereplők köre, az ágazati fókuszáltság területén került sor egy 113 nemzetközi parkot érintő elemzésre. A felmérés alapján a cikk átfogó képet ad a nemzetközi tudományos és technológiai parkok egyes jellemzőiről. A négy terület osztályozási szempontokra épülő, páronkénti összefüggés-vizsgálata arra vezetett, hogy ezek között nincs kimutatható erős statisztikai kapcsolat. Ez alátámasztja, hogy a négy szempontra épülő osztályozási módszer alkalmas a parkok leírására, mint négy független szemszögből való értékelés. A vizsgált jellemzők átfogó elemzésével, statisztikai klaszterezés módszerévek maghatározásra kerültek tipikus parki osztályok, jellemző park típusok. Ennek gyakorlati jelentősége, hogy az eltérő parki sajátosságok eltérő menedzsment módszereket, különböző fejlesztési stratégiát igényelhetnek. Emellett, a hasonló jellegű parkok között jó lehetőség van a vélhetően hasonló menedzsment szempontok miatt a tapasztalatok megosztása és a kölcsönös tanulásra.
La novedad de este estudio no radica en su concepción teórica
desde el ámbito economicista, sino en la realización de prospectiva a
partir del paradigma clásico de la economía industrial, que consiste
en el trinomio estructura-conducta-resultados. Éste postula que existen
relaciones causales entre la estructura del mercado, la conducta de las
empresas y los resultados.
El objetivo de este capítulo es conocer la situación actual del sector
industrial de defensa en España y cuáles son los vaticinios predominantes
en una proyección hasta el año 2050.
The goal and pursuit of self-reliance has become crucial for the country's economic growth. Achieving self-sufficiency has become a strategic priority in the field of photonics and electronics, where global breakthroughs dictate the direction of innovation and economic progress. With an emphasis on the Indian context, this study examines the economic models, comparative analysis, and governmental motivations of self-sufficiency projects in photonics and electronics production. India is taking a multipronged approach to becoming a self-sufficient nation in photonics and electronics, starting with regulatory measures to encourage domestic manufacture. The Production-Linked Incentive (PLI) scheme, which offers financial incentives to stimulate manufacturing in key industries, is one of the many schemes and incentives the Indian government has introduced to support indigenous production industries, such as electronics. Furthermore, by providing subsidies, tax breaks, and infrastructure support, programs like the Electronics Manufacturing Clusters (EMC) program and the Modified Special Incentive Package Scheme (M-SIPS) seek to establish an environment that is favorable for the production of electronics. For photonics and electronics to achieve self-sufficiency, economic models are essential. Leveraging economies of scale through strategic alliances between academia, industry, and government is one such paradigm. India can leverage its inventive capabilities and reservoir of technical talent to propel domestic production through cooperative research and development projects. Furthermore, implementing a phased manufacturing program might help local component manufacturers and lessen dependency on imports, as demonstrated by the manufacturing of mobile phones.
The ability of government procurement (GP) to influence capacity utilization (CU) is an issue that needs to be studied to resolve overcapacity. Therefore, we investigate the impact and mechanisms of GP on CU of enterprises by utilizing data from Chinese listed companies’ and GP contracts from 2015 to 2022. Our findings indicate that GP significantly enhances CU, with a more pronounced effect observed in private enterprises, capital-intensive firms, highly competitive industries, and the eastern region. Mechanism analysis reveals that GP improves CU by mitigating supply-demand deviations, reducing uncertainty perception on the consumption side, suppressing inefficient investment, and stimulating technological innovation on the production side. Further analysis demonstrates the synergies between GP and government subsidies vary significantly across different CU levels. Additionally, GP effectively boosts enterprise economic performance. This paper significantly enhances the comprehension of demand-side policies’ impact but also offers a practical and efficient policy approach to tackling China’s overcapacity challenges.
Purpose
This study attempts to uncover the nonlinear relationship between public procurement and corporate total factor productivity (CTFP), and investigates the mediating roles of R&D investment and rent-seeking cost. Additionally, it conducts a heterogeneity analysis for firms with varying levels of political connections and corporate social responsibility (CSR).
Design/methodology/approach
Employing Ordinary Least Squares (OLS) and Olley-Pakes (OP) methods, the authors gauge CTFP and manually identify government customers to quantify public procurement. Leveraging panel data from Chinese listed companies, this study explores the relationship between public procurement and CTFP.
Findings
This study unveils a U-shaped relationship between public procurement and CTFP, highlighting R&D investment and rent-seeking costs as potential mechanisms. Furthermore, it identifies heterogeneous effects among companies with varying levels of political connections and CSR on the relationship between public procurement and CTFP, including their mediating effects.
Practical implications
This research enhances understanding of demand-side policies and provides crucial insights for the government to further improve public procurement policies.
Originality/value
By offering empirical evidence of how public procurement impacts CTFP, this paper enriches the literature on the behavioral repercussions of public procurement and the determinants of CTFP. It also overcomes the “black box” of the mechanism between public procurement and CTFP, based on the government’s dual role as a pathfinder and customer of enterprises. It broadens the application scenarios of institutional theory and principal-agent theory. Additionally, the heterogeneity analysis of firms with varying political connections and CSR extends the frontiers of related research.
This study explores the critical role of boundary objects in the context of people-centred smart cities, a new paradigm in urban development that emphasises citizen participation in planning and decision-making. Boundary objects—artefacts, documents, or concepts that facilitate communication and collaboration across different knowledge domains—are increasingly recognized as essential tools in the complex, multi-stakeholder environment of urban governance. Despite extensive research on boundary objects in organizational contexts, their specific application in smart cities remains underexplored. This study addresses this gap by investigating how BOs, particularly collaborative tools and spaces, contribute to innovation, engagement, and knowledge-sharing in people-centred smart cities. Employing a Systematic Literature Review following the PRISMA protocol, this research synthesizes key insights from scholarly articles to comprehensively understand boundary objects' role in urban governance. This study offers a theoretical framework for leveraging boundary objects to enhance the inclusivity and sustainability of smart cities. It suggests avenues for future research, including empirical validation and exploration of boundary objects in diverse geographic and cultural contexts.
The popularization of artificial intelligence (AI) represents a significant business opportunity for private actors developing tools and services aimed at research and higher education. Academic libraries are often at the receiving end of sales pitches for new tools and could benefit from guidance on how to assess them. Libraries’ assessment of tools is a valuable service to library stakeholders, many of whom may not have sufficient time, the necessary competencies or the inclination to explore the landscape of innovations promising to support their information needs and research endeavours. This article offers concrete guidance concerning what to consider when assessing whether to adopt, endorse and/or invest in innovative information and research tools that make use of AI. The main areas proposed for reflection concern (a) tool purpose, design and technical aspects; (b) information literacy, academic craftsmanship and integrity; (c) ethics and the political economy of AI.
Purpose
This paper aims to propose an analytical structure for scientific and technological parks (STPs) as innovation ecosystems based on generating knowledge spillovers.
Design/methodology/approach
The analytical structure is constructed using a strategic approach, with STPs being viewed as an ecosystem and their interactions with the social context based on knowledge spillovers. In the empirical phase, a case study is developed in a Brazilian STP focused on food and renewable energy, enabling the application of the proposed analytical structure.
Findings
This study proposes that STPs can be central for innovation ecosystems, coordinating activities and resources. Also, STPs generate knowledge spillovers for geographically close and external actors, expanding the impact and benefits of innovation. The integration of these two propositions composes the proposed analytical structure that emphasizes the STP as the protagonist of the discussion on ecosystem management.
Originality/value
This study explores the relationship between STPs, innovation ecosystems and knowledge spillovers to clarify their strategic role in fostering innovation. It integrates multiple theoretical perspectives to propose new, broadly applicable frameworks. Given the limited and recent research on STPs within innovation ecosystems, the study provides a timely opportunity to investigate the management role of STPs at the organizational level.
Public procurement policies and legal frameworks play a crucial role in shaping the transparency, fairness, and integrity of government transactions. This paper examines and evaluates the effectiveness of public procurement policies and legal structures in addressing and mitigating corruption in selected regions within the Western Cape Province of South Africa. Drawing on a comprehensive review of relevant literature, case studies, and expert opinions, this research aims to provide insights into the existing framework’s strengths, weaknesses, and potential improvements. The main emphasis of this research paper is to assess public procurement policy design and the effectiveness of measures including regulations aimed at combating corruption in the Western Cape’s public sector in South Africa. Public procurement regulations are widely implemented in various governmental institutions around the world. Data were collected from twenty-five public sector organizations in the Western Cape province, South Africa, using three data collection methods: interviews, surveys, and document analysis of procurement policies and guidelines. The study’s key findings demonstrated that a fragmented legal and policy framework is complex and opens avenues of corrupt practices and maladministration. The paper fills the gap in scholarly research by exploring how corrupt practices can be reduced by implementing and operationalising robust, flexible, and outcome-based legal and policy frameworks. This paper contributed to the body of knowledge by making policymakers and implementers aware of the pitfalls of a fragmented and misaligned policy framework in public procurement.
The public procurement of innovations is a demand-side policy instrument that harnesses supplier innovations to improve products and services delivered to the customers. This study analyses a nation-wide survey of Finnish public sector contracting authorities. A sequential mediation model suggests that the public sector buyer’s market-oriented culture is positively associated with the procurer’s strategic procurement capability, which in turn predicts the use of public procurement of innovations to create customer value for customers. These results are robust to a potentially biased perception of customer performance.
Purpose
In recent years, there has been a growing academic interest in incorporating innovation into the public procurement practices. Nevertheless, a noticeable scarcity of current bibliometric studies in this particular field exists. To fill this gap, the study analyzes trends in public procurement and innovation.
Design/methodology/approach
The study conducts a bibliometric analysis on data from 354 journal articles and reviews retrieved from the Scopus database. Specifically, performance analysis was conducted to gain an overview of the field in terms of research productivity, while science mapping was performed to analyze the relationship networks between concepts through co-word analysis.
Findings
The initial part of the analysis focused on publication trends and compiled a list of the most influential journals that delve into the field. Generally, the findings indicate an increase in research on public procurement and innovation since 2012, despite fluctuations in the number of publications over the years. The geographical distribution highlighted that countries from Europe have been the most prolific contributors to this field, with limited representation of developing countries especially from Africa. A co-word analysis through VOSviewer identified 11 key clusters that present relevant knowledge themes and future research agenda in the field. The themes revolve around aspects such as sustiainability, development strategies, efficiency in construction industry, societal and regional development, small and medium-sized enterprises' involvement, sustainable public procurement, and tendering.
Originality/value
This study contributes to the body of knowledge by uniquely presenting the trends on publications related to public procurement and innovation, considering recent developments in the field. It identifies key research themes and delves into the identified clusters, concluding with a discussion on potential avenues for future research.
Entrepreneurs raise money from multiple funding sources over time; however, studies of entrepreneurial finance typically focus on a dyadic view based on Global North institutional scaffolds. Taking a contextualised approach that understands funding as situated in local conditions, this research explores the influence of an emerging economy context on a financing process that incorporates multiple sources. Based on analysis of 36 interviews with entrepreneurs and financiers in Thailand, the research offers a model that identifies emerging entrepreneur–financier relationships and strategies for navigating multiple logics. Accessing funding involves a process of deal-making that requires multiple foci of attention over time. This article advances institutional theory by reclassifying how entrepreneurs interact with heterogeneous resource holders. Divergent logical pathways of relational formation are found among various types of financiers, suggesting an underlying institutional logic is not universal. Instead, it depends on the habitual organising principles of the focal actors and strategies adopted to manage the requirements of multiple funders.
The European Council in Barcelona set an overall EU R&D investment target of 3% of GDP by the year 2010, with industry asked to contribute two thirds of this figure. To approach these levels, however, dramatic improvements are needed in the
effectiveness of policies used to stimulate private sector R&D.
The specific aim of this report is to offer suggestions and guidance concerning the design and implementation of direct public support measures to stimulate private investment
in research. The report considers the importance of supply side measures, the growing importance and significance of demand-side measures and the role of framework
conditions.
After reviewing the use of these measures and the factors that affect their effectiveness, the report then presents a series of recommendations for the consideration of policymakers across the EU.
This document is a report produced by the Publin research project. Publin is part of the Programme for research, technological development and demonstration on "Improving the human research potential and the socio-economic knowledge base,1998-2002" under the EU 5th Framework Programme. For more information, see www.step.no/publin/.
Sales takeoff is vitally important for the management of new products. Limited prior research on this phenomenon covers only the United States. This study addresses the following questions about takeoff in Europe:
1) Does takeoff occur as distinctly in other countries, as it does in the United States?
2) Do different categories and countries have consistently different times-to-takeoff?
3) What economic and cultural factors explain the intercountry differences?
4) Should managers use a sprinkler or waterfall strategy for the introduction of new products across countries?
We gathered data on 137 new products across 10 categories and 16 European countries.
We adapted the threshold rule for identifying takeoff (Golder and Tellis 1997) to this multinational context. We specify a parametric hazard model to answer the questions above. The major results are as follows:
1) Sales of most new products display a distinct takeoff in various European countries, at an average of six years after introduction.
2) The time-to-takeoff varies substantially across countries and categories. It is four times shorter for entertainment products than for kitchen and laundry appliances. It is almost half as long in Scandinavian countries as in Mediterranean countries.
3) While culture partially explains intercountry differences in time-to-takeoff, economic factors are neither strong nor robust explanatory factors.
4) These results suggest distinct advantages to a waterfall strategy for introducing products in international markets.
A number of recent empirical studies of technical change at the level of the individual firm have concluded that market demand is the dominant influence upon the innovation process, “calling forth” innovations in market economies. The pace of innovation in the private sector heavily influences the growth of national output and productivity, and these studies and their conclusions have therefore received much attention, having been extensively quoted in discussions of appropriate government policy for the encouragement of innovation. This paper reviews a number of these studies and concludes that their findings, and the interpretations of their findings in the secondary literature, are seriously flawed and, in many cases, invalid. The proposition that market demand governs the innovation process is by no means conclusively demonstrated in these studies, and they are therefore inadequate and inappropriate guides for the formulation of policy.Most of the studies examined employ a working definition of “demand factors” which is so broad as to embrace a range of possible influences upon innovation which should more properly be classified elsewhere. The concept of demand utilized in these studies bears little resemblance to the more restrictive and precise definition of market demand found in economics. In addition, the phenomena analyzed in these studies are a very heterogeneous lot; the studies do not address identical empirical questions, and their findings are, as a result, neither uniform nor unambiguous.Both demand and supply side influences are crucial to understanding the innovation process, and it is the exclusive preoccupation with only one set of these forces which is criticized in this paper. Some implications of the criticism for government policy toward innovation are discussed in the conclusion.
In this paper, we sought to extend the theory of the location determinants of MNEs by challenging one of the fundamental assumptions underlying it, namely that location advantages are absolutes whose values are identical for different MNEs. We explicitly acknowledge the relative value of location advantages for individual MNEs and search for the firm-specific attributes affecting this variation. The empirical testing is based on an analysis of 673 financial and professional service MNEs that entered New York and London business clusters via M&As during the last two decades. The findings confirm that the value of particular location advantages varies for MNEs with different attributes, and that it is the interaction between location and firm-specific attributes, rather than each of these independently, that affects location choices. Firms' previous experience in a country, the geographic scope of their acquisition activity, and their size were found to be particularly influential attributes. Classification-JEL: F23, L10, L80, R30
In the past the USA has relied upon spinoff from its massive defense research and development spending to enrich commercial technology. In an era when US industry enjoyed a commanding lead over its international competitors, such spinoff was thought to be enough. But in today's globally competitive economy, a more direct approach is better suited to the needs of commercial markets. This book examines how the government and the private sector can boost America's technological competitiveness and how the two influence each others' technical activities.
Public Technology Procurement and Innovation studies public technology procurement as an instrument of innovation policy. In the past few years, public technology procurement has been a relatively neglected topic in the theoretical and research literature on the economics of innovation. Similarly, preoccupation with `supply-side' measures has led policy-makers to avoid making very extensive use of this important `demand-side' instrument. These trends have been especially pronounced in the European Union. There, as this book will argue, existing legislation governing public procurement presents obstacles to the use of public technology procurement as a means of stimulating and supporting technological innovation. Recently, however, there has been a gradual re-awakening of practical interest in such measures among policy-makers in the EU and elsewhere. For these and other related measures, this volume aims to contribute to a serious reconsideration of public technology procurement from the complementary standpoints of innovation theory and innovation policy.
It is well known that theoretical work in academia as well as innovative efforts in firms often follow parallel tracks and that quite similar new ideas, concepts, and products emerge almost simultaneously, without much direct communication taking place among the parallel efforts. This may also occur in the social sciences in periods when certain ideas are "in the air" and certain new phenomena and insights become more obvious to analysts. In this article, I bring out some fundamental similarities and differences between two sets of ideas that overlap in important respects but where we find little cross-referencing. One relates to national business systems (NBS), the other to national innovation systems (NIS). The fact that there are few references between the two, although they deal with related issues, suggests a potential for cross-fertilization. Having contributed extensively to the literature on national systems of innovation (Lundvall, 1988, 1992), I ask: What can the innovation-systems approach learn from the work of Richard Whitley (1994a, 1994b, 1996) and his colleagues? And, vice versa, are there experiences from the field of innovation-systems studies that may be useful for the further development of the business-systems approach? I begin by comparing the two approaches in terms of major differences and similarities. The Whitley approach may be commended for its attempt to be explicit regarding the elements constituting the national system and to specify their structural interconnections. But its neglect of international specialization, central to the innovation-system approach, causes it to underestimate the feedback impact of the business system on the institutional setup. The business-systems approach, while originally rooted in sociology, increasingly has become based on economic theory and especially on a version of the Penrosian theory of the firm. This brings me to the interpretation made by Whitley (1996) of the firm, and I argue that it puts too little emphasis on learning and competence building and too much on risk sharing and on the application of existing competencies.
With the publication of his best-selling books "Competitive Strategy (1980) and "Competitive Advantage (1985), Michael E. Porter of the Harvard Business School established himself as the world's leading authority on competitive advantage. Now, at a time when economic performance rather than military might will be the index of national strength, Porter builds on the seminal ideas of his earlier works to explore what makes a nation's firms and industries competitive in global markets and propels a whole nation's economy. In so doing, he presents a brilliant new paradigm which, in addition to its practical applications, may well supplant the 200-year-old concept of "comparative advantage" in economic analysis of international competitiveness. To write this important new work, Porter and his associates conducted in-country research in ten leading nations, closely studying the patterns of industry success as well as the company strategies and national policies that achieved it. The nations are Britain, Denmark, Germany, Italy, Japan, Korea, Singapore, Sweden, Switzerland, and the United States. The three leading industrial powers are included, as well as other nations intentionally varied in size, government policy toward industry, social philosophy, and geography. Porter's research identifies the fundamental determinants of national competitive advantage in an industry, and how they work together as a system. He explains the important phenomenon of "clustering," in which related groups of successful firms and industries emerge in one nation to gain leading positions in the world market. Among the over 100 industries examined are the German chemical and printing industries, Swisstextile equipment and pharmaceuticals, Swedish mining equipment and truck manufacturing, Italian fabric and home appliances, and American computer software and movies. Building on his theory of national advantage in industries and clusters, Porter identifies the stages of competitive development through which entire national economies advance and decline. Porter's finding are rich in implications for both firms and governments. He describes how a company can tap and extend its nation's advantages in international competition. He provides a blueprint for government policy to enhance national competitive advantage and also outlines the agendas in the years ahead for the nations studied. This is a work which will become the standard for all further discussions of global competition and the sources of the new wealth of nations.
This paper describes the rationale of the UK government's innovation agenda. This is based on the innovation report "Competing in the global economy - the innovation challenge (Dec. 2003)". The report's key proposals are described in this article. These proposals relate to topics that are vital if the UK is to safeguard and deliver high quality jobs, have successful businesses, produce better products and services for customers, in new environmentally friendly processes. These include technology transfer, management and skills, regulation, and public procurement.
Some countries are earlier than others in the development and introduction of environmental innovations. Often, the leadership in technological development is accompanied by a leadership in environmental policy. The book provides an analysis of lead markets for innovations such as fuel cells, photovoltaics, and others. Contributions of innovation economics, policy analysis and environmental economics are assessed regarding their potential to explain the leadership of single countries. The book depicts the policy frameworks that are favourable to the creation of such lead markets on the basis of theoretical considerations and case studies. Finally, recommendations for R and D policies, environmental and industrial policies are derived.
Abstract The use of public procurement to achieve social outcomes is widespread, but detailed information about how it operates is often sketchy and difficult to find. This article is essentially a mapping exercise, describing the history and current use of government contracting as a tool of social regulation, what the author calls the issue of ‘linkage’. The article considers the popularity of linkage in the 19, century, initially to include the provision of employment opportunities to disabled workers. During and after World War II, the use of linkage became particularly important in the United States in addressing racial equality, in the requirements for non-discrimination in contracts, and in affirmative action and set-asides for minority businesses. Subsequently, the role of procurement spread both in its geographical coverage and inthe subject areas of social policy that it was used to promote. The article considers examples of the use of procurement topromote equality on the basis of ethnicity and gender drawn from Malaysia, South Africa, Canada, and the European Community. More recently, procurement has been used as an instrument to promote human rights transnationally, also by international organizations such as the ,International Labour Organisation. The article includes some ,reflections on the relationship between ‘green’ procurement, ‘social’ procurement, and sustainable development, and recent attempts to develop the concept of ‘sustainable procurement.’ Keywords: Public procurement; Targeted procurement; Green procurement; Sustainable development; Disabled workers; Affirmative action; Equal rights;
During the 1990s, the federal government developed a new post-Cold War commercial orientation in some of its technology policies. These initiatives signify a change in direction from the strictly military-led, mission-driven approach of the past. Their shared goal is to assist industry in achieving technical advances that provide private returns to the innovating (or technology-using)firms that also yield broad social and economic benefits to the nation as a whole. This new direction in policy is not without its perils. Government agencies have to define and manage new roles and relationships with industry in carrying out these policies. Because of the uncertainties involved in any effort (private or public) to advance new technologies, there will inevitably be some failures. In this transition to a new post-Cold War policy era, these provide important learning opportunities for policy makers and program administrators in designing future programs.
Science-based innovations have played an important role in our society for centuries. In this paper, after a discussion of the concept of innovation, changes in three major developments in the context of innovation processes are analysed: structural changes in our economy, the broadening of decision-making processes and the emergence of the network society, and changes in the knowledge infrastructure. On the basis of this analysis, questions and challenges confronting the players involved in innovation processes and the management of them are identified and topics for a research agenda for innovation researchers that take into account the needs of these players are formulated. The focus is on the macro and meso level, and the broadening of decision-making on innovation processes acts as an important guiding principle. Three lines of research are distinguished on the research agenda: (1) empirical studies of innovation processes and systems, (2) critical reflection on innovation theory, and (3) analysis and support of decision-making processes. With regard to the first line, case studies of innovation in services, life sciences, the relationship between ICT and sustainability and the identification of (intangible) throughput and output indicators are on the agenda. The reflection on theory (line 2) focuses primarily on innovation in chains and clusters, the role of (knowledge intensive) intermediaries and the interaction between processes and systems. Furthermore, innovation studies should also try to contribute towards endogenisation of innovation in other scientific disciplines. With regard to the analysis and support of decision-making processes (line 3), strategic intelligence providing insight into the potential, application and implementation of new technologies and the development of instruments to support players in innovation processes are addressed. An important basic assumption of this paper is that innovation studies should not only strive to deepen the insight into innovation processes and systems, but also to contribute to the development of insights, concepts, methods, techniques and instruments to support various players involved in innovation processes. The major conclusion of this paper is that shifts in the context of innovation processes, more particularly the emergence of the ‘porous society’, will lead to a radical transformation of innovation systems in which (knowledge intensive) intermediaries and the quality of the interface between users and producers play an increasingly important role.
Several strategies for converting government procurement into instruments of technology policy are reviewed. By examining case studies, the author addresses factors that explain the role of government procurement in innovation. The most important factors are: the technological capacity of the public sector user, the value of orders that allows the supplier to reduce the risk associated with innovation, and the relation between needs and requirements. Since procurement policy is first and foremost a series of political decisions concerning government services and the ways to render them, political factors are also considered.
Now we are at the doorstep of the functional genomics era, lessons can be learned from the debates on risks, public acceptance and ethical aspects of biotechnology, by anticipating on users' preferences and needs, and by involving users in the innovation process. Insights into the user-producer interactions are also important because developments in nutrigenomics and pharmacogenomics may cause a shift towards an individualised consumer demand and a de-fragmented market. The relation between users and producers will alter when the genomics 'products' become customised (e.g. tailor-made drugs, functional foods). In order to get a better understanding of the interaction between users and producers in functional genomics innovations and to learn about a useful participation of users in genomics developments, this exploratory paper focuses on what we can learn from innovation studies about the role of users in functional genomics innovations. This leads to recommendations for governance of biotechnology in general and functional genomics in particular.
Traditional regional policies largely failed to attract a balanced range of skills to the regions, leaving them deficient in all but ‘blue collar’ craft skills. Thus, regional policies have hardly equipped the regions to survive during a period when technology is becoming an increasingly important element in competitiveness. In most countries, industry in the regions is composed mainly of mature companies producing traditional products and which often experience great difficulty in adapting to the rapidly changing requirements of the latter part of the twentieth century. Small firms, and especially new small firms appear, in contrast, better able to adapt. Regional policies should, therefore, be directed more towards the creation and growth of technology-based new small firms in the regions. Technology-based large firms are, of course, less dependent on the local environment than on their smaller counterparts and are better able to overcome local technical and market deficiencies. In order to stimulate the growth of innovative small firms, it is necessary to create an innovation infrastructure in the development regions, which, generally, have only limited innovation potential. This infrastructure will comprise a set of policy instruments on both the supply side and the demand side, while at the same time attempting to create a fiscal and regulatory climate conducive to innovatory endeavours by local firms. Perhaps the potentially most powerful element in this environment would be the establishment of local innovation oriented procurement procedures. A number of guidelines for the development of a viable system of innovation-oriented procurement are provided in the final section of this paper.
Most studies of the management of the technological innovation process cover the range of activities that culminate in the commercial introduction of a new product. In certain sectors of industry, however, especially those characterised by extended product lifecycles, continued competitiveness depends on vigorous and continuous product improvement, i.e. on the process of ‘re‐innovation’ to satisfy evolving user requirements. Ongoing research at SPRU has investigated the process of re‐innovation in a number of industry sectors, and the paper presents material relating to two of the characteristic patterns of re‐innovation identified in this research.
The first characteristic pattern is re‐innovation combining the existing with the new. Two brief case studies are presented. In both cases, the manufacturer and customer gained significant benefits from this re‐innovation strategy. For the manufacturer there were reduced development and testing costs, scale and learning curve benefits, distributed inventories of spares and servicing experience. For the customer there were familiarity benefits and reduced entry risks associated with proven reliability of parts and sub‐systems.
The second, and more general pattern of re‐innovation is based on the concept of the ‘robust design’. This is a basic design which has sufficient inherent technological slack or flexibility to enable it to evolve into a significant design family of variants. Product design families offer the producer economies of scale in R&D, manufacturing, marketing and sales and servicing. They offer the user learning from experience, the enhanced possibility of user‐inspired modifications, a wider range of price/ performance packages and rapid adaptations to changing environments. Robust designs can effectively combine economies of scale with economies of scope; they are strategically more flexible than leanly configured designs which satisfy only transient user requirements.
Accurate marketing research depends on accurate user judgments regarding their needs. However, for very novel products or in product categories characterized by rapid change—such as “high technology” products—most potential users will not have the real-world experience needed to problem solve and provide accurate data to inquiring market researchers. In this paper I explore the problem and propose a solution: Marketing research analyses which focus on what I term the “lead users” of a product or process.
Lead users are users whose present strong needs will become general in a marketplace months or years in the future. Since lead users are familiar with conditions which lie in the future for most others, they can serve as a need-forecasting laboratory for marketing research. Moreover, since lead users often attempt to fill the need they experience, they can provide new product concept and design data as well.
In this paper I explore how lead users can be systematically identified, and how lead user perceptions and preferences can be incorporated into industrial and consumer marketing research analyses of emerging needs for new products, processes and services.
Technology foresight at a national level has emerged as a prominent instrument of technology policy during the first half of the 1990s. Programmes of this type are not generally seeking to identify future scientific breakthroughs (the so-called ‘picking winners’ approach). Rather, they are concerned to put in place the infrastructure necessary to recognize and exploit such opportunities when they do emerge. Given the lead times necessary for technological development this necessitates forming views about the future. In this article, the experience to date of one of the most comprehensive national initiatives, the UK Technology Foresight Programme is examined.
Science-based innovations have played an important role in our society for centuries. In this paper, after a discussion of the concept of innovation, changes in three major developments in the context of innovation processes are analysed: structural changes in our economy, the broadening of decision-making processes and the emergence of the network society, and changes in the knowledge infrastructure. On the basis of this analysis, questions and challenges confronting the players involved in innovation processes and the management of them are identified and topics for a research agenda for innovation researchers that take into account the needs of these players are formulated. The focus is on the macro and meso level, and the broadening of decision-making on innovation processes acts as an important guiding principle. Three lines of research are distinguished on the research agenda: (1) empirical studies of innovation processes and systems, (2) critical reflection on innovation theory, and (3) analysis and support of decision-making processes. With regard to the first line, case studies of innovation in services, life sciences, the relationship between ICT and sustainability and the identification of (intangible) throughput and output indicators are on the agenda. The reflection on theory (line 2) focuses primarily on innovation in chains and clusters, the role of (knowledge intensive) intermediaries and the interaction between processes and systems. Furthermore, innovation studies should also try to contribute towards endogenisation of innovation in other scientific disciplines. With regard to the analysis and support of decision-making processes (line 3), strategic intelligence providing insight into the potential, application and implementation of new technologies and the development of instruments to support players in innovation processes are addressed. An important basic assumption of this paper is that innovation studies should not only strive to deepen the insight into innovation processes and systems, but also to contribute to the development of insights, concepts, methods, techniques and instruments to support various players involved in innovation processes. The major conclusion of this paper is that shifts in the context of innovation processes, more particularly the emergence of the ‘porous society’, will lead to a radical transformation of innovation systems in which (knowledge intensive) intermediaries and the quality of the interface between users and producers play an increasingly important role.
A sample of one hundred and eleven scientific instrument innovations was studied to determine the roles of instrument users and instrument manufacturers in the innovation processes which culminated in the successful commercialization of those instruments. Our key finding was that approximately 80% of the innovations judged by users to offer them a significant increment in functional utility were in fact invented, prototyped and first field-tested by users of the instrument rather than by an instrument manufacturer. The role of the first commercial manufacturer of the innovative instrument in all such cases was restricted, we found, to the performance of product engineering work on the user prototype (work which improved the prototype's reliability, ‘manufacturability’, and convenience of operation, while leaving its principles of operation intact) and to the manufacture and sale of the resulting innovative product. Thus, this research provides the interesting picture of an industry widely regarded as innovative in which the firms comprising the industry are not in themselves necessarily innovative, but rather — in 80% of the innovations sampled — only provide the product engineering and manufacturing function for innovative instrument users.We term the innovation pattern observed in scientific instruments a ‘user dominated’ one and suggest that such a pattern may play a major role in numerous industries.
Globally successful innovations have commonly been preferred first in one country or region before being adopted internationally. Countries that first adopt an internally successful innovation can be described as lead markets. This paper presents the lead market concept of developing global innovations. The lead role of a market is discussed first theoretically and then by use of a system of five country-specific factors: demand advantages, price advantages, export advantages, transfer advantages and market structure advantages. The applicability of this system of lead market factors is then evaluated in a detailed case study of the cellular mobile telephone industry. It is finally suggested that companies can harness lead markets for the development of global innovations. By developing and refining innovations in close interaction with the local environment of a lead market, a company can focus on a narrow range of preferences and feedback, lowering the risk of being locked into idiosyncratic environments, and generate true global innovations. A method for identifying potential lead markets is briefly discussed.
Incl. bibliographical notes and references, index, biographical note on the author
The concept 'technological opportunity' has been coined to capture the vitality of the underlying sciences and technologies as the sources of technical progress that firms draw upon during innovation. Nonetheless, less attention has been paid to the fact that the commercialisation of technical progress through innovations also depends on the ability to assimilate a range of other sources of innovations, related less to the sciences and technologies and more to characteristics of the market and broader environment in which firms innovate. This paper focuses on the sectoral diversity in such sources, and on the ways in which they are assimilated and turned into commercialised innovations. The paper contributes to the extant literature by drawing on a unique survey data on Finnish innovations. The results both confirm and also challenge, and further elaborate on certain 'stylised facts' on the relationships between technological opportunities and the sources of innovation across sectors.
The role of public demand in innovation is the central theme of this study which tries to evaluate the weight of the Canadian public sector as: (1) first user of innovations; (2) user of inventions patented by Canadians; and (3) buyer of manufactured products. Twenty-five percent of innovations find their first use in the public sector, as do 13% of patents and 8% of the manufactured production. It does not mean that private users cannot be major first users of innovation, simultaneously or not, with public services. This public demand provides the state with significant impact on innovation, whether it applies an explicit procurement policy or not.
Military and Commercial Technologies in a Changing World A Singular Council Evaluation of the Research Council of Norway, Study Commissioned by the Norwegian Government (manuscript) Public procurement
- Spinoff Beyond
- E Arnold
- S Kuhlmann
- B Meulen
Beyond Spinoff. Military and Commercial Technologies in a Changing World. Boston. Arnold, E., Kuhlmann, S., van der Meulen, B., 2001. A Singular Council. Evaluation of the Research Council of Norway, Study Commissioned by the Norwegian Government (manuscript). Audet, D., 2002. Public procurement. OECD J. Budget., Paris
Innovation, Security & Growth. Perspectives from the U.S. Innovation System. Myths, Realities & Opportunities Presentation at the 6 Countries Programme Workshop: Linking Defence and Security R&D to Innovation: The Challenge Ahead
- C Wessner
Wessner, C., 2004. Innovation, Security & Growth. Perspectives from
the U.S. Innovation System. Myths, Realities & Opportunities Presentation at the 6 Countries Programme Workshop: Linking Defence
and Security R&D to Innovation: The Challenge Ahead, Brussels.
Government and Technical Progress
- R Nelson
Nelson, R., 1982. Government and Technical Progress, New York.