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Demand oriented innovation policy
... Rolfstam (2009), for example, discusses the role of institutions in using public procurement as policy measure. Edler (2005) defined demand-side innovation policy as 'set of public measures to induce innovations and/or speed up diffusion of innovations through increasing the demand for innovations and/or defining new functional requirements for products and services' (Edler 2005: 3). These measures are often linked to sectoral policy aims like sustainability, energy efficiency, infrastructure, or health care system (Ibid.). ...
Demand-side innovation policies, in the form of regulations, public procurement, subsidies for private demand, and other measures, are often viewed as valuable additions to more traditional supply-side policies. The demand-side innovation policies should enable to facilitate the emergence of vital and sustainable links between innovation outputs and various markets. However, without sufficient institutional framework and policy experiences such measures could also contribute to new market distortions or crowding-out effects, which do not facilitate sustainable growth in innovations. The charting of possible risks of such policies should help to outline the criteria for aiming at sustainable effects. The purpose of this contribution is to offer suggestions about preconditions and policy characteristics, which should help to avoid the misuse of demand-side measures and facilitate the sustainability of desired changes in society. It is predominantly conceptual contribution but draws also extensively on case evidence about the effects of relevant policies and their discontinuation
... That purpose is served by the demand-side innovation policies. (OECD 2011) The demand-side innovation policy measures are often linked to such policy aims like sustainability, energy efficiency, infrastructure or health care (Edler 2005). These aims of innovation policies combine the innovations' facilitation and societal values related to common good. ...
The public sector innovations are important additions to private and social efforts towards development oriented changes in society. These innovations aim at improving the efficiency and societal value of public services. In order to do so, the new organisational arrangements as well as public-private partnerships are often called for. In these situations, the novel service configurations are designed by public policy makers, but the actual service provision might be delegated to private companies or to non-governmental organisations (NGOs). This kind of combined execution creates strong connection between public sector innovations and demandside innovation policies. The purpose of this study is to offer the possible ways to combine public sector innovations with demand-side innovation policies in Estonia. This would allow building strong ties between innovative advances in private and public sectors, thus enhancing the change towards knowledge-based society.
... Therefore, the objective of innovation policy is to optimize the interaction efficiency among the components in this system (Arnold, Kuhlmann & van der Meulen, 2001). If the innovation policy is conceptualized, difference must exists in itself (Radosevic & Reid, 2006).In general, traditional public procurement refers to a public organization's procurement of certain products or services, while the regular public procurement means the public body's procurement of products already produced (Edler, 2007), such as procurement of office supplies and other existing commodities. These actions would rarely promote technological innovation if not never. ...
Purpose: At the dynamic innovation market, it is very difficult for an enterprise to accomplish innovation individually; technology innovation is shifting towards collaborative R and D chain mode. Thus, supplier selection based on individually innovation efficiency of enterprise is inapplicable to construct collaborative R and D innovation chain. This study is seeking to address how to select R and D innovation chain supplier in manufacturing industry. Design/methodology/approach: Firstly, Delphi method and AHP method are applied to establish an index system evaluating the suppliers of innovation chain, and then each index is weighted by experts with AHP method. Thirdly, optimized PSO algorithm is put forwarded based on the optimal efficiency of innovation chain t o discriminate ideal suppliers meeting realistic conditions. Fourthly, innovation chain construction at generator manufacturing industry was taken as empirical case study to testify the improved PSO model. Findings: The innovation chain is comprised up by several enterprises, innovation performance of a single enterprise is not always positively correlated to that of one innovation chain, and the proposed model is capable to find out the best combination to construct an innovation chain. Research limitations/implications: The relations between these constructs with other variables of interest to the academicals fields were analyzed by a precise and credible data with a clear and concise description of the supply chain integration measurement scales. Practical implications: Providing scales that are valid as a diagnostic tool for best practices, as well as providing a benchmark with which to compare the score for each individual plant against a chain of industrial innovation from machinery. Originality/value: Innovation chain integration is an important factor in explaining the innovation performance of companies. The vast range of results obtained is due to the fact that there is no exactness to the group of scales used. An analysis of the measurement models nor clear benchmarks as to the variety of the scales used has not been published before.
... Wiederhold (2012) remarks that there is lack of theoretical work on innovation effects of public procurement to guide an empirical analysis. Edler (2005) argues that instruments that stimulate the demand for innovations had been relatively neglected in national innovation policy mixes. European Commission (2003) confirms that public technology procurement as a demand-side innovation policy instrument is under revival. ...
There is recognition that more systematic efforts to promote innovation are needed to address the economic and societal challenges that public sectors face. Public procurement of innovation has not materialised on a large scale particularly in the developing nations and one of the factors is lack of awareness among the key stakeholders. This call for the rationalization to increase the attention of potential of public procurement as an innovation policy to policy makers, procurement practitioners and academicians. The goal is to investigate the level of awareness of public procurement as an innovation policy tool among the key stakeholders. The study adopted both exploratory and cross-sectional survey designs in investigating the level of awareness. The sample size was 249 and the sample technique used was purposive. The study disclosed that public procurement is recognised as an innovation policy tool by the professionals. This demonstrates that majority of the stakeholders are aware that there is a lot to enjoy when procurement activities are tailored towards promoting innovation. However, it became apparent that the Act used in conducting
... The demand-side innovation policy measures are often linked to such policy aims like sustainability, energy efficiency, infrastructure, or health care system (Edler 2005). This shows the importance of demand facilitation on the way towards more forward looking and sustainable consumption pattern. ...
The second larger Estonian R&D and Innovation Strategy ‘Knowledge-based Estonia 2007-2013’ is aimed at continuing the advancement of research and development efforts towards an innovative knowledge-based society and economic system in Estonia. Fostering of knowledge-based high-tech industries is seen as paramount for retaining country’s competitive advantage. However, the mid-term evaluations indicate that several goals of the strategy might not be achievable by 2013. In fact, the policy measures have been much more successful in developing scientific research, as indicated by increased international publication, number of patents, and number of researchers and engineers. The advances in development of high-tech products and services through innovations are noticeable but less prominent. The purpose of this study is to suggest the role for demand-side innovation policies in helping to advance commercial development and innovation.
This chapter provides a preliminary framework for understanding innovation-oriented public-procurement policy. The first part will give a short overview of how innovation-oriented public procurement is defined in the literature and summarizes today’s main theoretical debates. In the second part, by distilling from international policy practices, past and present, and theoretical debates, four different policy modes in which innovation-oriented public procurement can be applied are presented: innovation-oriented public procurement as technology- and industry-development policy, as R&D policy, as generic policy and as “no policy” policy. Using these four policy modes as a starting point helps to explore the evolution and development of innovation-relevant public-procurement policies in different country settings and in wider institutional contexts.
Wind energy can foster industrial diversification as well as employment. This phenomenon does not occur automatically due to the existence of inertias which hinder its development. So it is required public stimulus which triggers the emergence of a new sector. The aim of this paper is to analyse the difficulties in cluster promotion in peripheral contexts in order to develop a comprehensive wind energy industry and service sectors in the north-west Spanish region of Galicia. The methodology uses a broad cluster approach and the evolutionary perspective of the target approach based on the extended life cycle perspective. The results should allow us to obtain an accurate diagnosis of the weaknesses, strengths and the scope of public policy action. © Universidad Alberto Hurtado, Facultad de Economía y Negocios.
The development of the Danish wind turbine industry is an illustrating example of the systemic nature of innovation processes and its dependency on co-evolution and interaction between technological, economic, political, and institutional elements. The paper argues that an innovation system approach and a related policy learning perspective can provide essential insights into the elements and relations influencing both the mutual success story of industry growth and energy policy based on wind power.
Public procurement for innovation represents one of the least studied demand-side innovation policy tools that can be used to increase urban competitiveness. Evidence suggests that local and regional governments are becoming more involved in procuring innovative solutions, but overall knowledge remains limited regarding how they get involved and what effects this involvement has had. Based on a study of Nordic-Baltic Sea cities, the current study reveals that public procurement for innovative solutions has a positive impact on the providers and that urban authorities can act as market creators. The study also demonstrates that public procurement is not seen as an inherent part of innovation policy. A lack of awareness exists among city officials about the connection between procurement and innovation, and local authorities tend not to be willing to take risks when promoting innovation through public procurement. Due to the positive effects, however, further development of related policies is recommended.
Die innovationsbezogene Leistungsfähigkeit der EU fällt weit hinter die Leistungsfähigkeit der USA zurück.1 Diese Innovationsschwäche spiegelt sich in den relativ niedrigen Produktivitäts- und Wachstumsraten der EU-Volkswirtschaften.
Vor diesem Hintergrund bietet das Konzept der Innovationssysteme eine institutionelle Erklärung für den Innovations- und Wachstumserfolg
eines Landes oder einer Region. Eine relativ schwache Leistungsfähigkeit gilt als Zeichen für die „X-Ineffizienz“ eines Innovationssystems
im Sinne ungenutzter Effizienzpotentiale (Niosi 2002: 293).2 Dieser Befund bietet zugleich Hinweise zur innovationspolitischen Korrektur systemischen Innovationsversagens. Das Potential
für entsprechende Effizienzsteigerungen im EU-Innovationssystem erweist sich auf den ersten Blick als umfangreich: 27 Nationalstaaten
mit spezifischen nationalen Innovationssystemen und eigenen Forschungs-, Bildungs-, und Innovationspolitiken sind zu koordinieren.
Dazu kommt die eigenständige EU-Innovationspolitik mit ihren vielfältigen Programmen und Instrumenten, begleitet von weiter
gefassten Politikbereichen, welche dazu geeignet sind, das Innovationsprofil Europas nachhaltig zu beeinflussen. Voraussetzung
systemischer Innovationspolitik ist in diesem Zusammenhang, dass ein systemisches Innovationsversagen vorliegt und dass die
politischen Akteure entsprechende Handlungskapazitäten zu dessen Korrektur besitzen. Insbesondere die Potentiale zur Nutzung
transnationaler Externalitäten liefern dabei eine überzeugende ökonomische Erklärung für die Formierung einer supranational
angelegten systemischen Innovationspolitik.
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.
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