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Stimulating a more Circular Economy through Public Procurement: Roles and dynamics of intermediation

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... in an imperfect knowledge market. It should be noted that intermediaries are discussed under different labels of broker, change agent, consultants, coordinator, third parties, intermediation structure or intermediaries, and bridging institutions, to name some (Bessant and Rush, 1995;Howells, 2006;Rainville, 2017). ...
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Conference Paper
Public procurement of innovation (PPI) has been developed in a European context during the last decade to pursue innovation generation and diffusion. Despite having a considerable share of 10-20% in GDPs, the potential has not yet been tapped in developing and less developed contexts, where the primary focus is on technology transfer and catch-up instead of innovation development. As a multi-case study of public procurement of high-tech products in oil industry of Iran, the present study attempts to identify challenges of intermediation between public procurer and supply side with a focus on technology transfer needs. The methodology was consisted of semi-structured interviews with practitioners and academicians and also content analysis, besides direct involvement in the tenders. The four roles of broker, content expert, trainer and performer advised for intermediation in PPI were found to be similarly applicable into and useful for technology transfer-oriented PPI. But, three major distinctions were also identified, including 1) a throughout focus on evaluation, monitoring and promotion of technological, manufacturing and organisational capabilities (TRL, MRL and CRL) of the supply-side, rather than on innovative solutions as is the case in usual PPI; 2) internal disruption in public procurer due to changing legal requirements, new tender monitoring and evaluation processes and criteria, risk management, rather than due to introduction of innovative products; and 3) no need to formulation of needs and conversion of them into functional requirements or product specifications, which consists an important initial step in usual PPI. In sum, this effort could be considered as a preliminary step toward conceptualisation of “technology transfer-oriented PPI” (TT-PPI), based on the established concept of “public procurement for innovation” (PPI). The results could help customise and localise literature advancements regarding intermediation structure in alignment with technology transfer needs of developing countries, and locally help bottom-up implementation of the National Technology Annex recently adopted in Iran.
... in an imperfect knowledge market. It should be noted that intermediaries are discussed under different labels of broker, change agent, consultants, coordinator, third parties, intermediation structure or intermediaries, and bridging institutions, to name some (Bessant and Rush, 1995;Howells, 2006;Rainville, 2017). ...
... In PPI, legal constraints and prerequisites if not addressed hamper collaboration of public body and suppliers and hinder redesign of tendering toward innovation (Edler et al., 2012;Jaakson, 2017;OECD, 2017;Rainville, 2017;Yeow et al., 2017). ...
Conference Paper
Public procurement of innovation (PPI), and its antecedent public technology procurement (PTP), introduced by Charles Edquist since late 1990s as a novel promising demand-side innovation policy instrument is a new wave of public procurement reform, being implemented in European countries for the last decade. The escalating attention to this policy instrument stems from its considerable share in GDP and availability to governments, despite the many barriers against the implementation and success. While public sector of developing countries attempts to incorporate technology transfer as an essential and incentivizing element of public tenders with foreign technology owners, it seems that many of such procurements remain arguable if a real technology transfer has been occurred. In this regard, although PPI literature has been grown up based on the needs of developed countries for development of cutting-edge technologies and innovations, and not technology transfer as in the case of the developing or under-developed world, the recent practice of Iranian oil industry has shown the possibility of such learning and adoption from PPI. The focus of the present paper is on the application of monitoring and evaluation (M&E) in selection of tenderers based on their technological capabilities and also monitoring of technology transfer to local bid winners during the implementation of contracts. This suggests a solution for one of the recent challenges of PPI practice in the developed world, and also for one of the classic problems in the area of technology transfer for developing countries. To put an end to unrealized technology transfers during foreign contracts, Iranian Oil Ministry recently attempted to, at first, define ten groups of strategic equipment and goods (needs and targets in public procurement), and then, to set up third-party Technological Evaluation Committees for the purpose of monitoring and evaluation (M&E) of the aspects and extent of technology transfer realized. The evaluation model was derived from prominent frameworks of Technology Readiness Levels (TRL), Manufacturing Readiness Levels (MRL) and Corporate Readiness Levels (CRL) of NASA and DOA, as stressed in the literature as the established sources and experiences. The evaluation model was transformed into three questionnaires (covered more than 600 questions) fulfilled by Technological Evaluation Committee members via site-visit of tenderers, meetings and review of evidences. The results indicate that there are common barriers to both successful technology transfer in public procurement of developing countries and successful public procurement of innovation (PPI) of developed countries. These include monitoring and evaluation challenges, risk-aversion of public managers, legal constraints hampering collaboration of public body and suppliers and also relaxation of new contracts for the purpose of real technology transfer, and determination of the success of a technology transfer to be linked with payments and clearances. Not only PPI of developed world was able to address technology transfer issue of a developing country, the new practice of Iran in monitoring and evaluation (M&E) of tenderers for technology transfer could even answer some recent questions and challenges of European countries within the area of PPI, e.x. how to determine tender winner and innovation development success.
... Within the legal boundaries meant to prevent distortions of competition (e.g. the same information is conveyed to all participants; the market players are not agreeing on price fixing or market sharing), different strategies can be deployed by the procurer in designing market consultations that are conducive to information sharing. Some examples of these are one-on-one discussions, market surveys, poker planning techniques, 3 and the use of an intermediator to act as a facilitator of discussions between public and private actors (Rainville, 2017;eafip, 2017b). ...
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Thesis
Políticas de inovação orientadas à demanda e mecanismos de cooperação entre agentes públicos e privados passaram a fazer parte de estratégias de diversos países de forma mais refinada e contundente recentemente. Elas se juntam a um rol de outras iniciativas que contempla a oferta de incentivos e que vem predominando no conjunto de instrumentos direcionados a estimular a P&D e, por conseguinte, a inovação. Neste contexto, as compras públicas para inovação são os principais instrumentos de política de inovação pela demanda. É objetivo desta tese identificar e analisar os mecanismos jurídicos e institucionais existentes no Brasil para o desenho, a implementação e o controle da compra pública de conteúdo tecnológico e como eles podem ser ajustados, modificados e ou até substituídos para viabilizar a sua instrumentalização em políticas de inovação. A análise de caráter descritivo e exploratório desenvolvida nesta tese contemplou atividades de revisão da literatura e o exame de fontes secundárias (normas, decisões administrativas, relatórios, pareceres e outros documentos técnicos) do Brasil, dos Estados Unidos e da União Europeia. As perguntas de pesquisa que guiaram o desenvolvimento deste estudo foram: (i) Como as racionalidades das políticas de inovação influenciam o desenho, a implementação e o controle do instrumento da compra pública permeada por risco tecnológico? e (ii) Por que e como os mecanismos de controle das compras públicas dificultam o desenho e a implementação das encomendas tecnológicas como instrumento de política de inovação? A investigação baseou-se na administração pública federal no Brasil, tendo em vista as experiências dos Estados Unidos e da União Europeia. Concluiu-se com o diagnóstico de que, apesar dos significativos avanços na legislação aplicável às encomendas tecnológicas no Brasil, perpetuam-se incertezas para a tomada de decisão do gestor público que dificultam o desenho e a implementação desses instrumentos. Os sistemas de controle no Brasil inibem a propensão a risco e tomam demasiado tempo do administrador público, formando um ciclo vicioso de burocracia. Mecanismos de monitoramento continuado das contratações (fluxo de avaliações e estudos técnicos), acompanhados de transparência e sintonia entre gestores e controladores são possíveis soluções para os problemas diagnosticados.
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Parker and Van Praag (2009) showed, based on theory, that the group status of the profession ‘entrepreneurship’ shapes people’s occupational preferences and thus their choice behavior. The current study focuses on the determinants and consequences of the group status of a profession, entrepreneurship in particular. If the group status of entrepreneurship is related to individual choice behavior, it is policy relevant to better understand this relationship and the determinants of the status of the entrepreneur. For reasons outlined in the introduction, this study focuses on (800) students in the Netherlands. We find that the status of occupations is mostly determined by the required level of education, the income level to be expected and respect. Furthermore, our results imply that entrepreneurship is associated with hard work, high incomes, but little power and education. Moreover, we find evidence that individual characteristics, such as entrepreneurship experience, vary systematically with the perceived status of occupations, thereby contributing ammunition to a fundamental discussion in the literature. Finally, we find a strong association between the perceived status of the entrepreneur and the estimated likelihood and willingness to become an entrepreneur.
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The national research system of the Netherlands exemplifies general characteristics of modern research systems, with an intermediary level between the state and research performance organisations, and with increasing pressure for relevance of science. Specific for the Netherlands is the density of institutions in the intermediary level and the institutional competence in (heterogeneous) aggregation processes for agenda building, and consociational implementation. Sectoral advisory councils, foresight exercises, and strategic research programmes are described, and background trends and socio-political and socio-cognitive aspects are discussed.
Quantifying the impact of Pre-Commercial Procurement (PCP) in Europe based on evidence from the ICT sector
  • S Bedin
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