Procurement and Innovation
In the UK, government is increasingly exploring the use of procurement to stimulate innovation. Since 2003 several reports have been produced on this subject, including policy reviews, research papers and guidance. There has also been some work in this area at EU level.
To date, much of the literature in this field has concentrated on scientific and technological innovation. However, there is growing interest in using procurement to drive service innovation. The public sector is one of the largest elements of the service sector; therefore innovation in public service delivery has a significant part to play in this agenda.
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Public Procurement as a Tool to Stimulate Innovation (PDF)
House of Lords Science and Technology Committee, 2011
The Stationery Office
The Government is the single largest purchaser in the United Kingdom, boasting enormous potential to drive innovation and delivery in public services. This report finds that this potential remains unrealised and challenges Government too improve efficiency and imagination in procurement.
The Procurement of Consumables by National Health Service acute and Foundation Trusts (PDF)
House of Commons Committee of Public Accounts, 2011
The Stationery Office
This report examines the procurement approach of the 165 NHS acute and Foundation hospital trusts for medical supplies and other such consumables. At present the theoretical model of procurement does not reflect the complex reality. There is room for substantial further improvement.
Understanding Commissioning Behaviours: Commissioning and competition in the public sector (PDF)
PricewaterhouseCooper (PwC) for the Office of Fair Trading (OFT), 2011
Office of Fair Trading (OFT)
This is a series of case studies for the OFT's Commissioning and Competition report, also available on the Resource Centre. It acknowledges the importance of structure and governance in the creation of competitive markets but also identifies individual behaviour as vital; this in turn influenced by incentives and skills, and so by placing greater emphasis on these market designers can ensure better outcomes from its public sector commissioning.
Commissioning and Competition in the Public Sector (PDF)
Office of Fair Trading (OFT), 2011
This report suggests approaches to improving efficiency in commissioning and procurement, highlighting the role competition can play in achieving value for money in the delivery of public services. In particular it picks out four key issues: tackling barriers to entry, tackling barriers to exit, achieving genuine choice, and aligning incentives.
HM Treasury Review of Competitive Dialogue (PDF)
HM Treasury, 2011
This review considers the impact of the competitive dialogue process on public sector procurements in the UK. It draws on surveys of public and private sector contributions to make recommendations to improve the procurement process, achieve better value for money and shorten delivery times.
House of Commons Health Committee, 2011
The Stationery Office
The latest Committee report into commissioning in the NHS. It sees commissioning as a potentially effective instrument to drive innovation, quality and value.
A Review of Collaborative Procurement across the Public Sector (Web Page)
National Audit Office (NAO)/Audit Commission, 2010
This report argues that the UK public sector is not maximising its significant purchasing power. Public bodies must work together much more effectively to maximise savings from procurement activities. This link connects to a web page featuring the full report, price analysis, key results and case studies.
Commissioning strategically for better public services across local government (PDF)
Local Government Association (LGA)/Confederation of British Industry (CBI), 2009
This report explores how to improve strategic commissioning in public services, which can help drive innovation and value-for-money agendas. It identifies four emerging varieties of strategic commissioning and makes recommendations to national and local government.
The Procurement of Goods and Services by HM Prison Service (PDF)
Public Accounts Committee, 2009
Stationery Office H71
In 2003 the PAC published a report criticising procurement by the Prison Service. This report assesses the progress made in addressing this wide-ranging set of recommendations. It reports cash savings of £120 million as well as improved the quality of the goods and services it procures.
Innovation and Public Procurement: A New Approach to Stimulating Innovation (PDF) This brief, written as part of a two-year CBI/QinetiQ innovation campaign, presents detailed findings on public procurement and innovation from a CBI survey as well as international insights from the EU and US. It aims to set out practical measures that could make the UK a world leader in innovation through effective use of public procurement.
Confederation of British Industry (CBI)
This brief, written as part of a two-year CBI/QinetiQ innovation campaign, presents detailed findings on public procurement and innovation from a CBI survey as well as international insights from the EU and US. It aims to set out practical measures that could make the UK a world leader in innovation through effective use of public procurement.
Using Public Procurement to Drive Skills and Innovation (PDF)
Binks, James, 2006
Department of Trade and Industry (DTI)
This is a Local Futures Report commissioned by the DTI. It looks at fifteen case studies exploring a wide variety of ways that public procurement impacts on skills and innovation. It examines the legislative and guidance frameworks currently in place for UK public procurers, as well as those lessons available from private sector purchasing in the UK and innovative public procurement in Europe.
The Defence Industrial Strategy (HC 824 Seventh Report of Session 2005-2006) (PDF) This report examines the Defence Industrial Strategy (DIS), the Ministry of Defence (MoD) White Paper (available below). It weighs up the initial reaction of the defence industry and other interested parties to the DIS, the likely impact on the defence industry, the changes required of the MoD, and future plans for its implementation.
House of Commons Defence Committee, 2006
London: The Stationery Office
This report examines the Defence Industrial Strategy (DIS), the Ministry of Defence (MoD) White Paper (available below). It weighs up the initial reaction of the defence industry and other interested parties to the DIS, the likely impact on the defence industry, the changes required of the MoD, and future plans for its implementation.
Cox Review of Creativity in Business: Building on the UK's Strengths (Web Page)
Her Majesty's Treasury (HMT), 2005
The Cox review was commissioned to look at how best to enhance UK business productivity by drawing on its creative capabilities. Written in parallel with the DTI's 'Creativity, Design and Business Performance' report, it sets out the steps that Government and business should take to ensure that UK businesses harness the creative talents that the UK possesses.
Creativity, Design and Business Performance (PDF)
Department of Trade and Industry (DTI), 2005
This report was commissioned by the Chancellor of the Exchequer in 2005 to set out the state of knowledge on the economics of creativity and design and their role in driving business performance and productivity. It was written in parallel with the 'Cox Review of Creativity in Business'.
Public Procurement for Research and Innovation: Developing Procurement Practices Favourable to R&D Innovation (PDF)
Expert Group Report EUR 21793, 2005
This report explores options for good practice and policy, identifying opportunities for gains from innovation through procurement within EU directives for public purchasing. It is aimed at helping policy-makers understand the potential benefits and at helping procurement professionals to change their practices so as to realise those benefits, making 25 key recommendations.
Chapter 5 Innovation Policies Across Government (PDF)
Department of Trade and Industry, 2004
The economic analysis accompanying this report has identified the role played by demanding customers as one of the seven critical success factors that contribute to the UK's innvaitn performance
Capturing Innovation (PDF)
Office of Government Commerce (OGC), 2004
This guide is aimed at individuals involved in policy development, procurement and commercial activity, project and programme management. It seeks to encourage intelligent public procurement and open-minded customer relationships, containing advice on dealing with innovative proposals and encouraging suppliers to proffer innovative solutions.
Increasing Competition and Improving Long-Term Capacity Planning in the Government Market Place (PDF)
Kelly, Sir Christopher, 2003
Office of Government (OGC)
This report was commissioned by the Chancellor of the Exchequer to consider what further steps could be taken to increase competition and encourage better long-term capacity planning in markets where the Government has significant purchasing power. It provides a set of recommendations aimed at securing improvements in these areas for the benefit of citizens and business alike.
Competing in the Global Economy - The Innovation Challenge (PDF)
DTI Economics Paper No. 7, 2003
Department of Trade and Industry (DTI)
This report assesses levels of innovation in the UK economy in terms of global competitiveness. It measures innovation in the UK economy to be "at best, average" and then seeks answers to how UK firms can face the challenge of raising their rate of innovation. The authors highlight seven key factors for improvement in UK economic innovation.