The role of public procurement in the formation of markets for innovation

Abstract In this work we analyse the ways in which public procurement can encourage business innovation by supporting the formation of markets for new products, technologies and services. We use an evolutionary analytical framework in which markets for innovation are defined as dynamic complex systems whose function is the creation and coordination of knowledge as they develop over time. We show that public procurement has a key role in supporting this function throughout all the stages in the process of market development, and identify specific tools and actions that can be implemented at different phases of the procurement cycle to do so. We illustrate the main conceptual arguments of our analysis with examples from existing case studies on the public procurement of innovations.

• Publication year

  2020

• Venue

  Journal of business research

• Publication date

  2020-02-01

• Fields of study

  Business, Economics

• Identifiers
  DOI 10.1016/J.JBUSRES.2018.11.032
• External record

  Open on Semantic Scholar

• Source metadata

  Semantic Scholar

• No claims are published for this paper.

• No concepts are published for this paper.

• Public procurement of innovation: a review of rationales, designs, and contributions to grand challenges

  2018cited by this paper
• A Systems Perspective on Markets: Toward a Research Agenda

  2017cited by this paper
• Public procurement of innovation

  2017cited by this paper
• Steering innovations towards a green economy : Understanding government intervention

  2016cited by this paper
• Strengthening the Efficiency of Public Procurement

  2015cited by this paper
• A holistic market conceptualization

  2015cited by this paper
• The Systems View of Life: A Unifying Vision

  2014cited by this paper
• Policy instruments for public procurement of innovation: Choice, design and assessment

  2014cited by this paper
• Barriers to innovation through public procurement: A supplier perspective

  2014cited by this paper
• Well-Functioning Markets in Retail Energy

  2014cited by this paper
• Public Procurement and Innovation: The Role of Institutions

  2013influential reference
• The market failure and the systemic failure rationales in technological innovation systems

  2013cited by this paper
• Public Procurement for Innovation as mission-oriented innovation policy

  2012cited by this paper
• Public procurement of innovation: demand as in command or facilitation of endogenous knowledge conversion?

  2012cited by this paper
• Sustainable procurement in the public sector: an international comparative study

  2011cited by this paper
• Flexible Strategies for Centralized Public Procurement

  2010cited by this paper
• Qualitative Research from Start to Finish

  2010cited by this paper
• Understanding the Innovation Impacts of Public Procurement

  2010cited by this paper
• Risk management in the procurement of innovation. Concepts and empirical evidence

  2009cited by this paper
• Building Effective ‘Innovation Systems’ versus Dealing with ‘Market Failures’ as Ways of Thinking About Technology Policy

  2009cited by this paper
• Quality Food, Public Procurement, and Sustainable Development: The School Meal Revolution in Rome

  2009cited by this paper
• Bengt-Åke Lundvall - Innovation as an interactive process: from user-producer interaction to the national system of innovation

  2009cited by this paper
• Public procurement as an innovation policy tool: The role of institutions

  2009cited by this paper
• Public procurement and innovation: towards a taxonomy

  2008cited by this paper
• Policies for science, technology and innovation:: Translating rationales into regional policies in a multi-level setting

  2008cited by this paper
• Persuasion with case studies

  2007influential reference
• The General Theory of Economic Evolution

  2007influential reference
• Public procurement and innovation?Resurrecting the demand side

  2007influential reference
• Empowering consumers: the creative procurement of school meals in Italy and the UK

  2007cited by this paper
• Public Procurement for Research and Innovation

  2005cited by this paper
• Limits to the economy of knowledge and knowledge of the economy

  2005influential reference
• Innovation and Public Procurement. Review of Issues at Stake

  2005influential reference
• A system failure framework for innovation policy design

  2005cited by this paper
• Systems Failure and the Case for Innovation Policy

  2005influential reference
• Evolutionary Economics and Creative Destruction

  2002influential reference
• Knowledge and markets

  2001cited by this paper
• The theoretical and policy implications of knowledge codification

  2001cited by this paper
• Innovation as a Systemic Phenomenon: Rethinking the Role of Policy

  2000influential reference
• Knowledge, institutions, and evolution in economics

  1999cited by this paper
• Market Functions and Market Evolution

  1999cited by this paper
• Equilibrium and Evolutionary Foundations of Technology Policy

  1998cited by this paper
• Cognitive Inertia in a Turbulent Market: the Case of UK Residential Estate Agents

  1997cited by this paper
• DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT

  1997cited by this paper
• Procurement policy as a tool of industrial policy

  1990cited by this paper
• The Sources of Innovation

  1990cited by this paper
• ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION

  1990cited by this paper
• Creating a Regional Innovation‐Oriented Infrastructure: The Role of Public Procurement*

  1984cited by this paper
• An evolutionary theory of economic change

  1983cited by this paper
• Designing the Innovating Organization

  1982cited by this paper
• An evolutionary theory of economic change

  1982cited by this paper
• Economic Welfare and the Allocation of Resources for Invention

  1962cited by this paper
• The Simple Economics of Basic Scientific Research

  1959cited by this paper

• Can digital public procurement lift enterprise markup?

  2026cites this paper
• The Role of Government Procurement in Enhancing Energy Firms’ Productivity: An Empirical Analysis

  2026cites this paper
• Does market engagement in public procurement foster innovation? Results from a Pan-European survey

  2026cites this paper
• The impact of supply-demand innovation policy instrument mix on firm innovation: Empirical analysis from the perspective of firm life cycle

  2026cites this paper
• The synergistic effects of demand-pull and supply-push policies on firm’s green innovation: Evidence from China

  2026cites this paper
• The Process of Implementing Procurement Procedures within Public Institutions in Romania

  2026cites this paper
• Green public procurement and corporate green innovation: a moderating effect of internal and external governance

  2026cites this paper
• High earnings through firm influence: the role of hierarchical structures in public procurement

  2025cites this paper
• Research Trends in E-Procurement and Goods/Services Procurement: A Bibliometric Study with Insights from Indonesia (2020–2025)

  2025cites this paper
• Learning from winning firms: Government innovation procurement and peer innovation efficiency

  2025cites this paper
• Ist eine missionsorientierte Innovationspolitik die bessere Industriepolitik?

  2025cites this paper
• Promoting supply market development by the dynamic capabilities of innovative public procurement

  2025cites this paper
• Green public procurement as a policy signal: Attracting green investors despite local protectionism

  2025cites this paper
• The impact of government procurement on the smart specialisation of specialised, refined, differentiated, and innovative enterprises: evidence from China

  2025cites this paper
• Impact of adhering to public procurement principles on procurement performance in Bangladesh

  2025cites this paper
• Does cultural difference impede the allocation of government procurement? Evidence from China

  2025cites this paper
• Government Procurement and Corporate Green Innovation: Evidence from Dual Machine Learning

  2025cites this paper
• Managing public sector innovation for a better society: the case of public procurement of innovation

  2025cites this paper
• Can government procurement improve capacity utilization in enterprises? Evidence from China

  2025cites this paper
• Sociotechnical Pathways: From Satellites and Stations to Envisioning Commercial Lunar Gateways and Beyond

  2025cites this paper
• Spillover effects of environmental regulation along industrial chains: evidence from a quasi-natural experiment

  2025cites this paper
• LEGAL REGULATION OF PUBLIC PROCUREMENT IN EU: CHALLENGES AND PROSPECTS

  2025cites this paper
• The Role of Innovation Capability and Gender on Green Public Procurement in Higher Education Institutions

  2025cites this paper
• Public procurement research: a bibliometric analysis

  2024cites this paper
• Sustainable public food procurement: criteria and actors’ roles and influence

  2024cites this paper
• Investigating Ethics in Government Procurement: A Bibliometric Analysis

  2024cites this paper
• Differences in the innovation effectiveness of China’s new energy vehicle industry policies: A comparison of subsidized and non-subsidized policies

  2024cites this paper
• Impacts of policy-driven public procurement: a methodological review

  2024cites this paper
• The impact of green public procurement on corporate green innovation: evidence from machine learning and text analysis

  2024cites this paper
• Risks of policy failure in direct R&D support

  2024cites this paper
• Effects of public procurement on corporate total-factor carbon productivity: evidence from China

  2024cites this paper
• Green Public Procurement and Corporate Environmental Performance: An Empirical Analysis Based on Data from Green Procurement Contracts

  2024cites this paper
• Procuring for Pandemics through Joint Procurement Association in the European Union: Lessons for the Southern African Development Community and the East African Community

  2024cites this paper
• On corporate total factor productivity: public procurement

  2024cites this paper
• The impact of public procurement on the adoption of circular economy practices

  2024cites this paper
• Dynamic capabilities view on value creation in public procurement

  2024cites this paper
• Public procurement and green innovation in Chinese enterprises: insights from econometric models and cross-case studies

  2024cites this paper
• Can non-subsidised policies for new energy vehicles improve the quality of enterprise innovation? evidence from China

  2024cites this paper
• The outcomes of public procurements: an empirical analysis of the Italian space industry

  2023cites this paper
• A quasi-experimental design to assess the innovative impact of public procurement: An application to the Italian space industry

  2023cites this paper
• The landscape of public procurement research: a bibliometric analysis and topic modelling based on Scopus

  2023cites this paper
• A framework for mapping actor roles and their innovation potential in digital ecosystems

  2023cites this paper
• Innovation-Driven Policy and Low-Carbon Technology Innovation: Research Driven by the Impetus of National Innovative City Pilot Policy in China

  2023cites this paper
• Towards a successful implementation of public procurement for innovation: the case of Iran’s oil industry

  2023cites this paper
• Demand, public procurement and transformation

  2023cites this paper
• OF INNOVATION RESEARCH D EMAND , PUBLIC PROCUREMENT AND TRANSFORMATION

  2023cites this paper
• Differential Game Study of Competitive Supply Chain Based on Sustainable Innovation of Public Technology

  2023cites this paper
• The effects of Demand-side policy on firm innovation: The Mediating role of R&D activities

  2023cites this paper
• A performance-driving model for public-sector construction framework procurement in England

  2023cites this paper
• Grand Challenges, Innovation Policy, and Contests

  2023cites this paper
• Quality incentive contract design in government procurement for innovation

  2022cites this paper
• Capturing the value creation in public procurement: A practice-based view

  2022cites this paper
• Procurement challenges in public-sector agricultural development projects in Bangladesh

  2022cites this paper
• Can Green Public Procurement Change Energy Efficiency? Evidence from a Quasi-Natural Experiment in China

  2022cites this paper
• Climate policy and low-carbon innovation: Evidence from low-carbon city pilots in China

  2022cites this paper
• The role of green public procurement in enabling low-carbon cement with CCS: An innovation ecosystem perspective

  2022cites this paper
• Green Innovation in Construction Industry and in Public Works Procurement in Hungary - Review

  2022cites this paper
• Emergent understandings of the market

  2022cites this paper
• Identifying the drivers and barriers of the public sector procurement of products with recycled material or recovered content: A systematic review and research propositions

  2022cites this paper
• Strategies for Digital Transformation of the Public Acquisitions Systems

  2021cites this paper
• Intelligent purchasing: How artificial intelligence can redefine the purchasing function

  2021cites this paper
• Some policy issues surrounding the use of FinTech in public procurements

  2021cites this paper
• Construction frameworks in the public sector: Do they deliver what they promise?

  2021cites this paper
• Unlocking public procurement as a tool for place-based industrial strategy

  2021cites this paper
• Unpacking the role of innovation capability: Exploring the impact of leadership style on green procurement via a natural resource-based perspective

  2021cites this paper
• Market Formation in a Global Health Transition

  2021cites this paper
• ANALYSIS OF PUBLIC PROCUREMENT'S DIRECTIONS IN UKRAINE BY SUBJECTS OF PROCUREMENT

  2021cites this paper
• Organizing innovation contests for public procurement of innovation – a case study of smart city hackathons in Tampere, Finland

  2021cites this paper
• Local Open Innovation: A means for public policy to increase collaboration for innovation in SMEs

  2020cites this paper
• Green and Sustainable Public Procurement—An Instrument for Nudging Consumer Behavior. A Case Study on Romanian Green Public Agriculture across Different Sectors of Activity

  2020cites this paper
• Green Procurement Practices in Romania: Evidence from a Survey at the Level of Local Authorities

  2020cites this paper
• Does green public procurement encourage firm's environmental certification practice? The mediation role of top management support

  2020cites this paper
• Public procurement, innovation and industrial policy: Rationales, roles, capabilities and implementation

  2020cites this paper
• Entrepreneurship Marketing Through the Marketplace for Sorghum Based Alternative Food

  2020cites this paper
• Direct demand-pull and indirect certification effects of public procurement for innovation

  2020cites this paper
• Tender Management Relating to Imposition of Public Service Obligations on Scheduled Air Routes: An Approach Involving Digital Transformation of Procurement Procedures in Spain

  2020cites this paper
• A Gestão de Compras Públicas: um Estudo de Caso da Central de Compras do Distrito Federal

  2020cites this paper
• The innovation impacts of public procurement offices: The case of healthcare procurement

  2020cites this paper
• Participation in the programs of the European Space Agency: Micro- and meso-level effects and additionality

  2020cites this paper
• Demand-side policy for emergence and diffusion of eco-innovation: The mediating role of production

  2020cites this paper
• Public clients creating lead markets for innovation towards sustainability transitions: Market-shaping in the Swedish construction sector

  year unknowncites this paper