driving innovation through public procurement future european support

Enterprise and Industry


Driving Innovation Through

Public ProcurementFuture European Support

Dr. Bertrand Wert DG Enterprise and Industry – Innovation For Growth Unit Policy Development for Industrial Innovation

EUROPEAN HIGHL LEVEL EVENTS On: Supporting Public Procurement Of Innovation Launching Events of the European projects Financed by the Competitiveness and Innovation Programme

29 November 2012 / London



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1. What is public procurement of innovation?

2. Why & main difficulties for using public procurement to stimulate innovation?

3. European Commission actions to support innovation procurement

4. The Innovation Procurement Forum & the up-coming innovation procurement award

5. “3.0” 2013 call for proposals to support public PPI & PCP

6. Procurement & innovation in Horizon2020

Structure



What is public procurement of

innovation?

Supporting the demand of innovation e.g. The Lead Market Initiative



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Measures from the supply side

Measures from the

demand-side- Regulation- Public procurement (PCP/PPI)

- Fin

anci

ng R&D

- Equity

support

- Fis

cal M

easu

res

- Gra

nts, l

oans

- Standardisation

Lead Market Initiative – Towards a policy mix

Public policies tools for action Supply and demand-led innovation policy tools

- Tra

inin

g, fai

rs

- ...

Intention: Supporting market VS supporting technology

push



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What is innovation procurement? Composed of 2 main aspects

Following the need assessment realised by the procurer there are 2 possibilities

1/ Procurement of innovative solutions that require R&D = Pre-Commercial Procurement

Working under R&D exemption of the procurement procedure/directives

2/Procurement of innovative solutions that do not require R&D = Public Procurement of innovation

Normal procurement procedure/directives

http://ec.europa.eu/information_society/tl/research/priv_invest/pcp/

documents/pcp_brochure_en.pdf



Why & main difficulties of using public procurement

to stimulate innovation?



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Why supporting demand of innovation & innovation procurement?

1. Potential lever for action: 19% of EU GDP

2. Delivering better public services/ Societal challenges

3. Foster & accelerate access to market for innovative solutions (i.e. lead customers, first client)

4. Foster EU Internal Market to benefit of EU businesses (SMEs)

5. Policy mix and international rising field of innovation support policies



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Main difficulties for procurers to purchase innovative solutions?

1. Wrong incentives

2. Lack of knowledge and capabilities on technologies, innovations, market developments

3. No strategy that aligns public procurements with public policy objectives (e.g. health, environment, transport), and with R&D&I support programmes

4. Fragmentation in demand

5. Difficulties for innovative SMEs to be involved in public procurement as direct beneficiary/ client of a purchasing authority



EC actions to support innovation

procurement

Supporting the demand of innovation e.g. First generation of public procurement networks (2009)

The Lead Market Initiative



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StandardisationLabelling

CertificationLegislation

Public Procurement

Complementary Actions

Sector-specific

networks of Contracting

Authorities to foster demand for innovation

EU Recommendation for interoperability

Financial support (CIP) for market

replication projects

Guide on funding available for RE

demonstration and pilot projects

Product performance

standards

e-Health

Sustainable construction

Protective textiles

Bio-based products

Recycling

Renewable energies

2nd generation of Eurocodes

Revision of the PPE Directive

SMEs guide on collaborative

working schemes in construction

Adopting minimal energy

performance requirements

Waste Framework Directive

Lea

d M

arke

t A

reas

Policy tools

Screening of national building

regulations

CEN Packaging Standards

Introduce the Electronic Health Insurance Card

Training platform for buyers and users

FP7 call on bio-refinery pilot plants

Mandatory national targets

for 2020

Lead Market Initiative 09-12’

EU Patient Smart Open Services large scale pilot funded

Inventory of legislation

affecting bio-based products

Inventory of all relevant standards



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Rational of the first generation of public procurement networks (2009, €3M)

1. Forming European buyer’s groups in Lead Market Sectors

2. Developing guidance

3. Engaging with supply chain (SMEs & industries)

4. Community building



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Cities: sustainable construction & rehab.“SCI-NETWORK” Sustainable Construction & Innovation through Procurement : ICLEI (lead) Local Governments for Sustainability (Europe), Transport for London TFL (UK), City of Torino (IT), Dutch National Procurers Association PIANOo (NL), Culminatum, Helsinki Region Centre of Expertise (FI), University of Klagenfurt (AT), Motiva, National Agency for Energy Efficiency and Renewable Energy (FI) Results: • 120 organisations are participating in the pilot phase

• Online 5 Working Groups: application of environmental standards in reno.; new technical solutions; procuring innovation; whole-life costing; financing & contracting.

• Helping public sector to become key driver for sustainable innovation: guide on “Procuring Innovative & Sustainable Construction + snapshots publication”

• Encouraging knowledge & experience sharing, identifying best practice, innovative technologies & products relevant to public authority

• Engaging with the market to identify the best solutions: Online forum developed https://procurementforum.viadesk.com

• Guide on Procuring Innovative and Sustainable Construction Solutions: http://www.sci-network.eu/fileadmin/templates/sci-network/files/Resource_Centre/Guide/SCI-Network_Guide_www.pdf

www.sci-network.eu contact: [email protected]



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Fire-brigades protective garments

“ENPROTEX”: Dutch national Disaster Response Agency LFR (NL), Belgian Ministry of the Interior IBZ (BE)

Results: • A web-portal for public procurers and SMEs

• Innovation mapping in textile research on protective clothing

• Providing industry with forward commitments to meet future needs of procurers

• A Personal Protective Equipment public procurers network is under development

• Dissemination at national and international level.

• Discussions with industry on barriers to innovation as well as dialogue with SME associations on involvement of SMEs in innovation and the supply chain

• Model for tender documents have been produced

• Guide: High Level Options for an Innovation Procurement Strategy for innovative protective textiles

• Final International conference, on “Innovation procurement strategies for innovative protective textile”: Brussels, December 2012

http://www.enprotex.eu/index contact: [email protected]



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Low carbon Hospitals“LCB-HEALTHCARE”: Department for Business Innovation and Skills BIS (UK) (lead), Netherlands Organisation for Applied Scientific Research TNO (NL), Norwegian Directorate for Health Affaires(NO), Rawicz Hospital(PL), Department of Health DH (UK), European Health Property Network EuHPN (NL)

Results: • Develop a sustainable, self-funding, trans-national network • Stakeholders' consultations to develop guidance and recommendations for European hospitals on how to procure innovation • Surveys of barriers to investment in low carbon solutions available • European state-of-the-art reports• Several procurement of innovation realised: e.g. "Ultra Efficient Lighting for Future Wards" in the Rotherham hospital (UK): by implementing a Forward Commitment Procurement project refurbishment leaders expect: energy consumption saving of 30% or €5,200 for 40 beds over 10 years, and Maintenance Saving of 88% or €15,400 for 40 beds over 10 years.• Guidance on: Innovation Procurement, Delivering Efficiency, Quality and Sustainability in Healthcare. A guide to innovation procurement for the healthcare sector: http://lowcarbon-healthcare.eu/newsitem/69

http://lowcarbon-healthcare.eu/ contact: [email protected]



EC actions to support innovation

procurement

Supporting the demand of innovation e.g. Second generation of European

public procurers networks (2012)

First generation of public procurement networks (2009)



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Rational of the second generation of public procurement networks (2012, €15M)

1. Forming European buyer’s groups in any sectors

2. Developing guidance


4. Encouraging innovative SMEs to take part in public tendering

5. Community building

6. Realisation innovation procurement within the time-line of the project

7. Developing coordinated and joint procurement

8. Launching of a European Lead Public Customer Award

9. Preparing innovation procurement mainstreaming within Horizon 2020



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Current activities

8 new networks of European Public Procurers of innovation covering the following fields

1/ Combating climate change: Innobuild (Lyngdal Kommune (NO))

2/ Improving care for senior citizens/active aging: EcoQuip (Business Innovation and Skills (UK)), Happi (Réseau achats hospitaliers d’Ile de France (Paris, FR))

3/ Fostering energy efficiency: Prolight (Transport for London, UK), Fired-up (London Fire Brigade, UK), Spea (Barcelona city, SP)

4/ Supplying better mobility infrastructure: Syncro (Conseil Général de l’Isère (Grenoble, FR))

5/ Creating more healthy working conditions: Innobuster (Austrian central purchasing authority AT))



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Current activities

“The Innovation Procurement Forum”Project leader: ICLEI, European platform of sustainable cities (Freiburg in Brisgau, DE) contact: [email protected]

Future activities for 2012 – 2016

1. Development of an innovation procurement database

2. Maintenance and development of a European user-friendly and interactive website: http://www.procurement-forum.eu/

3. Representing the European Innovation Procurement Community

4. Development of personal exchange and joint training activities on PCP and PPI

5. Drafting and compilation of guidelines on innovation procurement

6. European award for the best innovation procurements (launch: February 2013 – Stuttgart conference)



19Ministry of Economic Affairs, Agriculture and Innovation1919

Lead Public Customer Award

• Showcase public innovation

procurements

• Lead customer as role model

communicating experiences

• Prize: award and visit

project manager to a

country of choice



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• Announcement: January 2013

• Publication: February 2013

• Deadline applications: June 2013

• Award Ceremony: Fall 2013



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• Award criteria

• Economic and social impact procurement

• Impact home/ internal market

• Replicability procurement

• Use of procurement instruments

• Promotion plan lessons learned



Future EC actions to support innovation

procurement

Supporting the demand of innovation e.g. Third generation of European public

procurers networks (2013)



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Potential rational of the third generation of public procurement networks (2013, €6.3M)

1. Forming European buyer’s groups of public & private procurers of innovation (tbc.)

2. Developing guidance and public procurement road-maps


4. Encouraging innovative SMEs to take part within public tendering

5. Community building of innovation procurers

6. Realisation innovation procurement within the time-line of a project

7. Developing coordinated and joint procurement

8. Preparing innovation procurement mainstreaming within Horizon 2020

Areas under investigation: Sustainable construction, mobility/smart grids, health, recycling/ raw material, KETs, tourism…

Future activities 2012-13



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European Commission, DG ENTR

Group of buyers only

Group of buyers (50%) + innovation agency and/or specialized platform (e.g. for cities: sustainable development) and/or cluster organization

Supplier (e.g. SME x)

Supplier (e.g. SME y)

Supplier (e.g. SME z)

Grant: networking, procurement preparation of PDI or PCP… & % of the real procurement (non definitive structure and %)

Procurement contract

Beneficiary for other procurers +

UE internal market

Innovations + client reference

Call for proposals of 6.3 M€ CIP programme February 2013

20%95%

More info: http://ec.europa.eu/cip/files/cip/docs/eip_2013_work_programme_en.pdf

or

* 20% for a maximum contribution up to 500.000 EURO

Innovative solution: good,

process or service




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CIP-EIP type of activities supported1/ Preparation phase: financial support ≤ 95%• Capabilities improvement: trainings, workshops• Procurement strategies development• Needs assessment• Meeting the market: state-of-the art, technical dialogue, market consultation• Development of functional specifications• Forward Commitment Procurement• Standardisation, certification and/or insurance• Networking activities to Develop a Joint Procurement

2/ Procurement phase: financial support ≤ 20%* (€500.000 max per consortium for real procurement co-financing)• Specification and publication of a (joint or coordinated) call for tender. • Implementation of a (joint or coordinated) call for tender (including marketing)• (Joint) evaluation and selection of proposals• (Joint) monitoring and evaluation of projects




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• European financial support for cross-border networks• Co-financing rates: 50-75% for implementation, and for PCP

preparation: 100%Obj 5.1(d): Personalised Health / Active Ageing (8 €m – Call 10)Obj 11.1: ICT solutions for any area of public interest (4 €m – Call 10)Obj 11.3: eGov / Cloud Computing (10 €m – Call 10)Obj 11.2: Digital preservation (5 €m – Call 11)Obj 8.2: Technology enhanced learning (min 5,5 €m – Call 11)

European financial support for cross-border networks• Financing at 100%

Obj 5.1(e)(1): ICT for health / ageing well (500.000 EURO – Call 10)Obj 2.2 (b): Robotics (max 3 €m – Call 10)

Call 10: publication 10/07/2012 – deadline 15/01/2013Call 11: publication 18/09/2012 – deadline 16/04/2013

More info at http://cordis.europa.eu/fp7/ict/pcp/calls_en.html


Pre-commercial procurement PCP



Future EC actions to support innovation

procurement

Supporting the demand of innovation Horizon 2020 R&D&I Programme



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• Awareness Raising• Events, PCP and PPI newsletters, prizes (Lead Public Customer Award, Public

Sector Innovation prize…), trainings, staff exchanges…

• Political agenda’s• EU level: Digital Agenda for Europe & Innovation Union targets on PCP & PPI• Council Conclusions of February 2011 and March 2012• Member States agenda’s: half of EU MS are/start engaging in pilots or are defining

their PCP / PPI policy strategy (UK, NL, FI, SE, DK, BE, DE, FR, SP, IT, AT, ET…)

• Ongoing pilots EU support to procurement actions• Creating networks of public procurers• Co-financing PCP & PPI procurements

• Mainstreaming EU support in Horizon 2020• Draft Commission Horizon 2020 proposal includes financial support for cross-

border PCP & PPI actions• Possibility for EU to be involved itself also

Innovation Procurement & Horizon 2020




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Some of the future public events

• Spring-Automn 2012: 8 kick-off meetings of the Procurement of Innovation networks: Olso, Vienna, Paris, Grenoble, London, Brussels

• 5 July: Innovation procurement and SME involvment – Paris

• 19-21 September: Eco-Procura conference – Malmö http://www.ecoprocura.eu/

• 2 October 2012: Inno-demanda/ Inno-procura conference – Madrid

• 7-8 November 2012: Nordic Innovation Procurement conference – Helsinki https://tapahtumat.tekes.fi/event/HelsinkiConference

• 29-30 November 2012: Innovation procurement EU and UK projects launch - London - Birmingham

• February 2013: Innovation procurement and launching of 2013 call for proposals 3.0 Networks – Stuttgart (tbc.)

Future developments



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THANK YOU FOR YOUR ATTENTION

[email protected]

• Public Procurement & Innovation: http://ec.europa.eu/enterprise/policies/innovation/policy/public-procurement/index_en.htm

• Pre-Commercial Procurement:http://cordis.europa.eu/fp7/ict/pcp/calls_en.html

• Register to our e-newsletters on innovation procurement: [email protected]

• Group Supporting Public Procurement of Innovation

• https://www.procurement-forum.eu

email: [email protected]



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Rotherham Ultra Efficient Lighting FCP SwedenFagerhult – Luminaires

Ecophon – Acoustic Tiles

United KingdomCundall – Lighting Designers

Austin Smith Lord – Interior DesignersWandsworth – Nurse Call Systems

EX-OR – Lighting Control

GermanyOSRAM – LED’s, Lamps, Control Gear

SwedenLund

University,

UKKings

College London,

De Montfort University,

New SME created through the FCP process.

Rotherham Ultra Efficient Lighting FCP (€2M)

Rotherham Hospital is a 500 bed acute unit in the North East of

England



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driving innovation through public procurement future european support

Documents