Sustainable Procurement: Driving Green Innovation in Public Services
Promoting innovation in procurement is essential to address evolving societal challenges and enhance the efficiency and quality of public services. The European Commission's communication on "Pre-commercial Procurement: Driving innovation to ensure sustainable high quality public services in Europe" underscores the importance of leveraging public procurement to stimulate innovation.
1. Harnessing Public Procurement for Innovation
The European Union's broad-based innovation strategy recognises the critical role of public procurement in fostering innovation. By strategically utilising procurement processes, public authorities can drive the development of new technologies and solutions that address pressing societal challenges such as climate change, energy efficiency, and healthcare.
2. Pre-commercial Procurement (PCP): A Catalyst for Innovation
Pre-commercial procurement (PCP) focuses on the research and development (R&D) phase before commercialisation. It involves procuring R&D services to explore and develop innovative solutions that meet specific public sector needs. This approach allows public authorities to test and validate new technologies without committing to large-scale commercial purchases.
3. Addressing Societal Challenges Through PCP
The public sector faces numerous challenges that require innovative solutions. For instance, improving energy efficiency, enhancing healthcare services, and addressing security threats demand advanced technological solutions. PCP enables public authorities to invest in R&D to develop cutting-edge solutions that can significantly improve public services' effectiveness and efficiency.
Examples of Successful PCP Initiatives:
A notable example is the project undertaken by the 4S group, a cooperative body formed by some of the largest water companies in Scandinavia. The 4S group aimed to address the problem of leaks in polyethylene (PE) water pipes, which are commonly used but prone to issues with electrical welding joints. The PCP process involved market analysis, defining essential and desirable functionalities, and engaging suppliers in R&D phases to develop and test prototypes. This resulted in innovative products like the DOST COUPLER by Tega and the CONICAL RING COUPLER by Friatec, which significantly reduced installation time and repair costs.
Another exemplary PCP initiative is the Statoil and Gassnova Carbon Capture project in Norway. It aimed to develop a cost-effective solution for carbon capture, transport, and storage (CCS) to reduce CO₂ emissions from energy-intensive industries. The project involved multiple phases of R&D, resulting in the development and validation of innovative carbon capture technologies. The successful completion of these PCPs led to the Norwegian parliament's decision to roll out full-scale CCS by 2022, with significant funding approved for the project.
Additionally, the development of long-endurance unmanned surface vehicles (USVs) for oceanographic research through a PCP launched by the UK National Oceanography Center (NOC) highlights the effectiveness of this approach. The PCP process included concept studies, prototype development, and testing, leading to innovative solutions like MOST Ltd's AutoNaut and ASV's C-Enduro, which are now used for various oceanographic research and monitoring tasks.
4. Benefits of PCP
PCP offers several benefits:
Risk Mitigation: By separating the R&D phase from commercial procurement, public authorities can mitigate the risks associated with technological failures and ensure that only proven solutions are considered for large-scale deployment.
Competitive Advantage: PCP allows public authorities to gain a first-mover advantage by developing unique solutions tailored to their needs.
Market Stimulation: By investing in innovative R&D, public authorities can stimulate market demand and encourage the development of new technologies.
5. Implementing PCP in Public Procurement
To effectively implement PCP, public authorities should:
Identify Needs: Clearly define the mid-to-long term public needs that require innovative solutions.
Engage Stakeholders: Collaborate with relevant stakeholders, including industry, academia, and other public authorities, to identify potential solutions and share best practices.
Evaluate Impact: Assess the potential impact of PCP on policy objectives and determine the need for new platforms for cooperation.
Concrete Steps for Implementation:
Define Specific Public Needs: Focus on areas such as healthcare, energy efficiency, and security where innovative solutions can have the most impact.
Initiate R&D Contracts: Engage in contracts with private companies and research institutions to develop prototypes and pilot projects.
Testing and Validation: Conduct thorough testing and validation of prototypes to ensure they meet the required standards and address the identified needs.
Scale-Up Successful Solutions: Once validated, scale up the deployment of successful solutions through commercial procurement processes.
Impact of the Procurement:
The socio-economic benefits of PCP are substantial. For instance, the 4S group's project on safe joining of PE water pipes led to the development of innovative products that reduced the cost of repairs and the time-to-market for new solutions. The Statoil and Gassnova Carbon Capture project resulted in the world's largest full-scale CCS facility, contributing significantly to Europe's climate goals. The NOC's development of long-endurance USVs enhanced capabilities for oceanographic research, benefiting scientific data collection and environmental monitoring.
6. Conclusion
Promoting innovation in procurement through PCP is crucial for driving green innovation and enhancing public services. By strategically investing in R&D, public authorities can address societal challenges, improve service quality, and stimulate economic growth. The European Commission's commitment to supporting PCP underscores the importance of leveraging procurement processes to foster sustainable and high-quality public services across Europe.
The ECLIPSE project is funded by the EU to overcome barriers in innovation procurement. By highlighting the importance of promoting innovation in procurement through PCP, the project aims to design an interaction model that connects public procurers and innovative suppliers.
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