Driving Innovation Through Public Procurement Future European Support

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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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Structure

• 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

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What is public procurement of innovation?Support
ing the demand of innovation e.g. The Lead
Market Initiative
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Public policies tools for action Supply and
demand-led innovation policy tools
Measures from the demand-side
- Regulation
- Standardisation
Lead Market Initiative Towards a policy mix
- Public procurement (PCP/PPI)
Intention Supporting market VS supporting
technology push
- Fiscal Measures
- Training, fairs
- Financing RD
- Equity support
- Grants, loans
- ...
Measures from the supply side
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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 RD
Pre-Commercial Procurement ? Working under RD
exemption of the procurement procedure/directives
2/Procurement of innovative solutions that do
not require RD Public Procurement of
innovation ? Normal procurement
procedure/directives http//ec.europa.eu/informat
ion_society/tl/research/priv_invest/pcp/documents/
pcp_brochure_en.pdf
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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?

• Wrong incentives
• Lack of knowledge and capabilities on
  technologies, innovations, market developments
• No strategy that aligns public procurements with
  public policy objectives (e.g. health,
  environment, transport), and with RDI support
  programmes
• Fragmentation in demand
• Difficulties for innovative SMEs to be involved
  in public procurement as direct beneficiary/
  client of a purchasing authority

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EC actions to support innovation
procurementSupporting the demand of innovation
e.g. First generation of public procurement
networks (2009) The Lead Market Initiative
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Standardisation Labelling Certification
Legislation
Public Procurement
Complementary Actions
Lead Market Areas
EU Recommendation for interoperability
e-Health
Introduce the Electronic Health Insurance Card
EU Patient Smart Open Services large scale pilot
funded
Sector-specific networks of Contracting
Authorities to foster demand for innovation
Sustainable construction
2nd generation of Eurocodes
SMEs guide on collaborative working schemes in
construction
Screening of national building regulations
Protective textiles
Revision of the PPE Directive
Training platform for buyers and users
Inventory of all relevant standards
Product performance standards
Bio-based products
FP7 call on bio-refinery pilot plants
Inventory of legislation affecting bio-based
products
Financial support (CIP) for market replication
projects
Recycling
Waste Framework Directive
CEN Packaging Standards
Guide on funding available for RE demonstration
and pilot projects
Renewable energies
Adopting minimal energy performance requirements
Mandatory national targets for 2020
Lead Market Initiative 09-12
Policy tools
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Rational of the first generation of public
procurement networks (2009, 3M)

• Forming European buyers groups in Lead Market
  Sectors
• Developing guidance
• Engaging with supply chain (SMEs industries)
• 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_Cen
  tre/Guide/SCI-Network_Guide_www.pdf
• www.sci-network.eu contact simon.clement_at_iclei.or
  g

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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
  Ronald.Hammerschmidt_at_lfr.n

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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
  gaynor.whyles_at_jeraconsulting.com

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EC actions to support innovation
procurementSupporting 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)

• Forming European buyers groups in any sectors
• Developing guidance
• Engaging with supply chain (SMEs industries)
• Encouraging innovative SMEs to take part in
  public tendering
• Community building
• Realisation innovation procurement within the
  time-line of the project
• Developing coordinated and joint procurement
• Launching of a European Lead Public Customer
  Award
• Preparing innovation procurement mainstreaming
  within Horizon 2020

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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 dIle 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 lIsère (Grenoble, FR))5/ Creating
more healthy working conditions Innobuster
(Austrian central purchasing authority AT))
Current activities
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Current activities
The Innovation Procurement Forum Project
leader ICLEI, European platform of sustainable
cities (Freiburg in Brisgau, DE) contact
ignacio.gimenez_at_iclei.org

• Future activities for 2012 2016
• Development of an innovation procurement database
• Maintenance and development of a European
  user-friendly and interactive website
  http//www.procurement-forum.eu/
• Representing the European Innovation Procurement
  Community
• Development of personal exchange and joint
  training activities on PCP and PPI
• Drafting and compilation of guidelines on
  innovation procurement
• European award for the best innovation
  procurements (launch February 2013
  Stuttgart conference)

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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

Ministry of Economic Affairs, Agriculture and
Innovation
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Lead Public Customer Award

• Announcement January 2013
• Publication February 2013
• Deadline applications June 2013
• Award Ceremony Fall 2013

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Lead Public Customer Award

• Award criteria
• Economic and social impact procurement
• Impact home/ internal market
• Replicability procurement
• Use of procurement instruments
• Promotion plan lessons learned

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Future EC actions to support innovation
procurementSupporting 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)
Future activities 2012-13

• Forming European buyers groups of public
  private procurers of innovation (tbc.)
• Developing guidance and public procurement
  road-maps
• Engaging with supply chain (SMEs industries)
• Encouraging innovative SMEs to take part within
  public tendering
• Community building of innovation procurers
• Realisation innovation procurement within the
  time-line of a project
• Developing coordinated and joint procurement
• Preparing innovation procurement mainstreaming
  within Horizon 2020
• Areas under investigation Sustainable
  construction, mobility/smart grids, health,
  recycling/ raw material, KETs, tourism

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Future activities 2012-13
Call for proposals of 6.3 M CIP programme
February 2013
European Commission, DG ENTR
Grant networking, procurement preparation of PDI
or PCP of the real procurement (non
definitive structure and )
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95
Procurement contract
Group of buyers only
Supplier (e.g. SME x)
or
Supplier (e.g. SME y)
Group of buyers (50) innovation agency and/or
specialized platform (e.g. for cities
sustainable development) and/or cluster
organization
Supplier (e.g. SME z)
Innovative solution good, process or service
Innovations client reference
Beneficiary for other procurers UE internal
market
20 for a maximum contribution up to 500.000
EURO
More info http//ec.europa.eu/cip/files/cip/docs/
eip_2013_work_programme_en.pdf
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Future activities 2012-13

• CIP-EIP type of activities supported
• 1/ 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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Future activities 2012-13
Pre-commercial procurement PCP

• 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
15/01/2013 Call 11 publication 18/09/2012
deadline 16/04/2013 More info at
http//cordis.europa.eu/fp7/ict/pcp/calls_en.html
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Future EC actions to support innovation
procurementSupporting the demand of innovation
Horizon 2020 RDI Programme
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Future activities 2014-20
Innovation Procurement Horizon 2020

• Awareness Raising
• Events, PCP and PPI newsletters, prizes (Lead
  Public Customer Award, Public Sector Innovation
  prize), trainings, staff exchanges
• Political agendas
• EU level Digital Agenda for Europe Innovation
  Union targets on PCP PPI
• Council Conclusions of February 2011 and March
  2012
• Member States agendas 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

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Future developments
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.)

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THANK YOU FOR YOUR ATTENTION

• bertrand.wert_at_ec.europa.eu
• 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 bertrand.wert_at_ec.europa.eu
• Group Supporting Public
  Procurement of Innovation
• https//www.procurement-forum.eu
• email ignacio.gimenez_at_iclei.org

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Rotherham Ultra Efficient Lighting FCP
Rotherham Ultra Efficient Lighting FCP (2M)
Sweden Fagerhult Luminaires Ecophon Acoustic
Tiles
Sweden Lund University,
United Kingdom Cundall Lighting
Designers Austin Smith Lord Interior
Designers Wandsworth Nurse Call Systems EX-OR
Lighting Control
UK Kings College London, De Montfort University,
Germany OSRAM LEDs, Lamps, Control Gear
Rotherham Hospital is a 500 bed acute unit in the
North East of England
New SME created through the FCP process.
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