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Demand-led Innovation Policies Innovation Procurement

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Presentation on theme: "Demand-led Innovation Policies Innovation Procurement"— Presentation transcript:

1 Demand-led Innovation Policies Innovation Procurement
Dr. Bertrand Wert DG Enterprise and Industry Policy Development for Industrial Innovation PUBLIC PROCUREMENT of INNOVATION: Kick-off meeting of the Fired-IP project 11 June 2012 / London (UK)

2 Where are we coming from? Where are we? Where are we going?
1. Demand-driven inno. policies; LMI Public Procurement Networks (1.0) Outcomes 2. Call for proposal ENT/CIP/11/C/N02C011 on Public Procurement Networks of Innovation 2.0 3. Revision of 2004 Directives novelties & HORIZON 2020

3 Demand-driven innovation Policies & Innovation procurement Current activities: Lead Market Initiative Where are coming from?

4 Supporting market VS supporting technology push
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 - Financing R&D - Equity support - Grants, loans - Training, fairs - ... Measures from the supply side 4

5 Why supporting demand of innovation & innovation procurement?
Potential lever for action: 19% of EU GDP Foster & accelerate access to market for innovative solutions Foster EU Internal Market to benefit of EU businesses (SMEs) Delivering better EU pubic services/ Societal challenges Policy mix and international rising field of innovation support policies

6 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 do not require R&D = Public Procurement of innovation  Normal procurement procedure/directives 2/ Procurement of innovative solutions that require R&D = Pre-Commercial Procurement  Working under R&D exemption of the procurement procedure/directives

7 Main difficulties of procurers purchasing 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 R&D&I support programmes Fragmentation in demand Difficulties for innovative SMEs to be involved in public procurement as direct beneficiary/ client of a purchasing authority

8 Lead Market Initiative 09-12’
Standardisation Labelling Certification Legislation Public Procurement Complementary Actions Lead Market Areas e-Health EU Recommendation for interoperability 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 Screening of national building regulations SMEs guide on collaborative working schemes in construction Protective textiles Inventory of all relevant standards Revision of the PPE Directive Training platform for buyers and users On the left hand side, you see that we identified 6 markets. For each, we made an action plan and here are some examples of the actions. SMEs are important in these markets. SMEs accounted for 90% for GDP in construction. Even in eHealth, there are over 3000 SMEs active in Europe. Services are important, even also for protective textiles were the maintenance of these high tech uniforms and garments is a high added value industry. Each action is implemented by a lead DG in the European Commission, that works together with other DGs and stakeholders to implement the actions. You note that funding does NOT play a big part in the LMI. The LMI is a demand-side policy approach. We do use some FP7 and CIP funding to fund complementary activities such as studies and networking, and investing into near-to-market projects, such as the bio-based products pilot plants. In May, we will announce the results of a CIP call to fund networks of public procurers in the lead markets. We would like small consortia of the best public procurers to come together and see how public procurement of innovative goods and services in a specific lead market can be improved. One of the core tasks of these networks is to exchange best practice in technical dialogue, so that hospitals, local councils, governments etc know what innovative solutions are out there on the market. Strongest industries in this region For this region, check are: Franche-Comté Automotive % %***MediumStrongFranche-Comté Metal % %**MediumWeakFranche-Comté Finance % %*MediumWeak But also power and metal (link recycling) This is an overview of activities started in People can get more info by going to our website (updated hopefully before Easter) and by looking at the action plans. Bio-based products Product performance standards Inventory of legislation affecting bio-based products FP7 call on bio-refinery pilot plants Recycling CEN Packaging Standards Waste Framework Directive Financial support (CIP) for market replication projects Renewable energies Adopting minimal energy performance requirements Mandatory national targets for 2020 Guide on funding available for RE demonstration and pilot projects Lead Market Initiative 09-12’ Policy tools 8

9 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 Forum 5 Working Groups WG: application of environmental standards in renovation; new technical solutions; procuring innovation; whole-life costing; financing & contracting. WG for helping public sector to become key driver for sustainable innovation WG encourage knowledge & experience sharing, identifying best practice, innovative technologies & products relevant to public authority WG will engage with the market to identify the best solutions: Online forum developed https://procurementforum.viadesk.com contact:

10 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 will be produced contact:

11 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 commenced at the European Congress on Healthcare Planning and Design in June 2010 in order to develop guidance and recommendations for European hospitals on how to procure innovation A survey of barriers to investment in low carbon solutions available A European state-of-the-art report 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. contact:

12 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 – LED’s, Lamps, Control Gear Discuss Pan European collaboration of designers, engineers, manufacturers & researchers. Discuss research and the realisation of research into product design. Requires multi-discipline teams to truly create / deliver innovation, Brings curiosity driven research and market needs / product development together. Rotherham Hospital is a 500 bed acute unit in the North East of England New SME created through the FCP process. 12

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14 Discuss briefly the solution. European IPR Prototyping
FCP process timing, Credible buyer promoting private investment, Key benefits of FCP. These align well with the feedback to CSF, i.e. Demand driven innovation, Focus on Societal Changes Brings curiosity driven research and market needs / product development together. 14

15 Innovation procurement Current activities: Towards H2020 “2
Innovation procurement Current activities: Towards H2020 “2.0 networks” and 2013 CIP-EIP call for proposal Where are we?

16 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)) 16

17 “The Innovation Procurement Hub”
Current activities “The Innovation Procurement Hub” Project leader: ICLEI, European platform of sustainable cities (Freiburg in Brisgau, DE) contact: Future activities for 2012 – 2016 Development of an innovation procurement database European prize for the best innovation procurements Maintenance and development of a European user-friendly and interactive website: https://procurementforum.viadesk.com/do/login/ Representing the European Innovation Procurement Community Development of personal exchange and/or joint training activities on PCP and PPI Drafting and compilation of guidelines in innovation procurement 17

18 Current CIP-EIP type of activities supported
Current activities Current CIP-EIP type of activities supported 1/ Preparation phase: financial support ≤ 95% Capabilities improvement: trainings, workshops Procurement strategies development 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%* (€ 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

19 Implementation of the project - important
Current activities Implementation of the project - important SPECIFIC OBJECTIVE (page 8-9 ToR) 1/ Development of public procurement of innovative solutions (preparation phase and implementation phase): · to create buyers groups dedicated to prepare for the procurement of innovative solutions (including needs assessment, market consultation (involvement of the supply chain (in particular European SMEs)), specification development, risk management), and the actual procurement process (including defining the conditions for the collaboration between contracting authorities, sharing resources in the evaluation of bids and related procedures, translations and publicising the calls for tender);

20 Implementation of the project - important
Current activities Implementation of the project - important SPECIFIC OBJECTIVE (page 8-9 ToR) 2/ and, with the possibility to implement within the time-line of the project a public procurement of innovative solutions co-financed by the European Union; resulting in the first application / commercialisation of innovations of European Union relevance which have already been technically demonstrated with success but which, owing to residual risk, are not yet commercially available in the market in which the procurement authority operates. This includes solutions based on existing technologies that are to be utilised in a new and innovative way, as well as non-technological innovations. The solutions have to be new to the contracting authority and new to the Internal Market. By the implementation of the procurement of innovative solution we mean: The publication at Official Journal; The evaluation of the tenders; The conclusion of the award procedure followed by the payment to the "beneficiary of the market" (refer to part 4 "EU Financing").

21 Implementation of the project - important
Current activities Implementation of the project - important Nota Bene for Strand 1 (page 15 ToR) A maximum of 20% of the price of actual purchase(s) of innovative solution (s) will be eligible, if the six following conditions are met: 1. The purchase takes place during and as part of the action and is otherwise eligible in accordance with Art. II.14 of the General Conditions; 2. In general, applicants and partners of applicants must be Contracting Authorities according to Directives 2004/18/EC and 2004/17/EC, Contracting Authorities shall be the State, regional or local authorities, bodies governed by public law, associations formed by one or several of such authorities or bodies governed by public law; 3. Multiple procurements can be implemented in a single consortium in the life-time of the action. The total co-financing does not exceed EUR 500,000; 4. The total amount of the EU contribution for the purchase(s) does not exceed one third (1/3) of the total EU contribution for the action; 5. The call for tender(s) for the actual purchase(s) of innovative solution(s) has/have to be done following an EU wide publication, at least in English, and all offers are evaluated according to the same objective criteria regardless of the geographic location of company head offices, company size or governance structure, which ensure compliance with the principles of transparency, non-discrimination and equal treatment and which guarantee that tenders are assessed in conditions of effective competition; 6. The call for tender(s) for the actual purchase(s) of innovative solution(s) has/have to use best value for money (and not just lowest price) criteria for evaluating offers.

22 1/ Being able to evaluate the innovativeness of a solution procured
Current activities Our challenges 1/ Being able to evaluate the innovativeness of a solution procured 2/ Demonstrating that financially supporting public procurement of innovation at European level could work 3/ Being successful in puling the demand of innovation at European level (Internal Market)

23 Innovation procurement Revision of 2004 Directives novelties & HORIZON 2020 Where are we going?

24 Innovation Procurement & Horizon 2020
Awareness Raising: events, PCP newsletter etc Political agenda’s EU level: Digital Agenda for Europe & Innovation Union targets on PCP & PPI Council Conclusions of February 2011 and March 2012 MS agenda’s: half of EU MS are/start engaging in pilots or are defining their PCP / PPI policy strategy 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

25 Innovation Procurement & Horizon 2020
Future developments Innovation Procurement & Horizon 2020 Horizon 2020 should support both Public Procurement of innovation & Pre-Commercial Procurement, preparation costs and procurement of innovation being done (+measurement, trainings, evaluation…) Links to be established with the 3 stages (via grants reserved to SMEs) innovative SME support scheme

26 Future developments PPI Feasibility Study within Horizon 2020: Full-Fledge EU Support Scheme Proposal from feasibility study on future EU support to public procurement of innovative solutions

27 From needs assessment to innovation procurement – the demand
Future developments Support from specialized organizations/ clusters: e.g. platforms of cities/ hospitals/ procurers … From needs assessment to innovation procurement – the demand Pre-commercial procurement 2. NEED in R&D development Procurers needs assessment + market consultation/ technology assessment = No solution available Support from specialized organizations/ clusters: e.g. platforms of cities/ hospitals/ procurers … Support from Chambers of Commerce, EEN, Innovation agencies… 1. NO Need in R&D Public procurement of innovation: Forward commitment procurement Competitive dialogue Design contest Catalytic procurement (…) 3. Support from Chambers of Commerce, EEN, Innovation agencies; European Technology Platforms…

28 Some of the future public events
Future developments Some of the future public events Various kick-off meetings (Strand 1) 5 July: Innovation procurement and SME involvment – Paris 12 September 2012: Nordic Innovation Procurement conference - Helsinki 19-21 September: Eco-Procura conference – Malmö 3-4 November 2012: Inno-demanda/ Inno-procura conference – Madrid December 2012-January 2013: Innovation procurement and launching of 2013 call for proposals 3.0 Networks - Stuttgart

29 THANK YOU FOR YOUR ATTENTION
Contact: Public Procurement & Innovation: Pre-Commercial Procurement: Register to our e-newsletters on innovation procurement:


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