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Enterprise and Industry Demand-led Innovation Policies Innovation Procurement Dr. Bertrand Wert DG Enterprise and Industry Policy Development for Industrial.

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Presentation on theme: "Enterprise and Industry Demand-led Innovation Policies Innovation Procurement Dr. Bertrand Wert DG Enterprise and Industry Policy Development for Industrial."— Presentation transcript:

1 Enterprise and Industry 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 Enterprise and Industry 2 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 Revision of 2004 Directives novelties & HORIZON 2020 Where are we coming from? Where are we? Where are we going?

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

4 Enterprise and Industry 4 Measures from the supply side Measures from the demand-side - Regulation - Public procurement (PCP/PPI) - Financing R&D - Equity support - Fiscal Measures - Grants, loans - Standardisation Lead Market Initiative – Towards a policy mix Public policies tools for action Supply and demand-led innovation policy tools - Training, fairs -... Intention: Supporting market VS supporting technology push

5 Enterprise and Industry 5 Why supporting demand of innovation & innovation procurement? 1. Potential lever for action: 19% of EU GDP 2. Foster & accelerate access to market for innovative solutions 3. Foster EU Internal Market to benefit of EU businesses (SMEs) 4.Delivering better EU pubic services/ Societal challenges 5. Policy mix and international rising field of innovation support policies

6 Enterprise and Industry 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 brochure_en.pdf brochure_en.pdf

7 Enterprise and Industry 7 Main difficulties of procurers purchasing 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

8 Enterprise and Industry 8 Standardisation Labelling Certification Legislation 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 2 nd generation of Eurocodes Revision of the PPE Directive SMEs guide on collaborative working schemes in construction Adopting minimal energy performance requirements Waste Framework Directive Lead Market Areas 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 EU Patient Smart Open Services large scale pilot funded Inventory of legislation affecting bio- based products Inventory of all relevant standards

9 Enterprise and Industry 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 contact:

10 Enterprise and Industry 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 Enterprise and Industry 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 Enterprise and Industry 12 Rotherham Ultra Efficient Lighting FCP Sweden Fagerhult – Luminaires Ecophon – Acoustic Tiles United Kingdom Cundall – Lighting Designers Austin Smith Lord – Interior Designers Wandsworth – Nurse Call Systems EX-OR – Lighting Control Germany OSRAM – LEDs, Lamps, Control Gear Sweden Lund University, UK Kings 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

13 Enterprise and Industry 13

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15 Enterprise and Industry Innovation procurement Current activities: T owards H networks and 2013 CIP-EIP call for proposal Where are we?

16 Enterprise and Industry 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 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))

17 Enterprise and Industry 17 Current activities The Innovation Procurement Hub Project leader: ICLEI, European platform of sustainable cities (Freiburg in Brisgau, DE) contact: Future activities for 2012 – Development of an innovation procurement database 2.European prize for the best innovation procurements 3.Maintenance and development of a European user-friendly and interactive website: 4.Representing the European Innovation Procurement Community 5.Development of personal exchange and/or joint training activities on PCP and PPI 6.Drafting and compilation of guidelines in innovation procurement

18 Enterprise and Industry 18 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 Current activities

19 Enterprise and Industry 19 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); Current activities

20 Enterprise and Industry 20 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: 1. The publication at Official Journal; 2. The evaluation of the tenders; 3. The conclusion of the award procedure followed by the payment to the "beneficiary of the market" (refer to part 4 "EU Financing"). Current activities

21 Enterprise and Industry 21 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. Current activities

22 Enterprise and Industry 22 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) Current activities

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

24 Enterprise and Industry 24 Awareness Raising: events, PCP newsletter etc Political agendas EU level: Digital Agenda for Europe & Innovation Union targets on PCP & PPI Council Conclusions of February 2011 and March 2012 MS agendas: 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 Innovation Procurement & Horizon 2020

25 Enterprise and Industry 25 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 Future developments

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

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

28 Enterprise and Industry 28 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 September: Eco-Procura conference – Malmö 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 Future developments

29 Enterprise and Industry 29 THANK YOU FOR YOUR ATTENTION Contact: Public Procurement & Innovation:Public Procurement & Innovation: procurement/index_en.htm procurement/index_en.htm Pre-Commercial Procurement:Pre-Commercial Procurement: Register to our e-newsletters on innovation procurement:

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