1. PCP and PPI in EC policies (synergies between H2020 and structural funds for PCP and PPI projects) Vassilis Tsanidis Dr. Jur. Innovation Unit (F2) DG CNECT European Commission
Why Innovation procurement?

2. Innovation Procurement = PCP + PPI / Complementarity
Pre-Commercial Procurement(PCP) to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors Public Procurement of Innovative Solutions(PPI) to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market

3. Investing in innovation procurement = Investing in growth and jobs
Public procurement accounts for some 2400 €Bn/year (19% of GDP) in Europe
Almost half of the ESIF budget is spent through public procurement (only the above the threshold procurements is measured)
Majority of procurement budget in EU is spent at regional level
Innovation Procurement: win-win situation
Modern and efficient public services
More competitive European companies

4. R&D public procurement/year
Innovation procurement is under-used in the EU
R&D public procurement/year
50 $ Bn ,5 €Bn
eGov solutions procured are 'innovative'
15% %
Public procurement is 'the tool' that enables potential buyers to steer industry R&I to its needs. However, it is under-used in EU
In Europe most of the time we buy off the shelf eGov solutions instead of going for fit for purpose, cutting edge solutions that would offer better services to European citizens.
Study published here:

5. Exploring possibilities Exploring possibilities PCPs projects on-going
Progress PCP implementation
Learn from first movers
Framework identified
and/or pilots
in preparation
Awareness Raising
Exploring possibilities
Working on
framework
Pilots
started
2007
Denmark
Malta
Ireland
Sweden
Latvia
Lithuania
Estonia
Romania
Norway
Poland
Spain
Slovenia
Bulgaria
Cyprus
France
Greece
Netherlands
Slovakia
Germany
Finland
Luxembourg
Iceland
Italy
Austria
Czech
Republic
Belgium
Portugal UK
Switzerland
Hungary
Framework identified
and/or pilots
in preparation
Awareness Raising
Exploring possibilities
Working on
framework
PCPs projects on-going
or finished
2015
Malta
Estonia
Finland
Sweden
Latvia
Romania
Lithuania
Ireland
Poland
Cyprus
Bulgaria
Netherlands
Greece
Spain UK
Norway
Slovenia
Belgium
Italy
Czech
Republic
Luxembourg
Denmark
Iceland
Slovakia
Portugal
France
Germany
Austria
Switzerland
Hungary 5

6. Why Innovation Procurement?
Speed up public sector modernisation – improve quality and efficiency of public services with breakthrough solutions
Get better value for money through cooperation - enable public sector around Europe to share cost + experience to buy new solutions that can respond to concrete public needs
Create growth and jobs in Europe – help innovators bring European R&D to the market (the majority of R&D in H2020 funded PCPs should take place in Europe, ltd set of first test products can be bought in the PPI from companies in the PCP)

7. Evidence from Successful Examples
Shortening of time-to-market
Attracting venture capital
Creating lead markets
Retaining lead market position
cheaper products and higher product quality
Removal of supplier lock-in
Benefits on local economy

8. Overview EU funded projects doing PCPs (FP7)
More info on:
HEALTH
AGEING
NYMPHA-MD (PCP)
THALEA (PCP)
Tele-detection/care of ICU patients
Mental care for bipolar disorders
SILVER (PCP)
UNWIRED-HEALTH (PCP)
Robotics ageing well
Mobile care for vaccination & heart failure
DECIPHER (PCP)
Human Brain project
Services mobile health data
PCP on supercomputing/brain modelling
TRANSPORT
E-GOV
Cloud for Europe (PCP)
CHARM (PCP)
Cloud computing
Traffic Management
PREFORMA (PCP)
V-CON (PCP)
Long term digital preservation
Virtual road infrastructure modelling
SUSTAINABILITY
EDUCATION
IMAILE (PCP)
ENIGMA (PCP)
Personalised learning needs
City Lighting
SAFETY
PRACE 3IP (PCP)
(PCP)
High Performance Computing
Smart Textiles ICT for fire fighters

9. Overview EU funded projects doing PPIs (CIP)
More info on:
HEALTH
AGEING
HAPPI (PPI)
STOP AND GO (PPI)
Healthy Ageing
Telecare for elderly with multiple conditions
ECOQUIP & LCB-HEALTHCARE (PPI)
Low carbon healthcare
TRANSPORT
FIRED-UP (PPI)
SYNCRO (PPI)
Vehicles Fire Fighters
Smart roads communication
SUSTAINABILITY
SPEA (PPI)
PRO-LITE (PPI)
Sustainable buildings
Cities/Metro Lighting
INNOBUILD (PPI)
Sustainable buildings
INNOBOOSTER (PPI)
Office Furniture & Lighting
INNOCAT (PPI)
Sustainable catering
PROBIS (PPI)
PAPIRUS (PPI)
Sustainable construction
Sustainable construction

10. EU funded CSAs/Networks of procurers (FP7/CIP/H2020)
More info on:
HEALTH
AGEING
SAEPP (preparing PCP)
C4BI (networking)
PRO4VIP (preparing PCP)
Ambulance ICT
Cities on healthcare
ICT for Visually impaired
EPP-eHealth (preparing PCP/PPI)
INSPIRE (Training PCP, link with VC)
Cities on e-health
E-health procurers
TRANSPORT
P4ITS (Preparing PPI)
TRANSFORM (Networking)
Intelligent Transport Systems
City/Regional transport
ICT
COMPLETE (Preparing PPI)
PICSE (Preparing PCP/PPI)
Photonics broadband
Cloud computing research cloud
SUSTAINABILITY
BRODISE
CEPPI 2 (prep PPI)
WATER PIPP
Cities – energy consumption
Cities brown field
decontamination
Water procurers
SPP regions (capacity building)
EURECA (prep PPI)
PPI – sustainability
PPI4WASTE
Green data centers
InnProBio Forum (capacity building)
Authorities
Waste management
GREENS (prep PPI)
PPI – bio based products
Energy agencies – CO2

11. Data collected from EU funded projects
Opening route-to-market for new players/SMEs
75,5% of contracts won by SMEs (SME lead bidder, bidding alone or with partners)
Compared to 29% in public procurements across Europe
Mostly small young SMEs: 34,5% below 10 people, 81% below 50 people, 56% less than 10 years old
Stimulating cross-border company growth
33% of contracts won by bidders that are not from a country of any of the procurers in the buyers group (e.g. DE company working for UK+NL procurers)
Compared to 1,26% in public procurements across Europe
Relevance of PCPs also to universities
33% of winning contracts have university/R&D center partner in consortium
- Winning SMEs are also often university start-ups
Encouraging wider market commercialisation
Bidders offered on average 50% cheaper R&D price for keeping their IPRs (they see IPR value/real market beyond the first potential buyers, the PCP procurers)
Creating growth and jobs in Europe
All bidders do 100% of R&D in Europe (except 1 doing 85% of R&D in Europe)

12. Innovation Procurement
Support of
Innovation Procurement
in the ESIF context

13. Why Innovation Procurement at Regional Level ?
Why PCP/PPI at regional level
Why Innovation Procurement at Regional Level ?
……it is a win-win situation for
Regions/ Public Authorities
Realise concrete quality and efficiency improvements to public services in the region
Obtain better value for money solutions(economies of scale) and reinforce regional cooperation through joint procurements
Improve the local innovation ecosystem as stronger local public sector demand for innovative solutions attracts additional financial investments into the region and combats relocation of innovative companies to other parts of the world
Enhance the technical know-how of the Region
Innovators
Can get first client for new product (lead customer)
Shorten time to the market (because of earlier customer feedback)
Wider commercialization opportunities (companies keep IPR ownership in PCP)

14. Political encouragement Encourage demand side to meet supply side
What can countries/regions do?
Political encouragement
Modernising public sector 'a priority'
Quality-efficiency improvement targets
e.g. Lombardia/IT, UK, Flanders/BE
Target % proc budgets to innovation
Monitoring framework
e.g. UK, NL, ES, Nordics, FR
Implementation
- Innov Proc Competence center
Training / assisting procurers
(e.g. SE, FI, ES, Flanders/BE, DE)
- Innov Proc financial support program
Encourage demand side to meet supply side
Early notification innov proc needs
Open market consultations
Meet the buyers events
Leverage EU funding
Horizon Increased
(syn) ESIF support for
EIB loans innov proc

15. Cohesion policy may support measures in the Operational Programs (OPs) to
Foster innovation through public procurement
TO 1 (IP1B) Strengthening research, technological development and innovation
Target group: public sector
Foster better meeting of public needs
TO 1 (IP1A) enhancing research and innovation (R&I) infrastructure
TO 2 (IP2C) strengthening ICT applications for e-government, e-learning, e-inclusion, e-culture and
e-health
TO 4 (all IPs) supporting the shift toward a low–carbon economy in all sectors
TO 5 (all IPs) promoting climate change adaption, risk prevention and management
TO 6 (all IPs) preserving and protecting the environment and promoting resource efficiency
TO 7 (all IPs) promoting sustainable transport and removing bottlenecks in key network infrastructures
Target group: town planners, transport, environment, health etc. ministries – ERDF, Cohesion Fund and ESF)
Foster more innovative public procurement procedures and administrative capacities
TO 11 (IP11) Enhancing institutional capacity and an efficient public administration
TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-health Target group: procurement officers

16. ESIF may also support:
Major projects / Joint Action Plans in cooperation with other Regions and key players in the Cohesion Policy
Coordination, Networking and Preparation activities for the implementation of a PCP and/or PPI
through European Territorial Cooperation Programs (ETC)

17. on Innovation Procurement
Possible Synergies
between
the ESIF and H2020
on Innovation Procurement

18. Joint or simultaneous use of funds
CATEGORIES OF POSSIBLE SYNERGIES BETWEEN H2020 AND ESIF ON THE PCP/PPI IMPLEMENTATION
Joint or simultaneous use of funds
Sequential funding
Additional funding
Alternative funding

19. GENERAL RULE IT IS NOT ALLOWED !!!!!!
To use ESIF and H2020 funding accumulatively to finance the same cost/expenditure item
To finance the own contribution of the participant from H2020 or ESIF

20. Coming soon PCP impact study
Compared the impacts of national PCPs across EU compared to other procurements
Concludes PCP is more effective in creating route-to-market for SMEs + stimulating new open standardised solutions + avoiding vendor lock-in
Findings consistent with results from first EU funded PCPs:
Increased EU promotion & assistance on PCP & PPI for
Consortium of experts appointed that will do promotion and provide training and local assistance to public procurers across the EU Member States:
Next 3 years, 12 info and training events on PCP & PPI in different EU countries: 3 major policy events + 9 smaller events with public procurers in different sectors. 
Training based on a toolkit for policy makers, public procurers and legal staff. Procurers can also send questions to a helpdesk that posts replies to FAQs online.
Local assistance for public procurers that intend to start concrete PCP and PPIs for ICT based solutions (includes legal assistance in the start-up and implementation phase of a PCP or PPI). Target is to kick-start 6 new PCPs and 6 new PPIs.
More info:

21. For more info on Innovation Procurement please
visit the following site:
For the synergies between the H2020 and the ESIF please visit:

22. Thank you for your attention Vassilis Tsanidis Dr. Jur
Thank you for your attention Vassilis Tsanidis Dr.Jur. Innovation Unit (F2) DG CNECT European Commission