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Experiences with innovation-related procurement

OECD Conference Center, Paris, 5th Dec. 2013, Mike Weber

OECD WORKSHOP ON MEASURING THE LINK BETWEEN PUBLIC PROCUREMENT, R&D AND INNOVATION

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Experiences with (the measurement of) innovation-related procurement

Research project “purchasing state”

Measurement concept

Results: Benchmarking

Lessons learnt

Agenda

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“Purchasing State”

Research project and empirical investigations

About the research project

General perspective on innovative procurement and the procurement of innovations

Cooperation project: university, market researcher, law firm

Funded by the Federal Ministry of Education and Research, Germany

Conducted in 2009

Empirical investigations

Interpretation of official statistics

Analysis of TED data (and data from other databases)

Survey of German procurement agencies

Survey of tenderer

Case studies of successful procurement projects

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“Purchasing State”

Functions of data in measuring innovation orientation

Interpretation of official statistics

– Overview of total procurement volume including distinction between type of public agencies and field of activity

– Rough estimation of procurement volume related to innovation aspect

Analysis of TED data

– Plausibility test of findings and additional information about procedural aspects

Survey of German procurement agencies

– Comprehensive questionnaire and remarkable response rate

Survey of tenderer (not linked to agency survey and low response rate)

Case studies of successful procurement projects

– Deepening the understanding of success dimensions and success factors

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“Purchasing State”

“Data Bathtub”

Macro level Territorial unites

Meso level Organisation

Micro level Procedure

Official statistics

Agency survey & Tenderer survey

TED data & Case studies

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Innovation orientation in public

institutions

Procurement of Innovation

New developments and products on the

market

Adaption of innovation

Innovative procurement process

Innovation orientation in the

procurement process

Efficient procurement

Measurement concept

Dimensions

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Measurement concept

Importance of procurement within modernisation strategy

Training of procurement staff

Extended use of electronic procurement technologies

Use of business methods and tools

Promotion of innovation as an important procurement aim

Innovation as goal in negotiations

Concept preparation

Use of information and consultancy

External cooperation

Degree of cooperation between the players involved

Procedural aspects like functional requirements and acceptance of variants

Dimension: innovative procurement process

Innovation orientation in the procurement process

Efficient procurement

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Measurement concept

Adaption of existing products and solutions during the last three years

Complete revamping of existing products and solutions during the last three years

Purchase of new-to-the-market solutions during the last three years

Share (number) of new suppliers commissioned the first time in 2008

Share (volume) of new products and solutions procured for the first time in 2008

Share (volume) of innovative products and solution in 2008

Assessment of the innovation degree of the own portfolio

Dimension: procurement of innovation

Adaption of Innovation

New developments and products on the market

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Measurement concept

Correlation

Correlation between the two dimensions

– Innovative procurement

– Procurement of innovation

Correlation is significant and strong (r2 = 0,33)

Source: „Purchasing state“

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Innovation orientation in public

institutions

Procurement of Innovation

New developments and products on the

market

Adaption of innovation

Innovative procurement process

Innovation orientation in the

procurement process

Efficient procurement

Measurement concept

Weighting

2:1

W

eigh

tin

g

1:1

W

eigh

tin

g 1

:2

Wei

ghti

ng

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Benchmarking of purchasing institutions

Plausible results in innovation orientation

Administrative level Rank Institution Score

Federal level 1. Procurement Agency of the Federal Ministry of the Interior

70.83

State level 1. Ministry of the Interior of the State of Saxony-Anhalt

67.11

2. Thuringian State Chancellery 65.89

Local level 1. City of Backnang 69.18

2. City of Frankfurt am Main (city treasury) 67.64

Source: „Purchasing state“

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Experiences with (the measurement of) innovation-related procurement

Lessons learnt: status quo of procurement data in Germany in 2009

Data on macro level:

– Surprisingly good but hidden data

– Valid and sophisticated collected data

– Only a rough overview

– Nearly unused (and not interpreted)

Data on organisational level:

– Difficult access to the field

– Easily overburdening of the respondents

– Different stakeholder and difficult assessment of innovation aspects

Data on procedural level:

– Poor information content

– Many databases and no clearly shaped population

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Experiences with (the measurement of) innovation-related procurement

Zielsetzungen

Methoden

– Bewährter Methodenkanon

– Experimentelle Erweiterungen

Lessons learnt: requirements and potential enhancements

Data on micro level

Including assessment of innovation aspect (from different perspectives)

Automatic gathering of micro data (by use of electronic procurement)

Linking data and linking sources (at single procedures)

State-of-the-art transformation and analytic tools (big data, text mining, …)

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Dr. Mike Weber Fraunhofer FOKUS Kaiserin-Augusta-Allee 31 D-10589 Berlin, Germany Tel: + 49 30 3463 7319 Fax: + 49 30 3463 99 7319 E-Mail: mike.weber@fokus.fraunhofer.de www.fokus.fraunhofer.de www.oeffentliche-it.de