When to use innovation procurement

Innovation procurement can be used when a contracting authority has:

  • Needs that can be met by the market, but where suppliers have ideas about improvements and alternative solutions
  • Needs for solutions that are about to enter  the market or are new to the market
  • Needs that do not exist on the market, where development is required, and maybe even research for suppliers to develop a new product or service

Situations when innovation procurement can be beneficial

There are situations where there are large benefits using innovation procurement, when the market or organisation is changing or where there is the potential for development. Some examples are:

  • There is an industry with rapid development, for example health technology or IT
  • There are internal changes within the organisation, meaning that the procurement must meet future challenges
  • There are major financial impacts on the life cycle
  • The procurement has a great potential to increase the result in the core business of the organisation (i.e. technology, working environment, work procedures, economy and end consumer)
  • There are needs that cannot be met with existing solutions on the market
  • There are areas that address urgent societal challenges (i.e. demographic changes, climate change, urbanisation, decreasing tax base)

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