Driving Innovation Through
Public Procurement
Future European Support
Dr. Bertrand Wert
DG Enterprise and Industry – Innovation For Growth Unit
Policy Development for Industrial Innovation
EUROPEAN HIGHL LEVEL EVENTS On: Supporting Public Procurement Of Innovation
Launching Events of the European projects Financed by the Competitiveness and Innovation
Programme
29 November 2012 / London
Enterprise
and Industry
Structure
1. What is public procurement of innovation?
2. Why & main difficulties for using public procurement to
stimulate innovation?
3. European Commission actions to support innovation
procurement
4. The Innovation Procurement Forum & the up-coming
innovation procurement award
5. “3.0” 2013 call for proposals to support public PPI &
PCP
6. Procurement & innovation in Horizon2020
2
Enterprise
and Industry
What is public
procurement of
innovation?
Supporting the demand of innovation
e.g. The Lead Market Initiative
Enterprise
and Industry
Public policies tools for action
Supply and demand-led innovation policy tools
Measures
from the
demand-side
- Regulation
- Public procurement
(PCP/PPI)
- Standardisation
Lead Market Initiative –
Towards a policy mix
Intention:
Supporting
market VS
supporting
technology
push
Measures from the supply side
4
Enterprise
and Industry
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 require R&D =
Pre-Commercial Procurement
 Working under R&D exemption of the procurement
procedure/directives
2/Procurement of innovative solutions that do not require
R&D = Public Procurement of innovation
 Normal procurement procedure/directives
http://ec.europa.eu/information_society/tl/research/priv_invest/pcp/docum
ents/pcp_brochure_en.pdf
5
Enterprise
and Industry
Why & main difficulties
of using public procurement
to stimulate innovation?
Enterprise
and Industry
Why supporting demand of innovation &
innovation procurement?
1. Potential lever for action: 19% of EU GDP
2. Delivering better public services/ Societal challenges
3. Foster & accelerate access to market for innovative solutions
(i.e. lead customers, first client)
4. Foster EU Internal Market to benefit of EU businesses
(SMEs)
5. Policy mix and international rising field of innovation
support policies
7
Enterprise
and Industry
Main difficulties for procurers to purchase
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
EC actions to support
innovation
procurement
Supporting the demand of innovation
e.g. First generation of public
procurement networks (2009)
The Lead Market Initiative
Enterprise
and Industry
Lead Market Areas
e-Health
Sustainable
construction
Standardisation
Labelling
Certification
Legislation
EU
Recommendation
for interoperability
Introduce the
Electronic Health
Insurance Card
EU Patient Smart
Open Services large
scale pilot funded
Screening of
national building
regulations
SMEs guide on
collaborative
working schemes in
construction
2nd
generation of
Eurocodes
Public
Procurement
Sectorspecific
networks of
Contracting
Authorities to
foster demand
for innovation
Complementary
Actions
Protective
textiles
Inventory of all
relevant standards
Revision of the
PPE Directive
Bio-based
products
Product
performance
standards
Inventory of
legislation
affecting biobased products
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
Policy tools
Training platform for
buyers and users
FP7 call on biorefinery pilot plants
10
Enterprise
and Industry
Lead Market Initiative 09-12’
Rational of the first generation of public
procurement networks (2009, €3M)
1. Forming European buyer’s groups in Lead Market Sectors
2. Developing guidance
3. Engaging with supply chain (SMEs & industries)
4. Community building
11
Enterprise
and Industry
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 5 Working Groups: application of environmental standards in reno.; new technical
solutions; procuring innovation; whole-life costing; financing & contracting.
• Helping public sector to become key driver for sustainable innovation: guide on “Procuring
Innovative & Sustainable Construction + snapshots publication”
• Encouraging knowledge & experience sharing, identifying best practice, innovative
technologies & products relevant to public authority
• Engaging with the market to identify the best solutions: Online forum developed
https://procurementforum.viadesk.com
• Guide on Procuring Innovative and Sustainable Construction Solutions: http://www.scinetwork.eu/fileadmin/templates/sci-network/files/Resource_Centre/Guide/SCINetwork_Guide_www.pdf
12
www.sci-network.eu contact: simon.clement@iclei.org
Enterprise
and Industry
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 have been produced
• Guide: High Level Options for an Innovation Procurement Strategy for innovative protective
textiles
• Final International conference, on “Innovation procurement strategies for innovative
protective textile”: Brussels, December 2012
http://www.enprotex.eu/index contact: Ronald.Hammerschmidt@lfr.n
13
Enterprise
and Industry
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 to develop guidance and recommendations for European
hospitals on how to procure innovation
• Surveys of barriers to investment in low carbon solutions available
• European state-of-the-art reports
• 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.
• Guidance on: Innovation Procurement, Delivering Efficiency, Quality and Sustainability
in Healthcare. A guide to innovation procurement for the healthcare sector:
http://lowcarbon-healthcare.eu/newsitem/69
http://lowcarbon-healthcare.eu/ contact: gaynor.whyles@jeraconsulting.com
14
Enterprise
and Industry
EC actions to support
innovation
procurement
First generation of public procurement networks (2009)
Supporting the demand of innovation
e.g. Second generation of European
public procurers networks (2012)
Enterprise
and Industry
Rational of the second generation of public
procurement networks (2012, €15M)
1. Forming European buyer’s groups in any sectors
2. Developing guidance
3. Engaging with supply chain (SMEs & industries)
4. Encouraging innovative SMEs to take part in public tendering
5. Community building
6. Realisation innovation procurement within the time-line of the project
7. Developing coordinated and joint procurement
8. Launching of a European Lead Public Customer Award
9. Preparing innovation procurement mainstreaming within Horizon
2020
16
Enterprise
and Industry
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), Firedup (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))
17
Enterprise
and Industry
Current activities
“The Innovation Procurement Forum”
Project leader: ICLEI, European platform of sustainable cities (Freiburg in Brisgau,
DE) contact: ignacio.gimenez@iclei.org
Future activities for 2012 – 2016
1. Development of an innovation procurement database
2. Maintenance and development of a European user-friendly and
interactive website: http://www.procurement-forum.eu/
3. Representing the European Innovation Procurement Community
4. Development of personal exchange and joint training activities on
PCP and PPI
5. Drafting and compilation of guidelines on innovation procurement
6. European award for the best innovation procurements
(launch: February 2013 – Stuttgart conference)
18
Enterprise
and Industry
Lead Public Customer Award
• Showcase public innovation
procurements
• Lead customer as role model
communicating experiences
• Prize: award and visit
project manager to a
country of choice
19
Ministry of Economic Affairs, Agriculture and Innovation
Enterprise
and Industry
19
Lead Public Customer Award
• Announcement: January
2013
• Publication: February 2013
• Deadline applications: June
2013
• Award Ceremony: Fall 2013
20
Enterprise
and Industry
Lead Public Customer Award
• Award criteria
• Economic and social
impact procurement
• Impact home/ internal
market
• Replicability procurement
• Use of procurement
instruments
• Promotion plan lessons
learned
21
Enterprise
and Industry
Future EC actions to
support innovation
procurement
Supporting the demand of innovation
e.g. Third generation of European public
procurers networks (2013)
Enterprise
and Industry
Future activities 2012-13
Potential rational of the third generation
of public procurement networks (2013,
€6.3M)
1. Forming European buyer’s groups of public & private procurers of
innovation (tbc.)
2. Developing guidance and public procurement road-maps
3. Engaging with supply chain (SMEs & industries)
4. Encouraging innovative SMEs to take part within public tendering
5. Community building of innovation procurers
6. Realisation innovation procurement within the time-line of a project
7. Developing coordinated and joint procurement
8. Preparing innovation procurement mainstreaming within Horizon 2020
Areas under investigation: Sustainable construction, mobility/smart
grids, health, recycling/ raw material, KETs, tourism…
23
Enterprise
and Industry
Future activities 2012-13
European Commission, DG ENTR
Grant: networking, procurement preparation of PDI or PCP…
& % of the real procurement (non definitive structure and %)
20%
95%
Group of buyers only
Call for proposals of 6.3 M€
CIP programme
February 2013
Procurement
contract
Supplier (e.g. SME x)
or
Group of buyers (50%) + innovation
agency and/or specialized platform
(e.g. for cities: sustainable development)
and/or cluster organization
Beneficiary for other
procurers +
UE internal market
Supplier (e.g. SME y)
Supplier (e.g. SME z)
Innovative
solution: good,
process or service
Innovations + client
reference
* 20% for a maximum contribution up to 500.000 EURO
More info: http://ec.europa.eu/cip/files/cip/docs/eip_2013_work_programme_en.pdf
24
Enterprise
and Industry
Future activities 2012-13
CIP-EIP type of activities supported
1/ Preparation phase: financial support ≤ 95%
•
•
•
•
•
•
•
•
Capabilities improvement: trainings, workshops
Procurement strategies development
Needs assessment
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%* (€500.000 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
25
Enterprise
and Industry
Future activities 2012-13
Pre-commercial procurement PCP
• European financial support for cross-border networks
• Co-financing rates: 50-75% for implementation, and for PCP
preparation: 100%
Obj 5.1(d): Personalised Health / Active Ageing (8 €m – Call 10)
Obj 11.1: ICT solutions for any area of public interest (4 €m – Call 10)
Obj 11.3: eGov / Cloud Computing (10 €m – Call 10)
Obj 11.2: Digital preservation (5 €m – Call 11)
Obj 8.2: Technology enhanced learning (min 5,5 €m – Call 11)
European financial support for cross-border networks
• Financing at 100%
Obj 5.1(e)(1): ICT for health / ageing well (500.000 EURO – Call 10)
Obj 2.2 (b): Robotics (max 3 €m – Call 10)
Call 10: publication 10/07/2012 – deadline 15/01/2013
Call 11: publication 18/09/2012 – deadline 16/04/2013
More info at http://cordis.europa.eu/fp7/ict/pcp/calls_en.html
26
Enterprise
and Industry
Future EC actions to
support innovation
procurement
Supporting the demand of innovation
Horizon 2020 R&D&I Programme
Enterprise
and Industry
Future activities 2014-20
Innovation Procurement & Horizon 2020
• Awareness Raising
• Events, PCP and PPI newsletters, prizes (Lead Public Customer Award, Public
Sector Innovation prize…), trainings, staff exchanges…
• Political agenda’s
• EU level: Digital Agenda for Europe & Innovation Union targets on PCP & PPI
• Council Conclusions of February 2011 and March 2012
• Member States agenda’s: half of EU MS are/start engaging in pilots or are
defining their PCP / PPI policy strategy (UK, NL, FI, SE, DK, BE, DE, FR, SP,
IT, AT, ET…)
• 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 crossborder PCP & PPI actions
• Possibility for EU to be involved itself also
28
Enterprise
and Industry
Future developments
Some of the future public events
• Spring-Automn 2012: 8 kick-off meetings of the Procurement of
Innovation networks: Olso, Vienna, Paris, Grenoble, London, Brussels
• 5 July: Innovation procurement and SME involvment – Paris
• 19-21 September: Eco-Procura conference – Malmö
http://www.ecoprocura.eu/
• 2 October 2012: Inno-demanda/ Inno-procura conference – Madrid
• 7-8 November 2012: Nordic Innovation Procurement conference –
Helsinki https://tapahtumat.tekes.fi/event/HelsinkiConference
• 29-30 November 2012: Innovation procurement EU and UK
projects launch - London - Birmingham
• February 2013: Innovation procurement and launching of 2013 call
for proposals 3.0 Networks – Stuttgart (tbc.)
29
Enterprise
and Industry
THANK YOU FOR YOUR ATTENTION
bertrand.wert@ec.europa.eu
•
Public Procurement & Innovation:
http://ec.europa.eu/enterprise/policies/innovation/policy/publicprocurement/index_en.htm
•
Pre-Commercial Procurement:
http://cordis.europa.eu/fp7/ict/pcp/calls_en.html
•
Register to our e-newsletters on innovation procurement:
bertrand.wert@ec.europa.eu
•
Group Supporting Public Procurement of Innovation
•
https://www.procurement-forum.eu
email: ignacio.gimenez@iclei.org
30
Enterprise
and Industry
Rotherham Ultra Efficient Lighting FCP (€2M)
Rotherham Ultra Efficient Lighting FCP
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
Rotherham
Hospital is a 500
bed acute unit in
the North East of
England
New SME created through the FCP process.
31
Enterprise
and Industry
32
Enterprise
and Industry
33
Enterprise
and Industry