Demand-led Innovation Policies Innovation Procurement

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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)
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Where are we coming from? Where are we? Where are
we going?

• 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 2.0
• 3. Revision of 2004 Directives novelties
  HORIZON 2020

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Demand-driven innovation Policies Innovation
procurement Current activities Lead Market
InitiativeWhere are coming from?
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Public policies tools for action Supply and
demand-led innovation policy tools
Measures from the demand-side
- Regulation
- Standardisation
Lead Market Initiative Towards a policy mix
- Public procurement (PCP/PPI)
Intention Supporting market VS supporting
technology push
- Fiscal Measures
- Training, fairs
- Financing RD
- Equity support
- Grants, loans
- ...
Measures from the supply side
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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

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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 RD
Public Procurement of innovation ? Normal
procurement procedure/directives 2/ Procurement
of innovative solutions that require RD
Pre-Commercial Procurement ? Working under RD
exemption of the procurement procedure/directives
http//ec.europa.eu/information_society/tl/resear
ch/priv_invest/pcp/documents/pcp_brochure_en.pdf
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Main difficulties of procurers purchasing
innovative solutions?

• Wrong incentives
• Lack of knowledge and capabilities on
  technologies, innovations, market developments
• No strategy that aligns public procurements with
  public policy objectives (e.g. health,
  environment, transport), and with RDI support
  programmes
• Fragmentation in demand
• Difficulties for innovative SMEs to be involved
  in public procurement as direct beneficiary/
  client of a purchasing authority

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Standardisation Labelling Certification
Legislation
Public Procurement
Complementary Actions
Lead Market Areas
EU Recommendation for interoperability
e-Health
Introduce the Electronic Health Insurance Card
EU Patient Smart Open Services large scale pilot
funded
Sector-specific networks of Contracting
Authorities to foster demand for innovation
Sustainable construction
2nd generation of Eurocodes
SMEs guide on collaborative working schemes in
construction
Screening of national building regulations
Protective textiles
Revision of the PPE Directive
Training platform for buyers and users
Inventory of all relevant standards
Product performance standards
Bio-based products
FP7 call on bio-refinery pilot plants
Inventory of legislation affecting bio-based
products
Financial support (CIP) for market replication
projects
Recycling
Waste Framework Directive
CEN Packaging Standards
Guide on funding available for RE demonstration
and pilot projects
Renewable energies
Adopting minimal energy performance requirements
Mandatory national targets for 2020
Lead Market Initiative 09-12
Policy tools
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• 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
  https//procurementforum.viadesk.com
• www.sci-network.eu contact simon.clement_at_iclei.or
  g

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• 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
• http//www.enprotex.eu/index contact
  Ronald.Hammerschmidt_at_lfr.n

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• 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.
• http//lowcarbon-healthcare.eu/ contact
  gaynor.whyles_at_jeraconsulting.com

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Rotherham Ultra Efficient Lighting FCP
Rotherham Ultra Efficient Lighting FCP (2M)
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 LEDs, Lamps, Control Gear
Rotherham Hospital is a 500 bed acute unit in the
North East of England
New SME created through the FCP process.
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Innovation procurement Current activities
Towards H20202.0 networks and 2013 CIP-EIP
call for proposal Where are we?
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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))
Current activities
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Current activities
The Innovation Procurement Hub Project leader
ICLEI, European platform of sustainable cities
(Freiburg in Brisgau, DE) contact
ignacio.gimenez_at_iclei.org

• Future activities for 2012 2016
• Development of an innovation procurement database
• European prize for the best innovation
  procurements
• Maintenance and development of a European
  user-friendly and interactive website
  https//procurementforum.viadesk.com/do/login/
• Representing the European Innovation Procurement
  Community
• Development of personal exchange and/or joint
  training activities on PCP and PPI
• Drafting and compilation of guidelines in
  innovation procurement

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Current activities

• 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
  (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

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Current activities

• 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)

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Current activities

• 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
• The publication at Official Journal
• The evaluation of the tenders
• The conclusion of the award procedure followed
  by the payment to the
• "beneficiary of the market" (refer to part 4 "EU
  Financing").

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Current activities

• 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

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Current activities

• 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)

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Innovation procurement Revision of 2004
Directives novelties HORIZON 2020 Where are
we going?
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Innovation Procurement Horizon 2020

• 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

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Future developments
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

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Future developments
PPI Feasibility Study within Horizon 2020
Full-Fledge EU Support Scheme

• Proposal from feasibility study on future EU
  support to public procurement of innovative
  solutions

http//ec.europa.eu/enterprise/policies/innovation
/policy/lead-market-initiative/pp-conf2_en.htm
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From needs assessment to innovation procurement
the demand
Future developments
Support from specialized organizations/ clusters
e.g. platforms of cities/ hospitals/ procurers
Pre-commercial procurement
2.
NEED in RD development
Procurers needs assessment market consultation/
technology assessment No solution available
Support from Chambers of Commerce, EEN,
Innovation agencies
Support from specialized organizations/ clusters
e.g. platforms of cities/ hospitals/ procurers
1.
NO Need in RD

• Public procurement of innovation
• Forward commitment procurement
• Competitive dialogue
• Design contest
• Catalytic procurement
• ()

3.
Support from Chambers of Commerce, EEN,
Innovation agencies European Technology
Platforms
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Future developments
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
• 19-21 September Eco-Procura conference Malmö
  http//www.ecoprocura.eu/
• 3-4 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

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THANK YOU FOR YOUR ATTENTION

• Contact
• bertrand.wert_at_ec.europa.eu
• Public Procurement Innovation
  http//ec.europa.eu/enterprise/policies/innovation
  /policy/public-procurement/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_at_ec.europa.eu