Home > Knowledge > Topics and Skills > Efficiency > Value Generation > Innovation in Public Procurement

Innovation in Public Procurement

Innovation [in public procurement] can achieve a number of benefits, such as accelerated technology adoption, support to SMEs, improved market stimulus and improved performance against the wider procurement objectives (HM Revenue & Customs, 2009).

Information about Innovation in Public Procurement

Innovation in public procurement is required to ensure that the public sector delivers improved public services while securing better value from its current spend (Science and Technology Committee, 2011). It is an increasingly important topic as figures suggest that in the European Union public procurement represents around 17% of GDP. Annual spend on procuring goods and services in 2007 reached €2,000bn in Europe and £220bn in the UK (Department for Business, Innovation and Skills, 2011; European Commission, 2010).

In 2006, EU innovation policy identified public procurement as a priority under the Broad Based Innovation Strategy. The European Commission offered guidance on innovation in public procurement and support of transnational networks of public procurers in the lead market areas. Innovation in public procurement has two interlinked perspectives: it is concerned with the way public procurers are buying and with what they are buying (European Commission, 2010).

Return to Efficiency topic.

Related concepts

Procurement Transformation

A new era is changing the procurement function, creating broader and deeper roles where buyers also need to be value brokers, and capture, retain and manage talent (Supply Management)

Find out more

Procurement’s Role in the Generation and Capture of Value...

Only by understanding the limitations around existing measures of performance, and the nature of value for organisations and customers, can purchasers hope to demonstrate the...

Find out more

Value Generation

As a business discipline, P&SM is and in many cases has shifted in focus from tactical and reactive to strategic and proactive.

Find out more