30 November 2005 | Anusha Bradley
Public procurement practice "hinders business innovation" and needs an urgent shake up, according to CBI-led research.
The Confederation of British Industry and QinetiQ Innovation Survey
quizzed 163 firms and 11 universities. A total of 79 per cent said the government failed to support innovation because it did not adopt new ideas early enough. Government purchasing practices were described as a "major problem" by 69 per cent of respondents.
The survey was published on Sunday, ahead of the CBI's two-day annual conference in London.
Sir Digby Jones, CBI director-general, said: "Government spending power is enormous - £125 billion a year. The message is that it should engage with companies in a more informed way. It should buy more innovative goods and services and get more closely involved with companies at an earlier stage in the procurement process."
He added that "clever procurement" conducted by governments elsewhere in Europe has enhanced productivity and stimulated innovation in those countries.
The CBI said public procurement "needs to improve as a matter of urgency" and the government should "equip central and local government to become early adopters of innovation".Further information:
Confederation of British Industry