20 April 2009 | Jake Kanter
Smart procurement policies would help central government departments speed up the UK's economic recovery, according to research from the Department for Business, Enterprise and Regulatory Reform.
Building Britain's Future - New Industry, New Jobs, released today, identified several areas where the government could invest in the growth of industries, such as manufacturing and services, and help UK businesses "thrive".
The report said procurement could play a "powerful role" in shaping markets.
It recommended that departments tell suppliers as early as possible about new products and services they are likely to want in the future to allow them time to prepare.
Departments should work more closely with industry bodies, it said, to build a better understanding of what suppliers are capable of delivering.
The paper added that the organisations should use Innovation Procurement Plans (IPP) to buy goods and services in a way that drives innovation. Under plans introduced in March last year to encourage innovation, departments are required to produce an IPP as part of their commercial strategy.
Business secretary Lord Mandelson said: "Britain has the skills, resources and knowledge base to do well, but the government's job is to do everything it can to strengthen our competitive position further.
"It's about creating the best possible conditions in which UK businesses can thrive, removing barriers to success and offering targeted support to unlock new potential in existing and new technologies."