incremental innovation

Incremental innovation refers to moderate, step-by-step improvements to products and services that already exist. Rather than developing something entirely new, it builds on what works and makes it better. Think of it as upgrading an existing solution rather than starting from scratch.

How does incremental innovation differ from radical innovation?

In public procurement, there is an important distinction between two types of innovation. Incremental innovation involves renewals and improvements to existing offerings — for example, a case management system with a better user interface, or a transport service made more environmentally friendly. Radical innovation involves developing solutions that do not yet exist on the market and often requires dedicated procedures such as innovation partnerships.

Most innovative procurements are incremental in practice. Contracting authorities use functional requirements that describe what the solution should achieve, rather than specifying a particular technology. This gives suppliers room to offer improved versions of known solutions. EU Directive 2014/24/EU defines innovation broadly as "the implementation of a new or significantly improved product, service or process," encompassing both forms.

Why is incremental innovation important?

• Lower risk: Building on existing solutions means significantly less uncertainty than radical innovation
• Faster results: Improved products can be deployed quickly without lengthy development phases
• Broader participation: More suppliers can compete because heavy R&D capacity is not required
• Continuous improvement: Many small improvements can deliver impact equal to a single major change over time
• Standard procedures: Can be carried out through the open procedure or competitive procedure with negotiation

The key lies in how the tender documents are drafted. Contracting authorities that use performance-based requirements instead of detailed technical specifications give the market room to offer incremental innovations. Tools like Cobrief can help suppliers identify procurements where contracting authorities actively seek improved solutions.

Incremental innovation is the most widespread form of innovation in public procurement. While it attracts less attention than radical breakthroughs, it is these many small improvements that drive the quality of public services forward over time.