innovation

Innovation in public procurement means using public purchasing power to drive the development of new or significantly improved products, services, or processes. EU Directive 2014/24/EU defines it in Article 2(22) as the implementation of a new or significantly improved product, service, or process — including production methods, marketing methods, and organisational methods.

How does innovation work in procurement?

The Directive's recitals 47–49 position innovation as a core strategic objective, encouraging contracting authorities to make the best strategic use of procurement to spur innovation and address major societal challenges. Authorities can incorporate innovation through several approaches:

• Innovation-friendly procurement: Using functional requirements instead of detailed specifications, giving suppliers room to propose new and better solutions within standard procedures.
• Procurement of innovative solutions: Purchasing solutions that exist on the market but are new to the contracting authority — adopting technology or methods not previously used in the organisation.
• Innovation procurement: Developing solutions that do not yet exist on the market, using dedicated procedures such as innovation partnerships or competitive procedures with negotiation.

Why does innovation matter in procurement?

Public procurement represents approximately 14% of EU GDP. This purchasing power can drive solutions to major societal challenges in healthcare, environmental protection, and digitalisation. The Europe 2020 strategy identified research and innovation as among the main drivers of future growth.

A well-defined procurement strategy is essential for success. Early market dialogue helps contracting authorities understand what the market can offer before designing the tender documents. Tools like Cobrief can help suppliers identify procurements where contracting authorities are seeking innovative solutions.

Innovation in procurement is not limited to technology — it can involve new service models, organisational methods, or entirely new approaches to meeting public needs. For a closer look at specific methods and procedures, see the articles on innovative procurement and innovation partnerships.