innovation procedure

An innovation procedure is one of three main procedures in the European Commission's proposal for a new procurement regulation (COM(2026) 590), presented on 9 September 2026. It is used when the contracting authority has a problem without a known solution, and the winner is to develop the solution along the way. It is a proposal, not adopted law, being handled by the European Parliament and the Council.

How does an innovation procedure work?

The rules are in Article 31(2) and Articles 41 to 45. The procedure can be used when the contracting authority needs to address a "societal challenge" (Article 6(23)) and has not found an existing solution that fits.

The procedure has five phases (Article 41):

1. The contracting authority describes the challenge and sets up a value assessment framework with a minimum score.
2. The competition is advertised.
3. The contracting authority selects solution proposals.
4. The solutions are tested, validated and assessed.
5. The contract is awarded.

Before the notice, the contracting authority must hold a market dialogue for at least two months (Article 42). The notice must state expected volumes and how intellectual property rights are allocated. Selection takes place in two steps (Article 43): first exclusion and minimum requirements, then an assessment of innovation potential, feasibility and scalability.

The testing and validation phase can last up to two years, with payment per milestone (Article 44). Suppliers that receive a positive decision can be awarded a contract directly, for up to five years after the decision is published (Article 45). According to the Commission, intellectual property rights should as a rule stay with those who developed the solution.

The procedure resembles today's innovation partnership and pre-commercial procurement. Pure research and development services remain excluded (Article 79). For buying ready-made solutions, the open procedure is the better fit.

What does it mean for you as a supplier?

If the proposal is adopted, you get a clearer path from idea to contract in procurement of innovation. You are paid during the testing phase, you know the volumes in advance, and as a rule you keep the rights to what you develop. Take part in the market dialogue: it is mandatory and lasts at least two months, so that is where you can influence how the challenge is described. Tools like Cobrief help you spot such dialogues early.

Frequently asked questions

When does this apply?

Not yet. The proposal is being handled by the European Parliament and the Council. The regulation applies two years after it enters into force (Article 149), realistically 2029 at the earliest. For EEA EFTA states such as Norway, incorporation into the EEA Agreement comes in addition.

Who owns what is developed?

According to the Commission, intellectual property rights should as a rule stay with the developers. The allocation must be stated in the notice.

What happens if the solution fails the test?

Then you do not get a contract. Only suppliers with a positive decision after the testing and validation phase can be awarded a contract directly. The testing phase itself is paid per milestone (Article 44).

In short: the innovation procedure is designed for problems without a ready-made solution. It combines dialogue, development, testing and purchase in one procedure, with payment along the way and the rights as a rule staying with the developer.