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Measuring the Link between Public Procurement and Innovation (OECD)

Measuring the Link between Public Procurement and Innovation by Silvia Appelt, Fernando Galindo-Rueda publisheed by OECD (7/2016).

“This paper presents the findings of a recent OECD project on the measurement of the link between public procurement and innovation. Taking the OECD science and technology measurement frameworks as the starting point, the report highlights what concepts, definitions and measurement approaches can be used, with currently available data or suitably adapted sources, to produce policyrelevant indicators on the use of innovation procurement and carry out empirical analyses on the impact of public procurement on R&D, innovation and broader economic outcomes. Exploiting recent R&D and innovation survey data as well as administrative procurement records, the report provides novel multi-country evidence on the incidence of public procurement of innovation by firm size and industry. An exploratory analysis based on linked procurement, company accounts, R&D, patent and trademark data is employed to showcase the use of combined micro-data sources for analytical applications and points out important links between firm-level procurement activity, R&D and economic performance. This project has demonstrated:  

The relevance of the Oslo Manual framework, subject to potential extensions and· complementary guidance, for capturing the role of public demand in driving innovation and the feasibility of asking relevant questions on this subject.  The case for more widespread available and better-quality procurement records, for· accountability and analytical purposes.  The importance of data-linking as a mechanism for supporting the empirical analysis of the· link between public procurement, innovation and business performance. The conclusions of the project are intended to contribute to the evidence considered in the review and implementation of the OECD measurement frameworks for R&D and innovation, and may also be of relevance to parallel OECD initiatives aimed at improving the statistical measurement and governance of public procurement policies and practices…”

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