Public Procurement for Innovation

Public Procurement for Innovation

Eu-SPRI Forum on Science, Technology and Innovation Policy series

Edited by Charles Edquist, Nicholas S Vonortas, Jon M Zabala-Iturriagagoitia and Jakob Edler

This book focuses on Public Procurement for Innovation. Public Procurement for Innovation is a specific demand-side innovation policy instrument. It occurs when a public organization places an order for a new or improved product to fulfill certain needs that cannot be met at the moment of the order. The book provides evidence of the potential benefits to public and private actors from the selective use of this policy instrument and illustrates the requirements and constraints for its operationalization. The book intends to significantly improve the understanding of key determinants of effective public procurement aiming to promote innovative capabilities in the supplying sectors and beyond. It provides both case studies and conceptual contributions that help extend the frontier of our understanding in areas where there are still significant gaps.

Chapter 8: Public procurement for e-government services: challenges and problems related to the implementation of a new innovative scheme in Greek local authorities

Yannis Caloghirou, Aimilia Protogerou and Panagiotis Panaghiotopoulos

Subjects: economics and finance, economics of innovation, innovation and technology, economics of innovation, innovation policy, politics and public policy, public administration and management


This chapter provides empirical evidence on the role of public procurement for innovation (PPI) in the field of e-government. It does so by examining different aspects of a pioneer public procurement practice for the pilot provision of local e-government services in Greece. In particular, the study focuses on the Local Government Application Framework (LGAF) pilot project that was launched by the Central Union of the Greek Municipalities (KEDE) in 2007. The objective of the project was the development of a centralized software system (platform) offering high-quality e-government services to citizens and local businesses. The project was implemented in two stages: the first focused on the design, development and delivery of the platform; and the second involved the pilot use of the platform by selected local authorities. The empirical part of the chapter is based on case study work using a semi-structured questionnaire. A series of in-depth interviews with the key actors involved in the platform’s development sheds light on: (1) the objective of the LGAF project; (2) its innovative characteristics; (3) the needs addressed; (4) the stages and the outcome of the procurement process; (5) the obstacles to success; and (6) its long-term potential benefits. Our findings suggest that the LGAF project can be characterized as a PPI practice with aspects of both direct and cooperative and catalytic procurement.

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