engleski

Possibilities for using public procurement for innovation in small transition countries

This paper reviews the state of the art in the field of using public procurement as an innovation policy instrument, known in the literature as Public Procurement for Innovation (PPI). Modern states have the task of ensuring favorable conditions for achieving satisfactory levels of economic growth, which reflect in the growth of their standard of living. Innovation is extremely important for achieving higher international competitiveness and many states use public funds to support the creation of innovation. However, due to recent financial and economic crises, austerity measures have been introduced on public budgets, forcing the state to use public money more wisely and efficiently. For a long time, developed countries have been directing public procurement towards purchasing innovative products, services and works. In those countries, this has been the subject of a growing body of research in the last 15 years, which cannot be said for the less developed countries. Our analysis of the recent research shows that most of the reviewed literature applies a case study method of exploring PPI and that these cases come mainly from the most developed countries. Studies done on bigger samples are scarce, but they all indicate that PPI could be a more effective way of inducing innovation in comparison with other, more often used instruments (e.g., R&D subsidies). Only a small number of existing studies focus on smaller and less developed countries. Therefore, our aim is to draw the attention of researchers and policy makers to the possibility of more efficient financial support for the creation and diffusion of innovation, especially in the context of small transition countries.

innovativeness ; competitiveness ; innovation policy instruments ; public procurement ; small transition countries

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