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Effects of public procurement of R&D on the innovation process: Evidence from the UK Small Business Research Initiative

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Effects of public procurement of R&D on the innovation process: Evidence from the UK Small Business Research Initiative. / Selviaridis, Kostas.
In: Journal of Public Procurement, Vol. 21, No. 3, 30.11.2021, p. 229-259.

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Selviaridis K. Effects of public procurement of R&D on the innovation process: Evidence from the UK Small Business Research Initiative. Journal of Public Procurement. 2021 Nov 30;21(3):229-259. Epub 2020 Jul 16. doi: 10.1108/JOPP-12-2019-0082

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@article{804fe8b592c4441481f54da358d88f0f,
title = "Effects of public procurement of R&D on the innovation process: Evidence from the UK Small Business Research Initiative",
abstract = "PurposeThe study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation.Design/methodology/approachPCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts.FindingsThe UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct.Research limitations/implicationsThe study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts.Social implicationsThe study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme.Originality/valueThe study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.",
keywords = "Innovation, Public procurement, Innovation policy, R&D services, Small- and medium-sized enterprises, Pre-commercial procurement",
author = "Kostas Selviaridis",
note = "This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited. ",
year = "2021",
month = nov,
day = "30",
doi = "10.1108/JOPP-12-2019-0082",
language = "English",
volume = "21",
pages = "229--259",
journal = "Journal of Public Procurement",
number = "3",

}

RIS

TY - JOUR

T1 - Effects of public procurement of R&D on the innovation process

T2 - Evidence from the UK Small Business Research Initiative

AU - Selviaridis, Kostas

N1 - This article is (c) Emerald Group Publishing and permission has been granted for this version to appear here. Emerald does not grant permission for this article to be further copied/distributed or hosted elsewhere without the express permission from Emerald Group Publishing Limited.

PY - 2021/11/30

Y1 - 2021/11/30

N2 - PurposeThe study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation.Design/methodology/approachPCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts.FindingsThe UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct.Research limitations/implicationsThe study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts.Social implicationsThe study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme.Originality/valueThe study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

AB - PurposeThe study aims to investigate how pre-commercial procurement (PCP) influences the activities, capabilities and behaviours of actors participating in the innovation process. Unlike much of PCP research underpinned by a market failure theoretical framework that evaluates the additionality of innovation inputs and outputs, this paper focusses on the role and capacity of PCP in addressing systemic failures impeding the process of innovation.Design/methodology/approachPCP effects on the innovation process were studied through a qualitative study of the UK small business research initiative (SBRI) programme. Data collection comprised 33 semi-structured interviews with key informants within 30 organisations and analysis of 80-plus secondary data sources. Interviewees included executives of technology-based small businesses, managers within public buying organisations and innovation policymakers and experts.FindingsThe UK SBRI improves connectivity and instigates research and development (R&D) related interactions and cooperation. Through securing government R&D contracts, small firms access relevant innovation ecosystems, build up their knowledge and capabilities and explore possible routes to market. Public organisations use the SBRI to connect to innovative small firms and access their sets of expertise and novel ideas. They also learn to appreciate the strategic role of procurement. Nonetheless, SBRI-funded small business face commercialisation and innovation adoption challenges because of institutional constraints pertaining to rules, regulations and public-sector norms of conduct.Research limitations/implicationsThe study contributes to existing PCP research by demonstrating innovation process-related effects of PCP policies. It also complements literature on small business-friendly public procurement measures by highlighting the ways through which PCP, rather than commercial procurement procedures, can support the development of small businesses other than just facilitating their access to government (R&D) contracts.Social implicationsThe study identifies several challenge areas that policymakers should address to improve the implementation of the UK SBRI programme.Originality/valueThe study demonstrates the effects of PCP on the activities, capabilities and behaviours of small businesses and public buying organisations involved in the innovation process.

KW - Innovation

KW - Public procurement

KW - Innovation policy

KW - R&D services

KW - Small- and medium-sized enterprises

KW - Pre-commercial procurement

U2 - 10.1108/JOPP-12-2019-0082

DO - 10.1108/JOPP-12-2019-0082

M3 - Journal article

VL - 21

SP - 229

EP - 259

JO - Journal of Public Procurement

JF - Journal of Public Procurement

IS - 3

ER -