Innovation in Procurement
Overview
The module explores the role of public procurement in promoting and supporting innovation, combining economic, policy and organisational perspectives.
The first part introduces the main concepts of innovation economics, examining the relationship between innovation, competition, incentives, economic growth and development. Particular attention is given to the role that the public sector has played, and continues to play, as a driver of innovation, including through public investment and procurement. The lectures also consider the role of government incentives and the conditions under which innovative solutions may emerge and develop.
The module then focuses on Public Procurement of Innovation, examining the policy rationale for using public procurement as an instrument to stimulate innovative solutions. In this context, students are introduced to Pre-Commercial Procurement (PCP) and its role in addressing public-sector needs while supporting the development of innovative products and services.
A further part of the module addresses the organisational and managerial dimensions of innovation, including the importance of trust, leadership and organisational conditions, as well as the challenges that may arise when innovation initiatives do not produce the expected results.
The module concludes by looking at the impact of digital transformation and Artificial Intelligence (AI), including Generative AI, on public organisations and their processes. Students are introduced to the main AI concepts and technologies and discuss their potential applications and the challenges associated with their adoption in the public sector and procurement.
Objectives of the Module
- Understanding the main economic concepts underlying innovation and the relationship between innovation, competition, incentives and economic development;
- Understanding the role of the public sector as a driver of innovation and the rationale for using public procurement to promote innovative solutions;
- Understanding the main principles and mechanisms of Public Procurement of Innovation, including Pre-Commercial Procurement (PCP);
- Exploring the organisational and institutional conditions that can support or hinder innovation in the public sector, including the role of leadership, trust and incentives;
- Developing an understanding of the challenges associated with innovation processes and the reasons why innovation initiatives may fail;
- Understanding the main concepts and technologies related to Artificial Intelligence and Generative AI and exploring their emerging applications in public organisations and procurement.
Methodology
The module is based on theoretical lectures, practical case discussion and work groups. Lectures will contain concepts as well as well as examples.
Material
The main reference will be the slides presented in class by the lecturers, case studies materials and readings.