Risk averse India sends policy makers on global hunt for innovative solutions . Developed countries work to simulate innovations locally with public procurement policy.

1. Promoting Innovations with
Pre-commercial Procurement
ASRao
motguru.com
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3. Pre‐commercial procurement (PCP)
• The concept of 'pre-commercial procurement'
has been defined by the European
Commission to refer to the purchase of
research services where the contracting
authority or contracting entity does not take
all the risks, results and benefits for use in the
conduct of its own affairs, but shares them
with the providers under market conditions.
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4. Simulating innovation
Public procurement of innovative goods and
services relies on inducing innovation by specifying
levels of performance or functionality that are not
achievable with ‘off-the-shelf’ solutions and hence
require an innovation to meet the demand.
Pre-commercial public procurement is an approach
for procuring R&D services, which enables public
procurers to share the risks and benefits of
designing, prototyping and testing new products
and services with the suppliers.
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5. RTO (Research and Technical
Organisation) engagement at different
TRL
RTOs are significant contributors in R&D related
to the key enabling technologies (KETs) that at
the EU level are seen as being strongly
connected to regaining Europe’s industrial
leadership, e.g. individual KETs: nanotechnology,
micro & nano-electronics, photonics, advanced
materials, industrial biotechnology, and
advanced manufacturing systems.
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6. New Technology Ventures
Starting under the umbrella of the RTO, often
still partially owned by the RTO, the first steps in
the new enterprise are made to transform the
invention into a commercial innovative product.
In this way, the research and development
created by an RTO is valorised in economic
activities.
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7. Procurement of R&D
The general process is - government authorities
articulate a specific need for which no current
solution is available, they call for R&D proposals
and select among the competing bids in several
phases. The supply-side element of this
instrument is that it supports R&D activities of
suppliers. The demand-side element relates to
the targeted articulation of demand.
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8. US SBIR programme
One of the best-known examples of the
procurement of research and development,
undertaken by public bodies (they would be known
as “contracting authorities” in the European Union),
is the Small Business Innovation Programme (SBIR)
of the United States of America. This is not PCP in
the sense in which it is meant though in the
European Union, however. Nevertheless, several
aspects of the US approach have been adopted in
the implementations of pre‐commercial
procurement seen in Europe, most notably, at
competitive element in stages.
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9. The SBIR-STTR Program
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10. FP7 Programme of EU
Public sector is faced today with important
societal challenges (aging population, health
care, climate change, energy efficiency,
transport, security…). Addressing these
challenges, often requires new & better
solutions. Some of the required improvements
are so technologically demanding that either no
commercially stable solution exists yet on the
market, or existing solutions show shortcomings
which require new R&D.
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11. UK Funding landscape
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12. Procurement-conditioned SME R&D
programme, S.Korea
The Korean government provides national
certification to technology-based innovative SMEs
in order to define policy targets. The “Inno-Biz”
certification and venture business certification are
highly coveted . Inno-Biz companies, under the “Act
on the Promotion of Technology Innovation of Small
and Medium Enterprises,” are categorized as
innovative SMEs consisting of “technological
innovation-oriented SMEs” and “management
innovation-oriented SMEs”.
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13. Further Reading
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