University of Twente Student Theses


The availability, utilization and effectiveness of innovation policy instruments within public procurement

Peters, Esmee (2019) The availability, utilization and effectiveness of innovation policy instruments within public procurement.

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Abstract:Purpose: On average twelve percent of the GDP is spend in public procurement (OECD, 2017b, p.172). Due to the economic significance of public procurement, public procurement is frequently used to accomplish secondary policy objectives, such as innovation. Within the search for procuring innovation, demand-side instruments are often underrecognized. Through the development of a framework, and an instrument usage and effectiveness analysis, this thesis aims to provide knowledge about the availability, usage and effectiveness of demand-side public procurement innovation policy instruments. Design: The framework of available innovative demand-side instruments within public procurement is based on existent literature, existent case-studies and government websites. The categorization of the framework is based on Vedung’s sticks, carrots and sermons approach. The usage and effectiveness analysis are preformed using qualitative comparison analysis (QCA). The input is provided through a questionnaire filled out by 24 public procurements experts functioning as country representatives. Findings: Demand-side innovation instruments range from regulative (i.e. restrictive laws and set targets), to materialistic (i.e. R&D funding), to knowledge transfer (i.e. websites and training). The full framework is provided in the study. Different combinations of instruments lead to different effectiveness levels. Generally speaking, knowledge transfer instruments and materialistic instruments are preferred over regulative instruments. Within materialistic instruments, one is advised to choose instruments within the category R&D funding, whereas government declarations are a safe choice for knowledge transfer instruments. Value: The newly structured framework, based on the Vedung categorization, provides an overview of the availability of different innovation instruments that did not previously exist within the public procurement literature. Secondly, this research provides an overview of how often specific demand-side innovation instruments are available. Thirdly, this study minimizes the gap between potential and actual perceived benefits of demand-side innovation policy instruments within public procurement. Keywords: public procurement; innovation; policy; instruments; demand; effectiveness; usage; framework; QCA
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
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