Public procurement accounts for about 19% of GDP in the European Union and offers an enormous potential market for innovative products and services. Public procurement practices can help foster market uptake of innovative products and services, whilst improving the quality of public services in markets where the public sector is a significant purchaser.
Seeking more innovative procurement solutions can yield benefits for both public authorities and the private sector, as well as the wider society. These include:
Increasing economic growth
The power of demand (e.g. first buyer or lead customer) can move the market to stimulate the economy and increase competitiveness of firms in future markets, creating new businesses and increasing the level of employment.
Better products and services
Direct benefits to the public as the users of public services can be the result of bringing new ideas onto the market. These can be then provided more efficiently and effectively and also more cheaply.
Solving the challenges facing society
Scientific and technological breakthroughs can be the result of PPI and PCP processes. The outcome of these can help tackle key societal challenges such as health and well-being; food security, sustainable agriculture, clean and efficient energy; sustainable and integrated transport; or climate change and resource efficiency.