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Driving Innovation Through Public Procurement Future European Support

Driving Innovation Through Public Procurement Future European Support. Dr. Bertrand Wert DG Enterprise and Industry – Innovation For Growth Unit Policy Development for Industrial Innovation. EUROPEAN HIGHL LEVEL EVENTS On: Supporting Public Procurement Of Innovation

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Driving Innovation Through Public Procurement Future European Support

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  1. Driving Innovation Through Public ProcurementFuture European Support Dr. Bertrand Wert DG Enterprise and Industry – Innovation For Growth Unit Policy Development for Industrial Innovation EUROPEAN HIGHL LEVEL EVENTS On: Supporting Public Procurement Of Innovation Launching Events of the European projects Financed by the Competitiveness and Innovation Programme 29 November 2012 / London

  2. Structure 1.What is public procurement of innovation? 2. Why & main difficulties for using public procurement to stimulate innovation? 3. European Commission actions to support innovation procurement 4. The Innovation Procurement Forum & the up-coming innovation procurement award 5. “3.0” 2013 call for proposals to support public PPI & PCP 6. Procurement & innovation in Horizon2020

  3. What is public procurement of innovation?Supporting the demand of innovation e.g. The Lead Market Initiative

  4. Public policies tools for action Supply and demand-led innovation policy tools Measures from the demand-side - Regulation - Standardisation Lead Market Initiative – Towards a policy mix - Public procurement (PCP/PPI) Intention: Supporting market VS supporting technology push - Fiscal Measures - Training, fairs - Financing R&D - Equity support - Grants, loans - ... Measures from the supply side

  5. What is innovation procurement? Composed of 2 main aspects Following the need assessment realised by the procurer there are 2 possibilities 1/ Procurement of innovative solutions that require R&D = Pre-Commercial Procurement Working under R&D exemption of the procurement procedure/directives 2/Procurement of innovative solutions that do not require R&D = Public Procurement of innovation  Normal procurement procedure/directives http://ec.europa.eu/information_society/tl/research/priv_invest/pcp/documents/pcp_brochure_en.pdf

  6. Why & main difficultiesof using public procurement to stimulate innovation?

  7. Whysupporting demand of innovation & innovation procurement? • Potential lever for action: 19% of EU GDP • Delivering better public services/ Societal challenges • Foster & accelerate access to market for innovative solutions (i.e. lead customers, first client) • Foster EU Internal Market to benefit of EU businesses (SMEs) • Policymix and international rising field of innovation support policies

  8. Main difficultiesfor procurers to purchase innovative solutions? • Wrong incentives • Lack of knowledge and capabilities on technologies, innovations, market developments • No strategy that aligns public procurements with public policy objectives (e.g. health, environment, transport), and with R&D&I support programmes • Fragmentation in demand • Difficulties for innovative SMEs to be involved in public procurement as direct beneficiary/ client of a purchasing authority

  9. EC actions to support innovation procurementSupporting the demand of innovation e.g. First generation of public procurement networks (2009) The Lead Market Initiative

  10. Standardisation Labelling Certification Legislation Public Procurement Complementary Actions Lead Market Areas Introduce the Electronic Health Insurance Card EU Patient Smart Open Services large scale pilot funded e-Health EU Recommendation for interoperability Sector-specific networks of Contracting Authorities to foster demand for innovation Screening of national building regulations SMEs guide on collaborative working schemes in construction Sustainable construction 2nd generation of Eurocodes Inventory of all relevant standards Training platform for buyers and users Protective textiles Revision of the PPE Directive Inventory of legislation affecting bio-based products FP7 call on bio-refinery pilot plants Bio-based products Product performance standards CEN Packaging Standards Recycling Waste Framework Directive Financial support (CIP) for market replication projects Mandatory national targets for 2020 Guide on funding available for RE demonstration and pilot projects Renewable energies Adopting minimal energy performance requirements Lead Market Initiative 09-12’ Policy tools

  11. Rational of the first generation of public procurement networks (2009, €3M) • Forming European buyer’s groups in Lead Market Sectors • Developing guidance • Engaging with supply chain (SMEs & industries) • Community building

  12. Cities: sustainable construction & rehab. “SCI-NETWORK” Sustainable Construction & Innovation through Procurement:ICLEI (lead)Local Governments for Sustainability (Europe), Transport for London TFL (UK), City of Torino (IT), Dutch National Procurers Association PIANOo (NL), Culminatum, Helsinki Region Centre of Expertise (FI), University of Klagenfurt (AT), Motiva, National Agency for Energy Efficiency and Renewable Energy (FI) Results: • 120 organisations are participating in the pilot phase • Online 5 Working Groups:application of environmental standards inreno.; new technical solutions;procuring innovation;whole-life costing;financing & contracting. • Helping public sector to become key driver for sustainable innovation: guide on “Procuring Innovative & Sustainable Construction + snapshots publication” • Encouraging knowledge & experience sharing, identifying best practice, innovative technologies & products relevant to public authority • Engaging with the market to identify the best solutions:Online forum developedhttps://procurementforum.viadesk.com • Guide on Procuring Innovative and Sustainable Construction Solutions: http://www.sci-network.eu/fileadmin/templates/sci-network/files/Resource_Centre/Guide/SCI-Network_Guide_www.pdf www.sci-network.eucontact:simon.clement@iclei.org

  13. Fire-brigades protective garments “ENPROTEX”:Dutch national Disaster Response Agency LFR (NL), Belgian Ministry of the Interior IBZ (BE) Results: • A web-portal for public procurers and SMEs • Innovation mapping in textile research on protective clothing • Providing industry with forward commitments to meet future needs of procurers • A Personal Protective Equipment public procurers network is under development • Dissemination at national and international level. • Discussions with industry on barriers to innovation as well as dialogue with SME associations on involvement of SMEs in innovation and the supply chain • Model for tender documents have been produced • Guide: High Level Options for an Innovation Procurement Strategy for innovative protective textiles • Final International conference, on“Innovation procurement strategies for innovative protective textile”: Brussels, December 2012 http://www.enprotex.eu/indexcontact:Ronald.Hammerschmidt@lfr.n

  14. Low carbon Hospitals “LCB-HEALTHCARE”:Department for Business Innovation and Skills BIS (UK)(lead), Netherlands Organisation for Applied Scientific Research TNO (NL), Norwegian Directorate for Health Affaires(NO), Rawicz Hospital(PL), Department of Health DH (UK), European Health Property Network EuHPN (NL) Results: • Develop a sustainable, self-funding, trans-national network • Stakeholders' consultations to develop guidance and recommendations for European hospitals on how to procure innovation • Surveys of barriers to investment in low carbon solutions available • European state-of-the-art reports • Several procurement of innovation realised: e.g. "Ultra Efficient Lighting for Future Wards" in the Rotherham hospital (UK): by implementing a Forward Commitment Procurement project refurbishment leaders expect: energy consumption saving of 30% or €5,200 for 40 beds over 10 years, and Maintenance Saving of 88% or €15,400 for 40 beds over 10 years. • Guidance on: Innovation Procurement, Delivering Efficiency, Quality and Sustainability in Healthcare. A guide to innovation procurement for the healthcare sector: http://lowcarbon-healthcare.eu/newsitem/69 • http://lowcarbon-healthcare.eu/contact:gaynor.whyles@jeraconsulting.com

  15. EC actions to support innovation procurementSupporting the demand of innovation e.g. Second generation of European public procurers networks (2012) First generation of public procurement networks (2009)

  16. Rational of the second generation of public procurement networks (2012, €15M) • Forming European buyer’s groups in any sectors • Developing guidance • Engaging with supply chain (SMEs & industries) • Encouraging innovative SMEs to take part in public tendering • Community building • Realisation innovation procurement within the time-line of the project • Developing coordinated and joint procurement • Launching of a European Lead Public Customer Award • Preparing innovation procurement mainstreaming within Horizon 2020

  17. 8new networksof European Public Procurers of innovation covering the following fields1/ Combating climate change:Innobuild (Lyngdal Kommune (NO))2/ Improving care for senior citizens/active aging:EcoQuip (Business Innovation and Skills (UK)), Happi (Réseau achats hospitaliers d’Ile de France (Paris, FR))3/ Fostering energy efficiency:Prolight (Transport for London, UK), Fired-up (London Fire Brigade, UK), Spea (Barcelona city, SP) 4/ Supplying better mobility infrastructure:Syncro(Conseil Général de l’Isère (Grenoble, FR))5/ Creating more healthy working conditions:Innobuster (Austrian central purchasing authority AT)) Current activities 17

  18. Current activities “The Innovation Procurement Forum” Project leader: ICLEI, European platform of sustainable cities (Freiburg in Brisgau, DE) contact: ignacio.gimenez@iclei.org • Future activities for 2012 – 2016 • Development of an innovation procurement database • Maintenance and development of a European user-friendly and interactive website: http://www.procurement-forum.eu/ • Representing the European Innovation Procurement Community • Development of personal exchange and joint training activities on PCP and PPI • Drafting and compilation of guidelines on innovation procurement • European award for the best innovation procurements (launch: February 2013 – Stuttgart conference) 18

  19. Lead Public Customer Award Showcase public innovation procurements Lead customer as role model communicating experiences Prize: award and visit project manager to a country of choice 19 19 Ministry of Economic Affairs, Agriculture and Innovation

  20. Lead PublicCustomer Award • Announcement: January 2013 • Publication: February 2013 • Deadline applications: June 2013 • Award Ceremony: Fall 2013

  21. Lead Public Customer Award • Award criteria • Economic and social impact procurement • Impact home/ internal market • Replicability procurement • Use of procurement instruments • Promotion plan lessons learned

  22. Future EC actions to support innovation procurementSupporting the demand of innovation e.g. Third generation of European public procurers networks (2013)

  23. Future activities 2012-13 Potential rational of the third generation of public procurement networks (2013, €6.3M) • Forming European buyer’s groups of public & private procurers of innovation (tbc.) • Developing guidance and public procurement road-maps • Engaging with supply chain (SMEs & industries) • Encouraging innovative SMEs to take part within public tendering • Community building of innovation procurers • Realisation innovation procurement within the time-line of a project • Developing coordinated and joint procurement • Preparing innovation procurement mainstreaming within Horizon 2020 • Areas under investigation: Sustainable construction, mobility/smart grids, health, recycling/ raw material, KETs, tourism…

  24. Future activities 2012-13 Call for proposals of 6.3 M€ CIP programme February 2013 European Commission, DG ENTR Grant: networking, procurement preparation of PDI or PCP… & % of the real procurement (non definitive structure and %) 20% 95% Procurement contract Group of buyers only Supplier (e.g. SME x) or Supplier (e.g. SME y) Group of buyers (50%) + innovation agency and/or specialized platform (e.g. for cities: sustainable development) and/or cluster organization Supplier (e.g. SME z) Innovative solution: good, process or service Innovations + client reference Beneficiary for other procurers + UE internal market * 20% for a maximum contribution up to 500.000 EURO More info: http://ec.europa.eu/cip/files/cip/docs/eip_2013_work_programme_en.pdf

  25. Future activities 2012-13 CIP-EIP type of activities supported 1/ Preparation phase: financial support ≤ 95% • Capabilities improvement: trainings, workshops • Procurement strategies development • Needs assessment • Meeting the market: state-of-the art, technical dialogue, market consultation • Development of functional specifications • Forward Commitment Procurement • Standardisation, certification and/or insurance • Networking activities to Develop a Joint Procurement • 2/ Procurement phase: financial support ≤ 20%* (€500.000 max per consortium for real procurement co-financing) • Specification and publication of a (joint or coordinated) call for tender. • Implementation of a (joint or coordinated) call for tender (including marketing) • (Joint) evaluation and selection of proposals • (Joint) monitoring and evaluation of projects

  26. Future activities 2012-13 Pre-commercial procurement PCP • European financial support for cross-border networks • Co-financing rates: 50-75% for implementation, and for PCP preparation: 100% • Obj 5.1(d): Personalised Health / Active Ageing (8 €m – Call 10) • Obj 11.1: ICT solutions for any area of public interest (4 €m – Call 10) • Obj 11.3: eGov / Cloud Computing (10 €m – Call 10) • Obj 11.2: Digital preservation (5 €m – Call 11) • Obj 8.2: Technology enhanced learning (min 5,5 €m – Call 11) European financial support for cross-border networks • Financing at 100% • Obj 5.1(e)(1): ICT for health / ageing well (500.000 EURO – Call 10) • Obj 2.2 (b): Robotics (max 3 €m – Call 10) Call 10: publication 10/07/2012 – deadline 15/01/2013 Call 11: publication 18/09/2012 – deadline 16/04/2013 More info athttp://cordis.europa.eu/fp7/ict/pcp/calls_en.html

  27. Future EC actions to support innovation procurementSupporting the demand of innovation Horizon 2020 R&D&I Programme

  28. Future activities 2014-20 Innovation Procurement & Horizon 2020 • Awareness Raising • Events, PCP and PPI newsletters, prizes (Lead Public Customer Award, Public Sector Innovation prize…), trainings, staff exchanges… • Political agenda’s • EU level: Digital Agenda for Europe & Innovation Union targets on PCP & PPI • Council Conclusions of February 2011 and March 2012 • Member States agenda’s: half of EU MS are/start engaging in pilots or are defining their PCP / PPI policy strategy (UK, NL, FI, SE, DK, BE, DE, FR, SP, IT, AT, ET…) • Ongoing pilots EU support to procurement actions • Creating networks of public procurers • Co-financing PCP & PPI procurements • Mainstreaming EU support in Horizon 2020 • Draft Commission Horizon 2020 proposal includes financial support for cross-border PCP & PPI actions • Possibility for EU to be involved itself also

  29. Future developments Some of the future public events • Spring-Automn 2012: 8 kick-off meetings of the Procurement of Innovation networks: Olso, Vienna, Paris, Grenoble, London, Brussels • 5 July: Innovation procurement and SME involvment – Paris • 19-21 September: Eco-Procura conference – Malmöhttp://www.ecoprocura.eu/ • 2 October 2012: Inno-demanda/ Inno-procura conference – Madrid • 7-8November2012: Nordic Innovation Procurement conference – Helsinki https://tapahtumat.tekes.fi/event/HelsinkiConference • 29-30 November 2012: Innovation procurement EU and UK projects launch - London - Birmingham • February 2013: Innovation procurement and launching of 2013 call for proposals 3.0 Networks – Stuttgart (tbc.)

  30. THANK YOU FOR YOUR ATTENTION bertrand.wert@ec.europa.eu Public Procurement & Innovation:http://ec.europa.eu/enterprise/policies/innovation/policy/public-procurement/index_en.htm Pre-Commercial Procurement: http://cordis.europa.eu/fp7/ict/pcp/calls_en.html Register to our e-newsletters on innovation procurement: bertrand.wert@ec.europa.eu Group Supporting Public Procurement of Innovation https://www.procurement-forum.eu email: ignacio.gimenez@iclei.org

  31. Rotherham Ultra Efficient Lighting FCP Rotherham Ultra Efficient Lighting FCP (€2M) Sweden Fagerhult – Luminaires Ecophon – Acoustic Tiles Sweden Lund University, United Kingdom Cundall – Lighting Designers Austin Smith Lord – Interior Designers Wandsworth – Nurse Call Systems EX-OR – Lighting Control UK Kings College London, De Montfort University, Germany OSRAM – LED’s, Lamps, Control Gear Rotherham Hospital is a 500 bed acute unit in the North East of England New SME created through the FCP process.

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