Enterprise and Industry Demand-led Innovation Policies Innovation Procurement Dr. Bertrand Wert DG Enterprise and Industry Policy Development for Industrial Innovation PUBLIC PROCUREMENT of INNOVATION: Kick-off meeting of the Fired-IP project 11 June 2012 / London (UK)
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Enterprise and Industry Demand-led Innovation Policies Innovation Procurement Dr. Bertrand Wert DG Enterprise and Industry Policy Development for Industrial.
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Enterprise and Industry
Enterprise and Industry
Demand-led Innovation Policies
Innovation Procurement
Dr. Bertrand Wert DG Enterprise and IndustryPolicy Development for Industrial Innovation
PUBLIC PROCUREMENT of INNOVATION: Kick-off meeting of the Fired-IP project11 June 2012 / London (UK)
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1. Demand-driven inno. policies; LMI Public Procurement Networks (1.0) Outcomes
2. Call for proposal ENT/CIP/11/C/N02C011 on Public Procurement Networks of Innovation 2.0
3. Revision of 2004 Directives novelties & HORIZON 2020
Where are we coming from? Where are we? Where are we going?
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Demand-driven innovation Policies &
Innovation procurement Current activities: Lead Market Initiative
Where are coming from?
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Measures from the supply side
Measures from the
demand-side- Regulation- Public procurement (PCP/PPI)
- Fin
anci
ng R&D
- Equity
support
- Fis
cal M
easu
res
- Gra
nts, l
oans
- Standardisation
Lead Market Initiative – Towards a policy mix
Public policies tools for action Supply and demand-led innovation policy tools
- Tra
inin
g, fai
rs
- ...
Intention: Supporting market VS supporting technology
push
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Why supporting demand of innovation & innovation procurement?
1. Potential lever for action: 19% of EU GDP
2. Foster & accelerate access to market for innovative solutions
3. Foster EU Internal Market to benefit of EU businesses (SMEs)
4. Delivering better EU pubic services/ Societal challenges
5. Policy mix and international rising field of innovation support policies
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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 do not require R&D = Public Procurement of innovation
Normal procurement procedure/directives
2/ Procurement of innovative solutions that require R&D = Pre-Commercial Procurement
Working under R&D exemption of the procurement procedure/directives http://ec.europa.eu/information_society/tl/research/priv_invest/pcp/documents/
pcp_brochure_en.pdf
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Main difficulties of procurers purchasing innovative solutions?
1. Wrong incentives
2. Lack of knowledge and capabilities on technologies, innovations, market developments
3. No strategy that aligns public procurements with public policy objectives (e.g. health, environment, transport), and with R&D&I support programmes
4. Fragmentation in demand
5. Difficulties for innovative SMEs to be involved in public procurement as direct beneficiary/ client of a purchasing authority
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StandardisationLabelling
CertificationLegislation
Public Procurement
Complementary Actions
Sector-specific
networks of Contracting
Authorities to foster demand for innovation
EU Recommendation for interoperability
Financial support (CIP) for market
replication projects
Guide on funding available for RE
demonstration and pilot projects
Product performance
standards
e-Health
Sustainable construction
Protective textiles
Bio-based products
Recycling
Renewable energies
2nd generation of Eurocodes
Revision of the PPE Directive
SMEs guide on collaborative
working schemes in construction
Adopting minimal energy
performance requirements
Waste Framework Directive
Lea
d M
arke
t A
reas
Policy tools
Screening of national building
regulations
CEN Packaging Standards
Introduce the Electronic Health Insurance Card
Training platform for buyers and users
FP7 call on bio-refinery pilot plants
Mandatory national targets
for 2020
Lead Market Initiative 09-12’
EU Patient Smart Open Services large scale pilot funded
Inventory of legislation
affecting bio-based products
Inventory of all relevant standards
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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 Forum 5 Working Groups WG: application of environmental standards in renovation; new technical solutions; procuring innovation; whole-life costing; financing & contracting.
• WG for helping public sector to become key driver for sustainable innovation
• WG encourage knowledge & experience sharing, identifying best practice, innovative technologies & products relevant to public authority
• WG will engage with the market to identify the best solutions: Online forum developed https://procurementforum.viadesk.com
“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 will be produced
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 commenced at the European Congress on Healthcare Planning and Design in June 2010 in order to develop guidance and recommendations for European hospitals on how to procure innovation • A survey of barriers to investment in low carbon solutions available • A European state-of-the-art report• 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.
Austin Smith Lord – Interior DesignersWandsworth – Nurse Call Systems
EX-OR – Lighting Control
GermanyOSRAM – LED’s, Lamps, Control Gear
SwedenLund
University,
UKKings
College London,
De Montfort University,
New SME created through the FCP process.
Rotherham Ultra Efficient Lighting FCP (€2M)
Rotherham Hospital is a 500 bed acute unit in the North East of
England
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Innovation procurement Current activities:
Towards H2020“2.0 networks” and 2013 CIP-EIP call for proposal
Where are we?
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Current activities
8 new networks of European Public Procurers of innovation covering the following fields
1/ 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))
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Current activities
“The Innovation Procurement Hub”Project leader: ICLEI, European platform of sustainable cities (Freiburg in Brisgau, DE) contact: [email protected]
Future activities for 2012 – 2016
1. Development of an innovation procurement database
2. European prize for the best innovation procurements
3. Maintenance and development of a European user-friendly and interactive website: https://procurementforum.viadesk.com/do/login/
4. Representing the European Innovation Procurement Community
5. Development of personal exchange and/or joint training activities on PCP and PPI
6. Drafting and compilation of guidelines in innovation procurement
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Current CIP-EIP type of activities supported
1/ Preparation phase: financial support ≤ 95%• Capabilities improvement: trainings, workshops• Procurement strategies development• 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
Current activities
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Implementation of the project - important
SPECIFIC OBJECTIVE (page 8-9 ToR)
1/ Development of public procurement of innovative solutions (preparation phase and implementation phase):· to create buyers groups dedicated to prepare for the procurement of innovative solutions (including needs assessment, market consultation (involvement of the supply chain (in particular European SMEs)), specification development, risk management), and the actual procurement process (including defining the conditions for the collaboration between contracting authorities, sharing resources in the evaluation of bids and related procedures, translations and publicising the calls for tender);
Current activities
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Implementation of the project - important
SPECIFIC OBJECTIVE (page 8-9 ToR)
2/ and, with the possibility to implement within the time-line of the project a public procurement of innovative solutions co-financed by the European Union; resulting in the first application / commercialisation of innovations of European Union relevance which
have already been technically demonstrated with success but which, owing to residual risk, are not yet commercially available in the market in which the procurement authority operates. This includes solutions based on existing technologies that are to be utilised in a new and innovative way, as well as non-technological innovations. The solutions have to be
new to the contracting authority and new to the Internal Market. By the implementation of the procurement of innovative solution we mean:
1. The publication at Official Journal;2. The evaluation of the tenders;3. The conclusion of the award procedure followed by the payment to the"beneficiary of the market" (refer to part 4 "EU Financing").
Current activities
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Implementation of the project - importantNota Bene for Strand 1 (page 15 ToR)A maximum of 20% of the price of actual purchase(s) of innovative solution (s) will beeligible, if the six following conditions are met:1. The purchase takes place during and as part of the action and is otherwise eligible inaccordance with Art. II.14 of the General Conditions;2. In general, applicants and partners of applicants must be Contracting Authoritiesaccording to Directives 2004/18/EC and 2004/17/EC, Contracting Authorities shall be the State, regional or local authorities, bodies governed by public law, associations formed byone or several of such authorities or bodies governed by public law;3. Multiple procurements can be implemented in a single consortium in the life-timeof the action. The total co-financing does not exceed EUR 500,000;4. The total amount of the EU contribution for the purchase(s) does not exceed one third(1/3) of the total EU contribution for the action;5. The call for tender(s) for the actual purchase(s) of innovative solution(s) has/haveto be done following an EU wide publication, at least in English, and all offers areevaluated according to the same objective criteria regardless of the geographic location ofcompany head offices, company size or governance structure, which ensure compliancewith the principles of transparency, non-discrimination and equal treatment and whichguarantee that tenders are assessed in conditions of effective competition;6. The call for tender(s) for the actual purchase(s) of innovative solution(s) has/haveto use best value for money (and not just lowest price) criteria for evaluating offers.
Current activities
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Our challenges
1/ Being able to evaluate the innovativeness of a solution procured
2/ Demonstrating that financially supporting public procurement of innovation at European level could work
3/ Being successful in puling the demand of innovation at European level (Internal Market)
Current activities
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Innovation procurement Revision of 2004
Directives novelties & HORIZON 2020
Where are we going?
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• Awareness Raising: events, PCP newsletter etc• Political agenda’s
• EU level: Digital Agenda for Europe & Innovation Union targets on PCP & PPI
• Council Conclusions of February 2011 and March 2012• MS agenda’s: half of EU MS are/start engaging in pilots or are
defining their PCP / PPI policy strategy
• 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
Innovation Procurement & Horizon 2020
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Innovation Procurement & Horizon 2020
• Horizon 2020 should support both Public Procurement of innovation & Pre-Commercial Procurement, preparation costs and procurement of innovation being done (+measurement, trainings, evaluation…)
• Links to be established with the 3 stages (via grants reserved to SMEs) innovative SME support scheme
Future developments
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• Proposal from feasibility study on future EU support to public procurement of innovative solutions
PPI Feasibility Study within Horizon 2020: Full-Fledge EU Support Scheme