Demandled Innovation Policies Innovation Procurement Dr Bertrand Wert
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) Enterprise and Industry
Where are we coming from? Where are we going? 1. Demand-driven inno. policies; LMI Public Procurement Networks (1. 0) Outcomes 2. Call for proposal ENT/CIP/11/C/N 02 C 011 on Public Procurement Networks of Innovation 2. 0 3. Revision of 2004 Directives novelties & HORIZON 2020 2 Enterprise and Industry
Demand-driven innovation Policies & Innovation procurement Current activities: Lead Market Initiative Where are coming from? Enterprise and Industry
Public policies tools for action Supply and demand-led innovation policy tools po -F is ca l su p ity qu -E Lead Market Initiative – Towards a policy mix M ea -G su ra re nt s s, l -T oa ra ns in i -. ng, . . fa irs rt D & R ng ci an in Intention: Supporting market VS supporting technology push - Regulation - Public procurement (PCP/PPI) - Standardisation -F Measures from the demand-side Measures from the supply side 4 Enterprise and Industry
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 5 Enterprise and Industry
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 6 Enterprise and Industry
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 Enterprise and Industry 7
Lead Market Areas e-Health Sustainable construction Standardisation Labelling Certification Legislation EU Recommendation for interoperability Introduce the Electronic Health Insurance Card EU Patient Smart Open Services large scale pilot funded Screening of national building regulations SMEs guide on collaborative working schemes in construction 2 nd generation of Eurocodes Public Procurement Sectorspecific networks of Contracting Authorities to foster demand for innovation Complementary Actions Protective textiles Inventory of all relevant standards Revision of the PPE Directive Bio-based products Product performance standards Inventory of legislation affecting biobased products Recycling CEN Packaging Standards Waste Framework Directive Financial support (CIP) for market replication projects Renewable energies Adopting minimal energy performance requirements Mandatory national targets for 2020 Guide on funding available for RE demonstration and pilot projects Policy tools Enterprise and Industry Training platform for buyers and users FP 7 call on biorefinery pilot plants Lead Market Initiative 09 -12’ 8
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 www. sci-network. eu contact: simon. clement@iclei. org 9 Enterprise and Industry
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 will be produced http: //www. enprotex. eu/index contact: Ronald. Hammerschmidt@lfr. n 10 Enterprise and Industry
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 Eu. HPN (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. http: //lowcarbon-healthcare. eu/ contact: gaynor. whyles@jeraconsulting. com 11 Enterprise and Industry
Rotherham Ultra Efficient Lighting FCP (€ 2 M) Rotherham Ultra Efficient Lighting FCP 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. 12 Enterprise and Industry
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Innovation procurement Current activities: Towards H 2020 “ 2. 0 networks” and 2013 CIP-EIP call for proposal Where are we? Enterprise and Industry
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: Eco. Quip Innovation and Skills (UK)), Happi (Business (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)) 16 Enterprise and Industry
Current activities “The Innovation Procurement Hub” Project leader: ICLEI, European platform of sustainable cities (Freiburg in Brisgau, DE) contact: ignacio. gimenez@iclei. org 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 17 Enterprise and Industry
Current activities 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 18 Enterprise and Industry
Current activities Implementation of the project - important SPECIFIC OBJECTIVE (page 8 -9 To. R) 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); 19 Enterprise and Industry
Current activities Implementation of the project - important SPECIFIC OBJECTIVE (page 8 -9 To. R) 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 nontechnological 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"). 20 Enterprise and Industry
Current activities Implementation of the project - important Nota Bene for Strand 1 (page 15 To. R) A maximum of 20% of the price of actual purchase(s) of innovative solution (s) will be eligible, if the six following conditions are met: 1. The purchase takes place during and as part of the action and is otherwise eligible in accordance with Art. II. 14 of the General Conditions; 2. In general, applicants and partners of applicants must be Contracting Authorities according 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 by one or several of such authorities or bodies governed by public law; 3. Multiple procurements can be implemented in a single consortium in the life-time of 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/have to be done following an EU wide publication, at least in English, and all offers are evaluated according to the same objective criteria regardless of the geographic location of company head offices, company size or governance structure, which ensure compliance with the principles of transparency, non-discrimination and equal treatment and which guarantee 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/have to use best value for money (and not just lowest price) criteria for evaluating offers. 21 Enterprise and Industry
Current activities 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) 22 Enterprise and Industry
Innovation procurement Revision of 2004 Directives novelties & HORIZON 2020 Where are we going? Enterprise and Industry
Innovation Procurement & Horizon 2020 • 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 Enterprise and Industry 24
Future developments 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 25 Enterprise and Industry
Future developments PPI Feasibility Study within Horizon 2020: Full-Fledge EU Support Scheme • Proposal from feasibility study on future EU support to public procurement of innovative solutions http: //ec. europa. eu/enterprise/policies/innovation/policy/lead-market-initiative/pp-conf 2_en. htm 26 Enterprise and Industry
Future developments Support from specialized organizations/ clusters: e. g. platforms of cities/ hospitals/ procurers … From needs assessment to innovation procurement – the demand d &D op l e v nt e m Pre-commercial procurement e 2. in R Procurers needs D EE N assessment + market Support from specialized Support from Chambers of Commerce, EEN, organizations/ clusters: e. g. NO consultation/ Ne platforms of cities/ hospitals/ Innovation agencies… 1. technology ed procurers … in R assessment = &D No solution available Public procurement of innovation: Support from Chambers of Commerce, EEN, Innovation agencies; European Technology Platforms… • Forward commitment procurement • Competitive dialogue • Design contest • Catalytic procurement • (…) Enterprise and Industry 3. 27
Future developments Some of the future public events Ø Various kick-off meetings (Strand 1) Ø 5 July: Innovation procurement and SME involvment – Paris 12 September 2012: Nordic Innovation Procurement conference - Helsinki Ø 19 -21 September: Eco-Procura conference – Malmö http: //www. ecoprocura. eu/ Ø 3 -4 November 2012: Inno-demanda/ Inno-procura conference – Madrid Ø December 2012 -January 2013: Innovation procurement and launching of 2013 call for proposals 3. 0 Networks - Stuttgart Ø 28 Enterprise and Industry
THANK YOU FOR YOUR ATTENTION Contact: bertrand. wert@ec. europa. eu • Public Procurement & Innovation: http: //ec. europa. eu/enterprise/policies/innovation/policy/publicprocurement/index_en. htm • Pre-Commercial Procurement: http: //cordis. europa. eu/fp 7/ict/pcp/calls_en. html • Register to our e-newsletters on innovation procurement: bertrand. wert@ec. europa. eu 29 Enterprise and Industry
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