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 Launching Events of the European projects Financed by the Competitiveness and Innovation Programme 29 November 2012 / London Enterprise and Industry

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 Horizon 2020 2 Enterprise and Industry

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

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/docum ents/pcp_brochure_en. pdf 5 Enterprise and Industry

Why & main difficulties of using public procurement to stimulate innovation? Enterprise and Industry

Why supporting demand of innovation & innovation procurement? 1. Potential lever for action: 19% of EU GDP 2. Delivering better public services/ Societal challenges 3. Foster & accelerate access to market for innovative solutions (i. e. lead customers, first client) 4. Foster EU Internal Market to benefit of EU businesses (SMEs) 5. Policy mix and international rising field of innovation support policies 7 Enterprise and Industry

Main difficulties for procurers to purchase 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 8 Enterprise and Industry

EC actions to support innovation procurement Supporting the demand of innovation e. g. First generation of public procurement networks (2009) The Lead Market Initiative Enterprise and Industry

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 Training platform for buyers and users FP 7 call on biorefinery pilot plants 10 Enterprise and Industry Lead Market Initiative 09 -12’

Rational of the first generation of public procurement networks (2009, € 3 M) 1. Forming European buyer’s groups in Lead Market Sectors 2. Developing guidance 3. Engaging with supply chain (SMEs & industries) 4. Community building 11 Enterprise and Industry

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 in reno. ; 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 developed https: //procurementforum. viadesk. com • Guide on Procuring Innovative and Sustainable Construction Solutions: http: //www. scinetwork. eu/fileadmin/templates/sci-network/files/Resource_Centre/Guide/SCINetwork_Guide_www. pdf 12 www. sci-network. eu contact: simon. clement@iclei. org 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 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/index contact: Ronald. Hammerschmidt@lfr. n 13 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 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 14 Enterprise and Industry

EC actions to support innovation procurement First generation of public procurement networks (2009) Supporting the demand of innovation e. g. Second generation of European public procurers networks (2012) Enterprise and Industry

Rational of the second generation of public procurement networks (2012, € 15 M) 1. Forming European buyer’s groups in any sectors 2. Developing guidance 3. Engaging with supply chain (SMEs & industries) 4. Encouraging innovative SMEs to take part in public tendering 5. Community building 6. Realisation innovation procurement within the time-line of the project 7. Developing coordinated and joint procurement 8. Launching of a European Lead Public Customer Award 9. Preparing innovation procurement mainstreaming within Horizon 2020 16 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 (Business Innovation and Skills (UK)), Happi (Réseau achats hospitaliers d’Ile de France (Paris, FR)) 3/ Fostering energy efficiency: Prolight (Transport for London, UK), Firedup (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)) 17 Enterprise and Industry

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 1. Development of an innovation procurement database 2. Maintenance and development of a European user-friendly and interactive website: http: //www. procurement-forum. eu/ 3. Representing the European Innovation Procurement Community 4. Development of personal exchange and joint training activities on PCP and PPI 5. Drafting and compilation of guidelines on innovation procurement 6. European award for the best innovation procurements (launch: February 2013 – Stuttgart conference) 18 Enterprise and Industry

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 Ministry of Economic Affairs, Agriculture and Innovation Enterprise and Industry 19

Lead Public Customer Award • Announcement: January 2013 • Publication: February 2013 • Deadline applications: June 2013 • Award Ceremony: Fall 2013 20 Enterprise and Industry

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 21 Enterprise and Industry

Future EC actions to support innovation procurement Supporting the demand of innovation e. g. Third generation of European public procurers networks (2013) Enterprise and Industry

Future activities 2012 -13 Potential rational of the third generation of public procurement networks (2013, € 6. 3 M) 1. Forming European buyer’s groups of public & private procurers of innovation (tbc. ) 2. Developing guidance and public procurement road-maps 3. Engaging with supply chain (SMEs & industries) 4. Encouraging innovative SMEs to take part within public tendering 5. Community building of innovation procurers 6. Realisation innovation procurement within the time-line of a project 7. Developing coordinated and joint procurement 8. Preparing innovation procurement mainstreaming within Horizon 2020 Areas under investigation: Sustainable construction, mobility/smart grids, health, recycling/ raw material, KETs, tourism… Enterprise and Industry 23

Future activities 2012 -13 European Commission, DG ENTR Grant: networking, procurement preparation of PDI or PCP… & % of the real procurement (non definitive structure and %) 20% 95% Group of buyers only Call for proposals of 6. 3 M€ CIP programme February 2013 Procurement contract Supplier (e. g. SME x) or Group of buyers (50%) + innovation agency and/or specialized platform (e. g. for cities: sustainable development) and/or cluster organization Beneficiary for other procurers + UE internal market Supplier (e. g. SME y) Supplier (e. g. SME z) Innovative solution: good, process or service Innovations + client reference * 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 24 Enterprise and Industry

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 25 Enterprise and Industry

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: e. Gov / 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 at http: //cordis. europa. eu/fp 7/ict/pcp/calls_en. html 26 Enterprise and Industry

Future EC actions to support innovation procurement Supporting the demand of innovation Horizon 2020 R&D&I Programme Enterprise and Industry

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 crossborder PCP & PPI actions • Possibility for EU to be involved itself also 28 Enterprise and Industry

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 – Malmö http: //www. ecoprocura. eu/ • 2 October 2012: Inno-demanda/ Inno-procura conference – Madrid • 7 -8 November 2012: Nordic Innovation Procurement conference – Helsinki https: //tapahtumat. tekes. fi/event/Helsinki. Conference • 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. ) 29 Enterprise and Industry

THANK YOU FOR YOUR ATTENTION 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 • Group Supporting Public Procurement of Innovation • https: //www. procurement-forum. eu email: ignacio. gimenez@iclei. org 30 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. 31 Enterprise and Industry

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