PUBLIC PROCUREMENT OF INNOVATION

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1 PUBLIC PROCUREMENT OF INNOVATION June 2015

2 INDEX 1. What is the PPI? 2. The will of the European Community by promoting the PPI 3. The main characteristics of the PPI 4. PPI legal framework 5. The role of Incasòl in PPI 6. The Procurement of Innovation Platform 7. The PPI Guide published by the Procurement of Innovation Platform 8. PPI applied to SmartReflex

3 1. WHAT IS THE PPI? PUBLIC PROCUREMENT the use of public money to provide goods, services and works, responding to the needs of the society INNOVATION the implementation of a new good, service or process that is not yet in the market, which could involve improvements in the area of efficiency, environment and social welfare

4 1. WHAT IS THE PPI? PUBLIC PRIVATE PARTNERSHIP + INNOVATION occurs when a public agency acts to purchase, or place an order for, a product service, good, or system that does not yet exist, but which could (probably) be developed within a reasonable period of time, based on additional or new innovative work by the organisation(s) undertaking to produce, supply, and sell the product being purchased (Edquist and Hommen, 2000, p. 5)

5 2. THE WILL OF THE EUROPEAN COMMISSION BY PROMOTING THE PPI Europe currently spends less on R&D than the US, Japan and many other countries 1 It has been estimated that increasing investment in R&D to 3% of EU GDP would create 3,7 million jobs and increase annual GDP by 795 billion by Increasing investment in R&D improves the competitiveness of industries and SMEs. To achieve the European 2020 targets on employment, R&D, and environment. 1 ICLEI Guidance for public authorities on Public Procurement of Innovation

6 2. THE WILL OF THE EUROPEAN COMMISSION BY PROMOTING THE PPI source: The Guardian European public authorities all have a responsibility to favour innovation when producing and consuming goods and services. Public procurement of sustainable and innovative goods and services is one of the essential tools for stimulating new technological or service solutions while helping to create jobs and boost the competitiveness of European industry and SMEs 2 2 Antonio Tajani, Vice president of the European Comission, European Comissioner for Industry and Enterpreneurship

7 3. THE MAIN CHARACTERISTICS OF THE PPI TO PROMOTE THE IMPLEMENTATION OF INNOVATIVE SOLUTIONS PPI helps to introduce in the market the innovative solutions developed by the private sector PPI allows to share the risk associated with innovation, between the public and the private entities. PPI allows to manage the investments needed for innovation through agreements between the public and the private entities. PPI represents an opportunity to access European funds for innovation

8 3. THE MAIN CHARACTERISTICS OF THE PPI TO PROMOTE THE IMPLEMENTATION OF INNOVATIVE SOLUTIONS Horizon 2020 is the EU Research and Innovation programme, with nearly 80 billion of funding available over 7 years (2014 to 2020). Horizon 2020 is the financial instrument implementing the European 2020 targets, intended to secure Europe's global competitiveness.

9 4. PPI LEGAL FRAMEWORK Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC. source: Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts

10 4. PPI LEGAL FRAMEWORK The Directives on public procurement, on utilities procurement and on concessions contracts have not been transposed (transposition period until April 2016) source: wikipedia Spanish Public Procurement legislation: Royal Legislative Decree 3/2011 of 14 November, approving the consolidated text of the Law on Public Sector Contracts

11 4. PPI LEGAL FRAMEWORK Regional rules related to the PPI: ORDER ECO / 124/2015 of 27 April, approving the procedure and the content model of application for the Operational Programme of the European Regional Development Fund (ERDF) of innovative public procurement projects. source: Agència de l Habitatge

12 5. THE ROLE OF INCASÒL IN PPI Joining the SCI Network Joining the PI Platform

13 5. THE ROLE OF INCASÒL IN PPI Working on sustainable procurement to include environmental aspects in the Incasòl procurement procedures source: SUSPROC European Commission Currently, studying the possibilities of doing a PPI for two projects (LCA in construction projects, sustainable materials for buildings) source: European Platform on Life Cycle Assessment

14 6. THE PROCUREMENT OF INNOVATION PLATFORM The platform has been developed by ICLEI with support from the European Commission, andin partnership with PIANO, REC and IWT. The Platform has been developed to help public authorities, procurers, policy makers, researchers and other stakeholders to learn about the usefulness of the PPI. The PPI Platform comprises three elements: 1) The website procurement.org 2) The Procurement Forum forum.eu 3) The Resource Centre procurement.org/resources

15 7. THE PPI GUIDE PUBLISHED BY THE PROCUREMENT OF INNOVATION PLATFORM This guide contains, among others: The role of the PPI The benefits obtained by applying the PPI The main procedures Case studies

16 7. THE PPI GUIDE PUBLISHED BY THE PROCUREMENT OF INNOVATION PLATFORM Main procedures of PPI explained in the guide: 1) Preliminary market consultation, 2) Innovation Partnership, 3) Precommercial procurement, 4) Competitive procedure with negotiation, 5) Competitive dialogue

17 8. PPI APPLIED TO SMARTREFLEX The DHC supplied by renewable sources may imply innovative solutions. The DHC facilities need large investments, which could be managed through public private partnerships In DHC that involves innovation could be interesting sharing the associated risk Source: The DHC supplied by renewable sources that also include innovative solutions could apply for Horizon 2020 funds

18 Thank you for your attention Sonsoles Letang Jiménez de Anta INCASÒL

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