Public Procurement for Innovation in Small European Countries

The potential for the use of public procurement as an instrument to stimulate innovationhas received growing emphasis in Europe in recent years. Representing 16.3% of European GDP, public procurement represents a key source of demand for firms in sectors such as construction, health care and transport, and a major area in which governments are striving to improve effectiveness in their delivery of public services.This report seeks to explore whether the opportunity to use procurement to driveinnovation is one that is available to small countries in Europe, nations defined by theERAPRISM project as those with a population of less than 2.5 million1. After reviewing the general situation for procurement, the report examines capacity and the extent to which frameworks linking the activity to innovation are emerging. A survey of ministries and five case‐studies are used to explore in more detail the ways in which small countries could take advantage of this instrument and the barriers that need to be overcome. The conclusions address the possibilities for joint action to advance this agenda.