The Effect of a Government Target for the Procurement of Innovation: The Case of the UK’s Small Business Research Initiative

It is widely argued that government procurement plays an important role in supporting R&D and helping businesses innovate. However, its effect on government departments and the way they organize themselves to undertake public procurement of innovation (PPoI) has not been widely explored. Using a case study of the UK Small Business Research Initiative, we examine the different ways in which departments organize themselves to undertake PPoI, and in particular the effect of a target set on departments’ innovation procurement activities. We identify challenges departments encounter when faced with such requirements and the effects they might bring about. Our work highlights the need for clear understanding of the logic and benefits of the programme, dedicated resources and clear lines of responsibility. We suggest that targets, when used effectively, can increase SBRI activity and hence spur PPoI within government organizations.