Buying innovation for public sectors
Innovation involves changes in methods, processes, operations and other structures that lead to more efficient and cost-effective services. When the buyer needs a new solution or to improve what is already in place, innovation could be the best solution. Examples of innovation:
Product development, new or significantly improved.
Development of a service or process, for example during a manufacturing process or construction process.
Development of methods, for example marketing and business.
Development of changes in services and information, for example, in order to help with social projects.
The purchase
The buyer must do an analysis. This includes the preparation of a procurement analysis and planning. The analysis work can reveal that the solution is already available or that a new solution needs to be developed. It can also be revealed that the purchase is obligatory.
Experts from Ríkiskaup advise buyers regarding all planned procurements of innovation.
Buyer knows how to handle a problem
The buyer sends a ticket to Ríkiskaup with a description of the needs.
Procurement prepared and executed in cooperation with Ríkiskaup using .
Buyer uncertain of the solution he needs
The buyer submits a ticket to the public challenge platform with a short needs description.
Ríkiskaup completes the ticket with the buyer and publishes it as a challenge on the innovation portal, skapa.is.
The buyer updates the needs analysis in dialogue with innovators on ideas, solutions, and needed technical adjustments.
The buyer completes the needs and technical description and drafts a cost estimate.
The procurement is prepared and executed in consultation with Ríkiskaup.
Are the purchases obligatory?
If the cost is above, the purchase is obligatory. Then a general procurement process can be conducted by the Government purchasing agency with certain exceptions:
Conditions
Public sectors need to have certain elements in place to make innovation acquisitions meaningful and deliver the expected results.
Understanding and acceptance of the principles of public procurement, namely transparency, fairness, efficiency and non-discrimination.
Support from the highest level of management.
Clear policy on the arrangements and use of management, legal aspects, procurement, information technology and more.
Possibility to seek advice to shape the need, the solution and to carry out business development, along with possible financing.
The benefits of buying innovation
The financial returns from the procurement of innovations are not required in public sector, as is the case in private sector. Instead, the positive impact of the procurement on operations and services is the measure of the results.
Better public services
The public sector can better take advantage of technological advances in a timely manner by buying innovations. In this way, institutions and other public sector entities can meet the growing demand for modern services more efficiently than by traditional means.
More practical option
Although new solutions are associated with cost of implementation, it is important to evaluate the benefits of solutions, such as more efficient operation and automation of processes.
Steady progress
With a positive attitude towards the acquisition of innovation, the public sector can prevent stagnation and set important market examples.
Increased competition
By focusing public procurement on innovative solutions, the public sector is opening up more and more diverse companies to participate in public procurement processes.
Read more:
Public procurement law, see Article 46.
Service provider
The Financial Management Authority Procurement