Pre-commercial Procurement of Innovation - A missing link in the European Innovation Cycle
This report shows how a first-buyer function can be built up in a European single market that aims at being competitive, fair and transparent. The report introduces the concept of Pre-commercial Procurement of Innovation, to address a generally missing link in the European innovation cycle, the public procurer that is prepared to share benefits and risks with industry in order to exploit the results of research, moving research developments from their early stages to tested pre-commercial products ready for commercialisation. Such first buyers play an important role in the US economy as well as in the major Asian economies. For their product development, many European companies have historically benefited from first-buyer partnerships with state monopolies. Those partnerships are now successively dissolved as the markets, rightly so, are deregulated. The report explains how Pre-commercial Procurement of Innovation can be organised within the WTO rules applying the new public procurement directives and the state aid rules recently under consultation.