Innovation potentials in eco-friendly public procurement

With an annual procurement budget of 260 billion Euros – or 12% of the German GDP – the market power of the federal, state and local institutions is considerable. It is increasingly recognized in Germany that the consistent consideration of innovative products and services in public procurement can significantly support innovation policies from the demand side. The adoption of the inter-ministerial "Agreement for an Increased Innovation Orientation in Public Procurement", on 16 October 2007, by six federal ministries (Federal Ministries for Economy and Technology; Interior; Defense, Transport, Building and Urban Affairs, Environment, Education and Research), enacts a set of measures that substantiate the guidelines of the high-tech-strategy. Furthermore, they allow for the consideration of a long-term and sustainable planning in determining the most economic offer, thereby giving more leeway for innovations.

The aim of the project was to review how the agreement was implemented and to identify chances and obstacles for the implementation, in cooperation with the responsible procurement agencies within the operational scope of the Environmental Ministry. Within the review, case studies on best practices were conducted and tangible recommendations made for improving the implementation phase. Another goal was to analyse valid possibilities and starting points for an intensified innovation orientation in public procurement. Finally, the fundamentals for compliance with the agreement’s reporting obligation will be provided.