Analyzing the Effective Factors to Design Public Procurement Of Innovation Policy: Case Studies Oil, Power and Roads Sectors

Abstract

Representing up to 20 Percentage of the Gross Domestic Product (GDP) of most countries, public procurement can provide a considerable market for innovative solutions. Ensuring the specific amount of product sale, this kind of procurement can reduce the market risk of firms. There are just a few cases of using this approach in Iran and no certain policy measures have been designed and implemented. The research objective is to identify the effective factors of designing public procurement of innovation (PPI) policy in Iran.Based on the literature review, 6 dimensions and 23 factors of policy design were identified as the preliminary theoretical pattern. The 6 dimensions include 2 external elements (International- socio-economic environment and Policy Context) as well as 4 internal (Framework Conditions, Organization & Capabilities, Identification of Needs and Incentivizing Innovative Solutions). Also, three sectors (Oil, Power, and Roads) were investigated in the research based on a theoretical pattern. In order to increase research validity by triangulation approach, for investigating each case study, the documents, the beliefs of interviewers, and questionnaires analysis by statistical methods were used by researchers. The Within-case analysis and Cross-case analysis were done in selected cases and the differentiation and common points were analyzed by real and theoretical repetition. The 19 factors of theoretical pattern have real repetition for an analytical extension. Finally, based on the presented analysis, several policy recommendations are offered for both policymakers and researchers.

Keywords

• innovation
• public procurement
• public procurement of innovation
• effective factors for policy design