Buying With Intent: Public Procurement for Innovation by Provincial and Municipal Governments

Abstract

Innovation is a key factor for economic growth and wealth accumulation and a constant preoccupation for governments around the world. This study reviews the theoretical foundations and existing evidence for using public procurement to stimulate innovation. The focus is on procurement programs at subnational level, since in Canada almost ninety per cent of procurement is undertaken by subnational governments. I review current public procurement programs in OECD countries and Canada to develop a set of recommendations for increasing the use of public procurement programs to stimulate innovation, particularly in the education sector.