PCP and PPI in EC policies (synergies between H2020 and structural

funds for PCP and PPI projects)

Vassilis Tsanidis Dr. Jur.Innovation Unit (F2)

DG CNECTEuropean Commission

Pre-Commercial Procurement(PCP) to steer the development of solutions towards concrete public sector needs, whilst comparing/validating alternative solution approaches from various vendors

Public Procurement of Innovative Solutions(PPI) to act as launching customer / early adopter / first buyer of innovative commercial end-solutions newly arriving on the market

Innovation Procurement = PCP + PPI / Complementarity

Investing in innovation procurement = Investing in growth and jobs

• Public procurement accounts for some 2400 €Bn/year (19% of GDP) in Europe

• Almost half of the ESIF budget is spent through public procurement (only the above the threshold procurements is measured)

• Majority of procurement budget in EU is spent at regional level

• Innovation Procurement: win-win situation

• Modern and efficient public services

• More competitive European companies

Innovation procurement is under-used in the EU

R&D public procurement/year

50 $ Bn 7,5 €Bn

eGov solutions procured are 'innovative' 15% 5%

Study published here: https://ec.europa.eu/digital-agenda/en/news/quantifying-amount-public-procurement-ict-and-rd-across-europe

Progress PCP implementation Progress PCP implementation Learn from first moversLearn from first movers

PCPs projects on-goingor finished

Framework identified and/or pilots

in preparation

Hungary

Belgium

Netherlands

Awareness RaisingExploring possibilities

Denmark

Austria

Finland Sweden

Poland

Working onframework

GermanyFrance

Luxembourg

Ireland

Cyprus

Romania

SloveniaSlovakia

Bulgaria

Czech Republic

Estonia

Greece

LatviaLithuaniaMalta

Portugal

SpainNorway

Switzerland

Italy

UK

Iceland

Pilots started

Framework identified and/or pilots

in preparation

Hungary

Belgium

Netherlands

Awareness RaisingExploring possibilities

Finland

Sweden

Poland

Working onframework

GermanyFrance

Luxembourg

Ireland

CyprusRomania Slovenia

Slovakia

Bulgaria

Czech Republic

Estonia

Greece

LatviaLithuaniaMalta

Portugal

SpainNorway

Switzerland

Italy UK

Iceland

2007

2015

Austria

Denmark

-Speed up public sector modernisation – improve quality and efficiency of public services with breakthrough solutions

-Get better value for money through cooperation - enable public sector around Europe to share cost + experience to buy new solutions that can respond to concrete public needs

-Create growth and jobs in Europe – help innovators bring European R&D to the market (the majority of R&D in H2020 funded PCPs should take place in Europe, ltd set of first test products can be bought in the PPI from companies in the PCP)

Why Innovation Procurement?

Evidence from Successful Examples

Shortening of time-to-market

Attracting venture capital

Creating lead markets

Retaining lead market position

cheaper products and higher product quality

Removal of supplier lock-in

Benefits on local economy

Overview EU funded projects doing Overview EU funded projects doing PCPsPCPs (FP7) (FP7)More info on: http://ec.europa.eu/digital-agenda/en/eu-funded-

projects

SILVER (PCP) Robotics ageing well

DECIPHER (PCP)

Services mobile health data

CHARM (PCP)Traffic Management

V-CON (PCP)Virtual road infrastructure modelling

PRACE 3IP (PCP)

Smart Textiles ICT for fire fighters

SMART@FIRE (PCP)High Performance Computing

THALEA (PCP)

Cloud for Europe (PCP)Cloud computing

PREFORMA (PCP)Long term digital preservation

IMAILE (PCP)Personalised learning needsENIGMA (PCP)

City Lighting

UNWIRED-HEALTH (PCP)

NYMPHA-MD (PCP)

Mobile care for vaccination & heart failure

Mental care for bipolar disordersTele-detection/care of ICU patients

HEALTHAGEING

TRANSPORT

SUSTAINABILITY

E-GOV

EDUCATION

SAFETY

Human Brain projectPCP on supercomputing/brain modelling

Overview EU funded projects doing Overview EU funded projects doing PPIsPPIs (CIP) (CIP)More info on: http://ec.europa.eu/digital-agenda/en/eu-funded-

projects

ECOQUIP & LCB-HEALTHCARE (PPI) Low carbon healthcare

SPEA (PPI)

HAPPI (PPI)

PRO-LITE (PPI)Cities/Metro Lighting

Healthy Ageing

STOP AND GO (PPI)Telecare for elderly with multiple conditions

HEALTHAGEING

SUSTAINABILITY

INNOBUILD (PPI)INNOBOOSTER (PPI)

Office Furniture & Lighting

Sustainable buildings

INNOCAT (PPI)Sustainable catering

Sustainable buildings

TRANSPORTSYNCRO (PPI)

Smart roads communicationVehicles Fire Fighters

FIRED-UP (PPI)

PAPIRUS (PPI)Sustainable construction

PROBIS (PPI)Sustainable construction

EU funded CSAs/Networks of procurers EU funded CSAs/Networks of procurers (FP7/CIP/H2020)(FP7/CIP/H2020)

More info on: http://ec.europa.eu/digital-agenda/en/eu-funded-projects

HEALTHAGEING

TRANSPORT

ICT

INSPIRE (Training PCP, link with VC)E-health procurers

C4BI (networking)

Cities on healthcare

P4ITS (Preparing PPI)Intelligent Transport Systems

TRANSFORM (Networking)City/Regional transport

GREENS (prep PPI)Energy agencies – CO2

SAEPP (preparing PCP)

Ambulance ICT

PRO4VIP (preparing PCP)

ICT for Visually impaired

EPP-eHealth (preparing PCP/PPI)

Cities on e-health

Cloud computing research cloud

PICSE (Preparing PCP/PPI)Photonics broadband

COMPLETE (Preparing PPI)

SUSTAINABILITY

WATER PIPPWater procurers

EURECA (prep PPI)Green data centers

CEPPI 2 (prep PPI)Cities – energy consumption

SPP regions (capacity building)PPI – sustainability

InnProBio Forum (capacity building)PPI – bio based products

BRODISECities brown fielddecontamination

PPI4WASTEAuthorities

Waste management

Data collected from EU funded projectsData collected from EU funded projects

•Opening route-to-market for new players/SMEs- 75,5% of contracts won by SMEs (SME lead bidder, bidding alone or with partners)

- Compared to 29% in public procurements across EuropeMostly small young SMEs: 34,5% below 10 people, 81% below 50 people, 56% less than 10 years old

•Stimulating cross-border company growth - 33% of contracts won by bidders that are not from a country of any of the

procurers in the buyers group (e.g. DE company working for UK+NL procurers)

- Compared to 1,26% in public procurements across Europe

•Relevance of PCPs also to universities- 33% of winning contracts have university/R&D center partner in consortium- Winning SMEs are also often university start-ups

•Encouraging wider market commercialisation– Bidders offered on average 50% cheaper R&D price for keeping their IPRs (they see

IPR value/real market beyond the first potential buyers, the PCP procurers)

•Creating growth and jobs in Europe– All bidders do 100% of R&D in Europe (except 1 doing 85% of R&D in Europe)

Support of Innovation Procurement

in the ESIF context

Why Innovation Procurement at Regional Level ? ……it is a win-win situation for

Regions/ Public Authorities

Realise concrete quality and efficiency improvements to public services in the region

Obtain better value for money solutions(economies of scale) and reinforce regional cooperation through joint procurements

Improve the local innovation ecosystem as stronger local public sector demand for innovative solutions attracts additional financial investments into the region and combats relocation of innovative companies to other parts of the world

Enhance the technical know-how of the Region

Innovators

•Can get first client for new product (lead customer)

•Shorten time to the market (because of earlier customer feedback)

•Wider commercialization opportunities (companies keep IPR ownership in PCP)

Why PCP/PPI at regional level

Political encouragement

-Modernising public sector 'a priority' Quality-efficiency improvement targets

e.g. Lombardia/IT, UK, Flanders/BE

-Target % proc budgets to innovation Monitoring framework

e.g. UK, NL, ES, Nordics, FR

Implementation

- Innov Proc Competence centerTraining / assisting procurers

(e.g. SE, FI, ES, Flanders/BE, DE)

- Innov Proc financial support program (e.g. SE, FI, ES, Flanders/BE, DE)

Leverage EU funding

-Horizon 2020 Increased

-(syn) ESIF support for

-EIB loans innov proc

Encourage demand side to meet supply side

-Early notification innov proc needs

-Open market consultations Meet the buyers events

What can countries/regions do?What can countries/regions do?

Foster innovation through public procurement • TO 1 (IP1B) Strengthening research, technological development and innovation • Target group: public sector

Foster better meeting of public needs TO 1 (IP1A) enhancing research and innovation (R&I) infrastructure TO 2 (IP2C) strengthening ICT applications for e-government, e-learning, e-inclusion, e-culture and e-health TO 4 (all IPs) supporting the shift toward a low–carbon economy in all sectors TO 5 (all IPs) promoting climate change adaption, risk prevention and management TO 6 (all IPs) preserving and protecting the environment and promoting resource efficiency TO 7 (all IPs) promoting sustainable transport and removing bottlenecks in key network infrastructures Target group: town planners, transport, environment, health etc. ministries – ERDF, Cohesion

Fund and ESF)

Foster more innovative public procurement procedures and administrative capacities

TO 11 (IP11) Enhancing institutional capacity and an efficient public administration TO 2 (IP2C) strengthening ICT applications for e-government, e- learning, e-inclusion, e-culture and e-health

Target group: procurement officers

Cohesion policy may support measures in the Operational Programs (OPs) to

ESIF may also support:

Major projects / Joint Action Plans in cooperation with other Regions and key players in the Cohesion Policy

Coordination, Networking and Preparation activities for the implementation of a PCP and/or PPI

through European Territorial Cooperation Programs (ETC)

Possible Synergies between

the ESIF and H2020 on Innovation Procurement

18

GENERAL RULE

IT IS NOT ALLOWED !!!!!!

-To use ESIF and H2020 funding accumulatively to finance the same cost/expenditure item

-To finance the own contribution of the participant from H2020 or ESIF

19

Coming soon

• PCP impact study - Compared the impacts of national PCPs across EU compared to other procurements- Concludes PCP is more effective in creating route-to-market for SMEs + stimulating

new open standardised solutions + avoiding vendor lock-in- Findings consistent with results from first EU funded PCPs:

• Increased EU promotion & assistance on PCP & PPI for 2016-17Consortium of experts appointed that will do promotion and provide training and local assistance to public procurers across the EU Member States:-Next 3 years, 12 info and training events on PCP & PPI in different EU countries: 3 major policy events + 9 smaller events with public procurers in different sectors. -Training based on a toolkit for policy makers, public procurers and legal staff. Procurers can also send questions to a helpdesk that posts replies to FAQs online.-Local assistance for public procurers that intend to start concrete PCP and PPIs for ICT based solutions (includes legal assistance in the start-up and implementation phase of a PCP or PPI). Target is to kick-start 6 new PCPs and 6 new PPIs.

More info: http://www.eafip.eu/

For more info on Innovation Procurement please visit the following site:

http://ec.europa.eu/digital-agenda/en/innovation-procurement

For the synergies between the H2020 and the ESIF please visit:

http://ec.europa.eu/regional_policy/sources/docgener/guides/synergy/synergies_en.pdf

Thank you for your attention

Vassilis Tsanidis Dr.Jur.Innovation Unit (F2)

DG CNECTEuropean Commission