Innovation Process in Public Procurement: Challenges and Opportunities

Abstract

This paper examines the complex role of innovative public procurement (IPP) as both a strategic mechanism and a systemic instrument within the European Union, emphasizing its voluntary adoption by Member States while being closely monitored by public authorities. More than a mere procedural tool, IPP acts as a catalyst for sustainable economic transformation, enabling public entities to stimulate innovation while addressing social, financial, and environmental challenges. By directing demand toward innovative goods, services, and technologies that would otherwise struggle to enter the market, innovative procurement helps build a dynamic ecosystem for progress, innovation stimulation, and increased competitiveness. The study outlines the structural and functional dimensions of IPP, highlighting its ability to balance economic efficiency with positive and innovative impacts on national economies. Furthermore, the paper underscores IPP’s contribution to developing institutional competencies and fostering an innovation-driven organizational culture in the public sector, aligned with good governance principles. The conclusions position innovative public procurement not only as a procurement strategy but as a public policy instrument with real potential to generate inclusive growth and systemic change in line with the evolving needs of a rapidly changing society. UDC: 001.895:351.712; JEL: H57, O31, O38, Q56