Innovation Procurement for Smart Cities. Vassilis Tsanidis Innovation Unit (F2) DG CNECT European Commission
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1 Innovation Procurement for Smart Cities. Vassilis Tsanidis Innovation Unit (F2) DG CNECT European Commission
2 Innovation Procurement: - Procurement of R&D services to tackle specific public needs when solutions are not yet on the market (PCP) - Procurement of solutions new to the market where the public sector acts as first customer (PPI)
3 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 (measured only the above the threshold procurements) 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
4 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:
5 Large differences also within Europe on R&D and ICT procurement Mio Public Procurement of ICT Public Procurement of R&D Study published here:
6 Progress PCP implementation Learn from first movers Awareness Raising Exploring possibilities Awareness Raising Exploring possibilities Malta Denmark Lithuania Ireland Latvia Estonia Norway Bulgaria Romania Slovenia Poland Slovakia Cyprus Germany France Iceland Greece Luxembourg Switzerland Czech Republic Italy Austria Portugal Hungary Framework identified Working on and/or pilots framework in preparation Malta Lithuania Latvia Bulgaria Poland Cyprus Czech Slovenia Iceland Luxembourg Republic Switzerland Hungary Working on framework Sweden Belgium Estonia Romania Greece Slovakia Portugal Framework identified and/or pilots in preparation Spain Finland PCPs projects on-going or finished Finland Ireland Spain Denmark France UK Pilots started Sweden Netherlands Belgium Germany Netherlands UK Austria Norway Italy
7 What can countries/regions do? 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 center Training / assisting procurers (e.g. SE, FI, ES, Flanders/BE, DE) - Innov Proc financial support program (e.g. SE, FI, ES, Flanders/BE, DE) Encourage demand side to meet supply side - Early notification innov proc needs - Open market consultations Meet the buyers events Leverage EU funding - Horizon 2020 Increased - (syn) ESIF support for - EIB loans innov proc
8 Why Innovation Procurement for Smart Cities? - 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)
9 Examples of on-going EU funded Innovation Procurements 9
10 Overview EU funded projects doing PCPs (FP7) More info on: HEALTH AGEING THALEA (PCP) Tele-detection/care of ICU patients SILVER (PCP) Robotics ageing well DECIPHER (PCP) Services mobile health data NYMPHA-MD (PCP) Mental care for bipolar disorders UNWIRED-HEALTH (PCP) Mobile care for vaccination & heart failure Human Brain project PCP on supercomputing/brain modelling TRANSPORT CHARM (PCP) Traffic Management V-CON (PCP) Virtual road infrastructure modelling E-GOV Cloud for Europe (PCP) Cloud computing PREFORMA (PCP) Long term digital preservation SUSTAINABILITY ENIGMA (PCP) City Lighting PRACE 3IP (PCP) High Performance Computing EDUCATION IMAILE (PCP) Personalised learning needs SAFETY (PCP) Smart Textiles ICT for fire fighters
11 Overview EU funded projects doing PPIs (CIP) More info on: HEALTH AGEING HAPPI (PPI) Healthy Ageing STOP AND GO (PPI) Telecare for elderly with multiple conditions ECOQUIP & LCB-HEALTHCARE (PPI) Low carbon healthcare TRANSPORT FIRED-UP (PPI) Vehicles Fire Fighters SYNCRO (PPI) Smart roads communication SUSTAINABILITY PRO-LITE (PPI) Cities/Metro Lighting INNOBOOSTER (PPI) Office Furniture & Lighting PROBIS (PPI) Sustainable construction SPEA (PPI) Sustainable buildings INNOBUILD (PPI) Sustainable buildings INNOCAT (PPI) Sustainable catering PAPIRUS (PPI) Sustainable construction
12 EU funded CSAs/Networks of procurers (FP7/CIP/H2020) More info on: HEALTH AGEING SAEPP (preparing PCP) Ambulance ICT C4BI (networking) Cities on healthcare PRO4VIP (preparing PCP) ICT for Visually impaired EPP-eHealth (preparing PCP/PPI) Cities on e-health INSPIRE (Training PCP, link with VC) E-health procurers TRANSPORT P4ITS (Preparing PPI) Intelligent Transport Systems TRANSFORM (Networking) City/Regional transport ICT PICSE (Preparing PCP/PPI) Cloud computing research cloud COMPLETE (Preparing PPI) Photonics broadband SUSTAINABILITY WATER PIPP Water procurers EURECA (prep PPI) Green data centers GREENS (prep PPI) Energy agencies CO2 CEPPI 2 (prep PPI) Cities energy consumption SPP regions (capacity building) PPI sustainability InnProBio Forum (capacity building) PPI bio based products BRODISE Cities brown field decontamination PPI4WASTE Authorities Waste management
13 Examples EU funded transnational PCPs Traffic Management CHARM Project timing: Sept 2012 (48 months) Value PCP: 2,88M Project Website: tinyurl.com/charm-pcp CHARM is a cooperation between 3 road authority procurers: Rijkswaterstaat (NL), Highways Agency (UK), Department Mobility and Public Works - MOW (BE) CHARM contracting authorities jointly procure R&D services via the PCP to move towards an open modular traffic management architecture by getting modules developed that will optimise network performance, increase road safety and reduce CO2 emissions by improving network management, incident prediction and prevention and cooperative ITS. Latest News: Phase 2 R&D is on-going: 11 tenderers competed in PCP phase 1, 9 in PCP phase 2, and 6 expected in PCP phase 3
14 Examples first EU funded transnational PCPs Ageing well Project timing: 1 Jan 2012 (45 months) Contact: stephen.browning@tsg.gov.uk Project website: 7 Local and regional contracting authorities from 5 EU Member States carrying out this PCP jointly: city of Odense and region of Southern Denmark (Denmark), city of Västerås (Sweden), city of Vantaa and Oulu (Finland), city of Stockport (UK), city of Eindhoven (Netherlands). SILVER contracting authorities jointly procure R&D services via the PCP to get robotics solutions developed and tested in the 5 participating countries that will allow by 2020 to care for 10% more elderly people living independently at home with the same amount of care staff. The SILVER PCP (R&D work) is ongoing: 7 tenderers competed in PCP phase 1, 4 in PCP phase 2, up to 3 expected in PCP phase 3
15 Examples EU funded transnational PCPs E-learning Project Timing: February 2014 (42 months) Value PCP: 4,6M Project website: ling/internationelltarbete/fp7imaileproject html IMAILE procurers are: Halmstads Kommune (SE) and Alexandersson University Institute Varberg (SE),University of Magdeburg (DE), Municipality of Konnevesi (FI), City Council Viladecans (ES). Other partners: Region Saxony Anhalt (DE), Oulu IT Center of Excellence (FI), INOVAMAIS (PT), ENTER (Austria), INOVA Eszak-Alfold Regional Development and Innovation Agency (HU) The IMAILE PCP will focus on new technologies and services for e-learning which address the challenge of providing the next generation of Personal Learning Environments (PLE) for primary and secondary school. This should address students within the topics of Science, Math and Technology, support different learning styles in an individualized way and be accessible from any device including to bring your own device (BYOD). Latest News: IMAILE project open market consultation ongoing. Call for tender for 2015
16 Example transnational PPI Elderly Care Project Timing: April 2014 (36 months) Value PPI: 17,2M Project website: stopandgoproject.eu STOP AND GO contains 6 procurers: Regional Health Agency Campania (IT), Health agency province Catanzaro (IT), Health agency Rome (IT), Eastern Cheshire Clinical Commissioning Group (UK), Health procurement agency/junta de Andalucia (ES), Gemeente Helmond (NL) The 17,2M PPI aims to trigger the market to deliver ICT based telecare services that enable to care for frail elderly that suffer from multiple conditions at the same time such as heart failure, diabetes, etc. Latest News: STOP AND GO project is launching its open market consultation
17 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
18 Data collected so far 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 Europe Mostly 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)
19 Geographic location winning bidders Companies in winning bids (nr/country) Universities in winning bids (nr/country) Procurers (2) (2) (15) (3) (14) (1) (9) (1) (7) (3) (2) (1) (4) (2) (2) (2) (1) (2) (1) (7) (4) (1) Still companies out there that don't know about these procurement opportunities. Remaining 7 out of 14 FP7 PCPs will launch their call for tenders this year. Overview on-going projects:
20 Data from impact study + new promotion/ assistance initiative PCP impact study (final report expected before summer) - 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 Consortium 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:
21 For more info on Innovation Procurement please visit the following site: For the synergies between the H2020 and the ESIF please visit: des/synergy/synergies_en.pdf
22 Thank you for your attention Vassilis Tsanidis Innovation Unit (F2) DG CNECT European Commission
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