PRE-COMMERCIAL PUBLIC PROCUREMENT a win-win policy to promote innovation through public expenditure Lombardia Region under the spotlights

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1 PRE-COMMERCIAL PUBLIC PROCUREMENT a win-win policy to promote innovation through public expenditure Lombardia Region under the spotlights ALL RIGHTS RESERVED. This document was prepared by Regione Lombardia and The European House-Ambrosetti S.p.A. to support a oral presentation. No part of it may be copied or made available in any way to third parties or used by them without a prior written consent. This document supported a presentation and should not, therefore, be considered without the accompanying oral comments.

2 Regional policy for innovation: un-balanced mix MARKET PULL MARKET PUSH Interventions designed to support and enhance the provision of innovative products or services Instruments designed to create and channel the demand of innovation as well as of highly innovative goods and services. Figure 1: The European House-Ambrosetti S.p.A

3 Lombardia Region: facts and figures GDP 20,7% OF ITALIAN GDP ( 6th REGION IN EUROPE ) EXPENDITURE for HEALTH AND HEALTH-CARE SERVICES 70% OF REGIONAL EXPENDITURE ( 6,5 % OF REGIONAL GDP )

4 EFFECT CONDICIO SINE QUA NON PCP: a twin relevance, both as policy and strategy INNOVATION ORIENTED PROCUREMENT STRATEGY DEMAND-DRIVEN INNOVATION/INDUSTRIAL POLICY WHY: Increasing long-term effectiveness and efficiency of public expenditure, as well as improving the quality and sustainability of public services, filtering out technological risk WHY: Raising industry s innovative performance, broadening SMEs participation in R&D projects and creating opportunities for companies to take international leadership in new markets Figure 2: The European House-Ambrosetti S.p.A PCP: a unique procedure

5 The project key roles Mid-to-long term political priorities for heathcare services transformation and optimization Policy making PCP process coordination PCP procedure design Direction for University and Research Lombardy region General Direction for Healthcare ARCA Regional Purchasing Agency Public Hospital Niguarda Adjudicating authority (RUP) Problem definition in terms of performance and functional requirements Test, comparison and evaluation of performance and functionality in reallife operational conditions Agreement ex art.15 L.241

6 The pathway of Lombardy PCP pilot (1/2) Step -1: Innovation needs identification and assessment Step -2: Building awareness and objective alignment Step # 1: Identifying candidate projects from innovation needs advertising PCP viability Step # 0: Verifying the pre-condition for PCP with an open and advertised technical Figure 3: The European House-Ambrosetti S.p.A

7 Valutazione intermedia Valutazione intermedia The pathway of Lombardy PCP pilot (2/2) Step # 3: Needs well-definition and fine-tuning Step #4: Run PCP Step #2: Governance model and PCP structure design Appalti pre-commerciali Appalti pubblici per la produzione commerciale Step #5: Performing IPRs contract Impresa A Impresa B Impresa C Impresa C Impresa D Impresa D Impresa C Impresa E Impresa A,B,C,D,E o X Impresa E Impresa E Impresa F Fase 0 Ricerca di soluzioni Fase 1 Elaborazione della soluzione Fase 2 Messa a punto di prototipi Fase 3 Sviluppo iniziale di quantità limitate di primi prodotti/ servizi in forma di serie sperimentali Fase 4 Commercializzazione dei prodotti/servizi (sviluppo commerciale) Idea di prodotto Elaborazione di soluzioni Prototipo Primi prodotti test Prodotti finali commerciali Step #6: FCP/PPI Figure 4: The European House-Ambrosetti S.p.A

8 Intermediate evaluation Intermediate evaluation Procedure in 3 phases Phase 1 Phase 2 Phase 3 Feasibility study Technical design Prototyping, test, sperimentation Solution 1 Solution 1 Solution 2 Solution 3 Solution 3 Solution 3 Solution 4 Solution 4 Solution 5 Solution 5 Solution 5 Solution... Solution n Ranking on technical quality an minimun pass score Ranking on most economically advantageous offer and minumun technical pass score % of budget (100K ) (fixed compensation according to mkt condition at the end of Phase 2 ) % of budget (650K ) (price payment)

9 Project Organization Struttura Università e Ricerca (Presidenza) Agenzia Regionale Centrale Acquisti Direzione generale DG Sanità DC Affari Istituzionali e Legislativo Direzioni Sanitarie di presidio Servizi di ingegneria clinica

10 CIVIL SOCIETY COMPANIES PUBLIC ADMINISTRATIONS A win-win policy to promote innovation through public expenditure Benefit expected - SETTORE PUBBLIC O + Ability to guide the innovation process towards the development of new solutions in line with public interest. Pre-determination of competition conditions in the commercial market. Ability to analyze and compare advantages and disadvantages of alternative solutions Possibility to filter the technological risks of R&D potential alternatives before embarking on large scale commercial procurements. Efficient expenditure oversight and over the medium to long-term savings in the product lifecycle. Anticipation of legal and regulatory issues related to new solutions adoption Definition of standards and system requirements for future supplies procurement, avoiding the risk of adapting solutions to standards and requirements set out ex post. Possibility to develop better products that meet real PA needs Increasing the likelihood of achieving market take-up Faster time-to-market for innovative products Broadening participation of new player into markets Efficient and high quality public services Efficiency in public expenditure Improved innovation environment and more opportunities for highly skilled labor Reduction of residual innovation risks

11 A win-win policy to promote innovation through public expenditure Lessons learned and recommendation Create a common commitment and agreement at all levels (political and administrative). Created a widespread participation and an alignment of the personnel incentive systems with the objectives of the project. Establish the instrument of pre-commercial procurement as procurement strategy and innovation process (not only as innovation policy). Spend time to involve user and market in order to evaluate the innovation need in-depth and market gap. Maintain a dialogue with potential suppliers long before the public procurement procedure is launched Assign intellectual property rights to the party who has done R&D and is best able to exploit it. Do not use disproportionate qualification or financial guarantee requirements (as there are no solutions and no customer reference on the market yet)

12 Contact Armando De Crinito website: Sara Bedin website: