1 New structural funds programme and its use on Pre-Commercial Procurement and Public Procurement of Innovation PUBLIC DEMAND OF INNOVATION FOR: Efficient Public Services and Competitive European Industries & SMEs Madrid, 2 Octobre 2012 Antonio García Gómez Programme Manager and Coordinator on Smart growth and EU2020 DG REGIO Spain Unit
2 PP IN COHESION POLICY Projects, including major construction works related to infrastructure investment involving large-scale public procurement procedures, account for 46% of the total Cohesion policy budget (some 159 bn) at a European level in the period Type of Support: For environmental and infrastructure projects, mostlyabove the EU threshold (currently 5 million) For enterprises, SMEs and research centres for innovation and growth (including research, and ICT). Thresholds from below 10, up to several million Euros. Applies also other fields such as tourism, culture and urban/regional development. Direct funding of individuals below European Union threshold (mainly ESF) Cohesion Policy
3 Type and fields of interventions: ti Large Scale Public procurement as part of infrastructure investment (46% of total CP budget): transport (24%), environment (direct investments, 15%), energy, ICT infrastructure, urban development (rehabilitation, regeneration, housing), health infrastructure, t education infrastructure) t Smaller Scale Public procurement for smaller contracts and purchase of good and services(48% of total CP): ICT products and services, SME investment support, SME support on soft activities, Tourism, RTDI human capital, employment and social inclusion, human capital, education and training. Share of Infrastructure investment varies according to the CP objectives between 52% in the case of CONV (which accounts 80% of total CP budget) and 21% for RCE.
4 ERDF supported examples of Innovative PP: East of England pre-commercial procurement for health care innovations. In May 2009 the East of England Development Agency together with the UK National Health Services East of England and UK Technology Strategy Board launched a precommercial procurement of an innovative process, material, device, product or service which will help to meet current health priorities in the region. This initiative was by the ERDF. Up to 100,000 was awarded for winning tenders in a first phase with the potential of further financial assistance to develop and evaluate projects in a second phase. The aim is to provide procurement opportunities for innovative health care businesses and bring the benefits of new innovations and technologies to patients. RAPIDE is a Fast Track Network of the Regions for Economic Change Initiative funded by INTERREG IVC. eu The project is focused on supporting the implementation of good practice relating to the role of the public sector in stimulating innovation in partner regions, for example through: procurement, investment t decisions i (gap funding, regeneration etc.), initiativesiti thatt assist it and advise businesses and academia-business partnerships and policy development and adoption.
5 Main shortcomings: Monitoring and Control deficiencies For ERDF and the Cohesion Fund, public procurement errors have contributed approximately to 41% of the cumulative quantifiable errors found. Infringement of public procurement rules ranked second among the top ten irregularities in 2010 accounting for 14% of number of cases and 17% of financial volume. Errors related to PP are a major source of errors (estimated to 2%-4% each year on average for the current programming period)
6 Main shortcomings: Skills and competencies in public administrations staff (mainly regional and local) Efficiency and effectiveness of PP control is often undermined by lack of experience, training and internal management knowledge and staff turnover. Skills and competencies in beneficiaries (particularly SMEs) Beneficiaries do have to undertake the role of tenderer. In many cases beneficiaries have neither the capacity nor the experience to, handle the complexity of PP rules. When receiving Structural funding beneficiaries are obliged to respect EU and national PP rules (depending on the type and value of the tendered contract).
7 Main shortcomings: Participation of SMEs in PP contracts Difficulties of access to PP (lack of information & knowledge, awareness of obligations, administrative burdens) Hampers the access of public authorities to the innovative potential of SMEs (high-tech SMEs in particular)
8 General ex-ante conditionalities CPR 4.. Public procurement The existence of a mechanism which ensures effective implementation and application of Directives 2004/18/EC and 2004/17/EC and their adequate supervision and surveillance. Effective implementation and application of Directives 2004/18/EC and 2004/17/EC is ensured through: complete transposition of Directives 2004/18/EC and 2004/17/EC; institutional arrangements for the implementation, application and supervision of EU public procurement law; measures which ensure adequate supervision and surveillance of transparent contract award procedures and adequate information thereon; a strategy for training and dissemination of information for staff involved in the implementation of the funds; Measures to strengthen administrative capacity for implementation and application of EU public procurement law.
9 Thematic ex-ante conditionality CPR Thematic objectives Ex ante conditionality Criteria for fulfilment 1. Strengthening research, technological development and innovation (R&D target) (referred to in Article 9(1) ) 1.1. Research and innovation: is based on a SWOT analysis to The existence of a national or regional research and innovation (strategy) (strategic policy framework(s)) for smart specialisation in line with the National Reform Programme, to leverage private research and innovation expenditure, [ which complies with the features of well-performing national or regional research and innovation systems.] ] For research infrastructures only: 1.2 The existence of a multi-annual plan for budgeting and prioritization of investments. concentrate resources on a limited set of research and innovation priorities; outlines measures to stimulate private RTD investment; contains a monitoring [ and review ] system. A framework outlining available budgetary resources for research and innovation; A [indicative] multi-annual plan for budgeting and prioritization of investments linked to EU priorities [and, where appropriate, the] European Strategy Forum on Research Infrastructures -ESFRI).
10 Innovative PP within RIS3 (Research and Innovation Strategy for Smart Specialisation): Better matching new needs (services, infrastructures) Cost-saving for public budgets (saving energy, improving service efficiency) Higher impact on innovation: R&D investments in combination with purchasing innovation Mobilisation effect on private investor/venture capital (increase firms' credibility)
11 Innovative PP within RIS3 Actions to develop: Training and exchanges of civil servants/procurement officers Exchange and promotion of good practices amongst peers Awarding prizes for the best innovation procurement Develop guidance, including sector orientation Support procurers by getting assistance/advice ice of relevant stakeholders (innovation agencies, chambers of commerce, clusters organization, sectorial platforms, SMEs support organization (e.g. EEN) Join forces of procurers in order to attain a critical mass and pool capacities Support financially i the procurement of innovative i solutions
12 Innovative PP within RIS3 Capacity building of procurers: Incentives for testing new technologies and solutions (no low cost/risk and "off the shelf" solutions) Knowledge of available new technologies and innovation Skills and competencies on procedures (market consultations, cost-benefit analyses, assessments, etc) Link public procurement with other public policy objectives
13 Thematic objectives CSF Funds 020 pe 20 Europ sm mart susta ainable inc clusive 1. Research and innovation 2. Information and Communication Technologies 3. Competitiveness of Small and Medium-Sized Enterprises (SME) 4. Shift to a low-carbon economy 5. Climate change adaptation and risk management and prevention 6. Environmental protection and resource efficiency 7. Sustainable transport and disposal of congestion on major network infrastructure 8. Employment and support for labour mobility 9. Social inclusion and poverty reduction 10. Education, skills and lifelong learning 11. Increased institutional capacity and effectiveness of public administration Cohesion Policy
14 Innovative PP within Structural Funds ERDF : Investment Priorities (1) strengthening research, technological development and innovation: (a) enhancing research and innovation infrastructure (R&I) and capacities to develop R&I excellence and promoting centres of competence, in particular those of European interest; (b) promoting business R&I investment, product and service development, technology transfer, social innovation and public service applications, demand stimulation, networking, clusters and open innovation through smart specialisation; (c) supporting technological and applied research, pilot lines, early product validation actions, advanced manufacturing capabilities and first production in Key Enabling Technologies and diffusion of general purpose technologies;
15 Innovative PP within Structural Funds ERDF ERDF may support measures to: Foster more innovative public procurement procedures Public procurement to foster innovation
16 PP for innovation ERDF allows to strategically combine R&D investments and innovation capacity building (technical assistance) with demandside measures. ERDF co-funding may decrease the potential innovation cost and share financial risk (stimulation effect) Potential Sectors: environment, transport and mobility, industry, innovation, ICT (included support to e-procurement) housing and construction, health and care services, energy efficiency, waste and water management.
17 Innovative PP ERDF may support measures for capacity building of private and public procurers (regional and local in particular) through technical assistance. ERDF may help to tackle measure to improve and strengthen PP procedures: Log-term planning of PP and communication to the market and potential bidders Awareness on innovative solutions and technical dialogue before tendering process Involvement of key stakeholders throughout the process (identification, securement) Incorporate whole life cost and other criteria from green, sustainable and socially responsible PP. Implement risk sharing management approaches
18 IPP in Territorial i Cooperation Potential support and synergies with European Union Partnership and Lead Market type actions through national/regional operational programmes: inter-regional/transnational cooperation (art (c) v of Common Provision i Regulation) "An Operational Programme shall set out the contribution to the integrated approach for territorial development set out in the Partnership Contract (Agreement), including the arrangements for interregional and transnational actions with beneficiaries located in at least one other Member State"
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