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Exploration and exploitation in public procurement : a case study on ICT public procurements in Norway

Almeida, Frederico
Master thesis
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URI
http://hdl.handle.net/11250/94937
Date
2013-02-19
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  • Master of Science [1525]
Abstract
Public procurement for innovation is known as a powerful demandside

instrument to be employed in addressing pertinent challenges. The

Traditional procurement process is outdated and insufficient to stimulate the

production of innovative results. However, while the Public Procurement of

Innovation (PPI) approach addresses barriers of the Traditional procurement

procedures regarding innovation, it also presents several barriers of its own.

This thesis focuses on the particular case of PPI in Norway, where the

account of the current state and usage of the PPI approach are described.

Findings indicate a dominance of the traditional approaches in the current

state of public procurement practices in Norway, with tendency towards

exploitation rather than exploration, despite the country’s political

ambitions. Several causes, other than the nature of “normal” routine

purchases, seek to influence the procurer’s avoidance of more complex

innovation-oriented tendering procedures. This study aims to explain this,

and concludes with a discussion of potential improvements to stimulate the

procurement of innovative products and services in Norway, based on the

practical case of ICT procurements.

Keywords: Public Procurement for Innovation; PPI; innovation

policy; innovation elements; interactive learning; cooperation; competition.
Description
Masteroppgave (MSc) in Master of Science in Innovation and Entrepreneurship, Handelshøyskolen BI, 2013

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