The potential demand generated through innovation-oriented public procurement is very high. Annual public procurement expenditure in Europe amounts to about 17-19 % of GDP (2014). At an estimated € 350 billion, the corresponding ratio for Germany is slightly lower at around 10-15 %.
If it were possible to harness just one percent of the total procurement volume for new products and services, this would stimulate innovation in Germany to the tune of € 3 billion. That’s more than the national and regional governments make available to enterprises each year for research and development (about € 2.1 billion).