In 2009, the European Commission launched its first calls inviting project proposals for three different funding instruments in the area of public procurement of innovation. Such calls are intended to encourage public institutions to direct their buying process towards innovative products and services.
European Commission funding instruments:
- Coordination and Support Actions (CSA) are network projects in which international groups of buyers from the public sector explore which innovations might fit their requirements. These projects are flanked by market research and consultations in order to identify the state of the art for innovative products or solutions.
EU funding amounts to 100 % of the eligible costs.
- If the envisaged solution or product is not yet available on the market, the CSA can be followed by a Pre-Commercial Procurement (PCP) project. In a PCP project, the international buyers group issues a call for tender for a three-stage research project (feasibility study, prototype development and prototype testing) in the framework of which enterprises can deliver needs-based and demand-oriented R&D services.
EU funding amounts to 90 % of the cost of the development work.
- The third funding instrument is the subsequent Public Procurement of Innovative Solutions (PPI) project.
EU funding amounts to 35 % of the purchase cost for the innovative product or solution.