In the ever-evolving landscape of government technology, the need for innovative solutions is paramount. The intersection of technology, innovation, and public procurement is a crucial space where novel approaches are not only beneficial but necessary. One such approach gaining traction is the utilization of design contests to foster innovation in public sector procurement.
In a recent GovTech4all café session focused on Innovation in Procurement, a presentation was delivered to set the context for the ensuing discussion. Laura Kirchner, policy expert at Gobe Studio and Arūnė Matelytė, the manager and co-founder of GovTech Lab in Lithuania, shared insights around design contests and their relevance in the realm of innovation procurement.
Why is Buying Innovation from Startups Difficult?
The session initiated a thought-provoking discussion on the challenges of purchasing innovation, especially from startups. Drawing a distinction between buying technology and buying innovation, participants highlighted the unique complexities associated with procuring innovative, cutting-edge solutions. The discussion underscored the uncertainty that often accompanies innovation procurement, as opposed to the more straightforward process of purchasing established technologies.
Challenges in Public Sector Innovation Procurement:
The group delved into the challenges faced by the public sector when attempting to buy innovation. These challenges included a lack of awareness about available solutions, difficulty in staying updated on the latest technological developments, and the struggle to articulate technical specifications for something that may be entirely new.
Enter the Design Contest
To address these challenges, the concept of design contests emerged as a potential solution. Design contests, as explained by Laura and Arūnė, offer a unique procurement method that goes beyond traditional approaches. It was noted that design contests are flexible for procuring products with both low and high technological readiness levels, filling a gap where traditional procurement methods may fall short.
Key Characteristics of Design Contests
1. Flexibility in Evaluation Criteria: Design contests allow for more flexible evaluation criteria, accommodating subjective aspects like innovativeness and user-centricity.
2. Anonymous Submission: Proposals in design contests are submitted anonymously, mitigating bias and providing a level playing field for both known and lesser-known companies.
3. Open to Different Ideas: The openness of design contests encourages a variety of innovative solutions, unbounded by predefined specifications.
4. Inclusive for Startups: Design contests provide an avenue for startups to participate, offering compensation for their efforts even if they don't emerge as winners.
5. Smooth Transition to Contract: The contest's structure facilitates a smooth transition from idea evaluation to contracting, streamlining the procurement process.
Implementation in Spain and Lithuania
The session featured insights into how design contests are being implemented in Spain and Lithuania. The process involves open calls, two-phase evaluations, awarding prizes, and negotiating contracts with the winning solutions. The negotiation may include specifying amounts for a negotiated contract without publication, offering flexibility to tailor the procurement to specific needs.
Challenges and Opportunities
While design contests offer a promising approach to innovation procurement, challenges such as objections from companies and bureaucratic procedures were acknowledged. The session participants emphasized the need for clear communication and alignment among stakeholders to overcome resistance to this innovative procurement method.
Feedback and Lessons Learned
The conversation concluded with reflections on feedback from public organizations and startups. The mixed reactions highlighted the importance of organizational culture, processes, and regulatory frameworks in shaping how design contests are perceived and implemented.
Closing Thoughts
As governments worldwide grapple with the imperative to innovate, design contests present a dynamic and flexible avenue for procuring cutting-edge solutions. By fostering collaboration, encouraging creativity, and streamlining the transition from ideation to implementation, design contests have the potential to revolutionize the way governments source and implement innovative technologies.