The latest session of the GovTech4All café featured an inspiring presentation by Lina Svensberg from Compare, Sweden, who shared insights and methods on how the public sector can utilize innovation and procurement to drive societal development and promote innovation. The importance of fostering innovation in the public sector was highlighted, as well as the challenges and opportunities that arise when combining these two important functions. This blog post captures some of the key insights from the meeting.
Innovation and Procurement Working Together
Traditionally, public procurement has followed a fixed structure where detailed specifications guide the entire process from start to finish. It was highlighted that this can often become problematic when the goal is to create innovative solutions. Writing a detailed specification can be compared to trying to anticipate every small detail in advance—something difficult to achieve when the exact solution is not yet known.
A central concept discussed was the idea that procurement for innovation requires a different distribution: 90% innovation and 10% procurement. This approach allows flexibility and dialogue throughout the process, enabling solutions that not only meet the original need but can also adapt and scale for future users.
Demand Acceleration – A Framework for Future Procurement
The Demand Acceleration framework is designed to embrace the complexity of societal challenges and encourage innovative solutions that meet both current and future needs. A key element is the ability to embrace the complexity and uncertainty often associated with innovation. Creating a process that manages and navigates uncertainties rather than trying to eliminate them in advance is an important part of this.
The framework also focuses on scalability, where solutions developed for a specific need in the public sector should be able to adapt and spread to other users and organizations. For instance, a solution initially created for one municipality can later spread to several others, creating greater value for the public sector and enabling companies to grow and develop.
Practical Application of Innovation in Public Procurement
The different phases of the procurement process were presented in an interesting and inspiring way. By dividing the process into three phases—concept, prototype, and development—public organizations can gradually test and validate solutions without committing to a final choice too early. This approach was compared to "Tinder for procurement," where you get to know the supplier and the solution step by step before making a larger commitment.
Several successful examples of this methodology were highlighted, including a VR tool for training healthcare staff on what it’s like to live with cognitive impairments. This solution was initially created for a specific municipality but has since spread to several other municipalities and healthcare training programs. This example demonstrates how, through Demand Acceleration, a solution can create long-term value for many users.
Dialogue and Collaboration as Keys to Success
An important aspect of the Demand Acceleration framework is fostering continuous dialogue between suppliers and public organizations. Dialogue should take place throughout the innovation process, not just in the early stages. By maintaining open communication and iterative testing, both needs and solutions can evolve as the project progresses. This breaks away from the traditional procurement model, where dialogue is often limited to initial meetings and specifications.
Intermediaries, such as incubators and innovation centers, can also play a key role in the process. These organizations act as a bridge between the public and private sectors, making it easier for companies to understand and meet public needs in a way that creates mutual value.
The Future of Public Procurement – A Collective Effort
Work on Demand Acceleration and similar projects has already garnered international attention and become part of the UN’s transformative innovation network, as well as being highlighted in OECD reports. Finally, it was emphasized that these advances require continuous learning and experimentation, and more actors were invited to join this work to develop and spread the methodology.
Summary: A New Era for Public Procurement
The GovTech4All café was an eye-opener on how public procurement can be used as a tool for innovation and societal development. By embracing complexity, focusing on dialogue and iterative processes, and creating conditions for scalability, the Demand Acceleration framework demonstrates how procurement can drive positive change. It is clear that innovation and procurement can work hand in hand to build a sustainable and inclusive future.
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This blog post captures the core discussions from our latest session, highlighting innovative procurement as an exciting opportunity for the public sector to drive sustainable development and create value for society. By embracing uncertainty and complexity, we can create processes that not only meet today's needs but also prepare us for future challenges.