What is innovative procurement?

Innovative procurement means the procurement of a new or clearly improved product or service that is not yet being used widely. Innovative procurement may also involve a new method of implementing procurement or the related project, such as a construction project. A procurement agreement may include the development and piloting of a new solution. Instead of using a predetermined implementation model, procurement may be targeted at its desired outcomes and effects, which allows suppliers more freedom to suggest alternative solutions.

The benefits of innovative procurement are twofold. By adopting new technologies, service models and implementation processes, a contracting authority in Finland can improve the quality, productivity, effectiveness and sustainability of the public services for which it is responsible.  In Finland, innovative procurement plays an important role in achieving the strategic targets of the state and municipalities with regard to improving the quality and effectiveness of services, increasing the productivity of service processes and reducing environmental effects, for example.

For companies in Finland, innovative procurement offers important customer references in commercialising new products and services. Business growth generated through procurement also facilitates employment.