• Asian Journal of Innovation and Policy
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• v.12 no.3
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• pp.383-400
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• 2023

This research focuses on examining the mobilization of Public Procurement for Innovation (PPI) in South Korea as a case study in technology innovation. By using the lens of policy mobility and qualitative research methodologies, it emphasizes the circulation of PPI is an outcome of an assemblage of multiple actors who are responsible for the introduction of PPI. The Public Procurement Service in South Korea has actively sought to understand and adopt the concept of PPI from developed countries. This initiative has been localized under the umbrella of 'innovative technology and product.' Throughout the mobilization, a cadre of technocrats, the Innovation Procurement Competence Center plays a pivotal role, and particularly encourages Small and Medium Enterprises to bolster their export capabilities, resulting in a reciprocal circulation of policies and programs from South Korea to foreign countries as well as within intra-urban area. Consequently, the above findings, revealing the nuanced evolution of policy mobility in local contexts, hold practical significance as they provide valuable insights and lessons for urban studies.

• STI Policy Review
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• v.6 no.2
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• pp.87-104
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• 2015

Public procurement for innovation is used as one of the major policy tools to stimulate innovation and promote growth of small and medium-sized enterprises (SMEs) in Korea. However, it is evaluated that this policy has not been so effective in promoting technological innovation among SMEs largely because it heavily depends on price competitiveness of SMEs products and services. In order to draw some policy implications, this study examines the PPI policies of selected countries as comparative references and conducts an empirical analysis on Korean Public Procurement Services (PPS) data for identifying challenges of the current policy in Korea. We conclude that in order to enhance technological innovations of SMEs, PPI policy in Korea should 1) focus more on the potential competitiveness of SMEs, 2) enlarge public demands especially on R&D services, 3) encourage private sector participation in the public procurement market, 4) improve the assessment criteria for public procurement market registration, and 5) restructure the responsible organizations.

• STI Policy Review
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• v.7 no.1
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• pp.87-109
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• 2016

Public procurement for innovation (PPI) is a new approach in stimulating innovation, and currently attracts considerable attention from policymakers and academics. This paper discusses the rationales and perspectives of PPI in Vietnam. The rationales for public procurement for innovation policy in Vietnam compared to theoretical and international practice are discussed. From such a comparison, the paper concludes that R&D results-procurement policy in Vietnam shall be understood and implemented as regular PPI both theoretically and practically. However while designing the policy, policymakers must consider the characteristics of the STI system of the country in order to make the policy adaptable to context. The paper identifies that PPI in Vietnam can be implemented with a ready legal framework (intellectual property rights, R&D contracts, standardization, etc.), the prepared capabilities of R&D institutions, businesses, and public agencies in innovation processes, and the provision of a demand-supply network and other procurement incentives.

• KDI Journal of Economic Policy
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• v.46 no.2
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• pp.21-43
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• 2024

This paper provides a new theoretical rationale for public procurement for innovation (PPI), a unique policy encouraging public procurers to purchase innovative products. In contrast to existing studies that primarily emphasize the advantages of PPI, this paper takes a comprehensive approach, examining both the costs and risks associated with PPI, alongside its benefits. It finds a general condition under which PPI outperforms traditional public procurement. Under this condition, this paper demonstrates that PPI enhances social welfare by facilitating optimal risk-sharing between public procurers and the general economy. Additionally, it draws policy implications from a comparative analysis between the current PPI policy in Korea and an optimal PPI policy.

• Journal of Technology Innovation
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• v.29 no.3
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• pp.91-119
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• 2021

The importance of industrial policy and innovation policy perspectives on public procurement has recently been highlighted. In particular, there have been discussions and studies on whether public procurement directly affects the growth and innovation of SMEs. As an extension of this study, this study analyzes whether the age of a firm moderating the effect of public procurement on growth among the characteristics of firms participating in public procurement. The analysis data was constructed by matching the financial data of about 1,247 firms designated as excellent products by the Public Procurement Service(PPS) from 2006 to 2017 and the public procurement sales. As a result of analysis through the panel regression model, firms with a greater degree of public procurement showed a higher growth rate, and this relationship was stronger with younger firms. This result not only contributes to the existing academic discussion on the effectiveness of public procurement, but also has significance in the establishment of public procurement policy.

• Journal of Technology Innovation
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• v.31 no.3
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• pp.201-230
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• 2023

The Innovation Procurement Policy was introduced as part of the strategic public procurement policy to improve firms' innovation capabilities and enhance the public sector's ability to solve social problems by designating and purchasing so-called 'innovative products.' The pilot procurement project for innovative products was first introduced in 2019, and the policy system for designating and discovering innovative products by government departments, as well as the priority purchase system, was established in 2020. Hence, this study conducted a quantitative analysis focusing on the effectiveness of the innovation procurement system in supporting firms after it was fully implemented. For this purpose, corporate financial and employment data from 2017 to 2021 were used, and propensity score matching(PSM) and difference-in-difference(DID) methods were utilized as analytical tools. The study found that the innovation procurement system contributed to corporate growth and employment and created additional public and private sales channels. Moreover, it is necessary to enhance the innovation procurement system, such as matching innovative product-producing companies with existing SME support policies, for companies to become self-sustaining after the innovative product designation ends.

• Proceedings of the Technology Innovation Conference
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• 2000.06a
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• pp.123-151
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• 2000

The aim of this paper is to investigate how the public procurement policy exerts an effect upon the technology innovation of the firm and to make alternative proposals how to reinforce the effect. Although the pubic procurement process based on its monopsonic idiosyncrasy implies the means to lead the firms' supply function, the present system has contributed a little to accelerate the technology innovation. In fact, the system is lacking of the evaluation capability referring to the technological computer among the bidding films. So as to reinforce the function of technology innovation of the public procurement policy, it is necessary to improve the procurement institutions, in particular bidding and contract system. Finally, the paper propose, on the on hand, to enlarge the application range of the total bidding system in order to apply more strictly the technology evaluation standards on bidding, and on the other hand, to multiply the competitive proposal and the incentive contract type.

• Journal of KIISE:Computing Practices and Letters
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• v.14 no.9
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• pp.823-834
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• 2008

Recently, interests for SRM have been increasing rapidly to automate the whole processes of supply chain from sourcing to procurement and improve the whole efficiency of supply chain by strategically managing the relationship with external partners (suppliers). The national procurement service of Korea is trying to build new paradigms by introducing SRM for improving the competitiveness of national public procurement service. For this, a new assessment model for evaluating and selecting suppliers with fairness and objectivity should be developed. In this paper, we propose a new SRM solution including a model that evaluates and grades of suppliers' capabilities of performing the contracts. We also explain the innovation of national public procurement system through this SRM solution.

• Journal of Korea Technology Innovation Society
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• v.13 no.2
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• pp.310-331
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• 2010

Recently, US, EU and major development countries, including Korea, have set green growth strategy the for national robust economic growth. Green growth strategy was also adopted as economic stimulus policy. Korea also have established some policies for green growth such as Green Growth National Strategy and 5-years Plan. Thought the SMEs play an important role as the innovative driver that can supply material and components for final products, there are few policies for joining green growth strategy. So, the purpose of this paper is to explore the current extent of public procurement for technology-development products and propose the betterment of it. Firstly, we analyzed the public procurement-policies of major countries to kinds of policy-purposes and types including Korea. and then we deducted the needs to policy utilizing the public procurement for joining the SMEs to green growth strategy. Second, we proposed that the objects of purchase conditional public procurement policy be extent to the pre-commercial technologies. The pre-commercial technologies could be performed further R&D by some other compaines or pubic institutes. Considering the natures of green technology-such as quasi-public-, this improvement would be helpful for SMEs which could create initial-marketplace and sales-references.

• Journal of Intelligence and Information Systems
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• v.18 no.2
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• pp.157-175
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• 2012

It is difficult to evaluate the performance of process innovation of e-procurement which has large scale and complex processes. The existing evaluation methods for measuring the effects of process innovation have been mainly done with statistically quantitative methods by analyzing operational data or with qualitative methods by conducting surveys and interviews. However, these methods have some limitations to evaluate the effects because the performance evaluation of e-procurement process innovation should consider the interactions among participants who are active either directly or indirectly through the processes. This study considers the e-procurement process as a complex system and develops a simulation model based on MAS(Multi-Agent System) to evaluate the effects of e-procurement process innovation. Multi-agent based simulation allows observing interaction patterns of objects in virtual world through relationship among objects and their behavioral mechanism. Agent-based simulation is suitable especially for complex business problems. In this study, we used Netlogo Version 4.1.3 as a MAS simulation tool which was developed in Northwestern University. To do this, we developed a interaction model of agents in MAS environment. We defined process agents and task agents, and assigned their behavioral characteristics. The developed simulation model was applied to G2B system (KONEPS: Korea ON-line E-Procurement System) of Public Procurement Service (PPS) in Korea and used to evaluate the innovation effects of the G2B system. KONEPS is a successfully established e-procurement system started in the year 2002. KONEPS is a representative e-Procurement system which integrates characteristics of e-commerce into government for business procurement activities. KONEPS deserves the international recognition considering the annual transaction volume of 56 billion dollars, daily exchanges of electronic documents, users consisted of 121,000 suppliers and 37,000 public organizations, and the 4.5 billion dollars of cost saving. For the simulation, we analyzed the e-procurement of process of KONEPS into eight sub processes such as 'process 1: search products and acquisition of proposal', 'process 2 : review the methods of contracts and item features', 'process 3 : a notice of bid', 'process 4 : registration and confirmation of qualification', 'process 5 : bidding', 'process 6 : a screening test', 'process 7 : contracts', and 'process 8 : invoice and payment'. For the parameter settings of the agents behavior, we collected some data from the transactional database of PPS and some information by conducting a survey. The used data for the simulation are 'participants (government organizations, local government organizations and public institutions)', 'the number of bidding per year', 'the number of total contracts', 'the number of shopping mall transactions', 'the rate of contracts between bidding and shopping mall', 'the successful bidding ratio', and the estimated time for each process. The comparison was done for the difference of time consumption between 'before the innovation (As-was)' and 'after the innovation (As-is).' The results showed that there were productivity improvements in every eight sub processes. The decrease ratio of 'average number of task processing' was 92.7% and the decrease ratio of 'average time of task processing' was 95.4% in entire processes when we use G2B system comparing to the conventional method. Also, this study found that the process innovation effect will be enhanced if the task process related to the 'contract' can be improved. This study shows the usability and possibility of using MAS in process innovation evaluation and its modeling.