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

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

• KDI Journal of Economic Policy
• /
• v.39 no.1
• /
• pp.1-18
• /
• 2017

This paper empirically studies the effect of public procurement on small and medium-sized enterprises (SMEs) in the Republic of Korea using firm-level data. Public procurement, the purchase of goods and services from private firms by the public sector, is regarded as an important policy measure for providing support to firms, particularly SMEs. This study uses establishment-level panel data of the mining and manufacturing sectors from the Korean National Bureau of Statistics (Statistics Korea) and procurement history from the Korean Public Procurement Service to empirically estimate the effects of public procurement on firms' productivity (total factor productivity) and survivability. Using a propensity score matching estimation method, we find that participating firms showed higher productivity than non-participating ones in the control group only for the year of participation, that is, 2009. After two years, in 2011, they exhibited significantly lower productivity. In contrast, establishments that participated in public procurement for SMEs in 2009 were more likely to survive than those that did not do so in 2011. These results can be interpreted as the negative consequences of government intervention. The market's efficiency enhancement is hindered if underserving companies survive owing to government intervention but fail to improve efficiency.

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

• The Journal of Society for e-Business Studies
• /
• v.16 no.1
• /
• pp.101-116
• /
• 2011

As e-Commerce and national public procurement have been enabled, needs of supplier management and evaluation system for national public procurement has been growing. Enterprises have constructed and operated supplier relationship management system, in order to automate and increase their supply chain processes by managing the strategic assessment of relationships with external partners. Recently, PPS(Public Procurement Service) in Korea is introducing the concept of SRM to ensure the fairness of public procurement and to strengthen the competitiveness of the national public procurement and public procurement. For this purpose, it is necessary to establish supplier evaluation management and decision support process to allow a transparent supplier selection. In this paper, we present an evaluation method for transparent and objective public procurement. We also present a method for purchase decision support.

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

• Knowledge Management Research
• /
• v.23 no.3
• /
• pp.89-109
• /
• 2022

Many companies are trying to enter into overseas markets to overcome the limited size of domestic markets. However, there are many barriers to enter the overseas markets such as difficulty to find buyers and make contract with them, payment risks, unfriendly foreign policies, and etc. Companies have used to various strategies to get opportunities of overseas markets. One of them is UN public procurement. Despite many advantages, limited number of companies are participating in the procurement. Individual governments are providing policies to support local companies to participate in the UN public procurement. However it is not easy to encourage firms, especially SMEs to participate in the procurement. This study is designed to analyze firm and product determinants of participating in UN public procurement. Based on literature reviews and empirical findings, this study shows social responsibility and global orientation can play an important role regarding the participation. In addition, the positive relationship between UN public procurement participation and sustainability in a given firm could be empirically supported. Last, we suggest combining country- and industry-level data to investigate UN public procurement participation as an interesting topic for future research. This study represents various determinants to encourage UN public procurement participation. They may contribute to enhance firm performance such as sustainability.

• International conference on construction engineering and project management
• /
• 2011.02a
• /
• pp.124-131
• /
• 2011

Public infrastructure is crucial to promote and sustain a sustainable economic growth and a health community. A large amount of capital investment is generally required in infrastructure projects that motivate the involvement of the private sector in the delivery process. Various relationship-based procurement methods have been attempted to maximize value-for-money. In this paper, the problems and challenges that relationship-based procurement methods have been facing are explored. A particular focus is placed on the challenges for the public-private partnership (PPP) model. Possible strategies for adapting the PPP models in the post-Global Financial Crisis era are proposed and discussed. In addition, the challenges facing alliancing, which is one of the other important relationship-based procurement methods, are also examined. Views on infrastructure procurement in the future were sought from industry professionals via interviews and are reported in this paper as well.

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

• Proceedings of the Korea Information Processing Society Conference
• /
• 2016.04a
• /
• pp.387-389
• /
• 2016

본 연구에서는 국가종합전자조달 시스템(이하, 나라장터)에 대한 생산성과 효과를 업무처리량을 기준으로 실증하였다. 기존의 연구방법은 인력 및 자본의 투입에 따른 부가가치를 생산성으로 산정하고 설문자료 및 지표 등으로 효과를 산정해 왔다. 본 연구에서는 정량적인 요인을 측정하기 위해 실제 정보시스템에 기록되는 문서량을 기준으로 업무모델 및 가설을 선정하였다. 생산성에 영향을 주는 계약건수, 문서처리, 통화시간 등을 행정업무에 소요되는 수기 또는 법적인 소요일수 등을 비교대상으로 하여 생산성을 산정하였다. 마지막으로 결과를 검증하기 위해 요인의 기술통계적 검정과 회귀분석으로 모델을 실증하였다.