An innovation is the market launch of a new idea that has been put into practice and helps to optimise products, procedures, services or processes. In terms of public-sector procurement, this means that innovative procurement processes contribute in the long term towards optimising and increasing the efficiency of purchasing.
They can be transferred to comparable institutions or organisations within the public sector. When put into practice, procured innovative products, procedures and services can significantly improve the productivity and efficiency of the purchaser, e.g. from a financial, process and/or environmental perspective.
The potential of innovation demand through innovation-oriented procurement is huge: the annual volume of public-sector procurement in Germany is around EUR 300 billion. If just one percent of this procurement volume were used for more new products and services, this would provide a EUR 3.0 billion boost to innovation.
By increasing public-sector demand for new products, procedures and services, this also creates considerable potential for innovation and technology within the German economy in general.
From the perspective of public-procurement law – first and foremost the economic principle – innovative products and services offer many advantages. They can be economically superior when it comes to public-sector procurement. They can also help achieve objectives in areas such as energy efficiency, environmental protection, safety, health, consumer protection and occupational safety.