15% of Gross Domestic Product is currently generated by the Public Procurement and the aim is to devote 3% to R&D and innovation. Public agencies buy innovation and identify how far the solutions in demand are from being available on the market. Depending on this gap different categories are applicable:
Pre-commercial Procurement (CPP)
Contracting of R&D services in which the public purchaser does not reserve the result of the R&D for its exclusive use but shares the risks and benefits with the companies. This is in order to steer the development of solutions towards specific public sector needs, comparing/validating the alternative solution on various sellers.
Public Procurement of Innovative Technology (CPI)
Public purchase of a good or service that does not exist on the market at the time of purchase but can be developed in a reasonably short period of time. This is in order to act as a launch customer/first adopter/first purchaser of innovative final commercial solutions new on the market.
The complete cycle of innovation is deemed to consist of the concept and evaluation of the feasibility of the new product; the research and development with commercial demonstration and replication; and it terminates with the marketing.