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| Methods, Mechanisms and Barriers of Public Procurement Shaping Innovation：Review and Prospect |
| Liu Jing, Kang Xiaoling, Chen Xing, Ma Mingxiao |
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Abstract Public procurement of innovation (PPI) has been at the heart of innovation policy resurrecting the demand side with dual functions on improving public services effectiveness and promoting technological innovation. Through a literature review, this paper reviewed the research progress of public procurement of innovation from the aspects of methods, mechanisms and barriers. In a theoretical point of view, public procurement of innovation with public procurers, innovative suppliers and intermediaries as the major actors, is essentially a system that is coupled by procurement process and innovation process. The system consists of three important mechanisms: transaction realization mechanism, innovation generation mechanism and innovation diffusion mechanism; In a practical point of view, framework conditions, organizational capabilities, identification and signaling of needs, and risk management are the main barriers to the policy effectiveness of public procurement of innovation. Finally, this article summarized the theoretical framework for researches of public procurement of innovation and proposed three areas for future researches.
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