Procure Innovation EU - Workshop No.2 - Short video - Part 1

Summary

The Procure Innovation EU workshop highlights valuable lessons from Amsterdam’s approach to innovation partnerships in public procurement. Tim Venderar, Project Manager at the City of Amsterdam, shares insights on managing high initial costs in innovation projects and the importance of securing strong political and organizational support. By raising development fees and creating a sense of urgency with key city leaders, Amsterdam successfully navigated challenges to foster cutting-edge solutions. This initiative, supported by the European Commission, aims to inspire public authorities to embrace innovation in procurement practices for sustainable, long-term benefits.

Takeaways

• 😀 Procure Innovation EU is a 4-year initiative supported by the European Commission, aimed at promoting innovation procurement in contracting authorities.
• 😀 The second edition of Procure Innovation EU featured experts like Valentina Shippers AO and Tim Vender, who shared insights into fostering innovation partnerships in public procurement.
• 😀 Tim Vender discussed how Amsterdam addresses challenges through innovation partnerships, focusing on collaboration with market parties to drive cutting-edge innovation.
• 😀 One key lesson learned in innovation partnerships is that costs often come before profits, especially at the start of the project.
• 😀 Amsterdam provided a development fee of 100,000 euros to market parties at the start, which was later increased to 600,000 euros due to underestimating the development costs.
• 😀 The initial development costs for market parties exceeded their budgets, with some parties reporting average costs of 1.4 million euros, highlighting the financial challenges of innovation projects.
• 😀 Market parties appreciated owning 100% of the intellectual property rights, enabling them to upscale and commercialize solutions across Europe.
• 😀 Securing support from local authorities is critical for innovation projects, and Amsterdam’s approach included gaining backing from the alderman and local council to create a sense of urgency and importance.
• 😀 A supporters group consisting of directors from key city departments was created to ensure broad organizational backing and access to resources for the innovation project.
• 😀 The Procure Innovation EU initiative also encourages participants to join the community of practice, offering further engagement and access to information through LinkedIn and email.

Q & A

What is the main focus of the Procure Innovation EU initiative?

The main focus of the Procure Innovation EU initiative is to foster the uptake of innovative procurement practices by contracting authorities across Europe, supporting public sector organizations in adopting innovative solutions.

Who were the key participants in the second edition of the workshop?

The key participants in the second edition of the workshop included Valentina Shippers AO, coordinator of the Urban Agenda Partnership on Innovative and Responsible Public Procurement, and Tim Vandylar, project manager at the City of Amsterdam.

What lesson did Tim Vandylar emphasize regarding costs and profits in innovation projects?

Tim Vandylar emphasized that in innovation projects, costs often come before profits. Initially, the costs of development are much higher than the benefits, but it’s important to provide adequate funding to cover these costs.

What development fee did Amsterdam initially provide to market parties in innovation partnerships?

Amsterdam initially provided a development fee of €100,000 to market parties involved in innovation partnerships.

Why did the development fees need to be increased from €100,000 to €600,000?

The development fees were increased because the market parties' development costs exceeded their budgets and timelines, with the actual average development costs being around €1.4 million, much higher than originally anticipated.

What role did political support play in the success of innovation projects in Amsterdam?

Political support, particularly from the local Alderman and City Council, played a critical role in the success of innovation projects. The Alderman created a sense of urgency, helping to drive the project forward and ensuring that key stakeholders were aligned and committed.

How did Amsterdam ensure that innovation projects had the necessary institutional backing?

Amsterdam ensured the necessary institutional backing by creating a supporters group consisting of directors from key city departments. This helped gain broad support and facilitated access to necessary resources and decision-making power.

What was the significance of market parties owning 100% of the intellectual property in Amsterdam’s innovation partnerships?

By allowing market parties to own 100% of the intellectual property, Amsterdam enabled these companies to scale their solutions to other parts of Europe and commercialize their innovations, making the partnerships more attractive and sustainable.

What were some of the challenges faced by market parties in the innovation partnership, and how were they addressed?

Market parties faced challenges with exceeding development costs and timelines. This was addressed by increasing the development fee from €100,000 to €600,000, providing more financial support to ensure the projects could continue and succeed.

How can public sector organizations benefit from joining the Procure Innovation EU community of practice?

By joining the Procure Innovation EU community of practice, public sector organizations can gain access to valuable resources, network with other decision-makers, and stay updated on the latest developments and best practices in public procurement innovation.