Citation

Discussion Paper Details

Please find the details for DP13664 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: Public Procurement as a Demand-side Policy: Project Competition and Innovation Incentives

Author(s): Alessandro De Chiara and Elisabetta Iossa

Publication Date: April 2019

Keyword(s): Crowding out, innovation policy, Procurement, Research and Development and Steering effect

Programme Area(s): Industrial Organization and Public Economics

Abstract: We develop a model of project competition to compare two alternative and widely used approaches: (i) A (demand-side) procurement approach, in which the public authority specifies the type of project it will finance and (ii) a (supply-side) grant system, in which any type of project can be funded. The public authority can verify the characteristics of the projects submitted, but does not know which other projects are available. The paper sheds light on the role of public procurement to foster innovation.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13664

Bibliographic Reference

De Chiara, A and Iossa, E. 2019. 'Public Procurement as a Demand-side Policy: Project Competition and Innovation Incentives'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13664