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Public procurement for innovation in Korea

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Title Public procurement for innovation in Korea
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Material Type Articles
Author(English)

Choi, Jonghwa; Lee, Kwang Ho; Lee, Ahjung

Publisher

[Sejong, South Korea] : Science and Technology Policy Institute

Date 2015-10
Journal Title; Vol./Issue STI Policy Review:vol. 6(no. 2)
Pages 18
Subject Country South Korea(Asia and Pacific)
Language English
File Type Documents
Original Format pdf
Subject Industry and Technology < Science/Technology
Government and Law < Public Administration
Holding Science and Technology Policy Institute
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Abstract

Public procurement for innovation is used as one of the major policy tools to stimulate innovation and promote growth of small and medium-sized enterprises (SMEs) in Korea. However, it is evaluated that this policy has not been so effective in promoting technological innovation among SMEs largely because it heav¬ily depends on price competitiveness of SMEs products and services. In order to draw some policy implica¬tions, this study examines the PPI policies of selected countries as comparative references and conducts an empirical analysis on Korean Public Procurement Services (PPS) data for identifying challenges of the cur¬rent policy in Korea. We conclude that in order to enhance technological innovations of SMEs, PPI policy in Korea should 1) focus more on the potential competitiveness of SMEs, 2) enlarge public demands especially on R&D services, 3) encourage private sector participation in the public procurement market, 4) improve the assessment criteria for public procurement market registration, and 5) restructure the responsible organiza¬tions.