Рublic Procurement in Russia: What Hinders Innovation?

ABSTRACT

Using public procurement to foster innovation is a widespread practice worldwide. However, in Russia public procurement has had no significant impact on developing innovation. Empirical research with expert interviews and qualitative and quantitative data analysis has revealed the reasons for poor performance to promote innovation, including tough anti-trust and anti-corruption rules, limited use of tenders as well as “life-cycle cost” criteria, and poor management by the procuring agencies. The analysis revealed the contradiction between the rules designed for fighting corruption and monopolies and the need to stimulate innovation through procurement.

KEYWORDS:

• Demand for innovation
• policy of innovation
• public procurement
• Russia
• tender

Notes

¹ Ministries of Internal Affairs, Economy, Defense, Transport, Environment, Education, and Research.

² Under “home” tenders the authors mean the conspiring agreements during the procedure.

³ The experts use the colloquial expression “competition games” to mean the measures for competition simulation.