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Innovation-friendly procurement

The Innovation Procurement Empowerment Centre’s www.ipec.org.uk (a Connected Places catapult Initiative) aim is to empower councils and local authorities to embrace innovative procurement practices, driving positive regional and national strategic outcomes by doing things better, cheaper, faster, greener and safer for public authorities through market innovation.  To achieve this IPEC offers guidance, resources, and support in navigating the how innovative solutions can support procurement barriers

Procurement is a powerful lever for innovation, with the UK public sector spending £380bn annually and local government alone accounting for over £60bn. But how well is this potential being harnessed to drive innovation and create better public outcomes?

The IPEC First Annual Sentiment Analysis 2023-24 sheds light on the current state of innovation procurement in the UK public sector.  Key challenges, identified including a risk-averse culture (65%), limited budgets (55%), and confusion around procurement rules (58%). It also explores the slow but growing adoption of innovation-friendly practices, with only 4% of organisations embedding innovation procurement, but 60% actively exploring or developing it.

With the Procurement Act 2023, public bodies have new duties and opportunities to buy smarter, drive innovation, and deliver better outcomes. Reflecting the key role public procurement can play in driving innovation, local growth and productivity, IPEC is running a second Innovation Procurement survey to continue to identify the opportunities and barriers facing local authorities.  IPEC survey – Ortus Economic Research