The Effect of Public-Private Partnerships on Innovation in Infrastructure Delivery

Public-private partnerships (PPPs) have been promoted as achieving value for money in government projects through innovation. Private investment, contract bundling, and transferring risk to the private sector are regarded as incentives creating innovation. Data collected on PPPs through in-depth interviews with 36 senior practitioners are analyzed by applying a transdisciplinary theoretical approach and grounded theory. The relation between PPPs and innovation is systematically addressed. PPP models provide an environment for innovation precontract award but limit risk, thus inhibiting post-contract innovation. A framework illustrating the complex relations of different elements of PPPs and their effects on innovation is presented.