Demand-orientated policy on leading-edge industry and technology: public procurement for innovation

The world economic environment has dramatically changed through IT revolution, which leaves the government to seek a new role in the driving seat for setting industrial and technological policies. In order to maintain the competitive edge derived from scientific and technological innovation it is important for the government to adopt the demand-side policy towards commercialisation of technology-based SMEs and start-ups. The Japanese government has discussed the significance of an 'innovation orientated new approach for public procurement'. Through drawing comparisons with procurement strategies employed by the US, the UK and the Netherlands the paper proposes: (1) intermediary professional actors to appraise prototype technologies; (2) interactive dialogues between suppliers and users before tendering; (3) fair and transparent competition focussing oil new social and economic values of emerging technologies are the absolute essence of public procurement for innovation.