Public Procurement for Innovation in Korea STEPI Technology & Regulation Research Center Jonghwa Choi (

Transcription

1 Public Procurement for Innovation in Korea STEPI Technology & Regulation Research Center Jonghwa Choi ( jhchoi@stepi.re.kr)

2 목차 Introduction. Public Procurement Market and System in Korea Setting PPI. National Strategic R&D Procurement Mixing Other Issues. Barriers of PPI implementation

3 Introduction. Public Procurement Market and System in Korea Purpose of Public Procurement As a.. Innovation Policy For Technology, Industry, etc. Aegis Policy Of SMEs, Women CEO, Welfare organizations, etc. Fiscal policy About Resources like as Materials, Grains, etc

4 Introduction. Public Procurement Market and System in Korea PPS(Public Procurement Service institute) Central Purchasing vs. Dispersal Purchasing (Ab. 40,000 Institutions) PPS Federal Government organizations Local Government organizations Public institutions - 4 -

5 Introduction. Public Procurement Market and System in Korea Volume Public Procurement Volume in Korea Unit: 100 million KRW, % Total Procurement Volume (A) PPS Procurement Volume (B) 1,009,364 1,222,846 1,044, ,494 1,199,826 1,251, , , , , , ,943 Raito(B/A) Source: PPS Website, ~120 Trillion KRW 4%~5% / Total Market 8%~10% / GDP Purchasing Ratio of PPS: 30%~35% - 5 -

6 Introduction. Public Procurement Market and System in Korea There are five Basic things to set a public procurement system. It explains practices of Korea related these five things. Public Procurement System in Korea Seller Buyer 1 Market Making market-specific objectives 1 Market 2 Qualification 2 3 Qualification Platform Motivation Making certification systems Motivation Making Procurement Policies Platform Making method for trading goods 5 Legal basis 5 Legal basis Making institution to ensure execution - 6 -

7 Introduction. Public Procurement Market and System in Korea Institution Type of Public Procurement Public Procurement Institutions for Technology Innovation of SMEs in Korea - 7 -

8 Introduction. Public Procurement Market and System in Korea Institution Type of Public Procurement Doing R&D with Purchasing Commitment Making a Public Market Linking R&D and Sales Channels Supporting to Enter the Public Market - 8 -

9 Introduction (1). Making a Public Market We can make a market first in order to purchase a public Goods. Excellent Product Market & Universal Product Market Excellent Product Market Excellent Product Procurement 4,000 Products Innovative & Good delivery history Universal Product Market 290,000 Products Multiple Award Schedule Procurement - 9 -

10 Introduction (1). Making a Public Market Public consumers do not prefer a good things. They will buy a cheapest thing. Can we sell the innovative products in the public market? Technology Development Preferential Purchase & New Excellent Product(NEP) Mandatory Purchase Technology Development Preferential Purchase NEP Mandatory Purchase Product Certification Firm Certification National R&D Achievement 14 Kinds established by Law Advisory 10% Total Volume what we need Of SMEs NEP Certification 1 Kinds established by Law Compulsory 20% Total Volume what we need Of TDP

11 Introduction (2). Supporting to Enter the Public Market How can we distinguish the innovative product? Filtering System & Certifications Test & Certification Agency Performance Environment Harmfulness etc Filtering perspectives Filtering Methods Filtering Firm & Products Quality Price Credit Certification Bidding price Delivery history Innovative Product Market Innovative Product Appropriate Price Sustainable Purchase Korean public markets usually have a qualification process that composed by three perspectives

12 Introduction (3). Doing R&D with Purchasing Commitment We have a problem in terms of purchasing high-tech products. That may be not necessary to public customers. Or we needed, but we don t have that. Purchasing High-tech Product It has the effect of achieving High-tech intensive innovation. It can be purchased without a public demand. (Catalytic Procurement) Flow of Pre-commercial Procurement for New Product Development Program Purchasing Commitment Seller Product R&D Achievement Technology Technology Innovation Product Gov. Market Platform R&D Subsidies Product Needs Needs Product Buyer A Public Organizations Buyer B Private Large enterprises Reducing R&D cost

13 Introduction (4). Linking R&D and Sales Channels All the R&D can t be done buying as collateral. So we have to find a way to sell through public markets targeting a good R & D achievements. Public Procurement for R&D Products It is required to invest more than a certain percentage of the public R & D investment to SMEs. Steps of KOSBIR: Korea Small Business Innovation Research Program STEP 1. Plan STEP 2. Research STEP 3. Outlets Link Feasibility study Research and Development Matching Sales Channels R&D Subsidies ~30% R&D Subsidies 70%~ No R&D Subsidies Marketing program Link Market Exploitation

14 Other Issues. Barriers of PPI implementation [Four Barriers of PPI implementation in Korea] Strategy Budget Organization Procedure protecting SME and supporting Existing product Rigidity by 1 Year Budget System Organizational Decentralization of PPI Related Ministries Quality Assurance by Certification Institution Classification Difficulties of domestic regulations Implication of global example Strategy budget Organization Procedure - Passive purchase of Technological innovation product of existing product centric public procurement tendency - non-reflection of public sectors demand in R&D stage -Limitation of innovative product purchase in the medium and long-term - Decentralization of collective system R&D product purchase - Existing product centric public procurement - Comprehensive authorization centric public procurement - Active demand-development interconnection - Diversification of budgets * Direct fund to purchase organization(sweden) * Transfer PPI of certain rate(finland) - Strengthening of Public procurement agency * Sweden, UK - Cooperation between agencies - Consortium of joint investment * EU Horizon 2020, Sweden - Purchase activation through innovation partnership - Purchase contracts of competitive communication system

15 APPENDIX. PPI Dilemma : Lock-In Effect of PPI Lock-In Effect of Public Procurement based on Certification System Choi(2015), Public Procurement for Innovation in Korea, STI Policy Review

16 Thank You Jonghwa Choi