Innovation Partnership
An EU procurement procedure for developing an innovative product, service or works that is not yet available on the market and then buying the result, within one partnership.
In Detail
The innovation partnership is set out in Article 31 of Directive 2014/24/EU. It is meant for cases where the contracting authority needs an innovative product, service or works that cannot be met by buying solutions already available on the market. The authority publishes a contract notice identifying that need and the minimum requirements, and any economic operator may submit a request to participate, within a minimum time limit of 30 days. Only the candidates invited after the authority assesses their information (at least three, where enough suitable candidates apply) may submit research and innovation projects.
The authority negotiates with the tenderers on their initial and subsequent tenders, as in the competitive procedure with negotiation, and awards on the sole basis of the best price-quality ratio. It may set up the partnership with one partner or with several partners conducting separate research and development activities. The partnership is structured in successive phases that follow the research and innovation process, from development through to the provision of the finished supplies, services or works, with intermediate targets and payment in instalments.
At the end of each phase, the authority can terminate the partnership or, where there are several partners, reduce their number by terminating individual contracts, provided the procurement documents set out those possibilities and conditions. It can then buy the resulting supplies, services or works without a separate procurement, as long as they correspond to the performance levels and maximum costs agreed. National names include partenariat d'innovation (France), Innovationspartnerschaft (Germany), asociación para la innovación (Spain), partenariato per l'innovazione (Italy) and innovatiepartnerschap (Netherlands).
Practical Context
How it works in practice
Innovation partnerships are relatively rare compared with other procedures, and they suit suppliers with a real research and development capability: candidates are selected on their capacity in research, development and implementing innovative solutions. Bidders should look closely at how intellectual property is handled, since the procurement documents must define those arrangements. On Tender Radar, innovation partnership notices are labelled 'Request to participate', because the first step is applying to be selected, with the request deadline shown as 'Requests to participate by'.
Frequently Asked Questions
When can a buyer use an innovation partnership?
When it needs an innovative product, service or works that cannot be met by solutions already available on the market. The partnership covers both the development and the subsequent purchase, so the buyer does not need to run a second procurement to buy what was developed, provided it meets the agreed performance levels and maximum costs.
How is an innovation partnership different from pre-commercial procurement?
Pre-commercial procurement buys research and development services only, typically from several competing suppliers in phases, and any later purchase of the resulting solution needs a separate procurement. An innovation partnership combines development and purchase in one procedure.
Can an innovation partnership include more than one supplier?
Yes. The buyer can set up the partnership with one partner or with several partners conducting separate research and development activities, and may reduce the number of partners at the end of a phase if the procurement documents allow it.
Related Terms