Innovation policy combines systems and organizations that may intentionally or unintentionally influence innovation. Public Procurement and innovation are associated in two separate ways: public procurement can be used as a tool to stimulate innovation resulting in a new type of product or to open the marketplace for innovation without a specific product. The purpose of this article is to examine the procurement process's emphasis on competition and its effects on innovative products and services. By applying the public procurement and innovation policy goals, the demand can be met as a cost‐effective and value‐adding asset. We argue that public–private partnerships could (and should) leverage the private sector for innovative solutions; however, the current structure of policy and demand does not encourage this relationship.
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