Does Market Engagement in Public Procurement Foster Innovation? Results from a Pan-European Survey

Early market engagement is often believed to enhance innovation in public procurement. However, this study finds that market engagement formats have diverse and sometimes even adverse effects on innovation. This shows that market engagement is not a singular practice with homogeneous effects, and should be approached with care. For market engagement to be effective, rather than counterproductive, procurers should select clear learning goals and corresponding market engagement formats. The importance of interactive learning suggests that policymakers should strengthen the capacity of procurers to process insights gained during market engagement activities. Using technical questionnaires can negatively affect innovation because they hinder the inclusion of previously unknown and potentially innovative actors in the procurement process. Meetings and workshops have more positive effects as they foster trust and mutual understanding in innovation procurement trajectories.