What are the benefits for suppliers?

(1) Opportunities to acquire international leadership in new markets

In pre-commercial procurement public authorities ch allenge industry to develop solutions for public sector problems that are so fo rward-looking and so technologica lly demanding that either no commercially stable solution exists yet on the market, or existing solutions exhibit shortcomings which require new R&D. By triggering the development of br eakthrough solutions ahead of the rest of the world market, public authorities can through their role of demanding first buyer create opportunities for companies in Europe to take international leadership in new markets.

(2) Shorter time to market

The virtuous process of co-evolution of demand and supply enabled by pre-commercial procurement shortens the time-to-market for the suppliers that can better anticipate demand for new solutions and better align their product developments to fulfil concrete customer needs. Active involvement of interested public buyers from the early product deve lopment stages also enables public authorities to detect at an early stage potential policy and regulato ry barriers that need to be removed in time to ensure short time to market for innovating public services.

(3) Wider market size, economies of scale

Assigning IPR ownership rights to companies particip ating in PCPs enables th ose companies to address wider markets beyond the procurer that initiate d the development. Streamlining desired product specifications amongst suppliers and procurers at th e stage when products are still under development empowers procurers to foster the necessary degree of standardisation amongs t suppliers to guarantee economies of scale and interoperability. Cooperatio n between procurers at the pre-commercial stage can act as a driving force to create the required critical mass on the demand side to reduce market fragmentation and increase econom ies of scale for suppliers in Europe. Through export focused commercialisation wide take-up and diffusion of the newly developed technologies can be achieved in different sectors, comprising private as we ll as public markets, locally and globally.

Source: Cordis