Pre-commercial procurement: regulatory effectiveness?

Abstract

Is public procurement of research and development (‘R&D’) services the key to European Union (‘EU’)’s sustainable welfare? Is it being regulated in accordance with economic prescripts for effectiveness? Is the regulatory and policy setting clear and comprehensive in order to stimulate a widespread use of this instrument by EU public authorities? In 2007, the EU released an Interpretative Communication, explaining how to purchase R&D services in compliance with the EU public procurement and State aid rules. The prescribed procedure was named ‘pre-commercial procurement’ (‘PCP’). The motivation advanced for adopting this Communication was the need to clarify the applicable law, in order to encourage public authorities throughout the EU to engage in R&D services procurement. The EU policy makers aimed to help the public sector become a sophisticated customer, capable of steering the development of cutting-edge technologies towards the resolution of public needs. This would yield solutions to serious problems such as climate change, pressure on the health system due to an ageing population, security threats etc. In addition, it would strengthen the competitive advantages of European private innovators on global markets. Eventually this would strengthen EU’s economy and would increase the welfare of its citizens