PROMOTING INNOVATION THROUGH PUBLIC PROCUREMENT: A SYSTEMS OF INNOVATION APPROACH

Date

2024-1

Author

Can, Mustafa

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This study serves a dual purpose. Firstly, it seeks to offer new empirical evidence on the impact of public procurement on firms' innovation performance, delving into the comparative effects of various demand and supply-side factors and exploring country-level differences. Secondly, the thesis aims to analyze the mediator role of absorptive capacity in the link between innovation and procurement. The study initially employs the Heckman two-step estimation technique and Community Innovation Survey data to empirically examine the dependence of firms' innovation performance on public procurement. An interaction term is introduced to the model to assess the mediator role of absorptive capacity. The results indicate a high potential for public procurement to enhance firms' innovation performance. However, an unexpected finding emerges: the mediator role of absorptive capacity is deemed insignificant in the estimated model. Subsequently, the case study method is employed to explore how the mediator role of absorptive capacity manifests in the association between public procurement and innovation. Two procurement cases from Turkey are analyzed through by collectingdata through open sources and semi-structured interviews. The findings suggest that the absorptive capacity of both the buyer and the supplier holds varying importance and priority at different phases of the Public Procurement of Innovation (PPI) process. The procurer's absorptive capacity is emphasized, especially in the pre-procurement phase, while the supplier's absorptive capacity becomes more critical during tendering and post-award phases. Finally, this research develops policy recommendations rooted in the Systems of Innovation approach, which prioritizes mutual relations, collaborations, and information exchange.

Subject Keywords

Public procurement for innovation, innovation performance, mediator role, absorptive capacity, systems of innovation

URI

https://hdl.handle.net/11511/108253

Collections

Graduate School of Social Sciences, Thesis