This book examines dynamics between demand and innovation and provides insights into the rationale and scope for public policies to foster demand for innovation.

This book examines dynamics between demand and innovation and provides insights into the rationale and scope for public policies to foster demand for innovation.

This first policy brief presents an overview of the wide set of demand and supply side innovation policies both within the EU and elsewhere in order to identify, classify and characterize the various measures implemented in different contexts and their combination. It is based on a detailed literature review of demand and supply-side innovation policies and the analysis of 20 international cases of innovation policies, instruments and tools selected as representative of good practices to address demand side and/or to combine or interact with supply side approaches. The cases studies have been selected to cover a large number of countries (in and outside Europe) and sectors (including Health and Energy) and depending on the availability of information (especially of evaluation reports).

Various regulations, standards, public procurement activities, subsidies for private demand, and other similar support measures form the demand-side innovation policies. In the modern era, countries and governments dedicate more and more attention to the economic, social, and environmental sustainability of development and entrepreneurship. Sustainable development aims to meet human needs so that economic and social conditions will improve or at least not deteriorate and environment is preserved in order to allow future generations to meet their needs as well. Several demand-side innovation policy measures target also sustainability either as primary or secondary goal. Such policy measures tend to suffer from overshooting effects or fail to influence the behaviour in a desired manner. The purpose of this study is to offer suggestions concerning demand-side policy measures in order to improve their impact on the sustainability of development.

This book focuses on Public Procurement for Innovation. Public Procurement for Innovation is a specific demand-side innovation policy instrument. It occurs when a public organization places an order for a new or improved product to fulfill certain need

The public sector innovations are important additions to private and social efforts towards development oriented changes in society. These innovations aim at improving the efficiency and societal value of public services. In order to do so, the new organizational arrangements as well as public-private partnerships are often called for. In these situations, the novel service configurations are designed by public policy makers, but the actual service provision might be delegated to private companies or to non-governmental organizations (NGOs). This kind of combined execution creates strong connection between public sector innovations and demand-side innovation policies. The purpose of this study is to offer the possible ways to combine public sector innovations with demand-side innovation policies in Estonia. This would allow building strong ties between innovative advances in private and public sectors, thus enhancing the change towards knowledge-based society.