What Do We Achieve
Innovative Products & Services
The revised South Australian Industry Participation Policy acknowledges public spending on innovative goods and services can be an important tool for agencies and authorities to improve the effectiveness and efficiency of public services, and address challenges and needs while at the same time helping to create jobs, grow local industry and provide a boost for small and start-up businesses.
Local products and service innovation can be delivered through procurement processes, however, they can be hindered where there is an overwhelming focus on value for money considerations and concerns about risk minimisation in public sector procurement. (CEDA, June 2016)
One of the most important things to drive innovation and growth is the ‘ideas flow’ – the Office of the Industry Advocate will be investigating what reforms are needed so Government procurement can encourage and incentivise the private sector to collaborate and co-invest.
By acknowledging the potential of innovative procurement to stimulate growth and job creation, policies and programs around public procurement of innovative solutions can feed ‘innovation’ into their regular procurement activities.
The South Australian public sector expenditure represents a significant portion of economic activity in the State. Importantly, Government can be a very significant lead customer when more sophisticated procurement policies and practices are adopted.