Public procurement has the potential to have a transformative effect on companies’ investment in R&D in the UK.
It provides a huge opportunity to stimulate innovation. However, engineering companies have found that decisions on public procurement prioritise low cost over best value, and risk aversion hinders the introduction of innovative solutions. If public procurement processes discourage R&D and innovation, it can push businesses to move those activities to other more receptive countries.
Radical change to public procurement in the UK is needed to realise its potential, creating a culture that takes appropriate risks and focuses on outcomes.
Explainer: Public procurement (423.45 KB)