IPEC > IPEC Research

IPEC Research

Our ambition is to deepen understanding of the effectiveness of innovation procurement in driving innovation for better public services while boosting economic growth. Working with regional and local authorities we can disseminate best practice and empower local decision makers.

Overview of IPEC Research

With the launch of the UK Innovation Strategy in 2021, and the Innovation, Science and Technology Framework in 2023, deploying public procurement as a driver of innovation has been recognised as a central UK policy objective. The 2024 Framework update said “We know that public procurement is a powerful lever to drive innovation nationally and nurture creativity and growth in local business communities”. However, as the Strategy spells out “the overall culture, expertise and incentive structure of the public sector means there is a low appetite for risk and experimentation”.

Publications

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The role of government buyers in shaping firm productivity

Public procurement is a major economic force in the UK, accounting for £385 billion annually. While procurement is widely recognized for its ability to stimulate innovation, create market opportunities, and drive social value, its direct impact on firm productivity remains underexplored. This research brief examines how government contracts influence business performance, analysing trends in procurement income, supplier composition, and the effect of different government buyers—central government, local government, and the NHS—on firm productivity.

Place-based collaborative opportunities and challenges for public procurement of innovation

Public procurement is a powerful tool for economic growth, innovation, and social impact. Local governments play a crucial role in shaping regional economies by using procurement strategies to stimulate innovation, create jobs, and deliver social value. This research brief explores how public procurement can be used strategically to address regional needs, particularly in a time of constrained public resources. The West Midlands serves as a prime example of how procurement policies can drive place-based transformation. The West Midlands Innovation Programme (WMIP) supported Digital Innovation in Public Services (DIPS) project, which presents how a region can create values through procuring innovation. The Innovation procurement partnership model demonstrates how local authorities can foster economic and social values through strategic partnerships. By integrating procurement with local industrial strategies, the region enhances SME participation, promotes green innovation, and delivers measurable social value. Key Highlights: • Public procurement acts as a catalyst by connecting public services with cutting-edge technologies and forward-thinking businesses. • Innovative procurement models are enabling small and medium-sized enterprises (SMEs) to participate in public contracts, fostering economic resilience and job creation. • The integration of sustainability goals into procurement policies ensures that public spending contributes to the region’s decarbonisation and green growth objectives. By adopting a place-based approach, local governments can tailor procurement policies to address specific regional economic and social challenges. The findings from the West Midlands serve as a valuable guide for policymakers, businesses, and researchers seeking to maximise the impact of public procurement on regional development.

Public Procurement and Regional Development in the UK

This research brief discusses the implication of recent policy developments, including the National Procurement Policy Statement (NPPS) and the Procurement Act 2023, which highlight the potential for procurement to drive local economic growth and innovation. It argues that, in order to harness the full potential of public procurement for regional development, a shift towards more strategic, innovation-friendly, and regionally sensitive procurement practices will be needed. Key recommendations of this brief include:

Extracting Insights from Procurement Data

Understanding trends in public sector spending, supplier engagement, and funding allocation effectiveness is crucial in building trust in the government. A comprehensive understanding of procurement contracts enhances accountability and provides actionable intelligence for policymakers and stakeholders, enabling them to assess the effectiveness of procurement strategies and monitor progress toward sustainability goals.

The role of public procurement on the performance of knowledge-intensive business services (KIBS)

Knowledge-Intensive Business Services (KIBS) are the cornerstone of innovation in a knowledge-based economy. Acting as facilitators, carriers, and sources of innovation, KIBS firms play a pivotal role in enhancing both public and private sector capabilities. These services encompass a wide range of expertise, from accountancy and management consultancy (Professional KIBS or P-KIBS) to IT and R&D services (Technology-based KIBS or T-KIBS).

Our research partners

City REDI (University of Birmingham)

City REDI is a leading evidence-based and policy-focused academic research institute at the University of Birmingham, focused on inclusive economic, social, and environmental development.

Manchester Institute of innovation Research (MIoIR)

Manchester Institute of innovation Research (MIoIR) is a centre of excellence in the field of innovation studies based at the Alliance Manchester Business School.

Researchers in Residence

Researcher in Residence (RiR) is an initiative developed by The Innovation Launchpad Network+, Innovate UK, Engineering and Physical Sciences Research Council (EPSRC) and Catapult Network. The scheme supports UK strategic goals, promotes academic engagement and is designed to enable researchers to work with the Catapults, undertaking a project or activity in an area of strategic importance. Successful applicants are awarded up to £50k to cover university salary costs, travel and accommodation during the placement, and consumables used at the host Catapult.