Innovation Partnership

A procurement procedure allowing public bodies to develop and purchase innovative solutions through negotiated partnerships with suppliers, combining R&D with commercial procurement.

How it works

The Innovation Partnership procedure enables public sector organisations to procure innovative solutions that are not currently available in the market. Unlike standard procurement routes, this procedure combines research and development phases with the subsequent purchase of resulting products, services or works.

The process typically involves multiple phases: an initial development stage where suppliers create prototypes or pilot solutions, followed by commercial deployment if milestones are met. Public bodies can negotiate terms throughout, allowing for iterative development and risk-sharing between parties.

The procedure is structured with specific requirements under the Public Contracts Regulations 2015, including qualification criteria that suppliers must meet and clear performance indicators for each development phase.

Why it matters

Innovation Partnerships address the challenge of procuring solutions that don't yet exist, particularly valuable for complex public sector challenges requiring technological advancement. They provide a legal framework for public bodies to invest in R&D whilst maintaining competitive procurement principles.

This procedure is particularly relevant for healthcare innovations, digital transformation projects, and environmental solutions where standard commercial offerings are insufficient. The structured approach helps manage risks associated with developing unproven technologies whilst ensuring public money is spent appropriately.

The partnership model encourages genuine collaboration between public and private sectors, potentially leading to solutions that benefit wider markets beyond the initial contracting authority.