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The handle http://hdl.handle.net/1887/29305 holds various files of this Leiden University dissertation.
Author: Apostol, Anca Ramona
Title: Pre-commercial procurement – regulatory effectiveness?
Issue Date: 2014-10-23
Pre-commercial procurement – regulatory effectiveness?
PROEFSCHRIFT
ter verkrijging van
de graad van Doctor aan de Universiteit Leiden, op gezag van Rector Magnificus prof. mr. C.J.J.M. Stolker,
volgens besluit van het College voor Promoties te verdedigen op donderdag 23 oktober 2014
klokke 13.45 uur door
Anca Ramona Apostol geboren in Roman (Roemenië)
in 1978
Promotiecommissie:
Promotor: prof. dr. A.H.J. Schmidt
Overige leden: prof. C. R. Yukins (George Washington University, USA) prof. dr. J. M. Hebly
prof. dr. G. P. van Duijvenvoorde
prof. dr. T. R. Ottervanger
Table of Contents
Preliminaries ... 9
Background ... 9
Problem and research questions... 10
Structure of the research ... 13
What does this legal research not aim to achieve? ... 15
A short outline of the public procurement rules ... 15
Terminology ... 18
Chapter 1. Pre-commercial procurement... 22
1.1. Introduction ... 22
1.2 Objectives ... 23
1.3 Form and conditions ... 24
1.3.1 Non-mandatory implementation ... 24
1.3.2 Phases ... 26
1.3.3 Eligibility and award criteria ... 28
1.3.4 Summarizing remarks ... 29
1.4 Legal limits to PCP ... 30
1.4.1 Compliance with the Procurement Directives ... 30
1.4.1.1 Minimum applicability conditions ... 30
1.4.1.2 Sharing risks and benefits ... 32
1.4.2 Compliance with the TFEU fundamental principles ... 36
1.4.3 Compliance with the EU State aid rules (the market price criterion) ... 37
1.4.4 Compliance with the GPA ... 38
1.4.5 Summarizing remarks ... 39
1.5 Procedural flexibility through PCP ... 40
1.5.1 Rebuttable presumption of cross-border interest and applicability of Treaty principles ... 41
1.5.3 Conclusions ... 53
1.6 Concept of R&D ... 54
1.6.1 R&D that leads to technological innovation ... 55
1.6.1.1 Frascati Manual guidance on the concept of R&D ... 55
1.6.1.2 EU guidance on the concept of R&D ... 58
1.6.2 R&D in software development ... 61
1.6.3 R&D which leads to services innovation ... 62
1.6.4 Conclusions ... 64
1.7 Distinction from other available instruments to stimulate innovation ... 66
1.7.1 PCP and Functional and/or performance specifications ... 67
1.7.2 Competitive dialogue ... 68
1.7.3 PCP and R&D subsidies ... 69
1.7.4 Forward Commitment Procurement ... 74
1.8 Conclusions ... 75
CHAPTER 2. Institutional and economic backgrounds to the European PCP policies in the 21st century – revival of the demand-side policy in support of innovation ... 77
2.1 Introduction ... 77
2.2 Policy background to PCP, an institutional approach ... 78
2.2.1 Introduction ... 78
2.2.2 European Council’s guidance ... 78
2.2.3 European Commission’s actions ... 83
2.2.3.1 Actions to promote public procurement as innovation policy instrument ... 83
2.2.3.2 Actions to promote PCP within the EU innovation policy ... 86
2.2.4 European Parliament’s support ... 94
2.2.5 Summing-up policy support for PCP ... 95
2.3 The economic foundations of PCP ... 96
2.3.1 Introduction ... 96
2.3.2 Innovation policy as decision-making under uncertainty ... 98
2.3.3 Economic approach to public innovation policy ... 104
2.3.3.2 Economic justification of public intervention in support of innovation ... 113
2.3.4 Public funding of R&D when the venture capitalist fails ... 118
2.3.5 The role of public needs/demand in innovation – lessons for public policy ... 122
2.3.5.1 Introduction ... 122
2.3.5.2 Demand-side innovation policy instruments ... 124
2.3.5.3 Empirical studies ... 129
2.3.6 Services innovation ... 132
2.3.6.1 EU policy in support of services innovation ... 132
2.3.6.2 Economic theories of innovation in services and related empirical studies ... 135
2.4 Conclusion ... 138
CHAPTER 3. PCP- a poor imitation of the US SBIR ? ... 142
3.1 Introduction ... 142
3.2 The US SBIR programme ... 142
3.2.1 Legislated set-asides ... 142
3.2.2 Goals and rationale ... 144
3.2.3 Organisational features ... 147
3.2.3.1Decentralised implementation ... 147
3.2.3.2 Eligibility criteria ... 150
3.2.3.3 Phases ... 152
3.2.3.4 Percentage of funded R&D costs ... 154
3.2.3.5 Confidentiality and IPR ... 155
3.2.3.6 Flexibility ... 156
3.2.3.7 Contracts and grants ... 161
3.2.4 Evaluation of the US SBIR ... 163
3.2.4.1 Impact of US SBIR ... 163
3.2.4.2 Strengths, weaknesses and points of improvement ... 166
3.3 Conclusions ... 169
CHAPTER 4. Implementation of PCP or PCP-like schemes in the EU – the current ‘state of play’ ... 172
4.1. Introduction ... 172
4.2 PCP’s ‘state of play’ in the EU ... 172
4.3 The Dutch SBIR ... 175
4.3.1 Background to adoption... 175
4.3.2 Features of the NL SBIR initiative ... 177
4.3.3 Evaluation ... 182
4.3.4 Projects ... 184
4.3.5 Conclusions ... 186
4.4 The UK SBRI ... 189
4.4.1 Background and evaluation of SBRI (2001-2009) ... 189
4.4.2 SBRI – features of the latest version (2009 and later) ... 190
4.4.3 SBRI – 2010 evaluation ... 194
4.4.4 Projects ... 195
4.4.5 Conclusions ... 196
4.5 The Flemish Procurement of Innovation... 199
4.5.1 Description and initiation background ... 199
4.5.2 Features of the Flemish PoI ... 202
4.5.3 Projects ... 204
4.5.3 Conclusions ... 207
4.6 EU support for PCP ... 209
4.6.1 Basis for European Commission’s action ... 209
4.6.2 European Commission incentivizing actions ... 209
4.7 Conclusions ... 212
CHAPTER 5. Legal barriers to the implementation of the PCP procedure ... 216
5.1 Introduction ... 216
5.2 The EU legal landscape ... 217
5.3 The burden of a new competitive procedure for the purchase of PCP solutions ... 221
5.3.1 Introduction ... 221
5.3.2 The WTO GPA constrains regarding EU’s freedom to regulate purchases of PCP
solutions ... 222
5.3.2.1 Short introduction to the GPA ... 222
5.3.2.2 GPA’s coverage of R&D services and of resulting innovations ... 223
5.3.3 EU Procurement Directives provisions relevant for the purchase of PCP solutions ... 231
5.3.3.1 R&D contracts ... 231
5.3.3.2 Other grounds to justify the direct purchase of PCP solutions ... 233
5.3.3.3 Conclusions ... 234
5.3.4 The new EU Procurement Directives EU – constrains and incentives for the purchase of PCP solutions ... 235
5.3.4.1 Introduction ... 235
5.3.4.2 The use of the negotiated procedure without prior notice for technical or IPR reasons ... 236
5.3.4.3 Innovation Partnership procedure ... 245
5.3.4.4 Conclusions ... 252
5.4 The obligation to ensure a ‘level playing field’ ... 253
5.4.1 Introduction ... 253
5.4.2 The extent of the obligation to level the playing field ... 253
5.4.3 Conclusions ... 256
5.5 Interplay between PCP and EU State aid rules ... 257
5.5.1 Introduction ... 257
5.5.2 The argumentation for the market price criterion ... 257
5.5.3 Criticism ... 261
5.5.4 Proposed solution ... 262
5.5.5 Applicable rules to a PCP subsidy ... 263
5.6 Conclusions ... 268
CHAPTER 6. Conclusions and recommendations ... 271
Research background ... 271
6.1 What is PCP and what are the gaps in PCP’s framework conditions ? (Q1)... 272 6.2 What is the political context in which the PCP procurement was shaped and what are
6.3 How does PCP differ from the US SBIR and how can these differences impact PCP’s efficacy ? (Q3) ... 279 6.4 What is the state of implementation of PCP in the EU and how are the economic
prerequisites for an effective deployment of PCP reflected into the available PCP(-like) initiatives ? (Q4) ... 279 6.5 How did the legal context shape and constrain the choices around the PCP features ? (Q5) ... 281
6.5.1 Constraints posed by the WTO GPA ... 281 6.5.2 Constrains posed by the EU legal context ... 282 6.6 How can the current legal and policy context be improved to stimulate the effective implementation of PCP ? (Q6)... 286
