Innovative public procurement as an innovation policy instrument
The value of public procurement in Finland is approximately EUR 47 billion annually, with municipalities and joint municipal authorities accounting for two thirds, and the central government for one third. Purchases from enterprises are EUR 31 billion. It is important to turn this economically significant public sector activity into a driver of social and economic development towards sustainable growth.
Positive Impacts of Innovative Public ProcurementFile opens in a new tab pdf 128kB
Innovative public procurement refers to the procurement of new or significantly improved goods or services that can help to enhance the productivity, quality, sustainability and/or effectiveness of public services.
Innovative public procurement can contribute to major developments such as low-emission technologies, new digital solutions that improve health and social services, and new business models for the circular economy. At the same time, the public sector encourages companies to engage in research, development and innovation to accelerate the dissemination of new solutions and business growth. With extensive procurement of new solutions, the public sector can also help to create reference markets and promote exports. One of the objectives of the national procurement strategy is to promote innovation.
Competence centre for sustainabe and innovative procurement KEINO promoted the competence, management and utilisation of innovative procurements in the implementation of the strategy objectives and promotes cooperation with businesses between 2018 and 2024. The operations of KEINO ended on 30 September 2024.
Examples of sustainable and innovative procurement are available on the websites of KEINOLink to an external website and Business FinlandLink to an external website (in Finnish)
Situation of innovative procurement in Europe
In 2020 the European Commission has published a report on the strategic use of public procurement in EuropeLink to an external website. Finland is at the forefront of Europe’s 30 countries in terms of both policy measures as a whole and the volume of innovative solutions (share of total). One of the main conclusions of the study is that there is a positive relationship between the degree of maturity of policy measures and the volume of innovative procurement carried out. In 2025, the European Commission has published an updated comparisonLink to an external website of national policy measures in 30 countries.
European Benchmarking of National Policy FrameworksFile opens in a new tab pdf 240kB
Volume of Innovative Public Procurement in EuropeFile opens in a new tab pdf 315kB
Relation between policy measures and volume of innovative procurement is positiveFile opens in a new tab pdf 646kB
Read more:
Business Finland - Services for the public sectorLink to an external website
A comparative study by the EU Commission on member states' measures to promote innovative public procurementLink to an external website
The strategic use of public procurement for innovation in the digital economy – Final report Link to an external website
OECD report: Public Procurement for Innovation Link to an external website
A report by the National Audit Office of Finland on the implementation of innovation strategy on public procurementLink to an external website
The European Commission 2024 benchmarking of innovation procurement policy frameworks across EuropeLink to an external website
Further information:
Kirsti Vilén - kirsti.vilen(at)gov.fi