Public Procurement of Innovation Diffusion: Exploring the Role of Institutions and Institutional Coordination

The role of the public agency as a pacer of private sector innovation has been emphasised over the recent years, especially in the context of the EU. The general ambition has been to encourage public agencies to actively stimulate private sector innovation by requesting innovation instead of procuring currently existing products. This has also triggered an increased interest among researchers and practitioners to identify examples of best practice where public agencies have successfully procured innovation. Rather than addressing this demand-oriented perspective this paper focuses on the public agency as an adopter of private-sector innovation, and how this mechanism can contribute to innovation in general. The theoretical point of departure is diffusion theory, with an emphasis on the role of institutions as identified in systemic approaches to innovation studies. A particular concern of this paper is those institutions that hinder or enable adoption of an innovation in an organisational context. The paper draws on an explorative case study looking at the introduction of a new catheter into the English National Health Service supply chain and its diffusion among NHS trusts in England. Different institutional factors are identified which have had an affect on the adoption and diffusion.