Demand
Acceleration

Public procurement
can drive innovation

Innovation is not limited by supply but by demand. Demand Acceleration is a methodology for how the public sector can drive innovation and transition with public procurement as an instrument, by accelerating the demand for sustainable solutions.

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The Demand Acceleration Network has its own community where we regularly meet in breakfast meetings and other forums to discuss and exchange experiences. The community also provides access to various useful materials, such as presentations, procurement documents, etc.

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Innovation is not limited by supply but by demand

Demand Acceleration is a methodology for how the public sector can drive innovation and change with public procurement as a tool, by increasing the demand for sustainable solutions.

Public procurement is worth over 80 billion euros in Sweden alone. If only one percent could be used to drive innovation and development, it would correspond to more than twice as much as the Swedish Innovation Acency Vinnova's current budget.

The proportion of Swedish organizations actively working to procure innovative solutions:

Municipalities

11%

Regions

13%

Government agencies

18%

Sources: The Procurement Authority, National procurement report 2023

Principer
för Demand Acceleration

Here you can learn more about the six principles of Demand Acceleration - which are the cornerstone and theoretical foundation of the procurement methodology. From the fundamental assumption that public procurement can drive innovation, to why companies should own the intellectual property rights to the services being developed.

1. Leveraging procurement for innovation and growth

Procurement in the public sector requires evaluation against pre-defined criteria, while innovation involves an uncertain process without predefined specifications.

It is possible to combine procurement and innovation by using the basic principles of public procurement as guidelines for cooperation between the public customer and suppliers.

2. Innovation requires space for experimentation and learning

Innovation is about creating value through new or improved solutions via an explorative, experimental, and iterative process. This requires space, resources, and organizational alignment.

Innovation also demands the ability to embrace failures and learn incrementally. By taking calculated risks early on, one can minimize uncertainty and increase the chances of successfully procuring innovations.

3. Success cannot be analyzed into existence

Innovation is a process where users and solution providers collaborate, where multiple alternative suppliers should be invited instead of choosing a single one.

Those unable to meet customer needs or scale the solution in the market should gradually be eliminated. Therefore, the innovation process should allow co-creation in multiple phases to reduce risk and uncertainty.

4. Interaction triggers insights

Sketches, presentations, demonstrators, and prototypes are used to clarify needs. Requirements and solutions contribute to creating interaction and dialogue to enhance understanding during the process.

In a co-creation process, potential solutions and suppliers should be included early, and the needs formulation should be seen as a starting point of the innovation process, not as the endpoint of an extensive needs analysis.

5. The value of scalability

Scalability is important at every stage of the process, from market analysis of the need to evaluating the solution's business potential and suppliers' ability to disseminate the service in the market.

6. Intellectual assets belong to the supplier

The suppliers should own the intellectual assets developed during the process, which can be combined with the principle of co-creation. This also creates incentives for scaling up and developing the services.

Cases

Ta del av våra handböcker

Here you will find our manuals, which provide a more in-depth description of how the methodology can be applied in practice. Additionally, there is a shorter version, which serves as a basis for understanding Demand Acceleration from a policy perspective.