PUBLIC PROCUREMENT OF INNOVATION POLICY: COMPETITION REGULATION, MARKET STRUCTURE AND DOMINANT DESIGN

Recently, industry policy researchers have been more interested in public procurement, as a "demand side" policy approach. The mainstream exclusively targeted public procurement demand to push innovation and furthermore leads to the "first mover strategy." This paper points out that procurement decisions are likely to have a broader innovation impacts, and mostly via their influence on intermediate outcomes such as the structure of industrial competition. In this paper, the author explores the specific features of public procurement as a competition shaping instrument, and conducts an empirical study to measure the correlations among the competition regulation of procurement contracts awarding, industry competition structure and dominant design cultivation efficiency.