Determinants of public sector innovation: The example of capacity development in public procurement

The triple-helix-model stresses the idea that a successful national system of innovation ought to incorporate the complexity of three social subsystems: private sector economy, governmental system and science. Following the insight that the state and its agencies are important players in any system of innovation, we take a closer look at the innovative action in the public sphere. Therefore, we propose an analytical tool that allows a more detailed explanation of relevant determinants of innovative behaviour: (1) property rights, (2) capabilities, and (3) motivation. In order to show the relevance of these determinants, we tested the plausibility of our theoretical tool against the topic of public procurement of innovation. Five hypotheses were derived and then tested empirically by using a data set about German public procurement practice. Our linear regression model provides evidence for the hypotheses that framework conditions, special training, and motivation of procurement staff play a central role in demand-driven innovation of the public sector.