Public procurement of innovation through increased startup participation: The case of Digipolis

Abstract

Previous research has identified numerous obstacles that hinder the efficient procurement of innovation by the public sector. This paper introduces the case of Digipolis – the public ICT service provider of the City of Antwerp in Belgium. In 2015, the company implemented a comprehensive overhaul of its procurement strategy centered around 3 key components: a flexible procurement process, a community built around Digital Antwerp, and a challenge-oriented company culture. The case adopts a holistic perspective on the implementation of innovation procurement in a local public sector organization, and investigates the specific conditions and mechanisms that allowed to leverage the Antwerp startup community in order to increase the number of purchased innovative solutions. The case also sheds light on how public procurement of innovation can lead to knowledge-intensive entrepreneurship – an area that is still largely undiscovered.