Public Procurement Service Promotes 'Demand-Driven' Innovative New Product Project

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The Public Procurement Service (PPS) is promoting a ‘demand-driven’ innovative prototype project, where the demand side (public institutions) proposes tasks and the supply side (companies) solves the problems.

On the 20th, PPS announced that it will actively promote the ‘2020 Demand-Driven Innovative Prototype Designation and Purchase Project’ with this content.

This project is carried out in a way that each public institution acts as the demand side and proposes tasks to solve institutional problems, and companies find solutions and propose them to the demand institutions. It enables a new form of public procurement that helps match public institutions and companies on the premise of expanding the market for innovative prototypes.

In particular, if a product is designated as an innovative prototype through an innovation evaluation process, PPS will purchase the product first with its own budget and supply it to the demand institution that proposed the task, minimizing the risks associated with prototype purchase and supply.

Through this, PPS expects that companies producing excellent innovative prototypes will secure market channels in the public sector while simultaneously enhancing their own competitiveness.

This year, PPS received a total of 157 challenge tasks from public institutions, and among them, 21 tasks were finally selected as targets for the demand-driven innovative prototype project.

Participating companies will propose solutions to the selected tasks to PPS and individual public institutions by the end of next month. Then, after innovation evaluations, it is expected that the decision on whether to produce and sell the innovative prototypes will be made in July.

PPS plans to purchase designated products within a budget of 3.3 billion KRW as a pilot project this year and expand the purchase budget from next year to strengthen project capabilities.

For more detailed information about the demand-driven innovative prototype project, please refer to the Innovation Procurement Comprehensive Portal ‘Innovation Market’.

Jung Moo-kyung, Administrator of PPS, said, “The government will become the initial purchaser of innovative products at the pre-commercialization stage, and PPS will focus its institutional capabilities on leading the growth of innovative companies and reforming public services for the people.”

This content was produced with the assistance of AI translation services.