Expanding Opportunities for Mid-sized R&D Innovative Products to Enter the Public Market

Ministry of Trade, Industry and Energy & KIAT Receive Applications from Excellent R&D Innovative Product Companies
Exclusive Contracts Valid for 3 Years... Purchase Target of 400 Billion Won This Year

Seok Young-cheol, President of the Korea Institute for Advancement of Technology (KIAT). (Photo by KIAT)

[Asia Economy Reporter Moon Chaeseok] Small and medium-sized enterprises (SMEs) will have easier access to the public procurement market for innovative products developed with government support.

The Korea Institute for Advancement of Technology (KIAT) announced on the 25th that it will publicize the 'SME Excellent R&D Innovative Product Designation System.'

This system allows public institutions to enter into direct contracts for products developed with R&D support from the Ministry of Trade, Industry and Energy. The application period is from today until the 15th of next month.

The system was introduced at the end of last year to support the initial market entry of domestic SMEs and to improve government services through the adoption of innovative products.

Once designated as an excellent R&D innovative product and registered in the Innovation Market, public institutions can directly contract to purchase the product. The validity period for direct contracts is maintained for three years from the date of designation.

Additionally, when the amended Procurement Business Act is enforced in October, officials responsible for purchasing innovative products will be exempt from liability for losses incurred from the purchase, provided there is no intentional or gross negligence.

A KIAT official said, "With the introduction of the government's innovative purchase target system, local governments and public institutions will allocate 1% of their goods procurement budget to purchasing innovative products, setting an annual purchase target of 400 billion KRW this year," adding, "We look forward to active participation from SMEs seeking to pioneer public procurement channels."

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