Ministry of Industry Expands Market Access for Innovative SMEs through Public Procurement

Applications for 'Outstanding R&D Innovative Product Designation' Open from the 21st

[Asia Economy Sejong=Reporter Lee Jun-hyung] The Ministry of Trade, Industry and Energy will support small and medium-sized enterprises (SMEs) that have developed innovative products through public procurement.

The ministry announced on the 20th that it will accept applications for the designation of 'Outstanding R&D Innovative Products' from SMEs from the 21st until next month 25th. Eligible applicants are SMEs that have successfully completed Ministry-led R&D projects within the last five years and have successfully commercialized their products.

The Outstanding R&D Innovative Products designation system was introduced in 2020 to support innovative SME products in securing sales channels through the public procurement market. Since its introduction, 58 products have been selected, including 7 in 2020 and 51 last year, recording procurement worth 3.9 billion KRW to date.

Once designated as an Outstanding R&D Innovative Product, the product is registered on the Innovation Marketplace, a platform that integrates management and support for innovative procurement policies. Public institutions, government ministries, and local governments can enter into direct contracts with designated innovative product companies for three years. According to the Procurement Business Act, officials responsible for purchasing innovative products are exempt from liability for losses incurred from such purchases, except in cases where intentional or gross negligence is proven.

Additionally, Outstanding R&D Innovative Products are subject to the Innovation Purchase Target System, which requires public institutions to allocate a certain percentage of their procurement budget to innovative products. They are also included in the 'Innovative Product Pilot Purchase Project,' where the Public Procurement Service purchases innovative products from private companies and supplies them to government and public institutions.

Selection Process for Excellent Research and Development Innovative Products.
[Photo by Ministry of Trade, Industry and Energy]

Applications undergo three evaluations: document review, technological innovation assessment, and final deliberation. The ministry also reviews whether applicants have obtained legally mandated certifications such as the KC mark to verify procurement suitability.

Companies wishing to apply must submit their application documents to the Korea Institute for Advancement of Technology by next month 25th. Detailed information can be found through announcements by the Korea Institute for Advancement of Technology and the Innovation Marketplace project.

No Geon-gi, Director of Industrial Technology Convergence Policy at the Ministry of Trade, Industry and Energy, said, "Many companies face difficulties in the 'valley of death' despite excellent R&D outcomes and new product development because they cannot find sales channels," adding, "Designation as an innovative product can serve as a stepping stone for company growth by securing sales channels."

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