Standards in green public procurement – A framework to enhance innovation

Abstract Green Public Procurement (GPP) is defined as purchasing which reduces environmental impacts across product or service life cycles. Standardization, as another demand-side measure, complements GPP by shaping standards, which when strategically applied in tenders can drive market demand for environmental products and services and stimulate eco-innovation. However, the uptake of GPP, use of standards, and consideration of innovation in public procurement is limited, and analyses often only consider two of the three. To broaden conceptualizations of innovation in GPP, this paper conducts a review and synthesis of relevant literature to examine roles for standards and standardization in GPP according to innovation life cycle stages, from R&D through to commercialization and diffusion. It develops a conceptual space for product and service innovations according to the purchase of off-the-shelf products or services, incremental adaptations through the public procurement of innovation, and radical innovations using pre-commercial procurement and innovation partnerships. Roles for particular types of standards are examined as inputs to these different mechanisms. Focusing on pre-commercial procurement, standardization is then situated according to distinct stages in the R&D process. Four case studies from literature are applied to support this framework. This paper creates a foundation for integrated understanding of the functions of standards - and applicability of standardization - in demand-side product and process development and market penetration for environmental improvement. Its framework may be used as a conceptual space for public procurers across Europe to better visualize characteristics of products and services when making tender design decisions based on functionality and rewarding performance. Further study should also consider procurer capabilities for sourcing and revealing knowledge to improve procurement outcomes, as ultimately capturing the benefits from GPP hinges upon its ability to be conducted in practice.