Measurement indications for R&D / R&D of ICT procurement in Europe

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1 Measurement indications for R&D / R&D of ICT procurement in Europe European High Level Meeting Public Demand of Innovation for Efficient Public Services and Competitive European Industries & SMEs Lionel Kapff Deloitte Consulting lkapff@deloitte.com Madrid, 2 nd October 2012

2 Contents Introduction 3 Purpose of the study 4 Methodology 5 Availability of public procurement data across Europe 6 Preliminary results for selected EU Member States 8 Conclusions 11 Questions & Answers Annexes: Contact information; Examples of R&D of ICT procurement contracts; Recommended readings. 2 Measurement indications for R&D / R&D of ICT procurement in Europe

3 Introduction Study commissioned by the European Commission, DG CNECT: Quantifying public procurement of R&D of ICT solutions in Europe Study consortium: t33 + Deloitte Consulting Belgium + Spark Legal Network Measurement of: Public procurement of ICT Public procurement of R&D Public procurement of R&D of ICT solutions PP of ICT PP of R&D of ICT PP of R&D Coverage: 27 EU Member States + Norway + Switzerland Timeline of the study: 1. Methodological analysis 2. Data gathering and analysis 3. Comparative analysis and future methodology 01/ / / / Measurement indications for R&D / R&D of ICT procurement in Europe

4 Purpose of the study Objectives of the study: Establish statistics on the R&D and ICT procurements made across Europe, including those made at the country-level (and hence not covered by TED) for the first time. Set up a methodology for updating the statistics, assuring sustainability and re-use of the work already carried out for the first time data gathering exercise. Policy goals: Reliable statistics are the basis for evidence-based policy-making. Statistics enable policy-makers to: Set targets; Benchmark the status of their jurisdiction compared to others; and Measure progress of implemented policies. The European Commission will make use of the measurements of expenditure patterns in order to design and develop PCP / PPI support policies efficiently and effectively over time. 4 Measurement indications for R&D / R&D of ICT procurement in Europe

5 Methodology Funder-based approach: Collection of public procurement raw data (i.e. public procurement notifications and contract award notices) Data gathering from various sources: OJEU - TED Public procurement authorities at different levels of government in the MS (typically: e-notification platforms for public procurement) Private tender alert service providers Computer-based data analysis + manual verification of results Definitions of ICT and R&D based on international statistical standards Missing data (e.g. contract values, defence procurement) is estimated based on: Extrapolations of existing data Additional statistical input and qualitative information (interviews with Ministries of Defence, public procurement authorities and national statistical offices are carried out in all countries) 5 Measurement indications for R&D / R&D of ICT procurement in Europe

6 Availability of public procurement data across Europe Data availability of under EU-threshold public procurement Countries with a mandatory one-stop portal Belgium, Cyprus, Denmark, Estonia, Finland, Hungary, Ireland, Latvia, Lithuania, Luxembourg, Norway, Poland, Portugal, Slovakia, Slovenia Countries with a one-stop portal for national authorities Austria, France, Switzerland Countries with a voluntary portal Germany Countries with multiple portals Bulgaria, Czech Republic, Italy, Malta, Netherlands, Rumania, Spain, Sweden, United Kingdom Countries with a planned portal Greece, Netherlands Sources: Deloitte, t33, Spark Legal Network; interim results of the Study on e-procurement measurement and benchmarking (EC DG MARKT) 6 Measurement indications for R&D / R&D of ICT procurement in Europe

7 Availability of public procurement data across Europe Data availability issues Fragmentation of public procurement data Public data is not always centrally available. There are more than 300 e-notification platforms scattered across Europe. Incomplete coverage Several e-notification platforms have only been recently established. Some sensible areas such as defence are not (fully) covered. National thresholds for publication vary across countries. Data quality issues Values of contracts are often not indicated. CPV codes are often not used for below-eu-threshold procurements. Data gathering issues Batch-downloads of full databases or even searches are often not possible. Some public and private data providers are reluctant to cooperate. 7 Measurement indications for R&D / R&D of ICT procurement in Europe

8 Preliminary results for selected EU Member States Public procurement of ICT 2011 Belgium France* Italy Public procurement of ICT Main procuring public sector areas Important contracting authorities 580 million EUR 7.6 billion EUR 2.6 billion EUR General public services (44%) Public order and safety (13%) Transport (4%) Electricity (4%) Police fédérale direction des achats (public order and safety) SPF P&O (general public Direction générale institutions et population (general public ETNIC (other) SPF FIN (general public Smals (other) SPF Chancellerie du premier ministre (general public Banque nationale de Belgique (economic and financial affairs) Astrid SA (other) Le Forem (other) Environment (37%) General public services (19%) Education (8%) Economic and financial affairs (5%) Meeddat (environment) Syndicat Mixte Autolib (transport) Conseil régional de Lorraine (general public Pôle emploi DGA SI (general public Ministère de l'intérieur DSIC/SDAGA/BA (public order and safety) Direction générale finances publiques (general public Service des achats de l'état (general public Réseau ferré de France (RFF) (transport) Communauté d'agglomération du Plateau de Saclay (general public France Télévisions (other) General public services (72%) Postal services (8%) Electricity (7%) Health (6%) Consip S.p.A. (general public ENEL servizi SRL (electricity) ENI SpA (gas and oil) INAIL (general public Inpdap (general public ISTAT ISTITUTO NAZIONALE DI STATISTICA (general public Lombardia Informatica SpA (general public Poste italiane SpA (postal PosteMobile SpA (postal RAI - Radiotelevisione italiana SpA (general public * Data for France currently only includes above EU-threshold procurements. 8 Measurement indications for R&D / R&D of ICT procurement in Europe

9 Preliminary results for selected EU Member States Public procurement of R&D 2011 Belgium France* Italy Public procurement of R&D Main procuring public sector areas Important contracting authorities 51 million EUR 170 million EUR 107 million EUR General public services (65%) Education (7%) Transport (2%) Electricity (2%) Afdeling Bovenschelde (other) Centre wallon de recherches agronomiques (other) CTP - Centre International de la terre et de la pierre (other) Fuel Cells and Hydrogen Joint Undertaking (other) Musée royal de l'afrique Centrale (other) SESAR Joint Undertaking (transport) Société des transports intercommunaux de Bruxelles (transport) SPF - Direction générale institutions et population (general public Université de Liège (education) VIB Flemish Institute for Biotechnology (other) General public services (14%) Electricity (10%) Education (6%) Transport (6%) Aéroports de Paris (transport) CEA (other) Centre national d'études spatiales (other) Conseil régional d'aquitaine (general public EDF (electricity) Grenoble Alpes Métropole (general public INRIA (other) Institut national de la santé et de la recherche médicale (health) Marseille aménagement (other) Région Picardie (general public Electricity (32%) General public services (18%) Transport (15%) Education (14%) CNR CONSIGLIO NAZIONALE DELLE RICERCHE (other) Comune di Empoli (general public Istituto nazionale di statistica (ISTAT) (other) Regione Calabria (general public RFI RETE FERROVIARIA ITALIANA SPA (transport) TERNA SpA (electricity) Università Cattolica del Sacro Cuore (education) Università degli studi di Napoli Federico II (education) Università degli studi di Pisa (education) Università degli studi di Trieste (education) * Data for France currently only includes above EU-threshold procurements. 9 Measurement indications for R&D / R&D of ICT procurement in Europe

10 Preliminary results for selected EU Member States Public procurement of R&D of ICT solutions 2011 Belgium France* Italy Public procurement of R&D of ICT Main procuring public sector areas Important contracting authorities 29 million EUR (2008: 2 million EUR) General public services (83%) (2008: Health (64%)) Afdeling Bovenschelde (other) Bibnet (other) Centre Wallon de Recherches Agronomiques (other) Société des Transports Intercommunaux de Bruxelles (transport) SPF - Direction Générale Institutions et Population (general public VIB (other) Musée royal de l'afrique Centrale (other) 24 million EUR (2008: 4 million EUR) Transport (21%) Education (16%) Environment (5%) Ecole Nationale de l'aviation Civile (education) Aéroports de Paris (transport) BRGM (other) Agence Nationale de la Recherche (other) INRIA (other) 23 million EUR (2008: 10 million EUR) Transport (50%) Education (16%) General public services (16%) Electricity (5%) CNR Consiglio Nazionale delle Ricerche (other) Comune di Empoli (general public RFI Rete Ferroviaria Italiana SpA (transport) Università Cattolica del Sacro Cuore (education) Università degli studi di Pisa (education) * Data for France currently only includes above EU-threshold procurements. 10 Measurement indications for R&D / R&D of ICT procurement in Europe

11 Conclusions The fragmented e-procurement landscape in Europe has so far impeded the collection of reliable and comparable data on public procurement of R&D. This study for the European Commission will produce: Statistics on public procurement of ICT / R&D / R&D of ICT; and A methodology for future (regular) data collection. Reliable data on procurement patterns is the basis for evidenced-based PCP and PPI policy-making. Preliminary study results show that public procurement of R&D (of ICT) is still very small as compared to total public procurement yet growing rapidly in all Member States under scope. 11 Measurement indications for R&D / R&D of ICT procurement in Europe

12 Questions and Answers 12 Measurement indications for R&D / R&D of ICT procurement in Europe

13 Contact information Do not hesitate to contact me for any input, questions or comments: Lionel Kapff Consultant Deloitte Consulting Mobile lkapff@deloitte.com 13 Measurement indications for R&D / R&D of ICT procurement in Europe

14 Annex: Examples of R&D of ICT procurement contracts Belgium: SPF - Direction Générale Institutions et Population: Development of a new electronic voting system; vzw Bibnet: Realization of an e-book prototype; Afdeling Bovenschelde: Study for the development of a river information system; Société des transports intercommunaux de Bruxelles: Study for the conception and the implementation of a communication-based train control security safety signaling; Musée royal de l'afrique Centrale: Provision of an x-ray digital system for activities of morphological research; Centre Wallon de Recherches Agronomiques: Provision of an ultra-high performance chromatograph. France: Ecole nationale de l'aviation civile: Conception and the development of software tools; Aéroports de Paris: Conception and the development of software tools; INRIA: Acquisition of equipment of virtual reality for the research activities of INRIA. Italy: RFI Rete Ferroviaria Italiana SpA: Development, testing, verification and validation of a multi-station computerised central machine; CNR research laboratory: Laser equipment; Municipality of Empoli: Supply and installation of high-tech equipment needed to set up a laboratory for nanotechnology; University of Pisa: Research in robotics and software development. 14 Measurement indications for R&D / R&D of ICT procurement in Europe

15 Annex: Recommended readings Pre-commercial procurement (PCP) and public procurement of innovation (PPI): European Commission website on PCP: European Commission website on PPI: European Commission (2007): Pre-commercial Procurement: Driving innovation to ensure sustainable high quality public services in Europe, COM(2007) 799 final. European Commission (2005): Public Procurement for research and innovation. European Parliament (2009): Pre-commercial procurement: driving innovation to ensure sustainable high quality public services in Europe. ECORYS (2011): Study on pre-commercial procurement in the field of Security. ERAPRISM (2010): Public Procurement for Innovation in Small European Countries. Independant Expert Group (2006): Pre-commercial procurement of innovation. OECD (2011): Demand-side innovation policies. OMC PTP (2009): Exploring Public Procurement as a Strategic Innovation Policy Mix Instrument. Ramboll (2008): Opportunities for Public Technology Procurement in the ICT-related sectors in Europe. Availability of public procurement data across Europe: Graux & Kronenburg (2012): State of Play: Re-use of Public Procurement Data. Cattaneo (2012): The e-procurement Landscape in the EU, interim results of the Study on e-procurement measurement and benchmarking. Siemens & Time.lex (2010): Study on the evaluation of the Action Plan for the implementation of the legal framework for electronic procurement (Phase II). International statistical guidelines: OECD (2002): Frascati Manual - Proposed Standard Practice for Surveys on Research and Experimental Development. OECD (2011): Guide to measuring the Information Society. 15 Measurement indications for R&D / R&D of ICT procurement in Europe

16 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's approximately 193,000 professionals are committed to becoming the standard of excellence. This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, Deloitte Global Services Limited, Deloitte Global Services Holdings Limited, the Deloitte Touche Tohmatsu Verein, any of their member firms, or any of the foregoing s affiliates (collectively the Deloitte Network ) are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

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