Fixing Procurement and Enabling Innovation: Interview with Laurent Carbonneau, Council of...

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Summary

Canada is facing a productivity gap and a lack of innovation despite significant investments by government in research and development.

The Council of Canadian Innovators has released a report titled 'Buying Ideas: Procuring Public Sector Innovation in Canada' that highlights the need to leverage government procurement to drive innovation and productivity.

The report identifies several problems with the current procurement system, including over-specification, risk aversion, and a lack of focus on the demand side of innovation.

The report makes six recommendations to address these issues, including implementing an SME procurement target for innovation and creating an innovative public procurement program.

The conversation explores the importance of innovative procurement in government and the need for improved procurement practices in Canada. Laurent highlights the Finnish model of procurement, which provides funding and expertise to government departments and agencies to pursue innovative projects.

Our guest also emphasizes the need for innovative procurement standards and the role of standards in governance. The conversation touches on the challenges in the Canadian healthcare system and the potential for innovation in healthcare procurement. He also emphasizes the importance of spending public money well and the need for more collaboration between government, business, and academia.

Some of the takeaways:

Takeaways

Canada is not succeeding in the digital economy due to a productivity gap and a lack of innovation. The current government procurement system is broken and needs to be leveraged to drive innovation and productivity. The government has focused on the supply side of innovation, funding universities and even corporate programs. While these are good programs, government needs to focus on the demand side of innovation. One suggestion is to follow what other nations have done and implement an SME procurement target for innovation. There is a need to address problems with over-specification, risk aversion, and a lack of focus on innovation in the procurement process. The Finnish model of procurement, which provides funding and expertise, can be a valuable approach for government departments and agencies to pursue innovative projects. Innovative procurement standards can serve as a flexible and powerful system of governance, allowing governments to improve the quality of dollars spent and solve public problems more effectively. There is a need for improved procurement practices in the Canadian healthcare system to drive innovation and address existing challenges. Collaboration between government, business, and academia is crucial for successful innovation procurement and industrial strategy. Spending public money well is essential for maintaining broad prosperity and the social values of a country.
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