Exploration of the Effectiveness of Public Procurement for Innovation: Panel Analysis of EU Countries’ data

  • Kristina Detelj University of Zagreb Faculty of Organization and Informatics Varazdin Pavlinska 2 HR 42000 Varaždin
  • Timotej Jagric University of Maribor Faculty of Economics and Business Razlagova 14 2000 Maribor
  • Tanja Markovic-Hribernik University of Maribor Faculty of Economics and Business Razlagova 14 2000 Maribor
Keywords: public procurement, innovation policy instruments, panel data analysis, EU


This research focuses on the impact of public procurement for innovation (PPI) on a country's level of innovativeness. The available literature primarily consists of case studies that identify PPI’s impact on the innovativeness of particular firms. Therefore, this paper developed an econometric model to investigate the impact of PPI on the innovativeness of EU countries. The model tested the impact of four different innovation policy measures (PPI, R&D subsidies, regulations and cooperation). The results showed that in different model settings, PPI was positively and significantly related to countries’ innovativeness, whereas the other three measures showed low significance. These research findings may be important to policy makers when selecting appropriate measures for promoting innovation and thereby also enhancing their country’s competitiveness.

Author Biographies

Kristina Detelj, University of Zagreb Faculty of Organization and Informatics Varazdin Pavlinska 2 HR 42000 Varaždin
Teaching Assistant
Timotej Jagric, University of Maribor Faculty of Economics and Business Razlagova 14 2000 Maribor
Professor Department of Finance
Tanja Markovic-Hribernik, University of Maribor Faculty of Economics and Business Razlagova 14 2000 Maribor
Department of Finance Head of department


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