Public Procurement of Innovation in the Context of a Transitional Economy

Jørgensen, Kim René

4. term

Economics and Business Administration (Innovation and Entrepreneurship), Master

2014

2014-06-04

91

Afhandlingen undersøger, hvordan finansiering påvirker brugen af offentlige indkøb til at fremme innovation i en overgangsøkonomi med fokus på Letland. Selvom offentlige indkøb udgør en stor andel af EU’s økonomi, har forskning og politik primært fokuseret på effektiv anvendelse af offentlige midler og på udbudsside‑tiltag, mens det praktiske spørgsmål om, hvordan innovationstunge indkøb faktisk finansieres, er underbelyst—særligt i lande med mindre modne finansielle systemer. Studiet placerer Letlands transition efter 1991, krisen i 2008 med et IMF‑program og den gradvise EU‑integration som centrale rammevilkår, der former adgang til kapital, risikoprofiler og tilbagebetalingshorisonter. Med afsæt i litteraturen om offentlige innovationsindkøb anvendes en casestudie‑tilgang, der analyserer store lettiske infrastruktur‑ og energiprojekter (bl.a. Rail Baltica, Visaginas‑projektet og en LNG‑terminal samt Inčukalns‑lageret) for at kortlægge finansieringskanaler og begrænsninger, herunder obligationer, EU‑midler og mulige eksterne partnere. Afhandlingen fokuserer på finansielle strukturer—kreditvurderinger, kapitalbehov, risici og tidsforløb—snarere end på udbudsdesign, og benytter interviews og dokumentanalyse til at vurdere implementeringskonsekvenser. Målet er at tydeliggøre muligheder og udfordringer for overgangsøkonomier, når finansiering skal mobiliseres til innovative offentlige indkøb. Detaljerede resultater præsenteres i senere kapitler, der ligger uden for dette uddrag.

This thesis investigates how financing affects the use of public procurement to stimulate innovation in a transitional economy, focusing on Latvia. Although public procurement accounts for a substantial share of the EU economy, academic and policy debates have largely emphasized the efficient use of public expenditure and supply‑side measures, leaving the practical question of how to finance innovation‑oriented procurements underexplored—especially in countries with less mature financial systems. The study situates Latvia’s post‑1991 transition, the 2008 crisis and IMF program, and ongoing EU integration as contextual factors shaping access to capital, risk profiles, and repayment horizons. Drawing on the public procurement of innovation literature and a case study approach, it analyzes major Latvian infrastructure and energy initiatives (e.g., Rail Baltica, the Visaginas project, and a liquefied natural gas terminal and the Inčukalns storage) to map financing channels and constraints, including bonds, EU funds, and potential external partners. The thesis concentrates on financing structures—credit ratings, capital needs, risks, and timelines—rather than tender design, and uses interviews and document analysis to assess implementation implications. Its aim is to clarify the possibilities and challenges transitional economies face when mobilizing finance for innovative public procurement. Detailed findings appear in later chapters beyond this excerpt.

[This summary has been generated with the help of AI directly from the project (PDF)]

Download
View record in AAU Student Projects