About Innovative Procurement
Companies
Innovative Companies
About Innovative Procurement
 |
Overview Since 2019, PPS has laid the foundation for improving public sector services and fostering innovation by identifying and purchasing innovative products. The annual public procurement of innovative products has seen a significant increase over the six years since its introduction. However, there is a growing emphasis on fortifying the overall framework, including post-procurement management, and on improving its performance outcomes. Accordingly, PPS has restructured the innovative product program to better promote technological innovation and growth, while also alleviating the burden on participating companies. Designation of Innovative Products In 2023, the management system for innovative products was restructured, and their classification was revised into Types 1 and 2. Type 1 refers to products recognized for their innovativeness through R&D led by the relevant ministry or an internal technology certification process. Type 2 refers to innovative prototype products designated by PPS, recognized for innovativeness before commercialization, and at a technology development stage of seven or higher. The number of innovative products, which started at 345 in 2020, has expanded to 2,280 as of 2024. Pilot Purchase of Innovative Product The Pilot Purchase of Innovative Product program is an initiative of procuring and using designated innovative products on a trial basis and then evaluating and providing feedback. Both Type 1 and Type 2 Innovative Products are eligible for this initiative. When a public institution applies for pilot use based on a pilot use basic plan submitted by an innovative supplier, PPS reviews the proposed amount and scale to match institutions with appropriate products. Once matched, PPS purchases the products and the suppliers deliver them to each procuring public institution. This program involves the procurement and pilot use of innovative products in the public sector to verify their quality and performance. As awareness of the program has grown, the number of participating public institutions increased from 35 in 2019 to 456 in 2024, and the number of eligible products increased from 28 to 236 over the same period. Overseas Demonstration of Innovative Product To support the improvement of administrative services in the public sectors of developing and other countries, and to contribute to sustainable development and shared prosperity of humanity, PPS has expanded the scope of its demonstration projects for innovative products to overseas markets. To promote environmentally friendly power generation, PPS tested domestically produced power generation equipment at overseas power plants. It also distributed educational tools for children with disabilities to improve the learning environment in developing countries. In addition, product performance was verified in local settings abroad for items aimed at solving various social issues - such as supporting tuberculosis eradication in the Philippines and addressing urban traffic congestion in Thailand. Some of these efforts have been linked with official development assistance (ODA), enabling additional support. |