Innovative Products Pilot Procurement for Overseas Countries

As introduced in Lecture 2 yesterday, leveraging the Innovative Products Program, pre-commercialized Innovative Products are purchased with the PPS budget and tested by public entities that are responsible for providing feedback to Innovative Companies. This pilot purchase program can help the products readily join procurement markets and facilitate the development of relevant technology. Also, records with ‘Government Procurement’ are a strong credit.

Republic of Korea's e-Procurement System (KONEPS) Toward Next-generation

Republic of Korea's Online E-Procurement System (KONEPS) is a single window for public procurement that provides integrated bid information for businesses and acts as a single repository of vendor data for the entire public organization. The system has dramatically enhanced the transparency of the public procurement process and the efficiency of the procurement administration, saving economic costs. It has also stimulated the development of e-commerce in the private sector. Today, PPS is even preparing for the Next-Generation version of KONEPS.

How Does Public Procurement Create Innovation in the Republic of Korea?

The Republic of Korea's innovation system has been built and coordinated over a long period, particularly after the Korean War, to increase government-led research and development investments. As a result, South Korea reached an advanced country level, quickly possessing top-tier technologies in various fields. However, after that, we have reached a stage where we realize there are limitations to the current approach in fostering innovation that leads beyond simply catching up with advanced countries’ technological levels.

Republic of Korea’s Innovative Procurement and Fostering SMEs

In the Republic of Korea, great emphasis is placed on encouraging innovation nationwide while promoting small and medium enterprises (SMEs), the backbone of the national economy. Thus, the Innovative Procurement policy was introduced in 2019 to improve the quality of public services and to support technological innovation and growth in the private sector. Korean government uses its immense purchasing power to acquire goods with innovative technology, helping to create a market for these products and to support their commercialization.

Republic of Korea’s Procurement Policy and System

Under the central procurement system, the first and foremost aim of domestic procurement is to ensure that the government's needs are met in a cost effective manner, and to help government agencies perform well and manage efficiently by supplying quality products in a timely manner. The magnitude of the government's outlay on procurement, which annually runs into billions of dollars, creates opportunities for implementing selected national policies. PPS has endeavored to improve the quality of procured goods and achieve socio-economic objectives in its procurement procedures.