Discover how city governments worldwide are leveraging their purchasing power to shape markets, foster sustainability, and enhance public services. From revolutionizing waste management to electrifying transport infrastructure, learn how innovative procurement strategies are unlocking new opportunities for cities to create positive change.
In the dynamic landscape of urban governance, city governments display considerable influence beyond forming policy. One such avenue lies in procurement, where the allocation of resources can not only drive efficiency but also serve as a catalyst for innovation. In partnership with the World Economic Forum, alongside other thought leaders, Marketplace jointly published this model policy on Innovation-Friendly Procurement.
City governments worldwide collectively spend a staggering $6 trillion annually on procuring goods and services, amounting to 8% of global GDP. While these contracts present opportunities for private sector suppliers, they also serve as a strategic tool for local authorities to shape markets and advance policy objectives.
A paradigm shift is underway as city leaders recognize the untapped potential of procurement as a driver of innovation. Initiatives aimed at dismantling legislative and cultural barriers have gained momentum, with a growing emphasis on leveraging procurement to spark innovation and transformation.
The model policy, "Innovation Friendly Procurement," emphasizes purpose-driven procurement, empowered teams, and engagement with diverse suppliers. By transforming everyday spending into a driver of innovation, cities can inject billions into the innovation economy without additional public resources, paving the way for safer, more sustainable, and prosperous urban environments.
As we confront global crises, it is imperative to harness the full potential of procurement as a tool for driving innovation and building resilient, future-ready cities. By leveraging purchasing power to stimulate innovation, cities can pave the way for a brighter, more sustainable future for all.
Read the full article to learn how cities can flex their purchasing power to stimulate innovation!