Institutionalization of public procurement of innovative products for supporting innovative companies

 This article provides a theoretical and empirical assessment of the impact of public procurement on the development of domestic innovative entrepreneurship, with a focus on developing a system of measures to further institutionalize state procurement of its products. Given the increasing pressure of sanctions against Russia and the need to ensure technological sovereignty, the search for effective mechanisms to support domestic innovative firms has become particularly urgent. The most important of these, given severe budget constraints, is the institution of public procurement of innovative products. The aim of this study is to develop a research methodology, monitor public procurement of innovative products as a mechanism for supporting innovative firms, identify problem areas, and develop evidence-based recommendations for improving this institution. The paper places particular emphasis on the need to expand government demand for innovative products and develop a system of measures to support innovators in the public procurement market. In addressing these objectives, theoretical and methodological approaches to the interpretation of the concepts of “institutionalization” and “innovative procurement” are systematized. This article provides an in-depth analysis of institutionalization as a process of institutional change based on the introduction of new rules and norms, their adoption, and their transformation into widespread institutional practice. It is shown that a new paradigm of economic development in Russia under sanctions, based on the increased role of innovation, science, and research, objectively determines a stronger role for the state in stimulating the development of innovative firms, in particular by expanding its demand for innovative products through the formal institutionalization of their procurement. An econometric analysis was conducted to identify the influence of public procurement institutions at the level of innovation in national economies. The evolution of the regulatory framework in Russia is characterized, and institutional barriers to the participation of innovative businesses in procurement are identified. An empirical analysis of regional practices is used to assess the effectiveness of the existing institution of reporting by government customers. Based on the study’s results, practical recommendations were developed for the further institutionalization of innovative public procurement, aimed at stimulating state demand for the products of domestic innovative firms and developing an appropriate system of measures.

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