WHAT DRIVES SUPPLIER PARTICIPATION IN PUBLIC PROCUREMENT OF INNOVATIONS IN RUSSIA? EVIDENCE FROM EMPIRICAL STUDY
Abstract
The research assesses the driving and deterrent factors influencing supplier participation in public procurement of innovative products in Russia. A large-scale online survey was conducted in the first quarter of 2025, involving over 1,200 respondents. The empirical findings indicate that the primary incentives for suppliers to engage in innovative procurement include internal organizational motivation, reduced bureaucratic procedures and administrative barriers, as well as legislative preferences for suppliers of innovative products. Significant barriers mentioned by suppliers include limited internal resources, concerns about violating procurement regulations when participating in tenders, and reputational risks in case of contract non-fulfillment.
The study's results suggest that positive prior experience in supplying innovative products, streamlined bureaucratic processes, and improved awareness of opportunities in public procurement of innovations are crucial for fostering engagement of suppliers in procurement of innovations. The paper concludes that there is a need to standardize the conceptual framework in the field of innovative procurement and to develop methodological guidelines for market participants. The authors argue that these measures would contribute to increasing the scale and volume of innovative procurement in Russia.
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