EIC Innovation Procurement Toolkit

1. What are R&D services?  

R&D services refer to activities aimed at developing and testing prototypes to introduce solutions that are not available on the market yet. These services are closely linked to the Technology Readiness Levels (TRL), as the maturity of a given solution depends on its TRL stage. Suppliers are required to perform R&D activities within TRLs 1 and 8. 

See Section 2.1.1 to know more. 

2. What procedures do R&D services follow? 

R&D-related public procurement procedures include Pre-Commercial Procurement (PCP), the negotiated procedure for R&D purposes [Art. 32(3)(a)], and the Innovation Partnership (Art. 31) under Directive 2014/24/EU. The Design Contest, under the same Directive, fosters innovation by competitively selecting the best project proposals, typically in architecture or engineering. 

See Sections 2.1 to 2.3 to know more. 

3. How are Intellectual Property Rights (IPRs) managed in these R&D services? 

In procurement contracts involving R&D services, IPRs management balances the protection of innovations developed by suppliers and the public interest of the contracting authority. Such contracts clearly define ownership, distinguishing between: 

• Background IPRs (pre-existing). 
• Foreground IPRs (generated during the project). 
• Sideground IPRs (developed in parallel to, but not as a direct result of the project). 

   Depending on the contractual agreement, IPRs may: 

• Remain the property of the supplier, who may nonetheless be required to grant licenses to the contracting authority. 
• Be jointly owned by the supplier and the contracting authority, with rules to be defined for their use and commercial exploitation. 
• Be transferred to the contracting authority, thereby limiting the supplier’s ability to reuse them unless specific licensing rights are negotiated. 

See Section 2.5 to know more. 

1. What is non-R&D Innovation Procurement? Why is it important for my business? 

Non-R&D Innovation Procurement or Public Procurement of Innovative Solutions (PPI) refers to the purchase of innovative market-ready solutions or solutions not widely available on the market by public authorities (TRL 9). 

Thanks to PPI, suppliers can bring solutions that are already close to market into real deployment, gaining visibility and credibility. This not only facilitates wider uptake of their solutions but also positions them to address urgent societal challenges in fields such as sustainability, mobility, health, or digitalisation. 

See Section 3.1 to know more.   

2. What procurement procedures are used in this case? 

Non-R&D procurement mainly uses the Open and Restricted procedures (Arts. 27–28, Dir. 2014/24/EU), Negotiated procedures — with or without prior publication (Arts. 32 and 47) —, the Competitive procedure with negotiation (Art. 29), and the Competitive dialogue (Art. 30) of Directive 2014/24/EU. 

See Section 3.3 to know more. 

3. How can I participate in these procedures? 

Key steps include:  

• Understand the buyer’s needs. 
• Demonstrate market readiness. 
• Prepare for testing and certification. 
• Meet scale and pricing expectations. 
• Comply with procurement rules.       
• Preparing for competitive tendering. 
• Manage Intellectual Property Rights (IPRs) effectively. 
• Providing post-contract support. 
• Participation requirements. 

See Sections 3.1 to 3.3 to know more. 

4. How are Intellectual Property Rights (IPRs) managed in a non-R&D contract? 

In non-R&D contracts, the focus is mainly on pre-existing IPRs (background IPRs). Contrary to R&D contracts, where ownership and use of newly developed IPRs are heavily negotiated, non-R&D procurement focuses on ensuring that the procurer obtains a license from the supplier to use, deploy, and potentially modify or scale existing solutions, while safeguarding against risks of IPR infringement, non-performance, or operational issues.  

The specifics of licensing (i.e. exclusivity, duration, geographic scope, and field of use) must be clearly defined in the contract to meet the procurer's operational needs. Ownership of new IPRs is usually not relevant, as the buyer purchases ready-made solutions. Protecting trade secrets and confidential information is critical in non-R&D procurement due to the commercial nature of the solutions involved. Non-Disclosure Agreements (NDAs) are therefore commonly used to safeguard proprietary processes, designs or software, particularly if they involve sensitive technical data or competitive advantages.  

See Section 3.4. to know more. 

1. What is Private Sector Innovation Procurement (PSIP)? Why is it important for my business? 

PSIP refers to the process, regulated by Private Law, by which private companies procure innovative goods and services from suppliers, including SMEs and startups. Engaging in PSIP offers several benefits for businesses, including access to new markets and clients, opportunities to co-develop and tailor solutions in partnership with private buyers, as well as enhancing the company’s profile by becoming a supplier of an industry leader. 

See Section 4.1 to know more. 

2. How can my company participate in PSIP opportunities? 

Key steps include:  

• Identifying market needs and innovation gaps. 
• Establishing competitive differentiation and readiness.  
• Proactive market engagement and business development.  
• Structuring Innovation Procurement agreements and negotiations. 
• Implementation, testing and scaling. 
• Long-term relationship management and continuous innovation. 

See Section 4.5 to know more.           

3. How are Intellectual Property Rights (IPRs) managed in PSIP opportunities? 

In PSIP, IPRs and the ownership of Intellectual Property developed during procurement vary depending on contractual agreements. For the types of IPRs, please refer to FAQ no. 3 of Module A. In some PSIP cases, suppliers retain full ownership, allowing them to commercialise the innovation independently while granting usage rights to buyers. Alternatively, ownership may be shared between supplier and buyer, requiring mutual agreement on the commercialisation terms. In other cases, ownership may transfer entirely to the buyer, limiting the supplier’s ability to use or profit from the innovation unless specific licensing rights are included. 

See Section 4.10 to know more. 

1. What is the Module on International Innovation Procurement about, and which countries does it cover? 

The Module on International Innovation Procurement provides guidance to top-notch SMEs and startups on how to access Innovation Procurement opportunities beyond the EU market. It offers practical and strategic insights into public and private procurement processes, including legal and regulatory frameworks, available procurement instruments, and tips to support international market entry. 

The Module covers 11 strategically selected non-EU countries, each addressed in a dedicated Chapter, in this order: South Africa, USA, Japan, Canada, United Kingdom, Brazil, Chile, Switzerland, Republic of Korea, India and Australia. In addition, this Module includes a Chapter on International Organisations involved in Innovation Procurement, such as multilateral development banks and United Nations Agencies, to support engagement in global procurement.  

See Introduction to know more. 

2. What is meant by Innovation Procurement at a global level? 

Innovation Procurement at a global level refers to procurement strategies used by buyers worldwide to stimulate the development and uptake of innovative solutions that are not yet fully available on the market. At the international level, the legal framework is primarily shaped by the World Trade Organisation (WTO) Agreement on Government Procurement (GPA), to which 22 Parties belong currently. The GPA aims to mutually open government procurement markets among its Parties, while promoting transparency, competition and non-discrimination, alongside other non-EU procurement models. 

See Section 2 of each Country profile of Module D to know more. 

3. How to access tender opportunities at a global level?  

Access to international tender opportunities is facilitated by the EU’s forty (40) trade agreements in place with nearly eighty (80) countries, which allow for the mutual opening of public procurement markets, providing an easier access for EU companies in both developed countries and emerging economies. In addition, the European Commission’s Access2Markets portal supports businesses in engaging in international trade, offering comprehensive information on tariffs, taxes, product regulations and market requirements across all EU Member States and more than hundred and forty (140) non-EU markets. Each country profile sheet provides information on the main public and private sector tender platforms, as well as guidance on how to apply to tender opportunities.  

If you are an EIC beneficiary and not yet part of the SPIN4EIC free assistance programme, you are welcome to request support aimed at receiving tailored guidance on accessing international markets. 

See Sections 4 & 5 of each Country profile of Module D to know more. 

1. What is meant by cooperation in the context of Innovation Procurement? 

 In EU public procurement, cooperation refers to structured collaboration between two or more parties - typically economic operators, public authorities, or both - with the shared objective of participating in or delivering public contracts. Cooperation aims to bring together different skills, resources and perspectives to reduce risks and costs and enable the development and adoption of complex innovative solutions. 

When an economic operator intends to explore a cooperative arrangement, it is essential to follow best practices that ensure compliance with EU Public Procurement Directives and competition law, carry out thorough due diligence on potential partners, select the most appropriate form of cooperation, and put in place a well-drafted cooperation agreement clearly defining roles, responsibilities, governance arrangements, and Intellectual Property Rights (IPRs). 

See Section 6.1 & 6.2 to know more. 

2. What types of cooperation exist in Innovation Procurement? 

In the context of Innovation Procurement, cooperation can take several forms, depending on how economic operators organise themselves and interact with other actors in the procurement process. The main types of collaboration are presented, in a non-exclusive manner, below:  

• Cooperation between economic operators refers to collaborative arrangements between companies to jointly develop and deliver innovative solutions in response to a procurement need. This cooperation typically takes the form of consortia, subcontracting arrangements, joint ventures or strategic alliances, and open innovation networks, enabling companies to combine complementary skills, share risks and co-develop innovative solutions.  
• Cooperation within a contracting authority refers to cross-departmental cooperation between different departments or agencies within a public authority to align goals, share knowledge, and ensure the innovation fits broader policy or operational needs. 
• Cooperation between contracting authorities refers to the desire of public procurers to purchase together, collaborating and implementing joint procurement either within a single EU Member State or including a cross-border element in it. 
• There can be other types of cooperation, such as the quadruple helix cooperation, involving four key actors - government, industry, academia, and civil society - to ensure innovations are socially relevant, scientifically sound, and economically viable, or partnerships between the demand and the supply side, such as Public–Private Partnerships (PPPs) and Innovation Partnerships. Nonetheless, in stricto sensu, public procurement’s main focus and primary objective is the acquisition of innovative solutions, as defined in the Introduction of the EIC Innovation Procurement Toolkit (please refer to FAQ no. 1 of Introduction).  

See Section 6.2 to know more. 

3. What are the main risks associated with cooperation in Innovation Procurement, and how can they be managed?  

In Innovation Procurement, cooperation offers clear benefits but also exposes economic operators to several categories of risk. The risk refers to the uncertainty that may affect the achievement of procurement objectives. 

The main risks include: 

• Financial risks, such as significant upfront and non-recoverable costs for bid preparation. 
• Legal and procedural risks related to compliance with EU and national procurement rules and the risk of exclusion or legal challenges. 
• Performance risks, including failure to meet contractual objectives, penalties, reputational damage and possible exclusion from future tenders. 
• Risks related to Intellectual Property Rights (IPRs), particularly concerning the ownership, allocation and exploitation of Intellectual Property generated through cooperation.  
• Further risks arise from EU competition law, as cooperation must not be misused for market sharing, bid rigging, or other collusive behaviour.  
• State aid risks may also occur, especially in cases of cross-subsidisation where one of the cooperating partners receives State aid linked to the subject matter of the procurement.  

These risks can be mitigated through legal due diligence, clear allocation of roles and liabilities, well-drafted cooperation and IPR agreements, robust governance and compliance mechanisms. 

See Section 6.3 & 6.4.3 to know more. 

4. What is State aid and why is it relevant in Innovation Procurement?  

State aid is the EU’s main subsidy control mechanism and refers to any selective economic advantage granted through State resources that may distort competition and affect trade within the internal market. It goes well beyond direct grants and can include tax benefits, guarantees, loans, favourable contractual terms or the provision of goods and services below market conditions. In public procurement, State aid risks may arise if a contracting authority pays more than a market price or if cooperation arrangements result in cross-subsidisation, particularly when public entities engage in economic activities. The prohibition on State aid is not absolute, as certain forms of aid may be considered compatible with the internal market and therefore permitted. 

See Section 6.4.1 & 6.4.2 to know more. 

1. Who are investors and why are they relevant to innovation procurement? 

Businesses typically seek investors when they need additional capital to expand or develop and when other funding options are limited, especially if debt levels are already high or the company is still in its early stages and requires venture investment. 

In the context of innovation procurement, investors can be even more important. Developing new products and services often involves higher risk, significant upfront costs, and longer timelines before commercial returns materialise. Investors who specialise in R&D or innovative technologies do not only provide funding. They often bring sector expertise, management support, and networks that help accelerate market entry and scale-up. Working with investors can therefore enable founders to share financial and operational risks and can inject fresh perspectives that support innovation and competitiveness in a fast-changing market. 

See Section 7.1 to know more. 

2. How can you scale a solution and build a strong commercialisation and scale-up plan? 

Commercialisation and scale-up activities are important for investors because they show that innovative solutions will move beyond prototypes and pilots and become sustainable, market-ready products and services. 

Moving from a viable prototype to a fully scalable solution is a critical transition that involves progressive technical, commercial and organisational change. It typically proceeds through prototyping, experimentation and piloting to validate assumptions, improve delivery mechanisms and demonstrate real-world operability. Crucially, scaling requires far more than technical feasibility: organisations must also show they can produce at scale, integrate with existing systems, win and retain customers and comply with regulatory and societal requirements. Readiness levels (i.e. Technology Readiness Levels, Manufacturing Readiness Levels etc.) help manage this complexity by measuring maturity across multiple dimensions and identifying gaps to address before full-scale deployment. 

Moreover, building a robust business model is central to commercialisation and scale-up. It requires understanding market dynamics and trends, anticipating the 3 to 5-year outlook, defining clear customer segments and mapping the competitive landscape to position the solution effectively. Finally, scaling also depends on strategic Intellectual Property (IP) management: IP (patents, trademarks, designs, trade secrets and licensing) can protect value, differentiate the offer and strengthen investor and buyer confidence. Guidelines for Strategic IP Management in scaling are provided in the Module. 

See Section 7.2 to know more. 

3. What are the main funding options for innovators?  

Companies can access a wide range of funding sources depending on their needs, industry and stage of development. Alongside internal resources such as retained earnings, external funding may come from private and venture investors (e.g. Venture Capital, Angel Investors, Crowdfunding and Startup Accelerators), from public support instruments (government subsidies and other state-backed programmes), and financial institutions that provide capital through direct lending and investment channels, including banks, credit unions, insurance companies, investment and brokerage firms, pension funds and mutual funds. Other potential sources of long-term capital include family offices and sovereign wealth funds. 

This Module outlines the main advantages and drawbacks of each funding source and includes a compliance checklist for investors engaging in innovation-related investments within the EU. Taken together, these funding options provide companies with multiple pathways to secure capital for growth, stability and new ventures, and can support participation in innovation procurement by strengthening financial capacity and investment readiness. The Module also provides a series of considerations related to the regulatory framework and potential legal issues companies may need to deal with in the context of funding and innovation investment.  

See Section 7.3 to know more. 

4. What approach helps attract investment and how should you prepare? 

An effective approach for securing private investment in innovation procurement is an end-to-end methodology that starts by viewing your proposition through the investor’s lens, considering portfolio composition, stakeholder objectives, market context, long-term scalability and exit potential. You should then engage with investors through a clear sequence of networking, pitching and negotiation. Networking is essential to build visibility, connections and trust. Pitching acts as the bridge between networking and deal-making, using procurement-backed evidence to reduce perceived risk and demonstrate scalability. Finally, negotiation is used to agree terms that protect the innovation while attracting capital. Details, checklists and practical information are provided in this Module, as well as six editable templates annexed to help present investor-facing information in a credible and comparable way. Together, they cover financial robustness, economic sustainability, cash requirements, business model logic and project rationale. These templates are: 1) Balance sheet, 2) Cash Flow statement, 3) Income statement, 4) Profit and loss statement, 5) Business Case and 6) Business model Canvas. 

See Section 7.4 to know more, as well as the annexes to this Module.