2024.06.24. The Fair Economy — Technology-excellent products designated by various government ministries and public institutions will receive preferential treatment in the evaluation process for designating innovation products.
The Public Procurement Service announced on the 24th that it is overhauling the innovative product system in this way, aiming to promote companies' technological innovation and growth while easing their burdens.
According to the Public Procurement Service, this revision of the regulations was prepared to swiftly implement the "Plan to Support the Growth of Innovative Procurement Companies Through Cross-Ministry Collaboration" and the "2024 Plan to Reform Killer Regulations in Public Procurement."
The revised "Regulations on the Operation of Innovative Product Purchasing" will take full effect on July 1.
Key changes include expanding collaboration with ministries and local governments, linking field-demand-based technology-excellent products to innovation products to facilitate their entry into public procurement.
To this end, technology-excellent products such as the Ministry of Food and Drug Safety's innovative medical devices, products under KOICA's innovative technology program, and K-water's K-Testbed products will receive preferential treatment when evaluated for designation as innovative products.
New Excellent Technology (NET) and New Excellent Product (NEP) certifications, which recognize high technological prowess, will also be added as requirements for the Public Procurement Service's innovative products.
Research and development (R&D) outcomes directly linked to residents' welfare or solving regional public issues will receive preferential treatment in the innovation product review to promote market entry.
In addition, the strategic operation of pilot purchases of innovative products will be strengthened to enhance the effectiveness of sales-channel support.
Through strategic pilot purchase matching, the agency plans to select pilot purchase priorities by considering effects such as improving public services, fostering new growth and new industries, and increasing exports, so that citizens can maximize their tangible experience of innovative products.
For innovative products closely related to people's daily lives or urgent needs, the pilot purchase procedure will be shortened so that public services can be improved swiftly.
Overseas demonstration of innovative products will be supported to build an export foundation.
Previously, products with a history of pilot purchases were excluded from subsequent pilot purchase targets. However, products for overseas export will be granted an exception to the frequency limit when matched, giving them preferential treatment in overseas pilot purchases.
A basis for unit price contracts has been established to expand innovation product purchases and support the purchasing convenience of demand institutions.
In addition, killer regulations that impede the designation of innovative products and securing public sales channels will be boldly abolished to ease corporate burdens.
The complicated procedure for adding specifications will be simplified so that companies can respond swiftly to purchasing requests from public institutions.
Products that have passed a public interest evaluation once will be exempt from review to avoid duplicate evaluations in the future.
Meanwhile, the innovation product public purchase system, introduced in 2019, has designated 1,893 innovation products to date. Public purchases of these products reached 815.7 billion won (about $600 million) last year alone, contributing to driving corporate innovative growth and improving the quality of public services.
Lim Gi-geun, commissioner of the Public Procurement Service, said, "This revision of the innovative product regulations was prepared, as an extension of the reform of killer regulations in public procurement, to reflect the voices of companies on the ground and to achieve bold regulatory reform and swift institutional improvement. We will continue to discover technology-excellent innovative products that the public and institutions want to purchase, and take the lead in creating a dynamic innovation ecosystem that can achieve both technological innovation growth and improved public services."
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