Value creation in public procurement of innovation: a case of engaging start-ups by a local government

We examine a recent theory by Austin and Seitanidi which proposes a framework for analysing value creation in inter-organisational collaborations. Le Pennec and Raufflet offer an empirical examination of Austin and Seitanidi's model and provide a critical path in the form of a pyramid among div...

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Bibliographic Details
Published in:Local government studies 2022-07, Vol.48 (4), p.655-679
Main Authors: Talebi, Alireza, Rezania, Davar, Bragues, George
Format: Article
Language:English
Subjects:
Collaboration
Critical path
Government purchasing
Innovations
Local government
public procurement of innovation
Purchasing
start-ups
Value creation
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Summary:We examine a recent theory by Austin and Seitanidi which proposes a framework for analysing value creation in inter-organisational collaborations. Le Pennec and Raufflet offer an empirical examination of Austin and Seitanidi's model and provide a critical path in the form of a pyramid among diverse types of value created during collaborative processes. Associational value is the base of the pyramid, followed by transferred resource, interactional, and synergistic value. We examine a case of public procurement of innovation in which a local government worked with start-ups to address civic issues. We identify what types of value are created in public-purpose collaborations between a local government and start-ups, and how those values interact with each other. The study extends Le Pennec and Raufflet's pyramid by providing evidence of a dynamic path in the creation of diverse types of value in a collaborative process of public procurement of innovation where start-ups are engaged.
ISSN:0300-3930
1743-9388
DOI:10.1080/03003930.2020.1870959