The impact of capital structure of suppliers on innovative public procurement

Innovation theory sees public procurement as one possible demand side policy which creates markets for innovation-intensive products.

The aim of the paper is to overview the legal framework for procurement in relation to innovation and to present empirical study conducted among suppliers in the Polish procurement market.

The study shows that companies with foreign capital have a greater potential for innovation in comparison with domestic firms. They also have a much greater potential for public procurement. Despite the openness of the enterprises with foreign capital for innovative public procurement, they rather rarely implement innovative procurement. On the other hand, for some of them, the public sector is an important stimulus to making innovative activities.