.svg){kind=link}
.svg)
<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/e0c0299b-feee-479e-ae01-26f317243ddd/Ellipse_2_(2).svg" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/e0c0299b-feee-479e-ae01-26f317243ddd/Ellipse_2_(2).svg" width="40px" /> Innovation partnerships allow authorities to establish a procedural framework within which innovative solutions can be researched, developed, prototyped and rolled-out all within a single procurement process. The authority can then, if it so chooses, directly procure the final solution developed over the life-cycle of the innovation partnership, without a call-for-competition.
</aside>
Innovation partnerships allow authorities to go on an innovation 'journey' with a number of private sector or research partners, and to tie this R&D activity with a formal roll-out. Therefore, it can be a great mechanism for running pilots, tests or proof-of-concepts, and having a direct mechanism to procure if the resultant product or service is useful.
Indeed, one of the key advantages of an innovation partnership is that the R&D phase is separate to the subsequent purchase of the solution. In other words, the authority is not (usually) under any obligation to purchase the ‘end result’ of the R&D exercise, but has the option to do so if it wishes.
In general, the benefits of this procedure are:
First, innovation partnerships can only be used if there is no existing product or service on the market meeting the authority's requirements. In essence, it is a partnership between an authority and the market to develop something that does not currently exist.
A contracting authority can launch an ITT without pre-specifying the specifications of the desired product or service (and instead can describe the challenge that they are trying to solve), which leaves room for suppliers to design an innovative solution within a contractual partnership. The authority can then enter into a contract with multiple partners within a single procedure, and structure the procedure into successive stages of research and development, without having to go out to further procurement at each stage.
Innovation partnerships allow authorities to short-list a number of potential 'partners' (including on the basis of any R&D specific experience), engage in negotiations with those potential partners to identify the organisations with the best potential solutions and then the authority can enter into one or more IPs. Once the parties are 'in contrac'", the IP can be staged and the authority can agree to remunerate each partner for each stage in the process.
The first stage might typically be a 'research' phase, followed by 'development' of the product/service. The authority might choose after the first stage to terminate an IP with one partner on the basis of transparent criteria because the research has shown that the solution is not suitable or viable. The staged IP continues until the authority has identified a solution which can be rolled out.
<aside> <img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/34e58af8-b2c7-4712-bb0e-c8c8baec02e7/Ellipse_2_(2).svg" alt="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/34e58af8-b2c7-4712-bb0e-c8c8baec02e7/Ellipse_2_(2).svg" width="40px" /> Intellectual property and innovation partnerships
One potential added advantage to London boroughs of innovation partnerships is that the borough may be able to share the commercial benefits of any new product or service which is developed.
Importantly intellectual property ownership and use terms should be clearly negotiated at the beginning of the contract: but given the borough's active role in the process, it is reasonable to create a partnership through which the borough gains from the resultant intellectual property.
</aside>
.svg){kind=link}