Industry 4.0
Vol. 8 (2023), Issue 1, pg(s) 28-31

SOCIETY & ”INDUSTRY 4.0”

Public Procurement as a Demand-Side Policy Instrument

  • 1 University of National and World Economy, Bulgaria
  • 2 Sofia University St. Kliment Ohridski, Bulgaria

Abstract

Public procurement has acquired new dimensions in recent decades, going beyond the elementary satisfaction of certain needs. Public procurement connect to public policies through its horizontal nature. In present study, public procurement is perceived as an important demand-side policy instrument that can effect both the speed and the direction of economic development. A key argument supporting the view of public procurement as an important policy instrument is that they accounts for about 14% of EU GDP. At the same time, governments frequently overlook procurement as a policy instrument (and demand-side tools in general). The study of public procurement as a policy instrument, given their proven market effect, merits further analysis. Hereof, this research is focused on exploring strategic procurement approaches for economic development. Actually, through public procurement, governments can contribute to the development of growth-generating economy sectors in the role as an important lead consumer by setting standards and exacting superior performance.

Keywords

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