Public Procurement as Technology and Innovation Policy Tool: A Case Study of Iran-Lab-Expo

Recently, Innovation oriented public procurement has become an attractive issue for innovation policy’s researchers. Due to complexity of the effective implementation of the policy, it is necessary to design and customize these policies according to special condition s of each countries. In the developing countries, the main purpose of innovation oriented public procurement to promote technological learning and domestic firms is catch up as a part of industrial and technological policy, so this paper is tried to consider the design of industrial and technological policy based on innovation oriented public procurement by case study research method and content analysis of selected articles, important categories are identified and interviews are arranged to them. Content analysis of these interviews with government officials managers, firms, buyers, evaluation firms and intermediary institutes involved in Iran lab formed the grounded theory of this paper’s proposed policy method. Results shows that, managing the transaction costs and intermediary institutions are introduced as a critical issues, and the organization of innovation supply capabilities (Evaluation and coverage of innovation risk pattern), the public sector demand formation (demand aggregation and standardization) and governance structure and infrastructure (Contract terms, coordination and division of labor) are other components of the proposed model.