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Wennstroem, A, Havenvid, M I, Eriksson, P E and Larsson, J (2023) Incentivising Supplier Innovation in Mega Infrastructure Projects: Exploring the Result of Innovation Bonuses . In: Tutesigensi, A and Neilson, C J (Eds.), Proceedings 39th Annual ARCOM Conference, 4-6 September 2023, University of Leeds, Leeds, UK. Association of Researchers in Construction Management, 700-709.
- Type: Conference Proceedings
- Keywords: innovation, procurement, incentivisation, public client
- ISBN/ISSN: 978-0-9955463-7-0
- URL: http://www.arcom.ac.uk/-docs/proceedings/c7968725883ae48cf23e057de8b627ea.pdf
- Abstract:
Prior research emphasizes that public clients need to use their client role and their procurement strategies to facilitate supplier innovation to accelerate sustainable development of the built environment. The purpose of this paper is to increase the understanding of Swedish Traffic Administration (STA), as the largest public client of infrastructure in Sweden, implementation of procurement strategies may influence supplier innovation. This paper explores an initiative by the STA to promote supplier innovation through offering innovation bonuses to four engineering consultancy firms, contracted for the early planning and design stage of the East Link mega project. The study is based on secondary data from STA's documentation of 51 innovation proposals submitted by the four firms. The result indicates that while innovation bonuses generate proposals of supplier innovation, public clients carefully need to consider how to formulate appropriate incentives and reward systems for specific windows of opportunity.