Balans Between Innovations and Economical Efficiency: Public Procurement Experience of Germany

Problem setting. Today in the context of globalization and rapid technological change limits of innovation policy are expanding and attracting more and more participants. World leaders’ experience in innovation demonstrates necessity of public control. Even during the financial crisis governments of developing countries paid special attention to science and high technology, which helped to overcome hard times in national economics. Ukrainian government has to take measures to intensify innovative activity. One of such measures can be public procurement. Analysis of resent research and publications. Different aspects of public procurement and innovation management were researched by such domestic and foreign scientists, as: I.?L.?Borodin, N.?B.?Tkachenko,Yu.?I.?Pivovar, G.?O.?Androschuk, A.?S.?Hal’chyns’kyi, M.?Burgi, K.?Jaehrling, H.?O.?Finnestrand, H.?Torvatn, E.?K.?Sarter, D.?Sack, A.?F.?Androsov, V.?E.?Shukshunov, B.?P.?Rodionova and G.?D.?Kovalyov and others. Article’s main body. Creation of favorable conditions for innovations for the purpose of the entire economy optimization is the Germany’s main way to ensure innovation politics. Total amount of contracts in public sector in Germany is estimated at 300 billion. That is how state can stimulate the development of innovation using public procurement as the effective fostering instrument. Germany defines legal tendering procedures and particular business methods as promotion for innovation, while ensuring the principle of economic efficiency. Conclusion and prospects for the development. Thus, after analyzing the procurement process in Germany we can determine that the public purchasing sector can obtain the status of significant stimulus for innovations in Ukraine in case of: 1)?improving the sectoral legislation; 2)?developing procurement procedures schemes; 3)?ensuring the coordinated work of all related state bodies.