Can city administrations benefit from the entrepreneurial spirit of startups, and create better urban solutions with their help? In this paper, we critically assess the interplay between startups and city administrations for city-driven innovative public procurement or “challenge-based procurement” policy, taking Amsterdam’s Startup in Residence (SiR) programme as a case study. We describe and analyse this programme from two perspectives: i) the economic development perspective, i.e. does it promote startups and does it bring them new business opportunities, and ii) a governance perspective, i.e. does it bridge the gap between startups and the city bureaucracy; does it lead to a more innovative culture within city government.
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In Germany, public transport organizations are mainly owned by public authorities. Procurement in Hamburg involves the buses and infrastructure instead of transport services. The procurement process for buses and infrastructure is performed by the transport companies. Such processes must meet German and European public regulations. Therefore, public tender and procurement procedures for buying buses by German Public Transport Operators (PTOs) can be more complex and lengthier than procurement by private PTOs in other countries. As a result, the public transport companies are not primarily driven by profitability, but also by obligations towards the public and political aims. Obligations can comprise to provide affordable, environmentallyfriendly transport services for the citizens. In Hamburg, the public authority incorporates obligations (requirements) for the e-buses in their tendering documents. In Utrecht, as well as most of the rest of the Netherlands, public transport is carried out by private companies, under an operating contract (concession) with a public transport authority. In Utrecht, this authority is the province of Utrecht. The e-buses are the operators’ private property and they are obliged to account to the province of Utrecht for their implementation of public transport. When the province of Utrecht procures the operation of public transport services by means of a European tendering process, private transport companies can offer a bid for this tender. Both, the authority and operators, want to provide good public transport for their customers, but they both have different goals. The operators want to earn a reasonable profit margin on public transport, while the authority wants to fulfil certain public policy goals. The tendering process is where these two come together. It is a strong mechanism to get the best ‘value for money’ out of the market – for example, the most public transport, or the highest number of e-buses running in the area, within the available budget of the public transport authority.
A growing amount of (semi) public organizations in the Netherlands write tenders with mandatory social conditions. It is important for SMEs to focus on social procurement in their business strategy. SMEs should be proactive and try to affect the conditions (semi) public organizations write in their tenders. On the other hand, (semi) public organizations should facilitate SMEs by developing transparent procurement processes and by organizing information meetings with SMEs. The most important factor for an effective social procurement procedure seems to be the dialogue between SMEs, purchasers and the persons responsible for matching target groups. Because it seems easier for SMEs to meet social procurement conditions if they cooperate with other SMEs and set up labour pools, we performed an exploratory research on the formation of labour pools. The labour pools can be set up by SMEs in the same branch or in a cooperation chain. Our research shows that entrepreneurs require a lot of perseverance in developing a labour pool. It also appears that labour pools without commitment of public authorities are not effective.
