Rethinking procurement: How place-based innovation is transforming public services

Posted on 23rd May 2025

Written by Olga Kuzmich, Community Manager, IPEC

Public procurement isn’t just about purchasing. It’s one of the most powerful tools local governments have to drive economic growth, innovation, and social impact.

At IPEC, we’ve long recognised this potential. That’s why we commissioned IPEC Research, a collaboration of leading experts from the University of Birmingham and the University of Manchester, to build a robust evidence base on how innovation procurement can enhance public service delivery while supporting regional development.

As part of this expanding research portfolio, we’re pleased to highlight one particularly timely research brief: “Place-based collaborative opportunities and challenges for public procurement of innovation,” authored by Dr. Fumi Kitagawa of City-REDI, University of Birmingham.

This brief explores how local authorities can use procurement as a strategic lever to address the unique challenges of their communities, especially in times of tight public budgets. Through the lens of the West Midlands Innovation Programme (WMIP) and the Digital Innovation in Public Services (DIPS) initiative, it offers actionable insights on how public procurement can fuel regional transformation.

Key insights from the research include:

SME empowerment: Innovative procurement models are opening up access for small and medium-sized enterprises, helping them compete for and win public contracts.
Strategic partnerships: The innovation procurement partnership model shows how public bodies can co-develop solutions with businesses to deliver tangible local benefits.
Sustainability in action: Green goals are increasingly built into procurement, making public spending a driver of decarbonisation and net-zero progress.
Inclusive local growth: Procurement aligned with industrial strategies ensures that investment reaches communities that need it most.

This research brief is essential reading for public sector leaders, policymakers, and public sector innovators who want to move beyond cost-driven procurement and toward a model that delivers long-term social and economic value.

Download the full brief to discover how place-based procurement can help unlock innovation and inclusive growth in your region. https://www.ipec.org.uk/publication/place-based-collaborative-opportunities-and-challenges-for-public-procurement-of-innovation/

Unlocking smarter spending: How text mining is transforming public procurement
By Olga Kuzmich, Community Manager at IPEC

Public procurement holds untapped power, not just as a means to deliver services, but as a strategic force for economic resilience, innovation, and climate action. At IPEC, we’re committed to helping public sector leaders harness this potential through hands-on programmes like the IPEC Cohort, knowledge resources, leadership webinars and events, and practical, evidence-based insights.

A core part of this work is helping local authorities build the capabilities and confidence to use data as a tool for better decision-making.

That’s where this timely research brief comes in.

“Extracting Insights from Procurement Data: A Text Mining Approach for Social Housing Retrofits in the West Midlands”
By Annum Rafique (City-REDI, University of Birmingham) and Pei-Yu Yuan (Alliance Manchester Business School)

This brief is part of our broader mission to build an evidence base through IPEC Research, a collaboration of academic experts from the Universities of Birmingham and Manchester. The aim of this collaboration is to empower public bodies with the tools and knowledge they need to make procurement a catalyst for better public services and sustainable regional growth.

Why this research matters:

Public sector leaders need visibility into how procurement contracts are awarded, who benefits, and whether spending aligns with strategic goals, especially in complex policy areas like housing retrofits and net-zero commitments.

Using 2022 data from the Tussell platform, Annum Rafique and Pei-Yu Yuan deploy a clear, replicable text mining approach to uncover powerful trends:

Short-Termism in Contracts: Most retrofitting contracts were under one year, undermining the long-term nature of climate-oriented projects.
Regional Gaps in Supply Chains: A majority of contracts were awarded to suppliers outside the West Midlands, highlighting the need to boost local capacity.
SME Engagement: Encouragingly, 65% of suppliers were SMEs, suggesting growing opportunities for smaller firms to drive change.
Underutilised Collaboration: The dominance of single-supplier contracts points to missed chances for multi-partner innovation.

This methodology, designed to be accessible without advanced tech expertise, provides a powerful model for policymakers, housing authorities, and sustainability teams looking to extract actionable insights from procurement data.

What’s next?

The authors lay out exciting directions for future research, from applying AI tools for deeper analysis to mapping supply chains and assessing workforce skills gaps. This sets a clear agenda for local governments aiming to modernise procurement and meet climate goals.

Download the research brief and see how smarter procurement data analysis can help you build greener, fairer, and more effective public services.

https://www.ipec.org.uk/publication/extracting-insights-from-procurement-data/