Scaling up Nordic impact through public procurement

Foreword

In the Nordic countries, the welfare system is experiencing a growing pressure. Ageing populations, lifestyle diseases, a changing environment, migration, and a global pandemic have strained public expenditures. There are innovative solutions to address Nordic welfare challenges along with financial instruments and investor capital. However, the linkages between existing knowledge, available capital, innovative solutions, and public procurement are missing. Social impact start-ups are capable of merging these to the benefit of the Nordic welfare societies. Therefore, we need to understand the main barriers and enablers for social impact start-ups to break through the public procurement wall. Collaboration among public authorities and impact start-ups is a powerful engine for change and sustainable growth. Yet several widely held beliefs prevail and threaten to hinder the progress of the Nordic impact start-up ecosystem.

This working paper “Scaling up Nordic impact through public procurement – a review of literature” is part of a larger project with the aim to conduct an explorative study of the impact ecosystem. The review of literature has provided the foundation for the continued work that involves understanding the social impact ecosystem from four perspectives: 1) public stakeholders, 2) start-ups, 3) start-up investors, and 4) institutional investors who finance new payment methods. Furthermore,

the project partners will bring the knowledge into action through pilot cases. These cases will facilitate collaboration between public actors responsible for procurement and social impact start-ups working with relevant welfare solutions.

This review of literature is an important contribution to the Nordic knowledge base on social impact start-ups. By making it publicly available, we hope it can benefit a wide variety of stakeholders working with procurement schemes. An important finding is the need to continuously work towards improving a Nordic model of governance whilst working to support private social entrepreneurs in addressing pressing societal concerns.

Marthe Hauge

Senior innovation advisor

Nordic Inn