Innovation in public–strongprivatestrong partnerships (PPPs) the Spanish.pdfVIP

49 Innovation in public–private partnerships (PPPs): the Spanish case of highway concessions Thais Rangel and Jesús Galende This article identifies the factors that determine innovation in transport PPPs in Spain. Innovation is an important way of achieving efficiency but it is not an intrinsic characteristic of PPP projects. The authors describe the multiple regression model they devised to estimate innovation. The results show that PPP contracts can be designed to maximize innovation in RD. However, there does not appear to be greater innovation in any other areas. The information provided has important implications for public service organizations considering new contracts with the private sector. Budgetary constraints, as well as the belief that Type of risk assumed by the private sector Thais Rangel is a the private sector can in some circumstances be In any PPP contract, risks should be shared by PhD student in the more cost-efficient than the public sector, mean the private and public sectors according to Transport Research that governments worldwide are using public– management skills and ability to control risks Centre, Polytechnic private partnerships (PPPs) to construct and (Lemos et al., 2003; Harris, 2004). However, University of operate infrastructure. Innovation is an according to Parker and Hartley (2003), a large Madrid, Spain. important factor that can enable the private number of risks in PPP projects are managed sector to provide more cost-efficient services better by the private sector. Transferred risks Jesús Galende is than the public sector (Spackman, 2002). incentivize private sector contractors to Professor in the However, there are two schools of thought maximize efficiency (Broadbent and Laughlin, Departmen