Ntlemeza, Thembela2020-12-042020-12-042020https://hdl.handle.net/10539/30270A research report submitted in fulfilment of the requirements for the degree of Master of Management in Innovation Studies to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2020Innovation is the solution to addressing societal problems in many countries. In South Africa, a country characterised by severe water scarcity, innovative solutions have a major role to play in addressing water and sanitation challenges accruing to water constraints. This being so, innovation activities alone are not sufficient, as addressing these challenges also requires an enabling policy environment which influences innovation from the demand side. Public procurement is a demand-side policy instrument viewed as having the potential to stimulate innovation. This study sought to understand the potential of public procurement to drive innovation demand in the South African water and sanitation sector. Thus, a sectoral innovation system analysis, driven by a focus on public procurement of innovation, was conducted in two metropolitan municipalities. The research questions were addressed through semistructured interviews of municipal officials and other sectoral actors to investigate the influence of sectoral innovation system drivers, i.e. demand, knowledge base & technologies, actors & networks, and policy & institutions on public procurement of innovation. A review of relevant public procurement documents was also undertaken as part of the literature review. The main findings from the participants and informants report the present procurement legislative framework as a barrier to innovation procurement. Additionally, lack of adequate skills and knowledge among municipal procurement officials, the riskaversion culture of municipalities and low revenue collection rates also constrain the adoption of innovative solutions by municipalities. As a remedy, a review and reconfiguration of present procurement regulations, among other interventions, is recommended.enInnovationPublic ProcurementInnovation DemandWater and Sanitation SectorSDG-8: Decent work and economic growthDissertationUniversity of the Witswatersrand, Johannesburg