The European Commission wants to increase public spending in high-risk technology research and increase competition with the US.

The traditional approach to public procurement favours investment in products that already have an established market, with less risk to return on investment.

But now the Commission wants procurers to co-operate in pre-commercial research and development (R&D) ventures, sharing the risks and improving the chances of a technological breakthrough.

"Europe's public sector has massive buying power, but until now it has not found a clear way to strongly link mid to long term public purchasing needs with R&D programmes," said Viviane Reding, Commissioner for Information Society and Media. "
"This could become a lost opportunity for Europe if we do not act quickly."

"Only with a more pro-active, pro-innovative use of public spending will Europe be able to equip itself to meet structural challenges such as an ageing population and the transition to a low carbon economy."

The Commission wants to boost Europe's rivalry with researchers on the other side of the Atlantic. The US public sector spends $50bn (£24.6bn) per year on R &D procurement.

Sharing the risks of pre-commercial procurement will fuel innovation and help Europe meet its target to invest of three per cent of GDP in research, the Commission says.

Internet Protocol and Global Positioning by Satellite (GPS) are two examples of successful technologies developed through pre-commercial funding.