Las Rozas and the EIC try procurement to bring AI into air quality management

Brussels, December 22nd 2022
Summary
  • On 28 November 2022 the European Innovation Council co-hosted an ePitching session with Las Rozas de Madrid to source AI solutions for urban air quality.
  • Las Rozas set up a public innovation company, Innova, and now gives innovation a formal weight in procurement scoring to accelerate pilots and deployment.
  • Five EIC-supported innovators pitched, and local officials see value in pairing foreign providers with Spanish firms to overcome procurement barriers.
  • The EIC Business Acceleration Services offers matchmaking, procurement support and coaching to help innovators reach public buyers across Europe.

Las Rozas and the EIC try procurement to bring AI into air quality management

On 28 November 2022 the European Innovation Council joined the municipality of Las Rozas de Madrid for an EIC ePitching to Procurers session. The goal was straightforward. Las Rozas wanted to identify small and medium sized companies offering Artificial Intelligence technologies that could be piloted and procured to improve air quality inside an Urban Low Emission Zone.

Why Las Rozas is using procurement as an innovation tool

Las Rozas is one of the larger municipalities in the Madrid region. In the last two years the council created a public innovation company called Innova to accelerate innovation processes across the city. The municipality is using procurement not only to buy services but also to shape solutions through pilots and early deployments. To make innovation concrete in everyday contracting the council now allocates 5 percent of procurement scoring to innovative solutions.

Innova, the public innovation company:Innova was set up by the Las Rozas city council to centralise and speed up innovation activities. The company is intended as a long term channel for developing public projects and as a magnet to recruit personnel experienced in innovation management.
Urban Low Emission Zone and air quality ambitions:Las Rozas aims to pilot and purchase solutions for an Urban Low Emission Zone. This means interventions that reduce pollution or the population exposure to pollution in defined urban areas. The municipality is explicitly looking for AI based systems that can support monitoring, modelling or management of air quality.

The ePitching session and its immediate outcomes

Five EIC innovators were selected to pitch their solutions to the municipality during the session. The municipality used the EIC Innovation Procurement programme to get a better picture of the European market and to encourage cross border suppliers to consider Las Rozas as a pilot site. After the event councillor Jaime Santamarta Martinez described the session as useful for linking the city with companies operating elsewhere in Europe.

Officials highlighted several concrete observations. Some of the pitching companies offered digital modelling tools that match a primary technical need of the municipality. Officials said these providers could benefit from teaming up with Spanish firms that are familiar with national procurement rules. The municipality sees value in pairing foreign innovators with local firms to make the procurement path less complex for all parties.

What the councillor said about the municipality's approach

Councillor Jaime Santamarta Martinez framed Las Rozas’ strategy as a deliberate attempt to professionalise innovation within municipal government. He noted that Innova both attracts talent and creates a central point for projects that can run for years. He also emphasised the intention to make innovation part of normal procurement practice by awarding a specific score to innovative proposals.

When asked why Las Rozas worked with the EIC the councillor pointed to two motivations. First, working with European level partners helps the municipality align with broader policy frameworks. Second, the EIC helps bring foreign companies into view, increasing the likelihood of finding solutions not yet available locally.

Practical advice for startups and scaleups from Las Rozas

The councillor advised innovators to consider the local dimensions of their solutions. He said many technologies need adaptation for specific local contexts. Startups should be prepared to tweak products and consider what local impact they can demonstrate. He also recommended collaboration with Spanish partners to navigate procurement procedures more efficiently.

Why pairing foreign innovators with local firms matters:Public procurement often involves local legal, administrative and technical requirements. Partnering with local companies can shorten procurement cycles, reduce misunderstandings about compliance and increase the chance that a pilot will scale into a full deployment.

How the EIC Business Acceleration Services supports these matches

The EIC Business Acceleration Services provides matchmaking, procurement support and capacity building for EIC awardees. Its stated aim is to turn grant winners into market ready ventures and to create links between innovators and public or private buyers across Europe. Las Rozas used the EIC Innovation Procurement programme to expand its supplier search beyond Spain.

EIC BAS pillarExamples of supportSelected impact metrics since 2021
ContractsMatchmaking with corporates and procurers, trade fairs, pilots and procurement support+20,000 one to one meetings; 595 deals; EUR 350 million raised via investor outreach; EUR 1.2 billion raised by Scaling Club members; EUR 42 million turnover from trade fairs since 2024; EUR 7.7 million raised through innovation procurement support out of EUR 28.4 million in tenders since March 2024; 22 ongoing and 16 completed pilots supported with EUR 1.93 million
ContactsEcosystem network, partners offering services and access to activities+280 partners offering 650 services; +270 activities to date involving more than 5,000 awardees
SkillsCoaching, mentoring and training programmes including Women Leadership and Tech to Market+2,400 awardees coached; 90 percent of Women Leadership alumnae report improved skills; 98 percent increase in ability to submit procurement offers

Context and critical considerations

Using procurement as a policy lever to accelerate innovation is consistent with European Commission priorities. Cities and regions are increasingly seen as testbeds for technologies that address climate and public health challenges. The Las Rozas approach aligns with this trend by explicitly creating an institutional vehicle for innovation and by embedding an innovation score into procurement.

However there are limits and practical obstacles. A 5 percent scoring weight for innovation is a positive signal but it may be insufficient on its own to overcome risk aversion within procurement teams. Cross border suppliers face administrative and legal friction. Pilots that succeed technically can still fail to scale because of maintenance, long term finance or integration with legacy systems. The councillor’s suggestion to pair foreign innovators with Spanish firms is a pragmatic response to these barriers.

What municipalities should watch for when using procurement to buy innovation:Clear evaluation criteria, realistic budgets for pilots, procurement teams trained to assess technical risk and governance arrangements that allow procurement to move from pilot to operational deployment. Without those elements procurement can become a one off exercise rather than a route to durable change.

Next steps for innovators and cities

For startups and scaleups the practical takeaway is to prepare to adapt solutions to local constraints and to consider forming partnerships with domestic actors. For cities the lesson is to institutionalise innovation capacity rather than relying on ad hoc projects. Las Rozas has tried that by founding Innova and by embedding innovation into procurement scoring.

For EIC awardees seeking procurement opportunities the EIC Business Acceleration Services lists open calls and events on the EIC Community Platform. Municipally led procurement experiments like Las Rozas’ provide useful early market signals but they also underscore the hard work needed after a pitch to convert interest into a signed pilot or purchase contract.