TechNL has released a policy framework proposing changes to how the Newfoundland and Labrador government procures technology, with the goal of supporting local technology companies and increasing the economic impact of public spending.

The report, Scaling Up Innovation Champions in Newfoundland and Labrador, argues that a significant portion of provincial technology procurement currently flows to suppliers outside the province. It outlines measures intended to keep more of that spending within Newfoundland and Labrador by modernizing procurement rules and processes.

According to techNL, the framework was developed in response to feedback from local technology firms that describe public procurement as a major barrier to scaling their businesses in the province. The organization said the work was informed by months of research into procurement practices used in other provinces, federally and in international jurisdictions.

“Members have told us for years that complex, lengthy procurement processes are holding back their growth,” said techNL Board Chair Johanna Brown in a statement. “This report offers a constructive way forward. It shows how Newfoundland and Labrador can modernize procurement in a way that delivers better services for residents, while growing local companies and talent.”

The report recommends introducing value-based procurement criteria that consider economic impact alongside price, as well as creating innovation sandboxes and pilot programs that allow governments to test emerging technologies with local suppliers. It also calls for clearer and more streamlined procurement processes for small and medium-sized enterprises, and better data collection on where government technology dollars are spent.

TechNL said Newfoundland and Labrador’s technology sector contributes more than $1.8 billion annually to the provincial economy and grew by 24 percent between 2016 and 2023. The organization argues that aligning procurement policy with economic development objectives could accelerate that growth, including in sectors such as defence and security, where national spending is increasing.

The framework also recommends targeted supports for public-sector buyers and local companies to improve participation in innovation-focused procurement.

TechNL said it plans to work with the provincial government, Crown corporations and other public-sector partners to explore how the recommendations could be implemented. The organization added that Brown and CEO Florian Villaumé have met with the province’s new chief procurement officer, Frank Butler, to review the report and discuss potential next steps.