Sustainable public procurement and its impact on corporate sustainable innovation: a systematic review

Abstract

Objective: To analyze how the incorporation of Environmental, Social, and Governance (ESG) criteria in public procurement induces sustainable innovation in the supplier market. Methodology: A systematic literature review was conducted in the Web of Science database, with a sample of 22 articles from 2025, analyzed through an integrative approach that cross-references theoretical and empirical evidence on implementation, institutional barriers, and impacts. Results: There is consensus that legal frameworks are necessary but insufficient; the critical factor is institutional capacity, particularly the dynamic capabilities (sensing, seizing, and transforming) of public buyers. Evidence indicates that sustainable procurement primarily stimulates process innovation and resource-use efficiency through a demand-pull mechanism. Tensions were identified between administrative centralization and flexibility for innovation, as well as risks in measuring social value. Conclusion: The success of ESG procurement requires a transition from a logic of bureaucratic compliance toward strategic governance, with an agenda oriented toward climate adaptation and emerging economies.