And by creating a signalling effect as a lead user they can also influence the diffusion of innovation (the expectation of course is that an advance in innovation caused by procurement policies will translate into benefits for the domestic economy, rather than for overseas suppliers of innovative goods or services). Depending on their design, they may also help offset problems of bias against small firms in the public tendering market. The provision of a market entailed in the awarding of a contract, and the fact that a public agency has evaluated information on the firm awarded the tender, might also serve to attract additional finance from private sources for innovative activities.