The potential of innovation contests in articulating demand for system-level transformation: The case of the Helsinki Energy Challenge

As local authorities and providers of services and infrastructures, cities can advance sustainability transformations through instruments like public procurement. However, a disconnect exists between broad (supra)national sustainability challenges and public procurers’ local needs. We examine innovation contests as a tool for articulating societal challenges as local demands for innovation. We study Helsinki Energy Challenge, where the city of Helsinki, Finland, sought solutions for decarbonizing its heating system, offering a million-euro reward. We explore how innovation contest-related activities contribute to articulating demand for system innovation locally and their influence on participants’ problem-solving approaches. The case demonstrates how innovation contests could localise demand for sustainable solutions and direct innovation processes toward a societal challenge, while supporting solutions’ broader scalability. We identify six demand articulation activities: expressing strategic intent, scoping, boundary-setting, user-producer interaction, evaluation, and embedding. We enhance understanding of demand articulation processes for system innovation and the potential of innovation contests for transformative innovation missions.