The aim of this paper is to present the potential of a new award procedure of public procurement, which is from 18 April 2016 innovation partnership, in the context of successful competition with USA as well as to identify the challenges connected with this procedure. Public administration is the biggest purchaser and may create a huge market for innovative products, works and services. Innovation partnership according to Directives 2014/24/EU and 2014/25/EU is an award procedure which allows to establish a long-term partnership between the contracting authority and economic operators for the development and subsequent purchase of a new, innovative product, service or work which is not yet available on the market. Although, despite the potential of public procurement to spur innovation, the implementation of innovation partnership, has been limited due to considerable challenges associated with the application of innovation procurement in practice. The biggest challenges are associated with the threat of infringement of State aid, intellectual property rights or adjusting the provision of Public Finance Law.