Public Private Partnerships & Idea selection
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1 Public Private Partnerships & Idea selection A tool to select technological healthcare innovation ideas
2 PPPs should select technical healthcare innovation ideas by answering seven questions
3 Contents Executive summary 4 Section 1: Increasing healthcare expenditure drives the establishment of PPPs 5 ó The increasing healthcare expenditure is not sustainable 5 ó Section 2: PPPs face challenges in selecting promising healthcare innovations 6 ó ó Section 3: A new tool to guide PPPs in assessing innovation ideas 8 ó PPPs should select technical healthcare innovation ideas by answering seven questions 8 ó Is this idea in line with the PPP strategy? 9 ó ó Does the PPP possess the appropriate resources to develop this idea into a product? 10 ó ó ó ó Section 4: What can PwC do for you 14 Contacts 15 Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±² 3
4 Executive summary innovations can aid in containing this rising expenditure. ideas. expensive, risky, and subject to regulatory barriers. As a and selecting the innovation ideas with the highest The degree to which the idea is in line with the overall strategy scrutinising the innovation idea. The degree to which the in the overall organisation. The degree to which the PPP possess the required resources to develop, launch and service the innovation. Feasibility to the creation product, and the bureaucratic barriers involved. Market analysis product, product advantage, superiority, Inclusive development external input during the process. 4 Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±²
5 Section 1: Increasing healthcare expenditure drives the The increasing healthcare expenditure is not sustainable Public Private Partnerships enable innovations Intensive collaboration between stakeholders is required to reduce costs in developing technological healthcare solutions. To this end, Public Private Partnerships (PPP) between public and private sectors with a durable OECD countries, we see clear increases in the percentage total Dutch healthcare expenditure was 7%, and 11,4% shared. this rise in healthcare expenditure cannot be sustained in the long run. to a broad knowledge and expertise base. Participants healthcare innovations. Innovations such as wearables participation can help to decrease regulatory barriers visits. More intricate innovations that can assist surgeons and allowing PhD students to work closer to the collaboration with renown and highly talented technology. Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±² 5
6 selecting promising healthcare innovations PPPs lack adequate tools to innovation process to ensure that the innovation idea selected answers innovations, PPPs have to go through a product be conducted between several partners in a horizontal these tools can be used by PPPs. the innovation. technological healthcare innovation ideas a role in reducing healthcare expenditure. With this in be used by PPPs. and to others struggling with this knowledge gap in the 6 Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±²
7 Ú ¹ ïò ̱» ½»»»²¼ ÑÛÝÜ ½±«²» øûùüð 16% 14% 12% 10% 8% 6% 4% 2% 2000 Korea Turkey Mexico Estonia Poland Slovak Republic Ireland Czech Republic Luxembourg United Kingdom Chile Finland Hungary Spain Israel Netherlands Greece Japan Sweden New Zealand Italy Australia Norway Belgium Denmark Slovenia Canada Portugal Iceland Austria Switzerland France Germany United States PPP increase Ú ¹ îò Ì» º±«¹»²» ¹» ±º» Ò» Ð ±¼«½ Ü»ª» ± ³»² ½ ½»ò Ì» «±º ¼»½ ±² ³ ¼» ± Opportunity Development Testing Launch Idea screening stage Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±² 7
8 Section 3: A new tool to guide PPPs in assessing innovation ideas PPPs should select technical healthcare innovation ideas by answering seven questions PPPs should scrutinise innovation ideas and conduct their entirely. sense, such as the organisation structure and the trust level innovation idea. Ideas that show no or less potential can Ú ¹ íò Ý» ± ¾» µ»² ² ± ½½±«²»² ½±²¼«½ ²¹»»»½ ±² Innovation idea Is this idea in line with the PPP strategy? Does this idea Does the PPP possess the appropriate resources to develop this idea into a product? Feasibility develop this idea into a product? Market analysis How large is the idea? Inclusive development to include stakeholders during the this idea? Is the right organisation structure in place to develop this idea into a product? 8 Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±²
9 Is this idea in line with the PPP strategy? on the value the idea adds to their own organisation. However, adding value to all partners can the PPP collaboration and take these aspects into consideration when conducting the selection. We have to move away from autonomous business thinking Ex CEO of a top tear Life Science company (2014 revenue, 10bn) radical innovations. Looking at the properties of individual projects is only half of the equation Professor of Innovations studies at a world leading graduate business school Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±² 9
10 Does the PPP possess the appropriate resources to develop this idea into a product? innovation ideas with innovation leaders. An innovation leader is described as an individual close A great team with a low ambition is not interesting. Innovation manager at a Dutch PPP 10 Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±²
11 Feasibility select ideas where they can best leverage their individual strengths (e.g. relationships in the You do not want to be the only one in the world to have an innovation you look if others have complementary technology Innovation manager at a top tier Health Tech company (2014 revenue 20bn) Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±² 11
12 Market analysis Product advantage analysis Market trend analysis can be individuals or entities that do not directly use the products but End-users. The ease of use is key. In the end, the product itself will not be as important as the comfort that it can provide the end-user. Professor of Product Development at a Dutch University of Technology 12 Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±²
13 Is there room to include unconventional stakeholders during Inclusive Development There must be a willingness to pay for the innovation from the market. This is in healthcare dictated by the insurance companies. If the insurance companies see because they will give the innovation time to prove itself. Innovation director at a world leading pharmaceutical company (2014 revenue 70bn) Is the right organisation structure in place to develop this idea into a product? Internal leadership buy in Trust the PPP selecting the innovation idea. Ы¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±² 13
14 Section 4: What can PwC do for you The innovation idea selection tool is part of our PwC Innovation & Development services. These services focus on aligning business objectives with a fit for purpose innovation strategy, resulting in improved profit for (and growth of) your organisation. By adopting a multi-disciplinary and cross sector approach taking into account our expertise across Advisory, Tax and Assurance we: perform international technology market studies to support our clients (and society) in understanding the societal implications and effects of (break-through) innovations; assist in the development of robust multidisciplinary roadmaps for technology platforms or ecosystems in line with market developments and trends; assist in the obtainment of relevant federal, provincial and or municipal tax and cash incentives to support the innovation activities of our clients (nationally and internationally through our Global Incentive Network); Assist our clients in identifying and defining their role in relevant ecosystems and public and private partnerships with the aim to help them create synergies and added value; to our clients by focussing on both strategy and operations activities and the alignment thereof; offer holistic and implementation-oriented support enable our clients to improve ther competitiveness through optimising of the performance & process of the innovation portfolio in complex organisations in the short-term (higher R&D effectiveness, real open innovation in regional or international ecosystems) and a stronger and more innovative product / market position in the long term enable and create strong and mutually beneficial links between corporates, SMEs and start-ups to accelerate innovation. 14 Public Private Partnerships & Idea selection
15 Contacts Chris Koehler Consultant Lina Lukoseviciute Senior Associate Senior Manager Anton Koonstra Partner Ð «¾ ½ Ð ª» Ð ²» ú ¼»»»½ ±² 15
16
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