Public PrivatePartnerships &Idea selectionA tool to select technological healthcareinnovation ideas

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‘PPPs should select technicalhealthcare innovation ideasby answering seven questions’

Contents

Executive summary 4

Section 1: Increasing healthcare expenditure drives the establishment of PPPs 5ó The increasing healthcare expenditure is not sustainable 5

ó

Section 2: PPPs face challenges in selecting promising healthcare innovations 6ó

ó

Section 3: A new tool to guide PPPs in assessing innovation ideas 8ó 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

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Executive summary

innovations can aid in containing this rising expenditure.

expensive, risky, and subject to regulatory barriers. As a

and selecting the innovation ideas with the highest

ideas.

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.

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Section 1: Increasing healthcareexpenditure drives the

The increasing healthcareexpenditure is not sustainable

OECD countries, we see clear increases in the percentage

total Dutch healthcare expenditure was 7%, and 11,4%

this rise in healthcare expenditure cannot be sustained in

the long run.

healthcare innovations. Innovations such as wearables

visits. More intricate innovations that can assist surgeons

technology.

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

shared.

to a broad knowledge and expertise base. Participants

participation can help to decrease regulatory barriers

and allowing PhD students to work closer to the

collaboration with renown and highly talented

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selecting promising healthcareinnovations

PPPs lack adequate tools to

innovation process

innovations, PPPs have to go through a product

the innovation.

to ensure that the innovation idea selected answers

be conducted between several partners in a horizontal

these tools can be used by PPPs.

technological healthcare innovationideas

a role in reducing healthcare expenditure. With this in

be used by PPPs.

and to others struggling with this knowledge gap in the

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2000

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Turkey

Mexic

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oniaPola

nd

Slovak

RepublicIr

eland

Czech

Republic

Luxembourg

Unite

dKin

gdom

Finla

ndH

ungary

Neth

erlands

Greece

Sweden

New

Zealand

Austra

liaN

orway

Belgiu

mD

enmark

Slovenia

CanadaPort

ugalIc

eland

Austria

Switz

erland

France

Germ

any

Unite

dSta

tes

2005 2010 2013

16%

14%

12%

10%

8%

6%

4%

2%

Italy

Japan

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Spain

Chile

PPP increase

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Opportunity

Idea screening stage

Development Testing Launch

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Is this idea in

line with the

PPP strategy?

Is the right organisation structure in place to develop this idea into a product?

Innovation idea

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?

Section 3: A new tool to guide PPPsin assessing innovation ideas

PPPs should select technicalhealthcare innovation ideas byanswering seven questions

PPPs should scrutinise innovation ideas and conduct their

sense, such as the organisation structure and the trust level

innovation idea. Ideas that show no or less potential can

entirely.

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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 tearLife 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

Is this idea in line with the PPP strategy?

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innovation ideas with innovation leaders. An innovation leader is described as an individual close

Does the PPP possess the appropriate resources to develop thisidea into a product?

•••

“A great team with a low ambition is not interesting.” – Innovation manager at aDutch PPP

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select ideas where they can best leverage their individual strengths (e.g. relationships in the

Feasibility •••

•••

“You do not want to be the only one in the world to have an innovation… you look ifothers have complementary technology…” – Innovation manager at a top tier HealthTech company (2014 revenue 20bn)

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•

• can be individuals or entities that do not directly use the products but

.

• End-users

Market analysis •• Product advantage analysis

•

•• Market trend analysis

•

“The ease of use is key. In the end, the product itself will not be as important as thecomfort that it can provide the end-user.” – Professor of Product Development at aDutch University of Technology

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Is there room to include ‘unconventional’ stakeholders during

InclusiveDevelopment

••

“There must be a willingness to pay for the innovation from the market. This is inhealthcare dictated by the insurance companies. If the insurance companies see

because they will give the innovation time to prove itself.” – Innovation director at aworld leading pharmaceutical company (2014 revenue 70bn)

the PPP selecting the innovation idea.

Is the right organisation structure in place to develop this ideainto a product?

• Internal leadership buy in

••

•• Trust

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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 forpurpose 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 thesocietal 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);

•

•

to our clients by focussing on both strategy and operations activities and the alignment thereof;

• between corporates, SMEs and start-ups to accelerate innovation.

14 Public Private Partnerships & Idea selection

Assist our clients in identifying and defining their role in relevant ecosystems and public and private partnerships with the aim to help them create synergiesand added value;

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 organisationsin 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

Contacts

Chris Koehler

Consultant

Lina Lukoseviciute

Senior Associate

Senior Manager

Anton Koonstra

Partner

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www.pwc.nl.